It’s one thing when Wal-Mart is complaining about a weak consumer, it’s another thing when dollar stores are cutting prices and closing stores.
Family Dollar released earnings today and it’s a depressing story. In April the company closed stores and cut prices, now it will double down as the recovery fails to trickle down to the lower classes.
“Our results continue to reflect the economic challenges facing our core customer and an intense competitive environment,” said Chairman and Chief Executive Howard Levine, adding sales have remained below expectations.
The company reported a third straight decline in same-store sales narrowed its full-year forecast to $3.07-$3.17 from $3.05-$3.25. The lone bright spot was in sales of food and tobacco and the company announced to roll out broader beer sales.
One good sign in the corporate world is from IBM. Business investment has been a major laggard but the company announced today it will invest $3 billion in research on new chips.
In any case, S&P 500 futures are 20 points below fair value as worries about Portugal dominate.
S&P 500 futures
