business inventories posts
FeedPosted Sep 12th 2010 12:30PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Forecasts, Best Buy (BBY), FedEx Corp (FDX), Oracle Corp (ORCL), Economic Data
Last week, the Fed's Beige Book report confirmed that the economy continues to grow, but at a slower pace than in previous periods. This week will bring plenty of economic data to either support or contrast with the Fed's findings.
- Monday: Federal government budget balance for August
- Tuesday: Business inventory numbers from July, TIPP Economic Optimism Index for September, retail sales data from August
- Wednesday: Industrial production in August, Empire State Manufacturing Survey for September, Import Price Index for August
- Thursday: Producer Price Index for August, Philly Fed Survey for September, the Current Account Balance in the second quarter, jobless claims for last week
- Friday: preliminary University of Michigan Consumer Sentiment Index, Consumer Price Index for August, real earnings data for August
Continue reading The Week in Preview: FedEx, Best Buy, Oracle and Lots of Economic Data
Posted Mar 12th 2010 4:20PM by Jon Ogg (RSS feed)
Filed under: Toyota Motor Corp. (TM), Citigroup Inc. (C), Potash Corp. of Saskatchewan (POT), GameStop Corp (GME)
Today was mixed on the economic front. Retail sales were actually positive rather than the expected drop of -0.2%. But then University of Michigan's Sentiment reading came out at 72.5, a reading about 2 points short of estimates. The January Business Inventories being flat in January had no real impact. The gap up this morning on the back of international markets came off and shares struggled between positive and negative territory all day. Yet one more day where the closing bell's direction was not known until the final minutes. Here were today's unofficial closing bell levels:
Dow 10,624.69 +12.85 (0.12%)
S&P 500 1,149.99 -0.25 (-0.02%)
Nasdaq 2,367.66 -0.80 (-0.03%)
Top Analyst CallsContinue reading Closing Bell: Markets Remain Muddled (C, GME, TM, POT)
Posted Jul 15th 2008 3:50PM by Joseph Lazzaro (RSS feed)
Filed under: Industry, Economic Data, Recession
U.S. business inventories rose a lower-than-expected 0.3% in May,
the U.S. Commerce Department announced Tuesday.Economists
surveyed by Bloomberg News had expected March 2008 inventories to rise 0.4%.
Further, inventories are now up 5.2% from May 2007, the Commerce Department said. The April business inventory statistic was revised higher to 0.5%.
Meanwhile, the inventory-to-sales ratio declined to 1.24. A year ago, the ratio was 1.26.
Economist David H. Wang told BloggingStocks Tuesday the May inventory data can be interpreted two ways, with with positive or negative dimensions, depending on how one views the current corporate stance toward the U.S. economy, and the prospects for economic growth in the quarters ahead.
On the one hand, businesses are keeping inventories at a bare minimum -- a fact that typically is bearish, short-term, for the U.S. economy, Wang said.
Continue reading May U.S. business inventories increase 0.3%, below estimate
Posted May 13th 2008 11:45AM by Joseph Lazzaro (RSS feed)
Filed under: Industry, Economic Data, Recession
U.S. business inventories
rose a scant 0.1% in March 2008 (pdf), the U.S. Commerce Department announced Tuesday -- the smallest inventory rise in a year.
Economists
surveyed by Bloomberg News had expected March 2008 inventories to rise 0.5%.
Also, the March 2008 inventory-to-sales ratio declined to 1.27. Meanwhile, the February 2008 business inventory statistic was revised higher to an increase of 0.2%.
Inventories: Two-sided statEconomist David H. Wang told BloggingStocks Tuesday the March 2008 inventory data can be interpreted two ways, with positive and negative dimensions.
On the one hand, businesses are keeping inventories at a bare minimum -- a fact that typically is bearish, short-term, for the U.S. economy, Wang said. "It can reflect a lack of business confidence in the economy's ability to grow in the short run," he said.
On the other hand, those same lean inventories mean that any sustained increase in demand will require businesses to ramp-up production quickly -- a phenomenon that generally limits the length of a recession / economic downturn, Wang said.
Another positive dimension to lean inventories: companies will not have to trim as many employees if the U.S. economy slows further. "In all, this month's inventory report contained a lukewarm stat," Wang said. "The best aspect of it is, businesses are prepared for a further downturn in the economy, should it occur."
Posted Apr 14th 2008 10:48AM by Joseph Lazzaro (RSS feed)
Filed under: Bad News, Economic Data, Recession
U.S. business inventories increased 0.6% in February 2008 to $1.468 trillion, the
U.S. Commerce Department announced Monday. Economists
surveyed by Bloomberg News had expected inventories to increase by 0.6% in February 2008.
Meanwhile, sales declined 1.1% in February 2008, the category's largest drop since January 2007.
Also, the inventory-to-sales ratio, an indicator of demand, increased to 1.28 in February 2008 from 1.26 in January 2008.
Economists, business executives, monetary officials and investors/traders monitor the inventories statistic because it can indicate business optimism and/or growing sales in the months ahead.
Further, the ratio of inventories-to-sales can help investors determine whether production demand will expand or contract in the near future -- a major factor in U.S. GDP growth.
Economic Analysis: A sub-par February 2008 business inventories report. The key statistic is the 1.28 inventory-to-sales ratio, which continues to increase. It's been rising since late 2007 -- and a sustained rise historically indicates, at minimum, economic sluggishness up ahead; at worst, a recession. For example, the ratio increased throughout 2001, prior to the start of the U.S.'s last recession. Conversely, it decreased throughout the ensuing, nearly 6-year economic expansion.
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