It probably should come as no surprise, but June was a tough month for automakers, and all signs are pointing to more troubles out on the horizon.

All but one major automaker saw their sales drop last month, with Honda Motor (NYSE: HMC) being the sole exception. For the month, Honda actually had a 1% year-over-year sales growth, which given the current market place was an exceptional feat.

So just how bad was June for the automakers? Pretty bad. During the month, combined auto sales fell to 1.19 million vehicles sold, a 266,000 decline from the same period last year. This just continues the trend that we have been seeing all year, amounting to roughly a 10% sales decline during the first half of the year.

Oil continued to remain strong with prices moving slightly higher this morning, ahead of today's weekly inventory report. The main reason for prices remaining strong continues to be worries over oil supplies.

Traders have pushed prices through the $142 mark this morning, with the precious crude trading as high as $142.45, but have cooled off a bit and are now sitting at $141.06, which is $0.09 higher on the day. As Douglas McIntyre discussed earlier, typically such high oil prices are expected to put a crimp in demand, but this time around that may not be the case at all. Already many analysts are stating that demand may not fall too much, even with the record high gasoline prices.

We should get a slightly clearer picture on just how true that is later today when the Department of Energy releases the weekly inventory numbers. Last week inventories increased, but that is expected to reverse this week, and analysts are predicting this week's oil inventory numbers to actually show a decline of around 1.2 million barrels (compared with a 800,000 barrel increase that was reported last week).

Well, I can't predict when the market will turn, or when Toyota's (NYSE: TM) stock will once again be in favor, but I can tell you that I won't be buying its shares here. According to this article, Toyota may not do as well as it planned in terms of sales in 2008 in the U.S. market. The company told investors that year-over-year growth in the number of cars sold is now in question. In 2007, Toyota moved 2.62 million automobiles in the U.S., and for 2008, Toyota wanted to sell 2.64 million cars.

I probably don't need to say it, but I will: considering the negative trends in oil futures, gas prices, consumer confidence, inflation, recession potential, and the housing industry, the fact that the stocks of Toyota, General Motors (NYSE: GM), and Ford (NYSE: F) are having a really tough time right now is not surprising. Toyota's stock closed down 2% on the news of the sales struggle at the end of Tuesday's trading session. That's not a particularly horrible downward move, and the stock is still a few bucks above its 52-week low, but I think there's a chance the stock will take out that low at some point.

Investing in the auto industry might be a dicey move here. Sure, you could pick up some bounces, but being early in this space could prove depressing for even the heartiest investor. Auto sales might get worse before they get better (they're pretty bad now as it is), so I'll stay away from Toyota and this sector.

Disclosure: I don't own any company mentioned here; positions can change at any time.

Ever since Monday I've been stuck with a pressing dilemma: What to do with my economic stimulus payment. To be frank, I was actually surprised to receive a letter from the IRS this week since the payment schedule for those who had filed their returns electronically had passed. I assumed that I was unable to qualify for one.

Without giving away my adjusted gross income, I always knew that I wouldn't get the full $600 that was distributed to most single taxpayers, but I wasn't exactly sure if I'd get a fraction of that. And I don't mean to seem ungrateful or anything, but when I read the letter and found out that I would receive a windfall of $6.95, as you can imagine, I was kind of taken aback, so I immediately called friends and family members to inform them of my newfound fortune.

I mean, what exactly is a person to do with $6.95 in this day and age anyway? With soaring inflation, I'll be lucky to buy myself a one-way bus ticket down the block.

At least consumers with full-sized payments took to the malls in the second quarter, boosting retail sales – let's see how long that lasts. But I just don't know how my $6.95 is going to stimulate anything. I've narrowed my list of options. Here's what I've been grappling with.

The average price of gas finally crossed $4 last week, perhaps on its way to $5.

According to The Wall Street Journal, "The record nationwide average for regular-gasoline prices, announced by auto club AAA, follows Friday's near-$11 surge in oil prices to a record $138.54 a barrel."

While it makes a good headline, it is really no more important than when gas went above $3.95 or if and when it moves above $.4.05. What is important is that, at the current level, gas on its own could break the back of the consumer, and of many businesses.

