This Is The Color Of The Economy
It’s beige. At least for the remainder of the year.
Or so said the 12 District Banks of the Federal Reserve in their anecdotal
survey of regional economic conditions. When the Fed says the economy, and
especially factory activity, is slow and may not perk up until year’s end,
traders listen since the central bank is perceived to have access to some of
the best information available. Jobless claims rose last week, working to
confirm the Fed’s picture of a still-cooling economy.
Specialty retailers showed declining sales as the
newly jobless cut back on purchases of luxury goods and consumers generally
tightened belts on all goods except for essentials.
The Dow is down 8 at 10,284, the S&P 500 is down
a fraction at 1182.72, and the Nasdaq is 4.26 lower at 1962.10.
Abercrombie & Fitch
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PowerRating) is being given a
16.7% haircut after reporting sales at its stores fell 14% in July. Gap Inc.
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4.6% lower.
Retail discounter Target
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from a spike to within 1% of its all-time high yesterday and then a drop to a loss
with a slight rise today of .30 to 38.30.
Brokers are also dragging the market lower after
downgrades of almost all of the majors. Among the downgraded stocks are Morgan
Stanley DW
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PowerRating), Merrill Lynch
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PowerRating). Lehman Bros.
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PowerRating), who
were also downgraded, is
down 1.73 at 67.89.