It looks like Monday's rally will be a memory thanks to Tuesday's earnings disappointments and economic data. Let's take a look at the consumer spending data that was released.

The Commerce Department announced that personal spending was unchanged during June, marking the third-straight month that saw "lackluster consumer demand." Incomes were also flat during June, turning in the weakest month in the past nine.

Continue reading Consumer Spending Slows During June

Consumer Spending Slows During June originally appeared on BloggingStocks on Tue, 03 Aug 2010 13:20:00 EST. Please see our terms for use of feeds.

Continue reading Consumer Spending Stalls Out in April

Consumer Spending Stalls Out in April originally appeared on BloggingStocks on Sun, 30 May 2010 09:00:00 EST. Please see our terms for use of feeds.

According to the Commerce Department, consumer spending increased in March by the largest amount in five months.

Consumer spending increased 0.6% in March, which matched expectations. While this is the good news, the bad news is that the gains appear to have been driven by a depletion of savings, which dropped to the lowest level in 18 months. The personal savings rate fell to 2.7% of post-tax incomes, the lowest level since September 2008. Personal incomes increased a mere 0.3%, which presents concern about minuscule income growth.

Continue reading Consumer Spending Logs Largest Increase in Months as Savings Dwindle

Consumer Spending Logs Largest Increase in Months as Savings Dwindle originally appeared on BloggingStocks on Mon, 03 May 2010 11:20:00 EST. Please see our terms for use of feeds.

Many of us seem to be able to spend money very quickly. We like to get out the credit cards and head to the mall. Financially, this is about as healthy for us as eating an entire gallon of Ben & Jerry's ice cream.

Contrary to what most people think it is not necessary to eat every day and good portion of the world fasts on a regular basis. In fasting people abstain from eating solid food and drink only water or juice for a period of time. Some religious and health advocates recommend regular fasting for daylight hours, one day, three days or even up to weeks at a time. Contrary to what you might think you will survive and you will not be as hungry as you think...

Continue reading Do You Have Enough Fiscal Discipline for a Spending Freeze?

Do You Have Enough Fiscal Discipline for a Spending Freeze? originally appeared on BloggingStocks on Fri, 22 Jan 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Are You Ready for More U.S. Debt?

Are You Ready for More U.S. Debt? originally appeared on BloggingStocks on Thu, 21 Jan 2010 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Do You Know Where Your Money Goes?

Do You Know Where Your Money Goes? originally appeared on BloggingStocks on Thu, 21 Jan 2010 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Federal Reserve holding conferences at luxury resorts -- is that wrong?

Federal Reserve holding conferences at luxury resorts -- is that wrong? originally appeared on BloggingStocks on Fri, 30 Oct 2009 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Gold soars as dollar continues to weaken

Gold soars as dollar continues to weaken originally appeared on BloggingStocks on Tue, 13 Oct 2009 13:50:00 EST. Please see our terms for use of feeds.

Continue reading Kroger first quarter earnings preview

Kroger first quarter earnings preview originally appeared on BloggingStocks on Mon, 22 Jun 2009 16:20:00 EST. Please see our terms for use of feeds.

Continue reading Doomsday Scenario: Higher unemployment, no IPOS, Twitter DOA -- already

Doomsday Scenario: Higher unemployment, no IPOS, Twitter DOA -- already originally appeared on BloggingStocks on Thu, 02 Apr 2009 16:30:00 EST. Please see our terms for use of feeds.

Continue reading Bank of America sponsors the NFL Experience ... a bad move?

Bank of America sponsors the NFL Experience ... a bad move? originally appeared on BloggingStocks on Mon, 02 Feb 2009 19:00:00 EST. Please see our terms for use of feeds.

Continue reading Construction spending in 2008 falls by record amount

Construction spending in 2008 falls by record amount originally appeared on BloggingStocks on Mon, 02 Feb 2009 13:16:00 EST. Please see our terms for use of feeds.

Continue reading Holiday shoppers spent 3% less online in 2008

Holiday shoppers spent 3% less online in 2008 originally appeared on BloggingStocks on Wed, 31 Dec 2008 11:15:00 EST. Please see our terms for use of feeds.

Bloomberg reported, "Marks and Spencer shares slid as much as 21 percent after Marks said today that revenue fell 2.2 percent at stores open at least a year in the fiscal third quarter ended Dec. 29, the first same-store sales drop in 2 1/2 years. The median estimate of eight analysts surveyed by Bloomberg was for growth of 1.1 percent."

Oof. That's almost a -3.5% surprise to the downside.

U.K.'s Marks & Spencer down hard on poor holiday sales originally appeared on BloggingStocks on Wed, 09 Jan 2008 09:18:00 EST. Please see our terms for use of feeds.

I went on a shopping expedition with some friends last night and, like many other shoppers was lured in by a a rack at H&M bearing the following sign: "Buy 1, Get 1 Free" with the usual caveat that the free item must be of equal or lesser value.

I picked out some shirts and stood in line for about 15 minutes while the customer in front of me argued with the cashier about the way she was being charged for her "Buy 1, Get 1 Free" purchases. The cashier patiently explained that, if she really wanted to, she could save some money by paying for everything separately, which would require about nine separate transactions. What?

Here's how it works. Let's say that you buy four items from the "Buy 1, Get 1 Free" sale, with the following prices:

Continue reading Beware the 'Buy 1, Get 1 Free' trap

Beware the 'Buy 1, Get 1 Free' trap originally appeared on BloggingStocks on Sun, 07 Oct 2007 17:10:00 EST. Please see our terms for use of feeds.