It is not unusual for drivers to use 20 gallons of gas a week. For that consumer, the difference between $2 gas and $4 gas is $2,100 a year. A family making $40,000 is probably keeping $30,000 after taxes. So, 7% or 8% of their net income now goes to gasoline. That does not leave much for the rising cost of food and a mortgage.

The news is obviously just as bad for industries like farming and the airlines.

If investors want to see where the economy and markets are going, watch gas prices. They are probably a better proxy for how bad things are for the consumer than any other single measure. Gas at $5 would be a catastrophe.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

General Motors Corp. (NYSE: GM) is finally facing the reality of $4 gas. The automaker today announced is plans to close four plants and introduce smaller, more fuel-efficient cars. More importantly, the company is considering selling its gas-guzzling Hummer brand.

Bloomberg News quotes GM Chief Executive Rick Wagoner as saying that the plant closings will save $1 billion and cut North American truck capacity by 700,000 vehicles. About 10,000 jobs may be cut as the result of the closures. GM's board also approved the production of a new small Chevrolet car in a plant in Ohio in 2010 and the Chevy Volt electric vehicle in Detroit, according to the Associated Press.

Wagoner's turnaround plan for GM, which was started in 2005, has hit a brick wall. Sales of pick-ups and SUVs are plunging as gas prices are rising. GM has already shifted much of its health care costs to the UAW but more needs to be done to help the automaker remain competitive.

Consumers are really going to be feeling the pain next weekend when they hit the road for Memorial Day weekend.

Gasoline prices have risen to yet another new high today, climbing to a national average of $3.73 as the summer driving months are on our doorstep.

Sadly, gasoline prices are showing no signs of cooling, and many analysts have already predicted $4 a gallon by the middle of the summer. At the current pace, $4 gasoline may seem cheap before it is all said and done.

The main reason for the price acceleration is, of course, crude prices. Oil prices have doubled over the past year and sent gasoline prices through the roof. Oil prices are still showing no signs of cooling off either, and are still trading above $125 a barrel. This is causing many analysts to question whether this year we will see the typical gradual decline of oil prices through the summer.

I'm lucky. As a freelancer, I don't drive much. Although, I still don't like sky-high gas prices.

Well, in today's Wall Street Journal (subscription required), there's some help. That is, you'll find some cool web sites that provide some tools – even mobile applications -- to drive down the costs at the pump.

Simply put, if you spend some time, you're likely to find gas stations that provide a better deal. Actually, it's possible to save a couple hundred bucks a month.

So, where do you get these web services? Here are some examples:

• GasPriceWatch.com
• Automotive.com
• Mapquest
• AltFuelPrices.com
• interdimensionmedia.com

No doubt, if oil continues to remain at high levels, it's a good bet we'll see many more of these sites hit the Web.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Reuters reports that Wal-Mart Stores, Inc. (NYSE: WMT) posted better-than-expected revenue growth in the first quarter. As I suggested last month, this makes sense to me because Wal-Mart is the beneficiary of the recession diet.

The details suggest that Wal-Mart is becoming more popular than analysts expected thanks to its low prices and the squeezed consumer. Specifically, Wal-Mart sales rose 3.2% rise in April boosted by demand for basic items like groceries and medicine. Analysts, on average, were expecting same-store sales to rise 2.1%, according to Reuters Estimates; Wal-Mart had forecast a gain of 1% to 3%.

Why is this happening? People need food, shelter, medicine, and gasoline to drive back and forth from their jobs. And the price of all those items is rising. I estimate that the median family takes in $838 a week after tax. If that family fills up two tanks of gas a week -- that amounts to 40 gallons times $3.62 a gallon or $145 a week. That's 17% of the weekly budget compared to 15% a year ago when gasoline was $3.10 a gallon. Food prices have skyrocketed as well with rice prices tripling this year.

Oil continues its charge today, with prices rising above $122. At noon, oil is at $122.21, up $2.21.

The bulls have definitely had plenty of reason to continue to push prices higher this week. Concerns over supplies and the weak U.S. dollar continue to lead headlines, adding a boost to the current record high prices. Unfortunately for consumers at the gasoline pumps, higher oil will probably continue to prop up gasoline prices.

