Charles Payne's  Instablog

Charles Payne
Send Message
Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
My company:
Wall Street Strategies, Inc.
My book:
Be Smart, Act Fast, Get Rich
  • UP IN FLAMES... IN THE HEARTLAND - By Charles Payne 0 comments
    Aug 14, 2014 2:02 PM

    , CEO & Principal Analyst

    8/14/2014 8:21:30 AM Eastern Time

    The news out of Ferguson, Missouri is not impacting the stock market, but there is an economic story here that I discussed on my show, last night. Most of the time, an accidental police shooting becomes a spark for violence and protest; it just shows there was a powder keg in the first place. More than likely, that powder keg is composed largely of a poor economy which is compounded by idle time and policies that have coddled young people into a position where they depend too much on government, limiting their opportunities.

    The town of Ferguson, Missouri continues to see violence and tensions in the wake of the police shooting and killing of 18 year old Michael Brown. The shooting is tragic, and I hope in the end there is not only justice, but an awakening that makes Ferguson a better place. However, I know this is not going to happen if its residents continue to loot stores and burn buildings. In fact, the only outcome from this behavior is a deepening of economic despair that could last for decades.

    Take the infamous Watt's Riots. In 1965, Watts went up in flames as six days of rioting saw 977 buildings burned, damaged, looted, or simply destroyed. There were 34 people killed in the days after neighborhood residents claimed police brutality and the unfair arrest of a black motorist, his mother and his brother. During the riot, 1,032 people were injured and 3,438 people were arrested.

    The neighborhood was already marked by plight and poverty, but where it went to from there was a place that simply hasn't been able to escape economically or mentally. All of the local businesses and buildings were attacked, burned, vandalized and looted; many of which belonged to large corporations that provided good jobs to people in those surrounding towns and communities. This triggered businesses-flight out of Watts and the surrounding area, just as riots triggered businesses-flight out many other towns.

    Watts

    Commerce

    South Gate

    Pico

    Maywood

    Bethlehem Steel

    US Steel

    Alcoa

    Chrysler

    Uniroyal Tire

    General Motors

    Ford

    Goodyear Tire on Gage Avenue

    • The Goodyear blimp was actually housed in South Central Los Angeles.
    • Businesses left and despair set in upon the area in such a way, that it has become a vice grip.

    I know there is pain and frustration, and I know professional troublemakers have arrived to stir the pot. The troublemakers will say one thing, yet wink at another. Nevertheless, in the end, the idea of destroying your own neigborhood and scaring away any real employment opportunities is just plain crazy.

    The long term impact of these negative actions make any pre-existing problems worse, and any holes much deeper.

    Today's Session

    The major indices succeeded in their small rally yesterday and closed in the green. This morning, they are continuing to rise. It would be typical for the market to pull back slightly as initial jobless claims came in higher-than-expected with 311,000 thousand new claims, compared to consensus at 300,000 thousand, but we're satisfied with the continuing rally. There are a few other economic data releases that may sway the market, such as import and export prices.

    Below are a few of the companies that released earnings yesterday evening and this morning:

    Company

    Ticker

    EPS (Actual)

    EPS (Est)

    EPS 1-Year Ago

    Rev (Actual $M)

    Rev (Est $M)

    Rev Y/Y %

    Cisco Systems

    CSCO

    0.55

    0.53

    0.52

    $ 12,357.00

    $ 12,149.92

    -0.5%

    *Advance Auto Parts

    AAP

    2.08

    2.02

    1.59

    $ 2,347.70

    $ 2,322.11

    51.5%

    *Pan Am Silver

    PAAS

    0.01

    0.04

    -0.07

    $ 200.80

    $ 193.96

    -

    *Dangdang

    DANG

    0.06

    0.02

    -0.13

    $ 316.10

    $ 311.93

    30.0%

    Kohl's

    KSS

    1.13

    1.07

    1.04

    $ 4,242.00

    $ 4,290.02

    -1.1%

    *Plug Power

    PLUG

    -0.04

    -0.04

    -0.05

    $ 17.30

    $ 16.73

    130.7%

    Wal-Mart

    WMT

    1.21

    1.21

    1.25

    $ 120,125.00

    $ 118,515.27

    2.8%

Back To Charles Payne's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.