BloggingStocks

Consumer Confidence Hits Three-Month Low

Michael Fowlkes — Tue, 29 Mar 2011 16:00:00 EST

Filed under: Bad News, Consumer Experience, Market Matters, Money and Finance Today, Economic Data, Oil

Consumer confidence fell more than expected during the month of March, hitting a new three-month low as high gasoline prices weigh on the minds on consumers.

The Conference Board's consumer confidence index read 74 during February, but dipped in March all the way down to 63.4. Going into today's reading, analysts had been expecting to see the consumer confidence index decline, but only to 65.

Continue reading Consumer Confidence Hits Three-Month Low

Consumer Confidence Hits Three-Month Low originally appeared on BloggingStocks on Tue, 29 Mar 2011 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Consumer Sentiment Increases, but Not All the News Is Good

Mark Fightmaster — Fri, 25 Jun 2010 14:50:00 EST

Filed under: Economic Data

The University of Michigan consumer sentiment numbers rolled in this morning, showing both good news and bad news. Let's first deal with the good news.

The index increased to 76.0 in late June, which is up from 73.6 in May and 75.5 in mid-June. The latest reading is the highest since January 2008, which is a month after the recession started. What's more, the reading came in better than the estimated 75.5. This is the good news ---- it signals that consumers believe that the economic situation is getting better as they jump into the consuming fray.

Continue reading Consumer Sentiment Increases, but Not All the News Is Good

Consumer Sentiment Increases, but Not All the News Is Good originally appeared on BloggingStocks on Fri, 25 Jun 2010 14:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Best Buy to Start Dealing in Used Games

Beth Gaston Moon — Fri, 18 Jun 2010 12:20:00 EST

Filed under: Best Buy (BBY), GameStop Corp (GME)

I remember 15 years ago, I rarely felt more satisfied than when I sold an unwanted CD for a decent price (still looking for someone to take that Spin Doctors album off my hands). It was also a rush to score a CD that was new (and cheap) to me, even if it had been dismissed by its former owner. That business may have suffered a precipitous fall, the trade of used goods continues to thrive among the gaming community.

Gamestop (GME) makes much of its business (27% in the last quarter, to be exact) in the used trade, and it makes good business sense. Once a consumer buys a title from, say, Electronic Arts (ERTS), the publisher has made its money. The profit from used discs goes to the seller and the middle man (which happens to be Gamestop). While used games comprised just 27% of Gamestop sales last quarter, they made up 48% of the company's gross profit.

Continue reading Best Buy to Start Dealing in Used Games

Best Buy to Start Dealing in Used Games originally appeared on BloggingStocks on Fri, 18 Jun 2010 12:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Consumer Spending Stalls Out in April

Michael Fowlkes — Sun, 30 May 2010 09:00:00 EST

Filed under: Forecasts, Economic Data

In order for the current U.S. economic recovery to continue, people are going to need to spend. But in April, consumer spending had its weakest showing in the past seven months.

Consumption was flat for the month, despite rising incomes, as consumers opted to stash away their money in savings instead of running out and spending it. The savings rate jumped to 3.6% for the month, up from 3.1% during March.

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.

Permalink | Email this | Comments

AT&T Makes It Pricier to Escape Its Contract

Beth Gaston Moon — Sat, 22 May 2010 13:40:00 EST

Filed under: Consumer Experience, Competitive Strategy, Apple Inc (AAPL), AT and T (T), iPhone

I would bet my last dollar that someone out there has done the following: signed the necessary contract required to get that hot new smartphone with the thoughts that an escape clause will be easy to find. AT&T (T) is trying to make that escape clause much less attractive for fans of Apple's (AAPL) iPhone.

Starting June 1, AT&T customers carrying an iPhone will face a $325 termination fee if they break their two-year contract. That's a jump of roughly 85% from the current $175 fine. Ouch!

