Tuesday, November 11, 2008

Intel, Starbucks, and the Price of Oil

As stocks rise and fall in these tough economic times, one such stock that hits close to home has got to be Intel. Though its headquarters may be in Santa Clara, California, one of the companies main facilities is located in Hillsboro, Oregon. Intel is the largest employer in the state of Oregon with over 16,000 employees. Here is an article about the situation that Intel faces in today's Oregonian. According to the article, Intel's 4th quarter revenue has been speculated to be 4% behind the 3rd quarter revenue meaning that the selling of laptops and desktops may not be as great. However, there is no mention of how it might effect jobs going forward.

Starbucks is going through the same hard times that Intel is with steep drop in profits during the 4th quarter. The Seattle based company has an optimistic outlook for 2009, but many believe they are still at the mercy of the macroeconomy. Take a look at the article in today's Oregonian that expands on the problem that Starbucks faces going forward. Consumers are concerned about the impending recession that it has hurt our economy not just in coffee but across the board. However, 72% of the people polled say they believe that Obama can turn around our stalling economy.

On a brighter note, oil has dropped for the 17th week and the national average for gasoline is $2.22. With gas prices falling, it has helped many people save a little extra money especially during the holidays. We are the largest consumer of energy in the world and major factor in oil prices. U.S. car sales fell to a 25 year low in October and unemployment rate was at a 14 year high at 6.5%. Governor Ted Kulongoski has purpose a 2 cents per gallon tax increase and higher vehicle fees to help the economy. This plan would basically create more construction jobs and improve transportation in matters such as maintenance and preservation.

So Portland tell us what you think about our situation here locally or nationally in the comment section below.

No comments: