As noted in earlier writings, the US consumer is still alive and kicking. Even with the political idiocy lowering consumer confidence in October, US consumers kept on buying.

  • U.S. Retail sales for the month of October rose by +0.4%.

Yes, they are still buying cars, but even when cars are stripped out, retail sales did okay for October. Folks are buying all kinds of things, but home improvement products seem to be riding high. Lowe’s earnings report that just came out corroborates what we just saw from Home Depot.  

  • This morning, Lowe’s reported third quarter earnings per share of 47c, missing analysts’ consensus estimates of 48c, and revenue of $13B, which was above expectations of $12.7B. The company also announced its comparable store sales increased 6.2% in the quarter. Lowe’s attributed its performance to a “strengthening home improvement market,” which is set for more growth in Q4 and “further acceleration in 2014.”

The last sentence is telling for both the near term and for 2014. Yet, one cannot rest its case for continued consumer strength on the notion that the home-improvement industry is strong. One must also look to other discretionary sectors, such as, well, “gadgets.”

  • Samsung Electronics Co said on Tuesday its Galaxy Gear has become the world’s most popular smartwatch with shipments reaching 800,000 since its debut two months ago, defying some market concerns the accessory would fail due to a lack of compelling features.

One might argue that “compelling features” are irrelevant when it comes to the latest and greatest gadget, but that is not really the point, now is it? The point is that Samsung and others are selling a whole bunch of smart watches, along with an even larger bunch more of tablets and smart phones.  

Speaking of smart phones and other such wireless stuff … I came across a company that is interesting from both a support position and price wise. I like what Integrated Device Technology is doing.

  • IDT partnered with Intel to develop technology for wirelessly charging smartphones placed within an inch of an Intel laptop or Ultrabook.

Here is the address. Check it out.

http://www.idt.com/

The technological transformation continues at breakneck speed. It is moving so fast that the product makers are getting ahead of the support companies, which is okay. In fact, it seems logical that the product makers will spur supporting companies to action. After all, the product makers are the ones that create the demand.

  • Qualcomm is pioneering the development of Wireless Electric Vehicle Charging (WEVC) technology as a way to bring Electric Vehicles (EV) to the mass market. Simplicity and Ease of Use are key features of Qualcomm Halo WEVC, which will help drive global EV adoption.

Yet even more is coming with the integration of wireless technology and the auto industry. I am finding out that the need for innovation in this area is driving the movement.

  • Automakers and technology companies need to cooperate more closely to ensure the rapid and smooth development of cars that are fully connected to the Internet global marketing chief Jim Farley told reporters at the Los Angeles Auto Show.

Yes, innovation among the biggest players will bring new and useful products to the market soon enough, as well as gadgets. In the end, it doesn’t really matter which category sells more, as long as the US consumer and global consumer keep on buying lots of both.

 

Trade in the day; Invest in your life …

Trader Ed