Posted on 05/18/2022 12:29:32 PM PDT by blam
Remember when freight, trucking and logistics data provider Freightwaves warned at the last day of April that a freight recession was imminent and was set to cripple the trucking sector and broader economy (prompted Jim Cramer to declare that “Mr Freightwaves” knows nothing). Well, as always, Cramer was wrong and Freightwaves was right, and today we are seeing nothing short of bloodbath in the trucking and logistics space, where stocks have plunged the most in over six weeks amid weak outlook from several retailers, including Target, which just like Walmart plunged the most since 1987 as inflation crippled its profit margins, and as it warned that fuel and freight costs soared in the first quarter.
How bad is it looking? On the Target earnings call, the COO said the company is now expecting $1 billion in incremental freight costs this year.
The Russell 3000 Index Trucking Subsector (RGUSPTK) dropped over 10% versus a 3.3% drop in the S&P 500 Index, although both are still sliding.
Big decliners on the trucking index include Saia, JB Hunt, ArcBest, Knight-Swift, Werner, Schneider and Old Dominion
The bottom line is that, just as Freightwaves warned two months ago, prices are now so high that demand destruction is crushing margins, with a recession now just a matter of months.
I remember trying not to freak out
“...peaked on October 9, 2007 with a closing price of 14,164.53. On October 11, 2007, the DJIA hit an intra-day peak of 14,198.10 before starting to screech.
The decline of 20% by mid-2008 was in tandem with other stock markets across the globe. On September 29, 2008, the DJIA had a record-breaking drop of 777.68 with a close at 10,365.45. The DJIA hit a market low of 6,469.95 on March 6, 2009...”
Scary at the time, but sure would have loved to buy some index fund shares at 14,198 even if it was a scary few years... Perfect 20/20 hindsight, sure, but given a decade or three the market goes up nicely...
just my view, and frankly it can be scary, but facts are facts. It’s just when people try to pick stocks or sectors it becomes more like gambling; I ain’t that smart, I’ll just take the average....
Well main street here in my area says times are better than what wall street shows. When things crash, it’s going to be epic here as my area has shifted from logging to the much more profitable tourism/medical sectors. Medical was good, but those Canadians aren’t as plentiful as before...
I lucked out and was hired by a company that matched 6% in 2007.
I started out small and maxxed in 2008. What a ride.
Still with them BTW. Scared to look at my Biden loss.
Moved 3/4ths into cash 6 months ago.
Canadians will always need Americans to look down on.
$5.19 for regular here in DuPage County IL.
L
What are you thinking you’ll do with $100K?
I know it will go back up eventually (the market always does given enough time...
Walmart has their own trucks and truckers, Walmart right now will send you through trucking school AND start you at $100K a year for someone 18 that is a great gig!!!
But Butt.gig says truckers delivering formula just have to drive MORE
This was the article I was looking for:
“It feels like companies — at least big consumer focused ones — are reaching the limit of what they can do in terms of raising prices”
IOW, people at some point do not have the income for any more price increases.
NH is up to $4.54
Let them bitch. The Truckers get their money now go get yours by jacking up all of your prices. It won't bother me.
I gave my son (33 years old) a $100 bill for gas yesterday. He probably doesn’t need it but I felt sorry for him and knew what it would have meant to me to be earning $30k per year with gas prices this high.
“It is here NOW, not months away. And it’s going to last a long time”
****
The fudge the numbers, won’t officially enter a recession till after the election, but everyone is getting squeezed one way or another and it’s getting worse everyday. Funny how all things happen faster now, but they do.
I asked the Black, dreadlocked, baggy pants guy in the Walmart parking lot who was rounding up carts this morning how much they were paying him, He said with a satisfied, $12.00 an hour reply.
This is how they're doing it now:
Me too.
Thanks for reminding me why I'm boycotting them.
I still can't remember why I'm boycotting Home Depot either.
Target stock down 25%. Today.
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