Continue reading AT&T Makes It Pricier to Escape Its Contract

AT&T Makes It Pricier to Escape Its Contract originally appeared on BloggingStocks on Sat, 22 May 2010 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Kroger Fourth Quarter Earnings Preview

Michael Fowlkes — Mon, 08 Mar 2010 18:00:00 EST

Filed under: Earnings Reports, Forecasts, Consumer Experience, Market Matters, Kroger Co (KR), Costco Wholesale (COST), Recession

The earnings season is winding down, but there are still many big name companies due to report, and tomorrow features grocer giant Kroger Co. (KR). Kroger will be reporting its fourth quarter numbers before the market opens.

Going into tomorrow's earnings report, analysts expect Kroger to earn $0.34 per share. Should the company match analyst estimates it would mark a 34% drop from the 53 cents it earned during the same period last year.

Continue reading Kroger Fourth Quarter Earnings Preview

Kroger Fourth Quarter Earnings Preview originally appeared on BloggingStocks on Mon, 08 Mar 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

TJX Cos Trades Higher Following Better-Than-Expected Earnings

Michael Fowlkes — Wed, 24 Feb 2010 11:00:00 EST

Filed under: Before the Bell, Earnings Reports, Forecasts, Good news, Consumer Experience

Shares of TJX Cos. (TJX) are trading higher this morning after the company posted better than expected numbers for its fiscal 2010 fourth quarter.

Going into this morning's earnings report, analysts were expecting the company to post earnings of 91 cents per share. The company outpaced estimates with a reported 94 cents per share.

Continue reading TJX Cos Trades Higher Following Better-Than-Expected Earnings

TJX Cos Trades Higher Following Better-Than-Expected Earnings originally appeared on BloggingStocks on Wed, 24 Feb 2010 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Recovery now more dependent on consumers than ever

Tom Johansmeyer — Mon, 12 Oct 2009 16:45:00 EST

Filed under: Bad News, Economic Data, Recession

Consumer spending may be down, but its share of U.S. economic activity has increased. So, we're now more dependent than before on the average Joe's open wallet to guide us out of the recession. A year ago, consumer spending accounted for 70% of the U.S. economy. Since then, it has edged up to 71%. The long-term average is approximately 65%.

The increase in consumer spending's share of the economy indicates that other sectors fell harder. Business and construction spending on new equipment have constricted at a record rate since 2008. This isn't unusual, though, as consumer spending tends to take a larger piece of the economic pie during downturns.

Continue reading Recovery now more dependent on consumers than ever

Recovery now more dependent on consumers than ever originally appeared on BloggingStocks on Mon, 12 Oct 2009 16:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Homebuilder sentiment rises to highest level in 10 months

Michael Fowlkes — Thu, 16 Jul 2009 18:00:00 EST

Filed under: Forecasts, Good news, Products and Services, Consumer Experience, Money and Finance Today, Housing, Recession, Financial Crisis

We have all been waiting to hear news that the housing market has rebounded, and we got a little indication that things were improving today as homebuilder sentiment rose this month to its highest level since September.

According to the National Association of Home Builders its index of builder confidence jumped two points in July to 17. This is the first time the index has hit 17 since last September.

Continue reading Homebuilder sentiment rises to highest level in 10 months

Homebuilder sentiment rises to highest level in 10 months originally appeared on BloggingStocks on Thu, 16 Jul 2009 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Consumers take out their frustrations at auto shows

Michael Fowlkes — Tue, 14 Apr 2009 14:00:00 EST

Filed under: International Markets, Products and Services, Management, Consumer Experience, Conventions and Conferences, Ford Motor (F), General Motors (GM)

The last year has definitely been a rocky one for the auto industry, with American icons General Motors (NYSE: GM) and Chrysler both receiving billions of dollars from Washington in hopes of avoiding bankruptcy. While a lot of the country feels as though it is important to try to save the auto companies, not everyone is so happy with the recent events, and have been taking out their frustrations at recent auto shows.

The first sign that things are not quite the same as before can be noticed on the auto show floors. Typically in the past, the major auto makers spared no expense at setting up elaborate displays to lure in people to check out their most recent designs. This is not the case anymore for some of the industry's major players.

Continue reading Consumers take out their frustrations at auto shows

Consumers take out their frustrations at auto shows originally appeared on BloggingStocks on Tue, 14 Apr 2009 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Seven reasons the market is not going up any time soon: #5 The consumer has stopped spending

Michael Shulman — Sat, 24 Jan 2009 16:30:00 EST

Filed under: Bad News, Consumer Experience, Recession, Financial Crisis

The consumer spending component of the economy was 70% of GDP, but it is shrinking fast and it will not come back to former levels for a long time -- maybe ever.

