1. La-Z-Boy sinks on uncomfortable sales
Passing out in a La-Z-Boy's hug feels awesome. So what's the problem? Shelves. LZB's "casegoods" (like bookcases) business represents 10% of its revenue, but the company has incurred some serious costs as it transitions it to an "all-import" model -- no more "Made in America" shelves for the La-Z-Boys.
2. Tesla stock pops on New Jersey law change
State law forbids carmakers from selling directly to customers. Instead of buying from Ford, you need to buy through Monaghan Ford and their "crazy-Presidents-Day-deals-of-a-lifetime." Why? Historically, this law is meant to protect consumers by preventing the car manufacturers from manipulating prices and creating greater competition through dealers.
Just like strip clubs, you can touch, but you can't buy in Jersey. Tesla tightly controls its brand and marketing through "showrooms" -- and in New Jersey, Tesla showrooms are for show only right now because of the law. But if the new legislation passes Tuesday, it will give Tesla four of its own dealerships where it can sell cars in the Garden State.
The takeaway is that states are still afraid to let carmakers sell directly to you, but they're making a Tesla exception. New Jersey and Pennsylvania are both rewriting laws as politicians eagerly attach themselves to the progressive "do their part to help Tesla save their state with green cars" spiel. The New Jersey legislation signals that weird car dealership laws won't get in the way of their growth.
3. Housing starts drop big-time in May
The takeaway is that 2014 has been tough for the housing market. After getting smacked during the '08 recession, U.S. housing turned around in 2012, and gained momentum throughout 2013. But as interest rates rose slightly and winter weather froze homebuyers to start 2014, home sales and construction have struggled to maintain growth so far this year.
As originally published on MarketSnacks.com
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