Wednesday, May 8, 2013
Economy/Stock Market: What We Could Learn From Disney & Whole Foods?
Yesterday the Californian reported their business numbers from the first quarter 2013 (cnbc.com). Disney´s revenues climbed 10% from the year-ago period, their profit jumped 32%. Revenue from Disney’s media networks rose 6% , while parks and resorts revenue was up 14% and studio entertainment climbed 13%.
It looks like that Joe Sixpack is getting more free-spending. This is not really a proof for the popular thesis that the U.S. is still in a recession and that the average American is getting poorer - quite the contrary.
And Disney isn´t alone prospering. Sales at upmarket grocery stores are accelerating, a sign that a lot of people are better off. Yesterday Whole Foods Market reported that same-store sales (without new shop openings) rose 6.9% in the fiscal second quarter that ended April 14 (finance.yahoo). So far this quarter, those sales are up 9.4%.
It´s no wonder that stocks from Disney and Whole Foods are partying and with them the whole U.S. stock market. American consumers are on a buying spree thanks to steady job growth, rising home prices and the rally on the stock market.