• 658 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,060 days Could Crypto Overtake Traditional Investment?
  • 1,065 days Americans Still Quitting Jobs At Record Pace
  • 1,067 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,070 days Is The Dollar Too Strong?
  • 1,070 days Big Tech Disappoints Investors on Earnings Calls
  • 1,071 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,073 days China Is Quietly Trying To Distance Itself From Russia
  • 1,073 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,077 days Crypto Investors Won Big In 2021
  • 1,077 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,078 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,081 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,084 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,085 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,085 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,087 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

  1. Home
  2. Markets
  3. Other

Automobile Sales Falling, Inventories Up 7.8%, Interest Rates Rising: What Can Possibly go Wrong?

The census bureau Advance International Trade reports shows the wholesale and retail exports each declined 0.4% from September to October.

Wholesale inventories are down 0.5% year-over-year, but retail inventories are up 3.2% on the strength of a huge jump in automobiles and auto parts.


Advance Wholesale Inventories

Wholesale inventories for October, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $586.9 billion, down 0.4 percent (±0.4 percent)* from September 2016, and were down 0.5 percent (±1.4 percent)* from October 2015. The August 2016 to September 2016 percentage change was revised from up 0.1 percent (±0.2 percent)* to down 0.1 percent (±0.2 percent)*.


Advance Retail Inventories

Retail inventories for October, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $603.3 billion, down 0.4 percent (±0.2 percent) from September 2016, and were up 3.2 percent (±0.5 percent) from October 2015. The August 2016 to September 2016 percentage change was revised from up 0.2 percent (±0.1 percent) to virtually unchanged (±0.2 percent)*.


Inventories

Inventories
Larger Image


Automotive Picture

  • Autos are having a good year, but sales are not expected to beat last year
  • Year-over-year, retail inventories are up 3.2%
  • Automobiles inventories are up a whopping 7.8%
  • Automobiles account for nearly all of the increase in retail trade inventories.
  • Excluding autos, retail trade inventories are up only 0.8%.
  • Interest rates are rising
  • Auto sales are increasingly subprime
  • Trade-ins are increasingly underwater


What can possibly go wrong?

Inquiring minds may also wish to consider …

  1. October 7: Inventory Crisis: Can Parrots Read Charts?
  2. November 18: Inventory to Sales Ratios: What's Really Going On?

 

Back to homepage

Leave a comment

Leave a comment