Unemployment and fear of unemployment are killing spending. I believe we will see double-digit unemployment before we see 5% again.

Another drag on spending is a lack of credit, as credit cards get pulled back, home-equity lines are withdrawn and people realize that buying the next piece of breakable stuff made in China may not be the wisest thing to do with their money right now.

At the end of last year, the U.S. savings rate went up for the first time since 1952, and saving money does not repair economic damage -- right now, it aggravates that damage.

Be sure to read all 7 reasons the stock market isn't going up any time soon.

Michael Shulman is a contributor to OptionsZone.com.

Seven reasons the market is not going up any time soon: #5 The consumer has stopped spending originally appeared on BloggingStocks on Sat, 24 Jan 2009 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Credit bubble warning & Merrill forcasts oil price drop

Sheldon Liber — Thu, 02 Oct 2008 13:18:00 EST

Filed under: International Markets, Forecasts, Consumer Experience, Rants and Raves, Merrill Lynch (MER), Personal Finance, Commodities, Oil, Recession

Oil prices are significantly down from the summer high of $147 per barrel. Wednesday October 1, New York's main contract, light sweet crude for November delivery, lost $2.11 to close at 98.53 dollars a barrel.

Now Merrill Lynch (NYSE: MER) is slashing its outlook for oil prices. Not only do their analysts believe that oil will drop below $90 a barrel next year, but they add that there is a possibility it may drop below $50. Demand is shrinking and it's hard to call a bottom.

Given all the turmoil in the financial markets this year and with a looming "consumer credit bubble" being discussed in most business publications, it would be very advisable to use any savings from lower oil prices to pay down credit card debt.

Continue reading Credit bubble warning & Merrill forcasts oil price drop

Credit bubble warning & Merrill forcasts oil price drop originally appeared on BloggingStocks on Thu, 02 Oct 2008 13:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

McDonald's may raise prices on dollar menu

Eliza Popescu — Thu, 24 Jul 2008 11:45:00 EST

Filed under: Consumer Experience, Competitive Strategy, McDonald's (MCD)

Despite high commodity prices and challenging market conditions that put pressure on consumer spending, McDonald's Corp. (NYSE: MCD) was able to surprise Wall Street by reporting a stronger-than-expected second quarter profit. However, investors' positive reaction didn't last too long as the company announced it anticipates further high beef costs, which could lead to an increase in prices on its popular dollar menu.

Back in May, McDonald's executives announced they had no plans to make changes to its "everyday affordability" concept, but the company's chief operating officer, Ralph Alvarez, recently noticed that the dollar menu is coming under pressure from rising ingredient costs. "The cost implications of having that value menu have changed when you see what's going on in beef and chicken," Alvarez stated to the Chicago Tribune.

Alvarez didn't offer too many details on how the dollar menu might change. However, the news is not great for all you lovers of the famous double cheeseburger. A spokesman for the hamburger giant said one of the company's strategies that is already tested in some markets was to lift prices for this best-selling U.S. sandwich.

Looking ahead, McDonald's said it expects cheese cost to jump by 21% this year in the U.S., while the price it pays for chicken may see a growth in a range between 5% and 6%. For 2008 U.S. beef costs, the company also anticipates an increase between 8% and 9%.

Rising commodity prices was one of the main reasons why the research firm Deutsche Bank to lower its rating on the company to a hold earlier this morning.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

McDonald's may raise prices on dollar menu originally appeared on BloggingStocks on Thu, 24 Jul 2008 11:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Automakers see potential in cars with smaller engines, but more amenities

Michael Fowlkes — Mon, 07 Jul 2008 14:22:00 EST

Filed under: International Markets, Products and Services, Consumer Experience, Competitive Strategy, Ford Motor (F), Oil

With gasoline prices sitting at record highs, and the auto industry struggling to deal with the situation, there is a new shift in the design of cars. Historically, when you bought a smaller engine car, that engine came in a vehicle that had far less in the way of comfort and amenities... well, that is changing.

