Friday, June 26, 2009
US Savings Rate Hits 15 Year High
June 26 (Bloomberg) -- Saks Fifth Avenue is cutting orders 20 percent after posting losses in the last four quarters. Kia Harris says some customers at the Washington shoe store where she works are buying one pair rather than three.
In the recession following a borrowing binge that sent consumer debt to the highest level ever, Americans are shutting their wallets and building their nest eggs at the fastest pace in 14 years. (more)
Pre-opening Comments for Friday June 26th
U.S. equity index futures are slower this morning. S&P 500 futures lost 4 point. Traders are concerned about the “cap and trade” bill that could reach the House of Representatives today. The bill includes significant taxes on corporations that have carbon dioxide emissions. Higher corporate expenses related to higher corporate taxes will be passed to consumers.
Economic news released at 8:30 AM EDT was mildly encouraging. Consensus for May Personal Income was a gain of 0.3% versus 0.5% in April. Actual was a gain of 1.4%. Consensus for May Personal spending was a gain of 0.4% versus a decline of 0.1% in April. Consensus was a gain of 0.3%. (more)
Economic news released at 8:30 AM EDT was mildly encouraging. Consensus for May Personal Income was a gain of 0.3% versus 0.5% in April. Actual was a gain of 1.4%. Consensus for May Personal spending was a gain of 0.4% versus a decline of 0.1% in April. Consensus was a gain of 0.3%. (more)
Have Uranium Stocks Found A Bottom?
We had a reasonable upside day but in the end nothing has yet significantly changed from the short or intermediate term. One indicator to watch is the daily volume action. For an up day the volume was pathetic and not encouraging at all. Of course it just might be speculators taking time off with the various holidays that are on-going at the present. I guess we’ll just have to watch and wait and see how things develop.The Merv’s Daily Uranium Index closed higher by 5.81 points or 3.45%. There were 30 winners, 12 losers and 8 going nowhere. The largest stocks were somewhat mixed. Cameco gained 5.1%, First Uranium lost 0.2%, Paladin gained 4.4%, Uranium One was confused and went nowhere and USEC gained 8.0%. The best winner of the day was Strateco with a gain of 13.9% while the loser of the day was Crosshair Exploration with a loss of 7.0%. (more)
Housing Headache
06/25/09 Baltimore, Maryland The U.S. housing market is back to underperforming expectations. We saw the latest existing home sales and new home sales numbers this week — both failed to meet the Street’s forecast.
The National Association of Realtors reported 2.4% growth in existing home sales Tuesday, to an annual rate of 4.7 million. The stock market — no longer satisfied with meager housing growth — wanted a rate of 4.9 million and suffered a small sell-off.
Even though sales managed to increase in back-to-back months for the first time since 2005, existing home prices are still plummeting, distressed sales are still booming and the market is still saturated with a 9.6-month supply of homes… a positive sign that the free market still works, but hardly reason to call a bottom. (more)
Marc Faber Predicts Inflation, Social Unrest, War
Gloom Doom and Boom editor Dr. Marc Faber joins Alex Jones on June 23, 2009. Dr. Faber discusses the reasons for our current crisis, problems with the so-called solutions the government and FED has come up with, hyperinflation, future trends and his forecast in the near- and long-term. (more)
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