Exxon Mobil reported this morning it’s most profitable quarter since 2008. No matter how you slice it these are big numbers. While good news for Exxon shareholders and the S&P 500 of which it is the largest constituent. It does may mean tougher times ahead for the consumer, or at least consumer stocks. In a certain respect funds flowing into paying for higher energy costs are funds not available for other discretionary consumer spending. Maybe that is one factor in the lower savings rate announced this morning. In any event we should keep an eye on the role higher energy costs will play in the ongoing economic recovery. In today’s screencast we look at the good (and bad) of higher energy prices.
Items mentioned in the above screencast:
Exxon Mobil reports strong earnings. (Yahoo! Finance)
Eddy Elfeinbein, “$XOM earned $100 million for the quarter. Did I mention that’s per day? Yeah, pretty crazy.” (StockTwits)
Brent crude tops $100 a barrel. (FT energy source)
Income and spending are higher as the savings rate drops. (Atlantic Business)