New home sales fell 8.5% to an annual pace of 526,000, the lowest since October 1991. The median price fell 13.3% from the same time last year and inventories rose to 11 months. Anybody counting on a rebound in new home sales, (which did not include any economists, all of whom forecasted a drop in new home sales albeit not as sharp) may be sorely disappointed. The homebuilder stocks, showing a complete disregard for reality, are rallying.
In completely unrelated news, SBUX disappointed investors with another lousy quarter coupled with a reduced forecast. Apparently, stretched consumers are starting to wake up to the fact that you don't actually have to pay $2 for a cup of coffee. You can make it at home for pennies. The stock has been pounded in the past two years, almost completing its transformation from a growth stock to a value stock. Pretty soon, it may be cheaper than a caramel macciato.
Thursday, April 24, 2008
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Pretty hilarious how everything is bullish. Those monkeys on CNBC were just quoted as saying "a stronger dollar will attract foreign investment" in an attempt to explain today's rally? Really? Come on now. Funny how higher oil prices have been great for E&P companies and therefore great for the s&P. I can't wait to read how bullish lower oil prices are because its great for the consumer. Great job with this blog, btw. Mock on.
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