Think back a few years. You went to your local auto lot to pick up a new car, and your first choice was what size engine you wanted, the heavy duty 8-cylinder, 6, or 4-cylinder car? Suppose you decided the 8-cylinder was for you, can you picture the car that supported this engine? Typically these cars had all the bells and whistles you could imagine: the sunroof, the leather seating, fancy radios, power windows, etc. Basically, the bigger the engine, the better the "packaging" that it came along with.

Now, picture the 4-cylinder car from the past. Not much to picture here. Power windows? Doubtful. Yes, the 4-cylinder cars of the past were typically your bare bones vehicle with few fewer amenities than those coming with the 8-cylinder alternatives. If you were lucky, you would at least get some power steering in the car, but that was not always the case either.

Continue reading Automakers see potential in cars with smaller engines, but more amenities

Automakers see potential in cars with smaller engines, but more amenities originally appeared on BloggingStocks on Mon, 07 Jul 2008 14:22:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Survey shows airline passengers not happy with service

Michael Fowlkes — Tue, 20 May 2008 12:38:00 EST

Filed under: Bad News, Products and Services, Consumer Experience, Competitive Strategy, Employees, Southwest Airlines (LUV), AMR Corp (AMR)

We have all been there before, standing beside the luggage conveyor belt after a long flight, quietly praying for our luggage to magically pop out of that little window and slide our way. When our luggage finally shows up, it typically means the end of a long day that generally has the potential to stress out most travelers.

For me at least, as long as I get my luggage I am satisfied with my trip. But for a lot of us, there are several factors we use to grade the airlines, and a recent survey shows that customer dissatisfaction is running at near record level lows. These factors include anything from planes leaving and arriving on time, to the service inside the plane from fight attendants, to just how easily mishaps get handled by the agents at the ticketing desks.

Having lived in Europe the past few years, I have been no stranger to the long distance flight back and forth to the States. I suppose I have traveled roughly 100,000 miles on airlines over the past couple of years, and I have to say that for the most part I have had very pleasant experiences. My girlfriend was unfortunate enough to have lost some luggage for a week over this past Christmas, but other than that, I have been pretty lucky.

Continue reading Survey shows airline passengers not happy with service

Survey shows airline passengers not happy with service originally appeared on BloggingStocks on Tue, 20 May 2008 12:38:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Gasoline prices hit new record high

Michael Fowlkes — Thu, 17 Apr 2008 13:10:00 EST

Filed under: International Markets, Forecasts, Bad News, Products and Services, Consumer Experience, China, Russia, Middle East, Economic Data, Commodities, Recession

Gasoline prices have continued their charge up to $4 a gallon today, rising to a new record high of $3.418 after jumping 1.9 cents last night.

Gas prices have been rising sharply over the past few months in reaction to record high oil prices and a weak dollar, and some analysts are already predicting that we will be seeing $4 a gallon before it is all said and done. Diesel prices also rose to a new high, hitting $4.146 per gallon.

As we noted in earlier discussions, gas prices are only expected to move higher in the next few months as more drivers hit the road for their summer vacations. The heavy demand summer driving months always apply upward pressure to prices, and despite the current high prices, summer demand will definitely push prices even higher.

Continue reading Gasoline prices hit new record high

Gasoline prices hit new record high originally appeared on BloggingStocks on Thu, 17 Apr 2008 13:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Farmers expected to plant more soybeans acres

Eliza Popescu — Mon, 31 Mar 2008 12:50:00 EST

Filed under: Forecasts, Consumer Experience, Economic Data, Agriculture

According to a statement from the Department of Agriculture, soybean planting is expected to increase 18% this year as higher corn costs made farmers focus on more favorable crops, such as soybeans.

The USDA expects farmers to plant 74.793 million acres with soybeans, up from 63.631 million last year. For the past year, soybeans prices saw a surge of 67% as supplies were not able to offset increased demand. The effects resulted in farmers' decision to boost soybean production. Soybeans produce their own nitrogen fertilizer, resulting in lower growing expenses.

