I am not going to review the earnings for fund holding, homebuilder DR Horton (DHI)
because they stink, we all know they stink, and we all know they will stink. But the stock goes up no matter what bad news. :) "everything is priced in
"Fannie Mae (FNM)
- as I wrote in the preview yesterday they will be horrid (check!), but as long as it's "not as bad as expected
" the stock could go up. Check! Up almost 10%.MGM Mirage (MGM) - bad earnings
, decreasing revenue but "not as bad as expected
", the stock was up 6%. Check! Let's look at this one a bit closer since it's one of my favorite industries to watch - now the thesis is foreigners will come to Vegas since it's so cheap for them with our weak currency (true), but I don't think it will offset the slowdown from those darn Americans (also true). As airline prices only increase, and inflation continues to ramp (assured by the Federal Reserve policies of easy money printing) - this will only be the beginning of the slowdown in "recession proof" Vegas. Unless we start importing Asians and Middle Easterners whole sale into the city to spend their riches.
- MGM Mirage posted low single-digit percentage decreases in both gaming and non-gaming revenues -- a sign that the slowdown has taken hold in Sin City. Revenue per available room, a key industry metric, on the Strip was down 4%, falling from $162 to $155. Total casino revenue decreased 3% as the result of lower table game volume, even as the hold percentage was at the high end of the normal range.
- Room revenue fell 6%, with a 4% drop on the Las Vegas Strip. Average room rates were down 2%, while average occupancy levels were 93%, down from 96%.
- "The results in gaming markets throughout the country this year have cracked the long-held belief that this industry is recession-resistant," said Joe Weinert, vice president at consultancy Spectrum Gaming.