PreMarks {12.02.11}

The market is set to spike higher here at the open on benign to perhaps better than expected employment statistics and more indications out of Europe of an increased willingness to come to grips with their debt problems.  Yesterday there was one economic statistic that really caught my eye.  Apparently car sales in the U.S. are soaring.  Apparently it was noticed over at  Bespoke as well. 

Bespoke says that "On a seasonally adjusted annualized rate, sales rose to 13.59 mln, which is the highest total since the 'cash for clunkers' program in the Summer of 2009. Outside of that one month in August 2009, you have to go back to June 2008 to find a higher monthly reading. Even the luxury sector saw strong growth. Sales of BMWs rose 15%, while Mercedes sales rose 55%!"

I've been saying for awhile that I think the economy is doing better than most people think and that stocks are cheap.  This is pretty good supporting economic data.  While on the one side average fleet ages on cars continues to get older and so there is a replacement factor that needs to be understood.  However, cars still are for the most part a discretionary purchase especially those in the luxury category.  You have to be pretty confident about your own personal job prospects right now if you're out purchasing a new car.  If you add that with the so far much better than expected early holiday season sales, it's becoming pretty undeniable that things for now are perking up.  I think that besides Europe this evidence is what has pushed the markets substantially higher this week.

Link:  Bespoke: Car sales.