I've heard lots of excuses for weight gain -- depression, stress, work, injuries, kids, but this is a new one: Blame your credit cards!

According to a piece on BankRate, people tend to spend more when they use a credit card instead of cash, and that also applies to food purchases: "A Visa study of 100,000 restaurant transactions found that customers spent, on average, 30% more than those who paid with cash. That 30% can be the difference between a small order of fries and soft drink and a supersize order, or it can be the addition of a high-calorie dessert."

That an increase in the size of the check at a restaurant would lead to an increase in consumption is a no-brainer. So here's a diet tip: Pay cash when dining out. It'll keep your wallet heavier and you body lighter.

Is your credit card making you fat? originally appeared on BloggingStocks on Sun, 08 Jul 2007 16:30:00 EST. Please see our terms for use of feeds.

While there are plenty of fast-talking late-night gurus out there who want to give you the information you need to get rich (all for the three easy payments of $29.95, but wait there's more...), the New York Times's Damon Darlin has some of the best personal finance advice that graduates don't want to hear:

• Save 10% of your income right off the top.
• Buy stuff used.
• Enroll in a 401(k).
• Don't borrow money to buy depreciating assets.
• Make your own coffee.

He offers two compelling reasons to start saving early. First, there's the most obvious one. Starting the cycle of compound interest early means your money will grow more. But then there's another one that I hadn't really thought about. Living below your means conditions you to be comfortable with a less expensive standard of living, which will also save you money in your retirement years.

There's another important thing to remember, and it's probably the best reason of all for being wise in your money management. I first realized this paradox when I was talking to my friend "Jim," who, after years of poor spending habits, has run up a huge amount of credit card debt, and lies awake at night worrying about money. He used to make fun of me for my Scrooge-like spending habits and obsession with saving as much money as possible. The other day, we sat down to discuss his problem.

Continue reading Damon Darlin's great advice for recent grads

Damon Darlin's great advice for recent grads originally appeared on BloggingStocks on Sun, 03 Jun 2007 18:10:00 EST. Please see our terms for use of feeds.

According to a piece in today's Wall Street Journal, the troubles in the subprime lending industry could spill over into retailers [subscription required] catering to the same low-income customers. The logic works like this: People who are struggling to pay their mortgages (as so many are, as evidenced by the troubles in the subprime industry) will have to cut back on their spending. Companies that could suffer include Wal-Mart Stores Inc. (NYSE: WMT), Sears Holdings Corp.'s (NASDAQ: SHLD) Kmart, and convenience stores, as well as other companies catering to lower income Americans such America's Car-Mart Inc. (NASDAQ: CRMT).

So what are some companies that investors could look to to avoid exposure to the subprime collapse and its repercussions? Basically, any company catering to an upscale clientele: Tiffany & Co. (NYSE: TIF), Coach Inc. (NYSE: COH), Inter Parfums Inc. (NASDAQ: IPAR), and similar stocks.

And, from that Wall Street Journal article, one of the best quotes I've seen in a long time:

"Having a credit card is kind of like being a millionaire," says Scott Davis, a 37-year-old facility maintenance worker who lives in Arlington, Texas. He says he and his wife, whose household income is $38,000 a year, had "seven or eight" credit cards they used to buy sporting goods, go on vacations and remodel their home.

Hmm...

Wal-Mart and retailers affected by subprime fallout? originally appeared on BloggingStocks on Mon, 02 Apr 2007 14:13:00 EST. Please see our terms for use of feeds.

This is an article that I've been wanting to see for a long time: The new issue of Money features a story called The Weird Science of Pricing: Seven elementary lessons in why things cost what they do and how to use that knowledge to get a better deal. The story is not currently available online, but it's worth picking up a copy of the April issue for it, or you can just read it in the grocery store.

The piece focuses on the tricks retailers use to get you to think you're getting a good deal. Did you know that pricing items at $9.99 instead of $10.00 works because we read from left to right, and process information in that order? This makes me wonder -- would someone who is in America but speaks Hebrew (which is read right to left) for their first language be susceptible to the 99 cent gimmick? Also, what is up with Wal-Mart's "Every Day Low Price" of $1.97?

If the psychology of marketing and money interests you, order a copy of Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the New Science of Behavioral Economics. On Amazon, it's only $9.75.

The secrets of pricing revealed originally appeared on BloggingStocks on Fri, 23 Mar 2007 11:53:00 EST. Please see our terms for use of feeds.

According to a piece recently in the Wall Street Journal (Subscription required), Capital One is offering a new credit card with a flat 1% cash refund on card spending, with another 0.25% annual bonus each November. Fidelity Investments offers a card with a 1.5% cash refund, and EmigrantDirect.com has one offering 1.4%. What makes Capital One's card unique is that if offers very few restrictions and really is a "flat" refund on all spending. Capital One's card has no annual fee and no limits on earnings or other restrictions.

Here's the kicker: Of course, in order for this to work, lots of people have to pay off only a portion of their bill each month. With so many consumers paying 15%+ interest, the 1% cash refund may not be that great of an expense. This is a glaring reminder of how much money credit card companies are making: They can afford to literally give people money. Americans have a serious addiction to consumer credit, and it will result in disaster. With the nationals savings rate below 0, how exactly are we funding our retirement?

Cash back with a credit card originally appeared on BloggingStocks on Wed, 28 Feb 2007 14:35:00 EST. Please see our terms for use of feeds.