Richard Hastings Higher Quotations

If spending on durable goods slows down, it could also weaken sales of consumer electronics, especially on big ticket items that have a higher profit margin but are interest rate sensitive.

The consumer is jittery. Rising debt levels, inflation and higher gasoline prices are all real threats and a drag on spending.

But higher costs were enough to hit operating income in the quarter, which grew only 7 percent, compared to a 7.4 growth rate for the comparable nine months. Despite these issues, the quarter held up very well and the holiday quarter should hold up nicely,

I continue to believe that the effects of higher gas prices on the consumer are overestimated. Most of the important measures of discretionary spending such as furniture, lawn and garden and food sales held up nicely.

The company is showing stable business improvement and there's a higher probability the stock will shoot higher in the near-term.