By Michael Lombardi, MBA | August 25, 2014
A good gauge for me on how consumers in the U.S. economy are faring has always been the statistics coming out of Wal-Mart.
Wal-Mart Stores Inc. (NYSE/WMT) reported its operating income in its second quarter (ended July 31, 2014) declined by 2.4%. Its subsidiary, Sam’s Club (wholesale store), saw its operating income, after taking out fuel, decline by 10.2%. (Source: Wal-Mart Stores Inc., August 14, 2014.)
For its entire 2015 … Read More
By Michael Lombardi, MBA | March 11, 2014
Understanding the economic slowdown in the Chinese economy is very important because not only does it impact American companies doing business there, but what happens in the Chinese economy—now the second-largest economy in the world—affects the global economy.
While media outlets tell us the Chinese economy will grow by about seven percent this year (30% below the 10% the economy has been growing annually over the past few years), the … Read More
By Michael Lombardi, MBA | January 31, 2014
As more and more public companies warn about weak fourth-quarter corporate earnings reports, quite a number of them are resorting to the use of words like “corporate restructuring” or “cost cutting.” At the very core, these cost-cutting measures mean reducing the number of employees working at these companies.
Let’s face the facts: companies on key stock indices are struggling to keep revenue and profits rising. The share buyback “thing” is … Read More
By George Leong, B.Comm. | January 17, 2014
Investors were happily greeted with a surprise on Tuesday after the reporting of better-than-expected retail sales numbers that suggest the consumer spending market may be alive and well after all.
In December, the headline retail sales reading jumped 0.2%, which was above the Briefing.com estimate calling for a flat result. Even after adjusting for the volatile auto sales, the core retail sales reading surged 0.7% compared to the 0.4% consensus … Read More
By Mitchell Clark, B.Comm. | January 8, 2014
We won’t really get into the heart of the fourth-quarter 2013 earnings season until late January into early February. Smaller companies typically take longer to report, as they don’t have the large accounting departments that blue chips have.
I’ve noticed that quite a number of Wall Street research analysts have been boosting their 2014 full-year earnings expectations. They’re playing the same old game of cat and mouse with corporations and … Read More
By Michael Lombardi, MBA | December 23, 2013
Quietly, without much fanfare or news, the bellwether 10-year U.S. Treasury hit a yield of 2.9% this past Friday—double what it yielded in June of 2012. (Source: Treasury.gov, last accessed December 20, 2013.)
Yes, the Federal Reserve only slightly pulled back on its money printing program and interest rates are already spiking.
And the standard 30-year mortgage rate hit 4.52% last week, up from 3.35% in November of 2012. Mortgage … Read More
By Mitchell Clark, B.Comm. | December 13, 2013
I always want to know what Costco Wholesale Corporation (COST) has to say about its business. It’s a great benchmark stock and a barometer on spending.
The company’s latest quarter produced earnings that came in slightly below consensus. The great thing about this business is the membership fees. They are pure gravy and go a long way in padding the company’s bottom line.
In its fiscal first quarter of 2014 … Read More