U.S. Markets waiting for earnings

Discussion in 'Stock Market Forum' started by WaveWage, Oct 7, 2015.

  1. WaveWage

    WaveWage Well-Known Member

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    Meanwhile Asian markets are happy of the energy move (still wonder why but that's not a problem after all), United States are not aware of that story yet and so I'm going to take a look on the Tuesday's results of the markets. Tuesday, the day was punctuated with the end of the 5-day rally of Wall Street, to stabilize without going much lower. Let's gets to the numbers.


    NASDAQ Composite is getting at 4,748.36 pts, with -0.69% or -32.9 pts, meanwhile S&P 500 is doing better with its -0.36% and -7.13 pts, ending up with 1,979.92 pts. About Dow Jones, it is at 16,790.19 pts, the biggest winner of Tuesday on Wall Street with +0.08% (it's quick for telling that "win", right?) and +13.76 pts.


    Some companies says they wait for the Q3 earnings. But didn't the U.S. entered rather in the Q4?
     
  2. rlevingston

    rlevingston New Member

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    The US economy is on the rebound. Oil will hit $90 in a few months. IMO. I have invested for years and have seen this pattern a number of times. Check the charts from the past 30 years. It is all a pattern. I don't trust the Asian markets. They have been rising too fast for too long.
     
  3. 111kg

    111kg Guest

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    Does anyone trust anymore the Chinese markets? I'd rather send money to a Nigerian prince rather than invest there. As for oil hitting $90, I don't see that happening anytime soon. Can you provide some graphs that show some patterns, please?
     
  4. FrankieD

    FrankieD Well-Known Member

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    I feel as though the U.S. stock market is struggling with the fight between how corporations are certainly making a lot of money but the general economy and financial situation for most Americans - for the working class - is not good. The nature of our jobs (hours, benefits, part-time hours, etc.) has changed to the point where the middle class really does look like it could be squeezed out of existence. Trickle down economics really has shown to be a flawed concept. The wealth gap has increased dramatically the last several decades. From 1930-1980 90% of Americans shared in the economic growth of America .. since 1980, practically zero percent have and it has almost all been absorbed by the top few percent.
     
  5. WaveWage

    WaveWage Well-Known Member

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    I must admit I liked how you putted it! I also agree with you: my belief of Asian markets is limited, maybe South Korea could be an exception and we may discover others with the Trans-Pacific Partnership. But seriously, the reliance on something that feels like to work not so well and to not be reliable tends to shock me every time.

    Meanwhile for the people it is not the best environment right now, I agree there's a lot of problems, I think that if jobs numbers are improving, somehow it improves, but it should continue to improve, to be clear. But inside the markets, you have to look at differences, you can't stay looking at the global numbers.
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I am a believer in trickle down lais-sez-faire economics. Before I became self-employed and an employer of others, every job I ever had and every paycheck, benefits package, and matching 401k contribution I ever earned was courtesy of someone or some company with more resources than I had.

    Much of the gap we've seen in the last 35-40 years is due to many things at work, among them: technology and globalization, including the internet impacting things and widening the skill gap; overly powerful unions causing many companies to choose between going out of business or going overseas; excessive govt regulations such as Dodd-Frank and the ACA; and the US having the highest corp tax rate in the free world.

    One thing people need to realize is that you won't likely get truly rich working for someone else. Perhaps if you are a top broker, trader, money manager, I-banker, or executive, you can retire from a "job" with a nice 8-figure or more nestegg. But for most people to be able to move beyond a five figure or low 6 figure income, and a net worth of more than perhaps a few million at retirement, they're most likely going to have to become some sort of successful business owner. And it's a risky undertaking - if there was no risk, there would be no potential reward.

    In recent years, we're seeing for the first time in US history that more businesses are closing up than are opening. And when the govt interferes with things - such as regulations going back nearly 40 years that forced lenders to make bad loans because "everyone deserves to own a home!" - it always leads to bubbles and other trouble sooner or later. And when such govt interference causes such problems, rather than get out of the way, govt decides it needs to expand even more and exert even MORE control (Dodd-Frank, etc).

    On the subject of earnings, did anyone happen to catch the big earnings miss last week of consumer cyclical blue chip Yum Brands? I think we may be seeing a pattern emerge.

    Oil will go up again eventually. WHEN it will go up is the big question.
     
    Last edited: Oct 11, 2015
  7. WaveWage

    WaveWage Well-Known Member

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    I don't see why you find it that bad about the United States' tax policy. First thing, I don't think US has the biggest corporate taxes if you take all taxes that can be taken in account in other countries (basically, the social security taxes, among others I can't think of), but to be honest I didn't made any direct comparison. I just say that wage taxes count as well as corporate taxes, after all, and I don't know if you include them to your comparison.


    Secondly, even if sometimes markets should be free, they shouldn't be entirely free to do what they want. Sure, for a profit standpoint, letting them do what's most profitable may work in the short term, but you have to take care of population and ethics. No one would care about environment if the government (voted by people) didn't tried to legislate on the issue. Same for rights to have a toll free number for some essentials services, same for the medical system, etc. Call them a brake to the "basic" corporate profit, it isn't if you talk about having an happy and sustainable population, engaging more customers to buy (because happy people tend to buy more, in my opinion).
     
  8. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Our tax and regulatory environments tend to be at least a little affected by which party is in control. And our current president is more anti-capitalism and more pro-govt than any other in my lifetime. We are being more and more overwhelmed with regs such as the ACA and Dodd-Frank, plus all sorts of excessive environmental regs.

    And we seem to now have a fourth branch of govt - the "administrative branch" that this president uses very cleverly to put more regs, restrictions, control, and expenses in place. He has put in place more executive orders/memos total than any other president.

    Believe me, if our corporate tax rate was so great, you wouldn't have all of these big companies moving overseas and keeping most of their money and other resources there.

    No one wants to deliberately harm the environment, but our govt is going overboard - mainly because so many of these alt energy companies are buddies of our president and contributed heavily to getting him elected twice.

    https://en.wikipedia.org/wiki/Solyndra

    http://www.forbes.com/sites/christo...ompanies-for-killing-birds-at-drilling-sites/

    http://www.cleveland.com/open/index.ssf/2015/06/supreme_court_overturns_costly.html

    And no one wants NO rules or regs - we need to keep everybody honest. But big govt goes way, way overboard. This is a big part of the reason why we have fewer businesses starting than closing up for the first time in history.
     
  9. WaveWage

    WaveWage Well-Known Member

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    Well, I think a lot of business gone overseas in a lot of countries, doesn't matter if we talk about Europe, or United States. So I have a little hard time to think all European countries taxes and US taxes is too much high that way, that it motivates to go overseas. They do it for other reasons, and it's even a way for companies to do strikes: see the Boeing example with the Export-Import bank.


    I trust you when you say it has a cost to the economy, but I think for the long run it is something better and it maybe a way to try to break the 2008 crisis to happen once again. 2008 crisis is, after all, a problem of too much free market, somehow, no?
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    The '08 crisis was actually born out of legislation going back to the Carter years that forced lenders to lend money to some who were not qualified.

    Government interference leads to bubbles. Throw in a good dose of corporate greed that sprung from the rules they were forced to implement (making lemonaid from lemons), and it blows up sooner or later.
     

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