BAGAKOAA December 15, 2009 Round and round she goes.
December 15, 2009 Round and round she goes.
PPI reported today and as was mentioned over the weekend, anything over 1.2% would be worrisome and it was. Coming in at 1.8% got all the talking head heads saying “inflation”. Also mentioned was the Empire State (NY) report coming way below expectations at 2.55 OUCH. Contrary to that report was the Industrial production and factory utilization number which came in close to but beating expectations. The market remained sideways, being down about 25 at midday. BBY, well I bought my calls mentioned this weekend, they beat 43 cents a share, so I should be sitting pretty. The stock and the calls got the crap kicked out of them despite announcing 53 cents a share and revenue increases. WHY? They said 4th quarter margins will erode due to flat screen panel TV sales and notepad sales will have lower margins (that is where their top line revenues came from and you can thank Walmart for banging the margins). Ouch, but they are March options so there is time and I am optimistic. The calls are down 11% right now. And to continue the weeping in our beer, the housing index dropped one more point. The two issues driving the number down were a tightening of credit and consumers concerns over employment. Of course credit is tight. All the banks are paying the government back money most did not lend in the first place and now they are getting in debt to pay back the money and the consumer has not seen a dime in lent monies. Is anyone else a little surprised to see these banks pull about 75 billion out of their behinds in about 4 weeks?