Today's Key Market News - Ominous News From Wal-Mart
Futures are indicating a broadly, though modestly, higher open today. Three important pieces of news emanating from corporate sources should impact the market today, while economic news also shares the spotlight. WalMart (NYSE: WMT) reported 49% quarterly earnings growth that was about in line with expectations, if analysts had factored in a four cent benefit from nonrecurring events. More importantly though, WMT warned that global economic drivers were stressing global consumer spending. As a result, the company lowered its guidance for the full year. What WalMart indicates, has broad implications for the entire economy. It's a barometer for retail and manufacturing alike, and perhaps total consumer spending. Within the 10Ks of many manufacturers and distributors, you will find WalMart as the most important customer. So, if WalMart warns of global consumer stress, or distress, you should listen.
Home Depot (NYSE: HD) also reported earnings today, beating consensus expectations while posting a 14% slide in profits. This kind of good news should have no positive impact on broader shares. Also, UBS AG (NYSE: UBS) reported strong earnings growth but warned that its second half could be quite different "if current turbulent conditions persist."
In other important news today, the Producer Price Index for July was reported. The headline PPI figure was hotter than expectations, showing a rise of 0.6%, versus expectations for a 0.1% increase. Excluding food and energy prices, the core PPI rose 0.1% in July, versus expectations for a 0.2% increase. Year over year growth in producer prices are not going to provide comfort to the Fed, but the fact that much of the increase came on energy prices should help sooth concerns. The market will anxiously await the CPI data tomorrow. The trade deficit narrowed, but before celebrating, consider what this may mean for domestic consumer spending. The ICSC-UBS Same-Store Sales Report showed a 0.9% decrease week-to-week. We are returning to our normal publishing schedule, which means "Today's Morning Coffee," with our in-depth value-added analysis is on its way.
Home Depot (NYSE: HD) also reported earnings today, beating consensus expectations while posting a 14% slide in profits. This kind of good news should have no positive impact on broader shares. Also, UBS AG (NYSE: UBS) reported strong earnings growth but warned that its second half could be quite different "if current turbulent conditions persist."
In other important news today, the Producer Price Index for July was reported. The headline PPI figure was hotter than expectations, showing a rise of 0.6%, versus expectations for a 0.1% increase. Excluding food and energy prices, the core PPI rose 0.1% in July, versus expectations for a 0.2% increase. Year over year growth in producer prices are not going to provide comfort to the Fed, but the fact that much of the increase came on energy prices should help sooth concerns. The market will anxiously await the CPI data tomorrow. The trade deficit narrowed, but before celebrating, consider what this may mean for domestic consumer spending. The ICSC-UBS Same-Store Sales Report showed a 0.9% decrease week-to-week. We are returning to our normal publishing schedule, which means "Today's Morning Coffee," with our in-depth value-added analysis is on its way.
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posted by The Greek | 7:54 AM
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