Parking lots pack in north Texas: my wife noticed that over the weekend and mentioned it to me. I noticed the same thing all week. The parking lots look like those we remember at Christmas pre-Covid. Then we saw this:
And again, Tesla penetration in north Texas is striking.
City not noted but HEB is dominant in San Antonio, TX.
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Meanwhile ...
So I'm sitting on Yahoo Finance Live on jobs report Friday, almost in a state of disbelief. Non-farm payrolls rose by an impressive 261,000. That didn’t strike me as a recessionary print. Then an economist sitting next to me says he sees a recession in 2023 and a 2% rise in the unemployment rate.
Under Armour’s third quarter sucked last week, and so did the company’s forward guidance. And yet the stock was embraced by the market. Crocs had a solid quarter, but inventory ballooned. Red flag, says my former analyst self. The Street welcomed the quarter anyway. Etsy had a squishy quarter, and the market took it in stride. Same goes EBay.
Then Starbucks reported an 11% same-store sales increase despite ever-inflating prices for its various coffees. Where is the recession there?
"What we focus on is really: How do we sustain that ticket?" Starbucks CFO Rachel Ruggeri told me and Yahoo Finance's Brooke DiPalma in an interview. "Because it isn't just pricing, it's actually volume as well, we've seen our customers purchase more... so we're seeing increased volume."
And Mastercard’s CEO Michel Miebach tells me there is nothing in his business that suggests recession is imminent.
"Currently, based on the data that we have, there is no such indication [of a recession]," Miebach said. "The consumer is resilient, and that resilience will last. We have no indication that there is a near-term recession."
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