The Economic News Is Horrible

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The economic news over the last 24 hours has been just horrible:

  • After the close yesterday, Cisco (CSCO) said orders in October fell off a cliff – down 9% from the year ago period – and forecast a 5-10% drop in revenues for the current quarter.
  • Retailers this morning reported one of the ugliest months of all time.  Here are October same store sales for some select retailers:

Neiman Marcus -26.8%

Abercrombie & Fitch -20%

Saks -16.6%

Gap -16%

Nordstrom -15.7%

JC Penny -13%

Kohl’s -9%

Macy’s -6.3%

Target -4.8%

  • Casino operator Las Vegas Sands (LVS) said that they will be in violation of their debt covenants at the end of the 4th quarter which “raises substantial doubt about the company’s ability to continue as a going concern”.
  • General Motors North American President Tony Clarke speaking to auto parts suppliers in Detroit last night said the next 100 days will be critical for the auto industry.

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