Check out canaries in the consumer coal mine?
 
A couple of consumer products companies reported their quarterly resulys yesterday. One makes chocolate bars and one makes diapers and Kleenex. 
 
But both, Hershey Co  and Kimberly-Clark, gave earnings forecasts for 2008 that could signal more weakness in the consumer sector. Hershey’s was below analysts’ estimates, while Kimberly-Clark’s indicated it could be below analysts estimates.
 
Both flagged higher commodity prices as a continuing trend that would likely pressure earnings again in 2008. (Hershey also is being hit by the need to spend more money to try to spur sales growth, but that’s a different issue.)
 
Higher commodity prices have meant higher prices on store shelves for consumers. And when you are paying more for basics like toilet paper, that leaves less money for discretionary items like clothes and electronics.
 
We should get a clearer picture of how much commodities like milk, wheat and oil will hit the consumer sector when companies ranging from Kraft and Kellogg to Altria and Procter & Gamble report earnings next week. 
 
And we will also see if consumers are cutting back, with McDonald’s and CVS/Caremark also set to report.
 
Has the stress on the U.S. consumer gotten bad enough to dull their appetite for Big Macs? We’ll find out.
 
Also in  the basket:
 
Carrefour to enter Indian market - Embassy
 
Carlsberg, Heineken agree on $15.3 billion S&N deal
 
Fortune Brands fourth-quarter net falls