By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – Thanksgiving is a day we tend to look at the more favorable side of life. For a day, we get to acknowledge and be grateful for what we've got. And for the economy, it's more than just words this week. Powerful data has come to support our optimism. I'm Maxine Shapiro with KERA Marketplace Midday.
Those people filing for initial unemployment benefits dropped last week to a 21-month low. Durable good orders were up. That means businesses are buying more heavy machinery and raw materials. Manufacturing activity in the Midwest was stronger last month, according to a Chicago regional report. Personal income rose one-tenth of a percent and personal spending rose four-tenths of a percent. For now, we'll ignore the fact that we're still spending more than we're making.
What I find interesting though - not only does this paint a nice, positive picture as we enter into the holiday season, but the economists and analysts that do all the forecasting and expecting on these numbers were wrong. Severely wrong. For instance, they were expecting initial jobless claims to be up 17-thousand. They expected consumer spending to be down. And their mouths must have dropped when they read Chicago's regional report in manufacturing. They were way off. I've often joked about the ivory tower these specialists put themselves in. Maybe it's not a joke. Anyway, the market couldn't be happier on a relatively light volume day. Tomorrow, markets are closed as everyone overeats and Friday is only a half-day of trading.
One of my favorite retailers to talk about is Irving-based Michael's Stores. After the stock took a little nosedive earlier this month, it's been fighting its way back and its third quarter earning announced late yesterday made everyone gasp - with delight. Earnings per diluted share were 46 cents. Last year - 26 cents. Net income for the third quarter, $33 million. Same period last year, $13.5 million. I guess we can expect more homemade presents.
And if you're in the market for a used car, head on down to Houston. Enron has to get rid of a few and they've got such a deal for you. For KERA Marketplace Midday, I'm Maxine Shapiro wishing you a very Happy Thanksgiving.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m. To contact Maxine Shapiro, please send emails to mshapiro@kera.org.