Two MarketWatch stories caught our attention today as a new quarter begins, putting to bed the worst quarter for U.S. stocks in five years.
Jim Farley, chief of Ford Motor Co.‘s (NYSE: F) marketing division, was quoted as saying that rising demand for fuel efficient vehicles was a "seismic shift in consumer preferences."
Unfortunately for his company, the increased demand for the small, efficient Ford Focus sedan, didn’t come close to balancing out a 16.7% decline in heavy, inefficient trucks.
And Ford isn’t the only company hurting. General Motors (NYSE: GM) and even Toyota (NYSE: TM) also announced double-digit declines in U.S. sales, and Honda (NYSE: HMC) show declines as well–evidence that consumers are indeed tightening the purse strings.
Stocks On Upswing?
The good news, was that the Dow recorded it’s 8th biggest point jump ever yesterday, rallying as Lehman Brothers Holding Inc. (NYSE: LEH) announced plans to offer $4 billion in equity.
The offering is three times oversubscribed, according to a Jefferies & Co. analyst, leading some to think the credit markets are beginning to heal.
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