ICSC-UBS Store Sales -1.3%
(Econoday.com) - Sales at general merchandise retailers did not extend their prior week rebound, according to the International Council of Shopping Centers/UBS report. Week-on-week sales for Jan. 31 fell 1.3 percent, marking four of five negative weeks and more than reversing the prior week's 1.1 percent gain. The report blamed cold weather for the results, noting a national mean temperature of 30.5 degrees (Fahrenheit). Despite the softness, year-on-year sales are up a healthy 4.0 percent.
Redbook
(Econoday.com) - Redbook, like the ICSC-UBS report, indicates that consumer spending is being crimped by cold weather. Sales at discount and department store rose only 0.3 percent in January vs. December. The year-on-year pace of growth for the Jan. 31 week was a healthier 3.9 percent, very close to the 4.0 percent pace reported by ICSC-UBS. Other than snacks for the Super Bowl, U.S. consumers are not shopping much, perhaps only a temporary pause that may build pent-up demand.
Challenger Job-Cut Report 117,556
(Econoday.com) - According to the Challenger report, 117,556 job cuts were announced in January, a 26.4 percent increase over the December level, although layoff announcements were 11.1 percent below year ago levels. The largest job-cut announcements were in the consumer products sector, followed by financial, retail, food, industrial goods, and telecommunications industries. In December, the largest layoff announcements were in industrial goods and computer industries. Keep in mind that these data are not adjusted for seasonal variation.
4-Week Bill Treasury Rate 0.895%
(Econoday.com) - Tuesday's auction of 4-week U.S. Treasury bills were awarded at 0.895 percent, 3.5 basis points above last week's auction, which took place before the Fed's statement on Wednesday. Tuesday's award rate is the highest in two months. Higher rates or not, demand was strong as the bid-to-cover rose to 2.66 vs. 2.29 last week despite the larger size of the auction ($19 billion vs. $14 billion).
Auto Sales 5.3M
Light Truck Sales 7.8M
(Econoday.com) - Domestic cars were sold at nearly a 5.3 million unit rate in January, down from the 5.7 million unit rate recorded in December, and less than the 5.6 million unit rate expected by market players. Sales were down from a year ago as well, when domestic cars were sold at a 5.8 million unit rate. Among the major automakers, GM, Ford and Chrysler were down from a year ago (and last month). However, Honda, Nissan, Toyota and Mazda were up significantly from a year ago. Even though these foreign makes are produced in the U.S., profits go back overseas. Thus, domestic auto makers are showing a poorer performance on the profit front with respect to cars.
Light trucks were sold at just under a 7.8 million unit rate, down from the December pace of 8.8 million units, but higher than last January's 7 million unit rate. Ford sales are roughly on par with a year ago, but GM and Chrysler light truck sales are higher than last January. Honda, Nissan and Toyota also posted healthy year over year gains in the light truck market.
All in all, domestic motor vehicle sales were lower than expected in January. This should be negative for the equity market, particularly the domestic auto sector. The news may be more friendly for the bond market since bond investors don't want to see a strong economy since it will bring Fed tightening (eventually).
04.02.03 16:12 #