Economic Reports 11/28/07
Summary: The economy grinding down with durable orders declining for 3rd straight month, a large 3.1% drop in non defense capital goods.
The housing debacle continues as existing home sales rate hit an 8 year low with inventory +45% and prices plunging 6.3%.
Go figure?... Staples, the world's largest office-supplies retailer, beat the number with a lesser than expected drop in profits. Net income -5.3% on a -3% drop in North American same store sales.
Stock up 11% on the "good news", but still down 18% YTD compared to Office Depot's -56%.
Dollar Tree, beat the number on +10.5% profit on a 1.9% increase in same store sales, but issued downward forward guidance. Stock down 4% on the "bad news".
Durable Orders Oct -0.4% vs prior -1.4% Full Report
Inside the number: 3rd straight decline; ex transportation -0.7%; ex defense -0.9%; non defense capital goods ex aircraft -2.3%; non defense capital goods -3.1%.
Existing Home Sales Oct -1.2% at 4.97M vs prior 5.04M Full Report
Inside the number: Lowest sales pace since 1999. Median sales price declining 5.1% YOY.
Total inventory +1.9% at 4.45M, a 10.8 month supply; YOY +45.9%. Q4 & 2008 ARM reset foreclosures should increase this by another 45% and drop prices further.
SFR's flat, West -2.5%; YOY -20.8%; YTD -18.8%; inventory +4% to 10.5 months; YOY +45.8%; sales price YOY -6.3%; YTD -4.4%.
YTD SFR Sales by region: NE-12.5%; MW -13.9%; S -17.4%; West -30.9%
The housing debacle continues as existing home sales rate hit an 8 year low with inventory +45% and prices plunging 6.3%.
Go figure?... Staples, the world's largest office-supplies retailer, beat the number with a lesser than expected drop in profits. Net income -5.3% on a -3% drop in North American same store sales.
Stock up 11% on the "good news", but still down 18% YTD compared to Office Depot's -56%.
Dollar Tree, beat the number on +10.5% profit on a 1.9% increase in same store sales, but issued downward forward guidance. Stock down 4% on the "bad news".
Durable Orders Oct -0.4% vs prior -1.4% Full Report
Inside the number: 3rd straight decline; ex transportation -0.7%; ex defense -0.9%; non defense capital goods ex aircraft -2.3%; non defense capital goods -3.1%.
Existing Home Sales Oct -1.2% at 4.97M vs prior 5.04M Full Report
Inside the number: Lowest sales pace since 1999. Median sales price declining 5.1% YOY.
Total inventory +1.9% at 4.45M, a 10.8 month supply; YOY +45.9%. Q4 & 2008 ARM reset foreclosures should increase this by another 45% and drop prices further.
SFR's flat, West -2.5%; YOY -20.8%; YTD -18.8%; inventory +4% to 10.5 months; YOY +45.8%; sales price YOY -6.3%; YTD -4.4%.
YTD SFR Sales by region: NE-12.5%; MW -13.9%; S -17.4%; West -30.9%
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