Whirlpool reports great numbers, and raises full year guidance: so why is the stock down 5 percent?
1) cautious commentary on the conference call. Overall, management was relatively upbeat, but noted several headwinds for the second half:
a) "Relatively more difficult comparisons, the end of the appliance stimulus program and a lack of inventory rebuilding experienced in the retail channel during the first half."
b) "the global economic environment will remain fragile but we do expect demand to be positive, albeit at a slower rate than in the first half of the year."
2) another month of downbeat housing numbers, this time June housing starts and permits, and a lousy May revision. Housing starts for May were revised downward this morning to 574,000 from 593,000, while June's number, at 549,000, was considerably below the 575,000 consensus.
What's happening? Builders are seeing a greater slowdown due to the expiration of the homebuyer tax credit and are adjusting permits downward accordingly.
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