Wal-Mart Brings it Home with Great Earnings; A New Pew Study is Out and the Results May Surprise You; SEC Takes a Swing at Golfer Phil Mickelson

Sweet…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Wal-Mart showered us with the news of its higher than expected quarterly profits and that’s a good sign since Wal-Mart’s success is a barometer of the economy and how well it’s behaving. Wal-Mart, in case you weren’t aware, is considered to be less upscale than its rival, Target. Because Target did not do so well this quarter and Wal-Mart did, experts are quick to point out that those in a more modest income bracket are still spending, at Wal-Mart anyways, and that is always a welcome occurrence in a healthy economy. Wal-Mart can thank an increase in drug prices, which is not as bad as it sounds. Hey, people need their medicines. But that’s just one small reason for the impressive digits. Warm weather helped keep Wal-Mart’s utility costs lower, which also contributed to those welcome numbers. Don’t laugh. Any little bit helps, even if it does involve the thermostat. A profit is a profit and Wal-Mart’s was $.304 billion. That figure is actually less than last year’s $3.34 billion, but its because of investments to improve the retailer and not because of any negative reasons. The retailer shelled out $2.7 billion to increase entry level pay and that also helped out with some of that profit. The company added 98 cents per share when analysts expected only 88 cents per share. And who doesn’t like it when analysts get it wrong, right?   As a result of the fiscally delightful news, shares of Wal-Mart made a nice little jump today, which is especially good since shares had gone down over 20% in the last twelve months.

The gig is up…

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Image courtesy of ddpavumba/FreeDigitalPhotos.net

The Pew Research Center just released the results of its latest study, this time tackling the ever-popular “sharing economy.” For whatever reason, the center wanted to know what 4,787 U.S. adults think about Uber and Lyft, Kickstarter and Airbnb, to name a few. Turns out that 72% of U.S. adults have used at one of 11 different shared/on-demand platforms.  73% responded that they’d never heard of the term “sharing economy.” But that’s nothing compared to the 89% who didn’t know what a “gig economy” is. Then things started to get dicey. 15% of the people surveyed said they’d used shared and on-demand services like Uber and Lyft, yet 30% said they’d never heard of those apps. Household income and age played a big role in who used the apps. 41% of U.S. adults with annual incomes of more than $100,000 had used at least four of the services, which was more than three times that of adults whose annual incomes were less than $30,000. 39% of college graduates used at least four of the services. Not nearly so much for those who don’t have higher degrees. For those in the 50+ range, 44% said they’ve used at least four of the services. But of the 65 and above set , only 5% used the services. While ride-sharing apps were – no great shock – used primarily by young adults in big cities, middle aged adults were the primary users of services offered by apps like Airbnb. And even though Kickstarter and other crowd-funding apps have only been around since 2009, 22% of U.S. adults apparently gave donations through them. Yet 61% of those who responded said they’d never heard of the term “crowd-funding.”

Inside out…

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Image courtesy of Gualberto107/FreeDigitalPhotos.net

Pro-golfer Phil Mickelson is under investigation and it has nothing to do with sports. The SEC has set its sights on the five time major winner for insider trading. Apparently, Mickelson scored almost a million bucks and the SEC wants him to pay it all back…with interest. To be fair, Mickelson is classified as a “relief defendant” which means he hasn’t been officially accused of…anything. He does, however, still have to pay back his insider trading profit of $931,738.12, not to mention another $105,291.09 in interest. But hey, it’s better than doing time, a possibility for the two men who supplied him with the non-publicizied information. And those two men happen to be well known sports gambler Billy Walters and former chairman of Dean Foods, Thomas Davis. It’s no mistake that the “ill-gotten gains” were from Dean Foods. Which explains why Walters and Davis are now both facing criminal charges, while Mickelson’s attorneys get to call their client, who currently ranks 17th in the world, an “innocent bystander.”

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