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2/23/10 Midafternoon Report: Consumers are very confident in the economy getting shittier

|Includes: HD, KITD, Spark Networks, Inc (LOV)

The market has hit a speed bump today as consumer confidence fell to its lowest level in 10 months.  Consumers are now less confident than a slightly overweight 16 year old girl with bad acne and a spastic colon on her first day in a new school.  The confidence index dropped to 46, which is below the 56 economists were expecting, and Money McBags has no idea what 46 means but he is confident it is not good in the same way he is confident having one's layfriend say "we need to talk" is also not good.  While the consumer confidence index is a forward looking metric (and if you really want to look forward, just tape a picture of Kate Bosworth to your glasses), the measure of present conditions came in at its lowest level in 27 years.  Wow.  That is not an exaggeration.  People are not only finding jobs harder to get, but growth in the job market seems to be more stagnant than Bobby Jindal's political career (and as an aside, Money McBags doesn't give a fuck about politics because they are all the same person, just a different suit, but has any politician ever had a faster and bigger fall than this Bobby Jindal guy has had without mismanaging a war, getting caught in a crack house, or banging Peggy Eaton?  Jeesh, that guy has disappeared so fast he was on the back of my milk carton this morning).  Anyway, the point here is that investors are now worried that retail spending will be weaker than expectations with the drop in consumer confidence providing a swift kick to the nuts.  In slightly positive macro news, home prices declined but the annual pace of decline slowed from "holy shit" to "is it hot in here?"  The decline was .2% and was worse than the flat expectations, but only by a rounding error.  Interestingly, 15 of the 20 metro areas saw price declines and that sound you just heard was Money McBags throwing up in his mouth.  Ugh.  The market is now teetering after such a nice totter last week, but that is why this is called an inflection point.

 

In stock news, Home Depot followed competitor Lowe's strong quarter yesterday with solid results of their own including their first increase in same store sales since 2006.  Of course the comps for same store sales were much easier due to the fact that the only people buying anything at Home Depot in Q4 last year were repo men and the guys who strip empty houses of their copper wire, but still...READ A WHOLE LOT MORE.....


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