As soybean output is expected to rise, the Department of Agriculture expects to see the amount of corn planted falling 8.1% to 86.014 million. Surging oil prices over the past months lifted ethanol demand. People focused on ethanol as a main form for alternative energy as it turns the crop into fuel, which resulted in higher corn prices.

With corn planting declining, consumers will have to take more money from their wallet when paying bills at the grocery store; food producers will compensate their costs by higher food prices. Drivers will also have to pay more as higher ethanol prices will be passed on their bills for filling cars up with the renewable fuel.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

Farmers expected to plant more soybeans acres originally appeared on BloggingStocks on Mon, 31 Mar 2008 12:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

March consumer confidence index plunges to a 35-year low

Joseph Lazzaro — Tue, 25 Mar 2008 11:40:00 EST

Filed under: Bad News, Consumer Experience, Economic Data

U.S. consumer confidence is at its lowest level since the Nixon Administration of the 1970s, according to one measure. U.S. consumer confidence fell in March 2008 to 64.5 -- a 35-year low -- the Conference Board announced Tuesday.

Economists surveyed by Bloomberg News had expected the index to drop to 73.0 in March 2008. The February 2008 index was revised to 76.4.

The board said that consumers' evaluation of present-day conditions weakened significantly. Those claiming business conditions are "bad" increased to 25.4% from 21.3%, while those claiming business conditions are "good" declined to 15.4% from 19.1%. Consumers' assessment of the job market was considerably more pessimistic than last month. Those saying jobs are "hard to get" rose to 25.1% from 23.4%, while those claiming jobs are "plentiful" decreased to 18.8% from 21.5%.

Continue reading March consumer confidence index plunges to a 35-year low

March consumer confidence index plunges to a 35-year low originally appeared on BloggingStocks on Tue, 25 Mar 2008 11:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Bankruptcy filings spike in February

Beth Gaston Moon — Wed, 05 Mar 2008 14:02:00 EST

Filed under: Bad News, Economic Data, Recession

In the latest sign that the U.S. economy has hit a rough patch, the number of Americans filing for bankruptcy zoomed higher last month. According to Automated Access to Court Electronic Records, a bankruptcy and data management firm, an average of 3,960 bankruptcy petitions were filed on each day in February. That represents an 18% jump from January's numbers and 28% above February 2007.

In fact, according to The New York Times, February was the busiest month for new bankruptcy filings since Congress changed the bankruptcy laws in 2005, making the act of filing more complicated and costly. Professor Jack Williams, scholar in residence at the American Bankruptcy Institute, told the Times that "This number of bankruptcies may be under-representative of the true financial distress consumers are feeling because of the steps Congress has taken."

Continue reading Bankruptcy filings spike in February

Bankruptcy filings spike in February originally appeared on BloggingStocks on Wed, 05 Mar 2008 14:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Sharper Image gift cards null and void

Beth Gaston Moon — Tue, 04 Mar 2008 17:33:00 EST

Filed under: Bad News, Consumer Experience, Marketing and Advertising, Scandals

Have your eye on an Ionic Breeze air cleaner, a top-of-the-line massage chair, or an interactive droid? You may be out of luck if you were counting on using your Sharper Image gift card. The retailer of whimsical electronics and housewares recently filed for Chapter 11 bankruptcy protection, rendering these cards essentially useless.

Brian Riley -- senior analyst with research firm TowerGroup -- told MarketWatch that unused Sharper Image gift cards could amount to as much as $25 million. Sales clerks are telling customers the plastic cards are no longer valid for use in stores or online. A company hotline says that shoppers can inquire again in mid-March, as company officials are still trying to determine if the cards will ever be honored.

Additionally, Sharper Image rival Brookstone is offering a 25% discount for any shopper who turns in a (worthless) Sharper Image gift card when making an in-store purchase.

The truly disgruntled gift-card holders can investigate filing a petition in court, but the time and costs required would likely outweigh the gift card's value. Federal law indicates that the holder of the card may have a claim against the bankruptcy estate, but it's likely a worthless endeavor and Riley notes "There's a good chance the dollars will be lost."

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Sharper Image gift cards null and void originally appeared on BloggingStocks on Tue, 04 Mar 2008 17:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments