Friday, June 19, 2009

Cash for Clunkers Program and Next Week

It's Friday again so another look at the week ahead, but first I want to talk a little about the Cash For Clunkers Program that was just approved by the government.

Cash for Clunkers Program
The Program today was approved by the Senate and just needs Obama to sign it into law. It gives consumers with cars that get less than 18 miles per gallon the ability to turn them in for a $3,500 or $4,500 cash credit. This could be huge for the economy, and will also make a lot of environmentalists happy. It might be enough for me to consider buying into some auto stocks. Although, "Cash for Clunkers," will not save the auto industry by itself, it could pave the way for quite a nice rebound. Those companies which make the more fuel efficient vehicles should see the most benefit. Only if the 300 Mile per gallon car, the Aptera was selling yet.

Next Weeks Economic Data

- Jun 23 10:00 AM Existing Home Sales May
- Jun 24 8:30 AM Durable Orders May
- Jun 24 8:30 AM Durable Orders, Ex-Transportation May
- Jun 24 10:00 AM New Home Sales May
- Jun 24 10:30 AM Crude Inventories 06/19
- Jun 24 2:15 PM FOMC Rate Decision
- Jun 25 8:30 AM Initial Claims 06/20
- Jun 25 8:30 AM Q1 GDP - Final Q1
- Jun 26 8:30 AM Personal Income May
- Jun 26 8:30 AM Personal Spending
- Jun 26 8:30 AM PCE Core May
- Jun 26 9:55 AM Mich Sentiment-Rev

A Few of Next Weeks Earnings releases:

Walgreens - Monday
Oracle - Tuesday
Nike - Wednesday
RedHat - Wednesday
Rite Aid - Wednesday
Wyeth - Wednesday

1 comment:

Ju said...

I don't qualify because my car already gets good gas mileage. My dad swears by the car buying process here: http://excarsalesman.typepad.com/ It is kind of similar.

I haven't tried it yet, but I might because it looks good.

I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for lower MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate. The demand will increase prices and you'll get a voucher from increased prices. I'm certain some markets you'll come out even as if they never offered this voucher. It is poorly written legislation.

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