In more ways than one, this is the age of “Mad Money.” A huge television audience thrills at the spectacle of money manager Jim Cramer’s CNBC show, during which the host flails his arms and screams at his viewers to buy or sell certain stocks. Cramer’s show is a noisy, frantic success story.
Many of us, however, were brought up in the much quieter early days of “Wall $treet Week,” hosted by the late Louis Rukeyser. Back when the Dow Jones Industrial Average was in triple digits, my father controlled the television, and I watched along with him. This kinder, gentler program always began with Rukeyser’s trademark monologue, a witty and carefully crafted recap of the week’s financial events.
Our editors don’t get too excited about the daily fluctuations of the stock market. Our role is to provide news and analysis for the home channel. That means information for businessmen focused on boosting sales or cutting costs—not for investors speculating on future valuations.
Anyway, stocks go up, and stocks go down. Always have, always will.
But we have to admit, the capital markets have given us quite a show this summer. Since the Dow broke through the 14,000-point barrier in mid-July, shares of home channel companies have been knocked about a bit by the cruel swings of fate. Financial market news has grabbed headlines all summer—and not just in the business section.
Consumers are watching. Some are worrying, but not that much, according to a study from the International Council of Shopping Centers. The survey reveals that 46 percent of respondents who were aware of the market troubles did not change their spending habits and were optimistic that the financial markets would settle down soon. While that’s less than half, it’s still far and away the most common attitude of the 1,000 respondents.
The impact of jittery financial markets is being felt across the industry in ways that are still playing out—including the HD Supply sale. ( See story on page 4. )Again and again the word “volatile market” jumps about the financial news shows.
What can this editorial add to the din? Something I picked up from a 1970s episode of “Wall $treet Week”: “When it comes to the stock market, the man who says, ‘I don’t know,’ is the man who knows what he’s talking about.”
We don’t know what the markets will do, and neither do the majority of those who took our stock market poll. It’s more important for us to know what companies are doing in our market.
Lowe’s execs eye lawn care items, eco-friendly products
Speaking at the Goldman Sachs 14th Annual Global Retailing Conference, held today in New York, Patti Price, Lowe’s general merchandise manager for outdoor living, told investors and analysts what she expects will be trends to watch in the coming months.
“Because of drought [in some regions of the country], customers will be renovating their lawns,” Price predicted. Fall cleanup products and lawn care items are being promoted in Lowe’s stores, she said.
“We’ve had some real success in our holiday programs,” Price said. “We brought in John Deere. The merchants are so focused on moving the business ahead … we’re extremely well positioned for the back half of this year.”
Larry Stone, president and COO for Lowe’s, said new products that have been popular in Lowe’s stores include eco-friendly items and composite building materials.
“Something that’s really evolving, in my opinion, is all these composite products,” Stone said. “[There are] a lot of new products that customers want to use because they’re lower priced and lower maintenance.” Those products include composite siding, shutters and solid core composite flooring, he said.
Additionally, Stone said innovations in locksets, including keyless locks, have shown increased popularity in the home improvement market.
Stone spoke further on Lowe’s overall market position in the middle of a housing downturn, saying the company was “not happy with the negative 2.6 (percent) comps that we recorded” in the second quarter. He also said the company has seen weakness in big-ticket items, installed sales and special order sales.
However, Stone was optimistic about the next few years for the nation’s second largest home improvement retailer, adding, “Lowe’s will be well-positioned, once everything turns around, for further growth in the home improvement industry.”
Dave Heine joins BlueLinx
BlueLinx, one of the industry’s largest building materials distributors, has hired Dave Heine, the former vp-retail development at Do it Best. BlueLinx confirmed that Heine started this week as a senior national account executive, where he will call on Do it Best accounts and other independent dealers.
“I have worked with [Heine] for over 20 years as a customer and always admired his abilities, leadership style and integrity,” said BlueLinx president and chief operating officer George Judd.
Heine, a 28-year veteran of Do it Best, left in July after serving in a number of positions that included vp-lumber and building materials, vp-building products, vp-purchasing for pro and commercial products and manager of the lumber and commodities division.