Wal Mart is like the US economy - it keeps growing, booming, and pissing off liberals with all the good news
Dow hits another record as crude prices drop
By TIM PARADIS and MADLEN READ
NEW YORK — Investors regained some swagger Thursday, sending the Dow Jones industrials to another record close after oil prices plunged and a drop in jobless claims indicated the economy wasn't slowing too quickly.
Light, sweet crude, which has already declined 15 percent in 2007, fell to its lowest level since May 2005, settling down $2.14 to $51.88 a barrel on the New York Mercantile Exchange. It was the lowest settlement price since May 27, 2005.
A pullback by investment funds and an unusually warm winter has unnerved some investors, and in recent days suggested that a period of enormous profits at energy companies might be nearing an end.
"I think low oil prices are good for everybody that doesn't make oil, and the market is starting to realize that not everyone makes oil," said Scott Merritt, a U.S. equity strategist at JPMorgan Asset Management.
Of course, the energy markets are volatile, and if crude bounces back up to $60 a barrel, pump prices wouldn't budge much. Factors that could cause oil to rise again are the possibility of escalating tension in the Middle East.
The Wall Street Journal reported that a senior member of the Organization of the Petroleum Exporting Countries said OPEC's ministers will consider the need for an emergency meeting to weigh what the group should do to halt the slide in oil prices.
The National Oceanic and Atmospheric Administration said Thursday that it expects warmer-than-normal weather in the Northern United States to continue through March. This winter has caused a glut in petroleum products.
Crude oil's steep decline follows an eight-year bull market, which led oil from a low of $10.35 a barrel in 1998 to a record intraday high above $78 last summer.
Global Insight energy analyst Kevin Lindemer said that typically, for every dollar the price of crude goes down, you'll see a corresponding 2- to 2.5-cent drop in prices at the gas pump.
In other economic news, the Labor Department said the number of newly laid off workers seeking unemployment benefits fell to a six-month low last week, dropping by 26,000 to 299,000 on a seasonally adjusted basis.
On Wall Street, the Dow Jones industrial average rose 72.82, or 0.59 percent, to 12,514.98, topping the previous record close, which came Dec. 27, by 4.41 points. It marked the Dow's 23rd record close since October. Broader stock indicators also rose.
Also Thursday, heating oil dipped 4.51 cents to $1.4804 a gallon. Gasoline futures fell 3.87 cents to $1.3905 a gallon. Natural gas prices dipped 46.3 cents to settle at $6.292 per million British thermal units.
Wal-Mart economy keeps lid on US inflation: study
The "rock-bottom" pricing strategy used by retail giant Wal-Mart has filtered into the US economy and kept a lid on inflation, according to a study commissioned by the company and released.
The study by the economic research firm Global Insight concluded that the discounting along with other measures led to cumulative savings for consumers of 263 billion dollars between 1985 and 2004, or 895 dollars per person.
http://www.chron.com/disp/story.mpl/business/topstory/4465400.html
The researchers concluded that Wal-Mart had a positive impact on US employment, generating 210,000 jobs by 2004, or 0.15 percent more that would have existed without Wal-Mart.
The report also found that Wal-Mart's low pay for employees led to a 2.2 percent drop in overall wages across the economy but maintained that this was offset by falling consumer prices.
"Consumers earned less in nominal dollars, but their income bought them more in the economy with Wal-Mart because of real disposable income gains," the study concluded.
The study drew criticism from Wal-Mart's chief detractors, who argue that the company benefits from a variety of public subsidies while depressing wages.
Tracy Sefl, spokeswoman for Wal-Mart Watch, a leading critic of the company, said her group's research, based on data from congressional reports, concludes that Wal-Mart benefits from at least 1.5 billion dollars in public subsidies each year.
Additionally, Sefl noted other reports showing retail workers lost 4.7 billion dollars as a result of depressed wages and that nearly half of the children of Wal-Mart employees qualify for the government's Medicaid health program for the needy.
"Wal-Mart is only telling part of the story, which is not the same as telling the whole story," Sefl said.
Global Insight concluded that over the 1985-2004 period, Wal-Mart led to to 9.1 percent decline in food prices, a 4.2 percent decline in prices of other goods and a 3.1 percent decline in overall consumer prices.
The research firm found Wal-Mart led to a 0.75 percent improvement in the overall efficiency of the economy, based on capital intensity and lower import prices.
http://www.breitbart.com/news/2005/11/04/051104175027.waok0hd4.html