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Goldman, Best Buy Beat And Where Tax Rebates Have Gone

Goldman Sachs, as is their custom, beat by a wide margin, $4.58vs. expectations of $3.42. While numbers were lower for many units compared to the second quarter of last year, there was a clear improvement from the last quarter. For example, Investment Banking was 2 percent lower than the second quarter of 2007, but 44 percent higher than the first quarter of 2008.

Trading and Principal Investments were 16 percent lower than the second quarter of 2007, but 9 percent higher than the first quarter of 2008. Asset Management and Security Services bucked the trend: 18 percent higher than the second quarter of 2007, and 5 percent higher than first quarter of 2008.

Goldman closed yesterday at $182.09, traded about $184 prior to its earnings release, and is now trading at $185.68.

Good report from Best Buy . They beat earnings expectations, and affirmed full year earnings of $3.25-$3.40 (expectations of $3.26). They had a very healthy comparable store gain of 3.7 percent, due to an increase in the average selling price because the mix had changed toward higher ticket items like flat-panel TVs, video gaming consoles, notebook computers, and GPs devices. Up 1 percent.

Potentially important report on Alzheimers. Wyeth and Elan trading up about 5 percent as a study of an experimental Alzheimer's drug they are testing show it is effective with some patients.

Interesting commentary from the International Council of Shopping Centers. They put out regularly weekly data, of course, but they noted a special consumer tracking survey taken a few days ago. According to the survey, 19% of households reported spending most of the tax rebate already.

The ICSC also reported the latest results from their monthly consumer gasoline price impact survey which showed that discretionary spending on such items as clothing, shoes, jewelry, consumer electronics, restaurants, spa and beauty services, or other non essential purchases, were being pared by a record 69% of households, with 42% reporting a considerable reduction and 27% reporting a modest reduction in spending.


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