Apple (AAPL) releases Tim Cook's official statement (.pdf) to the Senate ahead of his Tuesday appearance at a hearing on corporate tax payments. Among other things, Apple claims it paid ~$6B in federal taxes in FY12 and a 30.5% effective federal tax rate, and that its foreign units don't engage in the practices the hearing focuses on (the shifting of IP to offshore havens, revolving loans from subsidiaries, etc). The company proposes a tax system that's "revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings." (previous) [View news story]
Could there be a connection between gov. encouraging US corps to set up shop overseas for the last 25 yrs and the huge debts domestically?
There is no precedent for the current market, writes The Fat Pitch. Consider: 1) The S&P (SPY) has been up 56 of 88 trading sessions this year 2) It's up an uncorrected 24% since the post-election low - the longest streak in over 3 decades 3) The Nasdaq (QQQ) is on pace for a 7th straight up month, an occurrence with a 3-in-100 probability. Long term it's bullish, writes Ukarlewitz, as this sort of strength is rarely the end of a trend. Short term? Stay nimble. [View news story]
Huge buybacks spread those earnings to a shrinking share base. GS's Blankfein said to think of it as corporations social contract with America
You say: The key question that needed to be asked was "if printing money is supposed to drive gold higher, why then is gold falling after printing all this money?"
Ever since last fall when Bernanke suggested an end to QE , in a speech before the NY economic club forecasted a very good 13 US economy, perception is Fed will pull out of QE, rates will rise,dollar 's climbing, metals going other way. Interestingly enough paper metal shares have gone down , physical demand for gold/silver is booming
If we keep moving up like this, stocks could go "parabolic," says Art Cashin. The stocks that have the heaviest short positions have already raced ahead of the indices, and they are going to crumble if we keep going. (Video). [View news story]
they already are and could go further. There is no bad news. Ask anyone whose tried to short it. Companies aren't spending all that QE money on jobs, treasuries don't do nothing and every CB on the planet keeps increasing the flow.
Ben Bernanke may not have overtly mentioned monetary policy during prepared remarks for a commencement address at Bard College Saturday, but he did reference Yogi Berra, and in the process made a statement that those of a cynical persuasion might say could have been pulled not only from the quips of a baseball legend, but from any recent speech by hawkish regional Fed presidents (I, II, III): "It's tough to make predictions, especially about the future." Some would undoubtedly say the Chairman should consider this sage advice when making conjectures about the supposedly benign effects of policy tightening. [View news story]
Exactly.He said Fed monitors global markets much more closely than in 08; lot more to risk to monitor than in 08. Feds reaction to 08 was just that a reaction , create more debt/leverage to solve a debt/leverage problem.
Home Depot: Well Positioned To Grow [View article]
People like to call markets a forward looking instrument, more like next quarter or what have you done for me lately forward Analysts money managers and brokers get paid by buying and recommending stocks that beat, worry bout rest later. As long as Fed stays nice HD and everybody else will continue to borrow money using the cash to spread earnings to a shrinking share base ; not a very high bar for earnings to jump over. Buybacks also put a floor on any downside.
April Rebound Suggests Continuing Economic Expansion [View article]
This morning I read the LA Times headline touting the 274K jobs created in Cali YTD which is good I then google unemployment data for that state which show 743,000 new claims YTD for California .All depends what you choose to call economic expansion.
Beware Long-Term Damage From Stock Market Bubble Forming Now [View article]
Job creation should be the domain of policy makers not a central bank that prints and deploys money to select banks who represent their banks and stockholders.Challenges are structural.
The non voting Fed member Williams who suggested an end to QE (where have I heard that before) also said in same statement the extraordinary stimulative measures would remain in place. Many see an increase in QE going forward not a decrease .
I prefer the Japanese way of doing things . In Feb economics minister announces a $75B a month QE says he wants to see Nikkei at 13K by end of march; mission accomplished, less confusing for everyone.
April Rebound Suggests Continuing Economic Expansion [View article]
Lot of people like to hear rebounding and expansion when investing Personally I like the way Japanese do biz. In Feb economic minister announces BOJ is buying $75B a month in assets ; says he wants to see Nikkei move 17% and close at 13K by end of March, mission accomplished. Easier less confusing
The Myth Of Liquidity And Bubbles In Financial Markets [View article]
http://goo.gl/819Gh. I like the Japanese way, economic minister publicly announces in Feb they want to see Nikkei go up 17% to 13K by end of march, print $75B a month to do it; mission accomplished. much less confusing for investors and traders alike.
