Filed under: Earnings reports, Consumer experience, Google (GOOG), Cisco Systems (CSCO), General Electric (GE), Coca-Cola (KO), Market matters, Citigroup Inc. (C), Tiffany and Co (TIF), Costco Wholesale (COST), Economic data, Presidential elections, Delta Air Lines (DAL)
More than ever, Wall Street cares about you. Not you personally but average folks who don’t have multi-billion dollar bonuses, pay obscene rents to live in a refrigerator-box sized apartments or have to write essays to get their children admitted to nursery schools that are more selective than some universities.
Believe it or not, you with your 2.5 kids, house in the suburbs and job with your annoying boss are very much on the minds on Wall Street heading into the third quarter. Your pessimism about the economy perplexes pundits and politicians who continually argue that the economy is strong. A recent ABC News/Washington Post poll showed that 35% of Americans rate the economy as excellent or good.
So who’s right, Wall Street or Main Street?
So far, it depends on the neighborhood where the consumer lives. Costco Wholesale Corp. (NASDAQ: COST), whose customers tend to be well-heeled, today reported fiscal fourth quarter results that while not great, beat Wall Street’s expectations. Meanwhile, Petsmart Inc. (NASDAQ: PETM) shares are tanking after the pet supply retailer cut its third quarter and 2007 profit forecast, citing weak consumer spending. So, consumers are confident enough to buy huge bags of pet food but worried about buying regular sized bags of Alpo.
Maybe the rich are happier than everyone else is because of the shrinks that some banks are offering to their very wealthy clients. Tiffany & Co. (NYSE: TIF) Chief Executive Michael Kowalski told CNBC that the luxury retailer expects a “strong” holiday season. Meanwhile, September same-store sales are forecast to have their SLOWEST growth rate in five months, according to Bloomberg News.
Tomorrow, we’ll see if consumers are drowning their sorrows in caffeinated beverages. PepsiCo Inc. (NYSE: PEP), which now is facing a consumer revolt over bottled water, is expected to report a 10.7% gain in sales this quarter. Earnings are expected to rise to 96 cents compared with 88 cents a year earlier, according to Thomson Financial. Analysts expect Coca-Cola Co. (NYSE: KO), which reports Oct. 17, to have profit of 68 cents compared with 62 cents a year earlier on revenue of $7.3 billion.
Consumers will be back in focus when results are reported in the coming weeks for companies ranging from Citigroup Inc. (NYSE: C) to Mattel Inc. (NYSE: MAT) to General Electric Co. (NYSE: GE) to Google Inc. (NASDAQ: GOOG) to Delta Air Lines Inc. (NYSE: DAL) and to Domino’s Pizza Inc. (NYSE: DPZ). Not only will Wall Street be paying attention, but so will the presidential candidates who will be discussing the economy ad nauseum as the primary season looms.
Read | Permalink | Email this | Linking Blogs | Comments
Entries (RSS)