{"id":4155,"date":"2015-01-06T14:25:15","date_gmt":"2015-01-06T19:25:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4155"},"modified":"2015-01-06T14:25:15","modified_gmt":"2015-01-06T19:25:15","slug":"consumer-companies-issue-most-negative-guidance-ever-despite-lower-gasoline-prices","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4155","title":{"rendered":"Consumer Companies Issue Most Negative Guidance Ever, Despite Lower Gasoline Prices"},"content":{"rendered":"<h4 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/01\/06\/despite-plunge-in-oil-and-gasoline-prices-consumer-companies-issue-most-negative-eps-guidance-ever\/\" target=\"_blank\">Consumer Companies Issue Most Negative Guidance Ever, Despite Lower Gasoline Prices<\/a><\/h4>\n<h4><strong>But the oil-price crash was supposed to\u00a0<em>goose<\/em>\u00a0consumer spending.<\/strong><\/h4>\n<p>The price of oil continues to crash relentlessly. WTI trades at $49.80 as I\u2019m writing this on Monday after hours, down 5.5% for the day, and down 54% since June 2014.<\/p>\n<p>The oil-price plunge is eating into the American oil boom, munching on income statements and balance sheets of drillers that have gorged on junk debt. It\u2019s chewing up junk bonds and leveraged loans. It\u2019s frying oil and gas stocks. It\u2019s starting to wreak havoc among suppliers to the industry. Layoffs are starting to cascade across the oil patch, company by company, as capital expenditures and operating expenses get slashed in an effort to stay liquid long enough to make it through the oil bust.<\/p>\n<p>Oil busts are terrible creatures in oil and gas states, such as Texas, Oklahoma, or North Dakota. The last one persisted for a long time. It took down banks, housing, restaurants, oil-field equipment manufactures and their suppliers, grocery stores\u2026. Pickup truck sales plummeted, boat sales dried up. Jewelry stores fell on hard times.<\/p>\n<p>This time, it\u2019s different. Fracking is immensely capital intensive. Wall Street is up to its ears in it. Hedge funds and private equity firms will join banks in taking the hits on their equity stakes and on the debt they hold.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumer Companies Issue Most Negative Guidance Ever, Despite Lower Gasoline Prices But the oil-price crash was supposed to\u00a0goose\u00a0consumer spending. The price of oil continues to crash relentlessly. WTI trades at $49.80 as I\u2019m writing this on Monday after hours, down 5.5% for the day, and down 54% since June 2014. The oil-price plunge is eating [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[161,1775,860],"class_list":["post-4155","post","type-post","status-publish","format-standard","hentry","category-economics","tag-consumerism","tag-oil-price-collapse","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4155"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4155\/revisions"}],"predecessor-version":[{"id":4156,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4155\/revisions\/4156"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}