09-25-2009, 03:42 PM
That article should read, "Signs that the economy could be improving".
We could see increases in sales from now until the end of the year and still end up with a negative GNP for the year. It really depends on how much sales increases.
Even in this article they say things like "leveling off" and "have stopped declining".
The following sentence is bull shit.
Another positive data point came from FedEx Corporation (NYSE:FDX), which raised guidance for earnings for the first fiscal quarter to 58 cents from the previous guidance range of 30-45 cents. FedEx is considered a sign of the trend in the economy due to its large volume. However, it should be noted that the increased guidance was due mostly to cost cutting and increased volume of international shipments.
While I agree that FedEx is probably the best single company to judge on how the economy is rolling however not if you go based on stock price.
Even railroad traffic is starting to decline at a slower rate, with the latest report showing that U.S. freight rail carloads declined 16.4% in August 2009, measured on a year over year basis.
Again while declining less is an improvment over declining more doesn't really mean the economy is improving.
More Bull Shit
Although the stock market liked this report, it did not like results from retailer Best Buy (NYSE:BBY), which reported a 22% drop in earnings in its fiscal second quarter. However, the second quarter is backward looking and the company raised its outlook for earnings for the year to $2.70-3. Management also provided positive commentary with Jim Muehlbauer, the CFP saying, "customer traffic patterns have started to indicate signs of stability."
This coming from the guys who needs there stock price to rise in order to keep there jobs. Nothing stock whores say can be trusted nor has any relevance.
Vllad
We could see increases in sales from now until the end of the year and still end up with a negative GNP for the year. It really depends on how much sales increases.
Even in this article they say things like "leveling off" and "have stopped declining".
The following sentence is bull shit.
Another positive data point came from FedEx Corporation (NYSE:FDX), which raised guidance for earnings for the first fiscal quarter to 58 cents from the previous guidance range of 30-45 cents. FedEx is considered a sign of the trend in the economy due to its large volume. However, it should be noted that the increased guidance was due mostly to cost cutting and increased volume of international shipments.
While I agree that FedEx is probably the best single company to judge on how the economy is rolling however not if you go based on stock price.
Even railroad traffic is starting to decline at a slower rate, with the latest report showing that U.S. freight rail carloads declined 16.4% in August 2009, measured on a year over year basis.
Again while declining less is an improvment over declining more doesn't really mean the economy is improving.
More Bull Shit
Although the stock market liked this report, it did not like results from retailer Best Buy (NYSE:BBY), which reported a 22% drop in earnings in its fiscal second quarter. However, the second quarter is backward looking and the company raised its outlook for earnings for the year to $2.70-3. Management also provided positive commentary with Jim Muehlbauer, the CFP saying, "customer traffic patterns have started to indicate signs of stability."
This coming from the guys who needs there stock price to rise in order to keep there jobs. Nothing stock whores say can be trusted nor has any relevance.
Vllad