Has Wall Street Hit Rock Bottom Yet?
Has Wall Street hit bottom yet? Like that singularly annoying yet unforgettable Lipton TV ad, "Is it Soup Yet?" I keep asking myself, have we hit bottom yet? So it's a topic we can have fun debating in this space until the economy and stock market turn around, be it months or years from now.
This coming week isn't expected to be pretty, but then again, nothing ever goes quite as expected with an economy in meltdown mode. CNNMoney.com says investors will face a torrent of bad economic news this week, but have they already factored this into their strategies, and will Wall Street remain, as it usually is, six months ahead of the economy?
Here's a sampling of government and corporate earnings reports due out this week, also courtesy of CNNMoney.com:
Monday: The NY Empire State index, a regional manufacturing report, is expected to slump to negative 26 in November from negative 24.6 last month. Any negative reading shows weakness.
Tuesday: The Producer Price Index (PPI), a measure of wholesale inflation, is expected to have fallen 1.5% in October after falling 0.4% in the previous month. Core PPI, which strips out volatile food and energy prices, is expected to have risen 0.2% after rising 0.4% in the previous month.
Wednesday: The Consumer Price Index (CPI), a measure of consumer inflation, is expected to have fallen 0.8% versus a flat reading in September. October Core CPI, which excludes volatile food and energy prices, is expected to have risen 0.2% after edging up 0.1% in the previous month.
Housing starts are expected to have fallen to an annual rate of 780,000 in October from a 17-year low of 817,000 in September. Building permits are expected to have stumbled to an annual rate of 770,000 in October from a rate of 805,000 in October.
Wednesday also brings the release of the minutes from the last Federal Reserve policy meeting in October.
Thursday: The October index of leading economic indicators (LEI) is expected to have dropped 0.6% after rising 0.3% in September.
Also Thursday, the Philadelphia Fed index, a regional manufacturing report, is expected to have improved slightly to a reading of negative 30 in November from negative 37.5 in October.
Corporate financials
A number of retailers report results this week, including rivals Lowe's and Home Depot. All forecasts are according to a consensus of analysts surveyed by Thomson Reuters.
Of course, with projected corporate earnings already expected to land somewhere between Antarctica and 500 feet below Earth's surface, if they even reach as high as 400 feet below ground, Wall Street will see bad news as good news. So strap in, as they say, and have your looking glass handy. If stocks boomerang irrationally, you'll understand why.
Tags: economy | Wall Street | stock market
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Lacy of Kentucky
Did you really haunt the memorial service of Obama's Grandma? There is no excuse for such action. None. I dont care if it was public, it was a function of paying respect and rememberance. Your motive was hardly that. It is your right to go on any goose chase you see fit, but to dishonor the dead in such a way is apalling.
Bonnie, please respond to this post.
There could be a very rough time ahead.
Beneath Obama's flowery rhetoric lies a dangerous economic plan that will wreak havoc on the American economy.Obama plans to return to the failed policies of high taxation coupled with an expansion of government spending. Worse, Obama says he is absolutely committed to almost doubling the capital gains rate — something he will easily accomplish with a Democrat Congress.
In the coming months — when investors realize that Obama will raise the cap gains rate — there could be a stampede of asset sales as investors rush to take their profits now to avoid Obama's doubling of the tax rates next year.
Indeed, Obama makes no bones about his plans to go on a tax rampage. Not only would he increase the capital-gains tax rate from 15 percent to as much as 28 percent, he wants to allow the 2001 and 2003 Bush tax cuts to expire in 2010, which effectively raises taxes on Americans by tens of billions of dollars.
He also wants to do away with the $102,000 FICA payroll tax cap, which means anyone making over $102,000 would pay an additional 7 percent in taxes on earned income.
And the loan dividend tax rate George Bush implemented? Under President Obama it will be DOA!
WHAT'S THE MAGIC BULLET?
Just in case no one's noticed America doesn't have much left with which to pull itself out of this economic collapse.
For decades everyone form high school counselors to Harvard Economists have demeaned manufacturing and other types of blue collar labor. It was all about "tech" and one kind of financial paper pushing or another. Jobs have been out-sourced, CEO's have patted themselves on the back with huge bonuses, trial lawyers have litigated huge settlements against corporations, some unions have demanded extensive perks and benefit packages so that auto makers and other companies can't be competitive, dogmatic environmental groups have litigated and passed costly regulations and bans on a variety of products. services and sports - All costing more jobs and increasing manufacturing costs.
For the past 10 years we have lived on the euphoria of artificial wealth with the Dot.Com bubble and the subsequent Real Estate bubble - Well, it seems that the hot air filled idea of "money for nothing" and "everlasting" equity lines of credit has come crashing down to earth.
America has sold itself at our national garage sale - I don't see that we have much left with which to rebuild our shattered economy. Obama's slogans and simply printing more money are merely the tricks of a charlatan. A long term recovery will take something more - A drastic change in out national thinking... An acceptance of reality, sacrifice and hard work - Something most Americans are no longer used to.
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