Tonya and PQBON's WebLog
World markets, TAB, 3rd Writethru
Wal-Mart Stores Inc. reports its second-quarter earnings rose almost six per cent to $2.8 billion US, which beat Wall Street's profit expectations.
Sales ran up 10.2 per cent to $76.8 billion US.
However, the world's largest retailer came short of revenue expectations because of high gasoline prices and its shares declined $1.55 to $47.55 US.
"I worry about the effect of higher oil prices," Wal-Mart chief executive Lee Scott said. Scott said higher prices at the pump could erase economic gains for a portion of Wal-Mart's customer base.
I think we are starting to see the limits to the elasticity in the world markets. The cost of fuel is going to trigger a surge of inflation as companies need to take operating costs into account.
Travel is getting ready to snap. Operating costs for airlines are now mostly fuel costs by percentage.
The used car market is probably going to get interesting. Soccer moms are going to have to dump SUVs soon as they will be too expensive to drive.
Oh, and OPEC is trying to keep the OIL teet wet and attractive:
World Tribune.com -- OPEC sees threat from 'alternative energy'
It seems OPEC doesn't like the fact that the world is starting to tire of being gouged by them, then the oil companies, and the government. (The governement give the oil companies HUGE tax breaks then taxes the "consumer" good produced by the oil companies.)