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B4 the Bell, Moonday, July 12, 2004


Guest yobob1

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Interesting article on front page of today's Wall Street Journal regarding the impact of higher gasoline prices on low-income workers.

Wal-Mart has been a topic of discussion on these boards.

 

The balance must be very precarious for Wal-Mart according to this statement in the article:

 

"Wal-Mart Stores, Inc. expressed concern this spring that higher gas prices were taking $7 a week out of the wallet of its average customer. Despite the partial falloff in gas prices since then, the nation's biggest retailer says it continues to expect pump prices to crimp its customers' purchasing power."

 

I thought the "experts" on Crapvision have been telling me that the consumer is "resilient" and "ready to spend"??? :blink:

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'Something's Amiss' In Semiconductor Sector

07.12.04, 10:58 AM ET

 

In a further blow to the technological sector after several software vendors issued profit warnings last week, Merrill Lynch downgraded the semiconductor business to "underweight" from "overweight," saying it now believes that industry-wide demand is likely to peak at a lower rate and earlier than it had previously forecasted. The firm said that the relationship between stock price performance and the rate of growth in the sector had broken down and concluded that at a minimum "semiconductor equities offer no upside from current levels." Merrill slashed its forecasted 2005 revenue growth for the sector to 6% year over year, down from 16%. The research house said it is beginning to doubt whether the inventory rebuild it needs to support its industry estimates will occur, which raises the risk that the industry moves into oversupply in 2005.

http://www.forbes.com/markets/2004/07/12/0...yahoo&referrer=

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