"Do you really think risk-averse central bankers are going to try and catch the knife," asks Credit Suisse commodity research chief Ric Deverell about gold. "No" is his answer as this crowd only buys when the price is headed higher. Of reports of heavy physical buying, he's unimpressed, noting investment demand (ETFs) is the gorilla in the gold market. The metal's (GLD -1.6%) within a few dollars of taking out the 26-month low hit in April. [View news story]
http://goo.gl/819Gh. I like the Japanese way, publicly announce in Feb they want to see Nikkei go up 17% to 13K by end of march, print $75B a month to do it; mission accomplished, much less confusing for investors and traders alike.
Knocking stocks for a few points is San Francisco Fed President Williams reiterating his hope QE can begin to be tapered this summer and halted by year's end. This is not the first time Williams has said such, but he does reside in the FOMC's dovish camp. He notes even without QE, Fed policy would remain extraordinarily stimulative. [View news story]
A non voting member suggesting QE could end ,like an opposition party in Congress, can say whatever they want since their voting power or lack thereof has no effect.
To QE Or Not To QE: That Is The Question [View article]
I think it's just a game of chicken. Fed wants to see some of that bond money move into equities and general economy without rates rising too much. One day they want to end it, then they assure markets otherwise as rates begin to climb . Bernanke has also said Fed could hang on treasuries till maturity if need be.They know what happens if rates rise too fast. There's over $4 trillion worth of muni bonds out there ; nobody is going to want to hang on to that stuff if rates rise too much. The rating agencies are looking at those.
Apple (AAPL) releases Tim Cook's official statement (.pdf) to the Senate ahead of his Tuesday appearance at a hearing on corporate tax payments. Among other things, Apple claims it paid ~$6B in federal taxes in FY12 and a 30.5% effective federal tax rate, and that its foreign units don't engage in the practices the hearing focuses on (the shifting of IP to offshore havens, revolving loans from subsidiaries, etc). The company proposes a tax system that's "revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings." (previous) [View news story]
There is no precedent for the current market, writes The Fat Pitch. Consider: 1) The S&P (SPY) has been up 56 of 88 trading sessions this year 2) It's up an uncorrected 24% since the post-election low - the longest streak in over 3 decades 3) The Nasdaq (QQQ) is on pace for a 7th straight up month, an occurrence with a 3-in-100 probability. Long term it's bullish, writes Ukarlewitz, as this sort of strength is rarely the end of a trend. Short term? Stay nimble. [View news story]
Gold Going To $500? [View article]
Ever since last fall when Bernanke suggested an end to QE , in a speech before the NY economic club forecasted a very good 13 US economy, perception is Fed will pull out of QE, rates will rise,dollar 's climbing, metals going other way. Interestingly enough paper metal shares have gone down , physical demand for gold/silver is booming
If we keep moving up like this, stocks could go "parabolic," says Art Cashin. The stocks that have the heaviest short positions have already raced ahead of the indices, and they are going to crumble if we keep going. (Video). [View news story]
Ben Bernanke may not have overtly mentioned monetary policy during prepared remarks for a commencement address at Bard College Saturday, but he did reference Yogi Berra, and in the process made a statement that those of a cynical persuasion might say could have been pulled not only from the quips of a baseball legend, but from any recent speech by hawkish regional Fed presidents (I, II, III): "It's tough to make predictions, especially about the future." Some would undoubtedly say the Chairman should consider this sage advice when making conjectures about the supposedly benign effects of policy tightening. [View news story]
Home Depot: Well Positioned To Grow [View article]
April Rebound Suggests Continuing Economic Expansion [View article]
Beware Long-Term Damage From Stock Market Bubble Forming Now [View article]
The non voting Fed member Williams who suggested an end to QE (where have I heard that before) also said in same statement the extraordinary stimulative measures would remain in place. Many see an increase in QE going forward not a decrease .
I prefer the Japanese way of doing things . In Feb economics minister announces a $75B a month QE says he wants to see Nikkei at 13K by end of march; mission accomplished, less confusing for everyone.
April Rebound Suggests Continuing Economic Expansion [View article]
The Myth Of Liquidity And Bubbles In Financial Markets [View article]
"Do you really think risk-averse central bankers are going to try and catch the knife," asks Credit Suisse commodity research chief Ric Deverell about gold. "No" is his answer as this crowd only buys when the price is headed higher. Of reports of heavy physical buying, he's unimpressed, noting investment demand (ETFs) is the gorilla in the gold market. The metal's (GLD -1.6%) within a few dollars of taking out the 26-month low hit in April. [View news story]
The Sell-Off In Gold Has Become Plain Silly [View article]
Knocking stocks for a few points is San Francisco Fed President Williams reiterating his hope QE can begin to be tapered this summer and halted by year's end. This is not the first time Williams has said such, but he does reside in the FOMC's dovish camp. He notes even without QE, Fed policy would remain extraordinarily stimulative. [View news story]
To QE Or Not To QE: That Is The Question [View article]
Initial Jobless Claims: +32K to 360K vs. 330K consensus, 328K prior (revised). Continuing claims -4K to 3.00M. [View news story]