Market Movers: Consumer Prices Drop as Energy, Food prices decline; Intel earnings; Credit Card Defaults Rise; Walmart CEO says recession will continue….

This is the best thing we have going for us in this economy, the drop in oil (now $49.12 barrel ) that follows the drop in GDP….Here’s hoping Congress doesn’t kill it with cap and trade….

Techs are getting slammed after Intel report...NAS down 20 now to 1605 worst of all the averages, DOW now pretty much flat at 7913, S&P also flat at 838…

CNBC has a countdown clock up to TOTUS speaking yet AGAIN, on taxes now, the HARD SELL, good luck with that, yes the media will swoon and report without fact checking the supposed wonders of the TOTUS 13 a week temporary tax cut ..attempts to diffuse Tax Day Tea Party sentiment with this will surely fall flat….there is only so long you can spin, Americans know a giant looming tax increase when they see it, and this Obama Budget IS a giant looming tax increase on all of us for generations….you just cannot spend this way…GIVE US LIBERTY, DON’T GIVE US DEBT…oops got my Tea Party rant going a little early there eh? LOL!!

CNBC:

Consumer prices fell in March and recorded their first 12-month drop since 1955, government data showed Wednesday, as slumping demand amid a severe recession pushed down energy and food costs….Energy prices dropped 3.0 percent in March after rising 3.3 percent the previous month. The food index eased 0.1 percent for a second straight month in March, the department said.

…Core prices, which exclude food and energy items, rose 0.2 percent after rising by the same margin in February. That compared to analysts’ prediction for a 0.1 percent increase….

Funny, when I LIVE the way I do, I still see an increase in my bills, must be because I NEED FOOD AND ENERGY to survive thus you cannot exclude them to get an accurate idea of consumer budget pinch.. this used to lead them to say it wasn;t that bad for the consumer when Oil was over 80 and now they say it is good when our prices paid are up excluding those factors, maroons.

cereal1

What works on paper will not tell you when consumer sentiment will turn around, you need the headline number to really see what is happening to our budgets. ..anyway thank Gawd oil is down but the grocery stores aren’t passing back a whole lot of savings in my neck of the woods, cereal prices are still extortionate I tell you! (anyone with school age kids is at the mercy of General Mills, hey there’s a good stock idea, I like to buy what I know :0) )

sigh sorry in full rant mode today, LOL

Back to the economic data:

Meredith Whitney right again :0), as CapitalOne shares drop off credit card  delinquency rise:

Capital One Financial, a leading issuer of MasterCard and Visa credit cards, said U.S. credit card defaults rose in March as unemployment soared, sending its shares lower.

In a regulatory filing Wednesday, the company said the annualized net charge-off rate for U.S. credit cards — debts the company believes it will never collect — rose to 9.33 percent in March from 8.06 percent in February. The rate for loans at least 30 days delinquent fell slightly, to 5.08 percent from 5.1 percent…

And WalMart who should know, says this recession isn’t ending anytime soon…

The head of Wal-Mart Stores, the world’s biggest retailer, said on Wednesday there remained a “lot of stress” in the economy and he did not anticipate a quick end to the recession….”It’s not a ‘V’ recession, where we’re just going to bounce out and come back,” he said….

…Duke said that by the end of the month, just before traditional paydays, customers are left with only a few dollars to spend.

He said the downturn will lead to a “sustained change” in the way that families live. But he added that customers are buying electronics, like flat screen TVs or video game systems, as they cut back on entertainment outside of the home or scrap vacation plans…..

April 15, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Unemployment Statistics, Wall St.

%d bloggers like this: