What a joke that this POS is popping on this news. The long term story remains in tact on this dead company. Day has proven that he doesn't know his ass from first base when it comes to merchandising. He only knows how to cut costs and shrink a companies size. It's no surprise really, since his mentor, Eddie Lampart, has proven to be a fraud in terms of his abilily to do more than move assets around with regards to Kmart and Sears. These guys do not understand merchandising. Anyone with half a brain in their heads could wald into a company and fire people and cut advertising costs. The last nail in the coffin for this POS stock is the fact that the consumer is tapped out. Even in a good economy this company with their pissed off employees and crappy products would be struggling. As for speaker wire and batteries...they can be bought more cheaply at a number of retailers. Most consumers have now figured this out. This is a screaming short here. See you at 2 bucks.
There are also signs that the Fed’s shift to an easy-money policy last year — designed to revive the economy and calm the credit markets — may be adding fuel to the inflation fire. By pumping more dollars into the economy to spur growth, the Fed has been weakening the dollar, according to Conrad DeQuadros, a senior economist at Bear Stearns.
"As result of that (easing) the value of the dollar has fallen," he said. "And that’s making the cost of goods that we get from abroad more expensive."
Related coverage U.S. producer prices soared in January Consumer confidence weakens significantly Foreclosures up 57 percent in the past year
Consumers are already feeling pinched and tell pollsters they’re hunkering down as the economy slows. A majority told a recent Reuters/Zogby poll that they expect a recession in the next 12 months. That was the first time since the poll began asking the question last September that a majority said they expect recession.
Those recession fears may take some of the wind out of the sails of the government’s fiscal stimulus plan — which will begin mailing tax rebates in a few months to try to get the economy moving again.
In a research note, Bear Stearns said the results "don't change the fundamental outlook for the company. We continue to have longer-term concerns about brand relevancy and sustainable earnings growth without" revenue gains. -By Kevin Kingsbury and Veronica Dagher, Dow Jones Newswires; 201-938-2136; firstname.lastname@example.org
NEW YORK (Reuters) - Consumer confidence fell sharply in February to its lowest in five years and expectations slumped to a 17-year trough, giving fresh fuel to fears that the economy has already slid into recession.
The Conference Board said on Tuesday its index of consumer sentiment fell to 75.0 in February from a downwardly revised 87.3 in January, originally reported as 87.9.
The median forecast of 67 economists polled by Reuters was for a reading of 82.0.
The present situation index fell to 100.6 from a downwardly revised 114.3 in January, while the expectations index fell to 57.9 -- its lowest in 17 years -- from a downwardly revised 69.3.
(Reporting by Burton Frierson; Editing by James Dalgleish)