In an already uncertain market, any sort of rumors over supplies will always lead to higher prices, and that is definitely playing a part in the current market. Fresh concerns are flowing out of Iraq after Kurdish rebels threatened to start running suicide operations against American interests in the country. Iran is (as always) in the minds of traders as the country continues to defy the United Nations over its nuclear program.

The New York Times reports that the market was up 190 points yesterday and has risen 11% in the last few weeks. Not only that, but AP says that the jobless rate fell to 5% in April -- better than the expected 5.2% rise. So does this mean that happy days are here again? No. And you should use today's rally to take money off the table if you have any.

Why? Things are not good for the consumer who accounts for 70% of economic growth. My mailman stopped me yesterday after my run and gave me a grim look. He is very friendly and talks to many people on his delivery route and elsewhere. And he told me that with gasoline prices so high, many people are canceling their vacations so they can pay their bills.

As I posted here, gasoline prices are gobbling up a bigger and bigger piece of the median family's income. And USA Today reports that worldwide food prices have skyrocketed 45% -- sending consumers on a recession diet. Businesses are having trouble getting money from banks because the banks still have $500 billion in hard-to-value assets which requires them to hold onto every scrap of capital they can get.

Oil prices have dropped slightly today following the weekly inventory report from the U.S. Department of Energy. Typically, the weekly inventory reports are able to move prices one way or the other, but this week we got mixed signals, and consequently, prices have not reacted too much in either direction.

Following the recent surge in oil prices, traders were looking for some concrete data to justify more price moves, but they were given a larger than expected decline in gasoline inventories, but higher than anticipated oil inventory numbers .

Analysts were expecting to see gasoline inventories drop by 2.1 million barrels, but the actual decline was 3.2 million barrels. Not good news for drivers that are already feeling the pain of record high gasoline prices. On the oil side, analysts had been looking to see inventories rise by 1.1 million barrels, and the actual increase was over twice that amount, at 2.4 million barrels.

As Joseph Lazzaro wrote earlier today, oil prices were surging once again in today's market, and traders set a new record, pushing prices up as high as $114.08 today.

Fueling today's rally were concerns over global supply, as news spread that Russian oil production has fallen this year. This is the first time in a decade that Russia is seeing a decline in its production.

Russia is not the only country making headlines. We were also given the news that China had a massive jump in its diesel oil imports last month of a remarkable 49%. So, we are being given both the news that Russia is producing less, while China is demanding more; the perfect recipe for a strong day for oil prices. Other oil producers, Mexico and Nigeria, announced that they had temporarily shut down some of their production as well.

Oil prices have set a new record today, trading through the previous record of $111.80 and moving as high as $112.21 in reaction to this week's inventory report.

As Joseph Lazzaro discussed earlier, today's move has been in reaction to this week's inventory report out of the Energy Department earlier today that showed both oil and gasoline inventories dropped unexpectedly last week. Analysts had been looking to see oil inventories swell by 2.3 millions, but the report actually showed that inventories dropped by a massive 3.15 million barrels.

Gasoline inventories also fell more than expected last week (3.4 million barrels, as opposed to the 2.3 million analysts were expecting to see) which will only apply more upwards price pressure gasoline prices. Gasoline prices are predicted to move up close to $3.60 a gallon by the middle of the summer, while some analysts are already predicting to see them creep even higher, possibly up close to $4 a gallon.

Overnight, the national average set yet another new record, climbing 1.2 cents to $3.343.

If you are sitting at home and hoping to see some relief at the pumps, I would not hold my breath. It looks like we are in for a long, expensive summer when it comes to filling up our tanks at the gas station.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

After yesterday's big jump in oil prices, it looked as though we might see the precious crude break through the psychological $110 barrier today, but that has not been the case. Oil hit a high of $109.64 earlier in the session, but is currently trading in the red at $108.38, down $0.71.

Yesterday's move was more a result of traders betting on future interest rate cuts that it was fundamentals justifying oil trading around the $110 mark. As recession fears continue to linger, you can be sure that interest in commodities will remain high, and oil prices will keep trading at near record levels for at least a little while longer.

Also, as I noted last week, we are quickly approaching the summer driving months. As we see gasoline prices at record levels, we have to expect to see prices creeping even a bit higher as demand starts to build this summer. In fact, last week we were given data that gasoline inventories were falling and demand was increasing. This was the first time since back in January that gasoline demand rose.