Morning Commentary
Washington, you have 30 days to show we can work together before going back into a defensive posture. On Sunday, NBC’s “Meet the Press,” Howard Schultz, CEO and chairman of Starbucks said, “If we don’t get that in the next 30 days, the business community is going to do what they’ve done for the last 10 years; dismiss Washington…” How realistic is that?
Schultz hit on the conscious capitalism theme of businesses, focusing on more than the bottom line...how likely would that happen? I really think it is a terrible mistake to try to make corporate balance sheets and income statements part of the public domain. I understand the hip CEO talk of the moment, but it could be a cover for coming up short in the future.
However, I would like to see action in the first 30 days, instead of that lame duck rationale for not moving ahead. The will of the people spoke loudly and clearly last Tuesday. I do not think people or businesses are going to take the kind of action, including risks to spark the economy, if there is a bunch of wasted time and excuses.
Not Taking the Bait
For the month of September, American consumers have only increased revolving credit (mostly credit cards) by $1.4 billion; and year-to-date, $24.1 billion. How can Main Street start moving when the number is that low? Lower rates are not encouraging people to run and acquire mortgages, or run to the malls the way it was supposed to on paper. It can only come from greater confidence in the system, with the head of that system being Washington, DC.
Consumer Credit |
Revolving |
Non-Revolving |
September |
$1.4 billion |
$14.5 billion |
Year to Date |
$24.1 billion |
$145.0 billion |
After a weekend to digest the jobs data, the major equity indices are poised to open higher, and it will be interesting to see if they manage to reach more new all-time highs during the session. Earnings are rather light this week, but below is a table of the more notable names that reported this morning.
Company |
Ticker |
EPS (Actual) |
EPS (Est) |
Rev (Actual $M) |
Rev (Est $M) |
3D Systems* |
DDD |
0.18 |
0.18 |
$166.90 |
$166.49 |
Cheetah Mobile* |
CMCM |
0.43 |
0.42 |
$478.70 |
$441.42 |
Dean Foods |
DF |
-0.03 |
-0.13 |
$2,373.30 |
$2,350.00 |
Gogo |
GOGO |
-0.29 |
-0.26 |
$104.00 |
$103.73 |
WhiteWave Foods |
WWAV |
0.27 |
0.26 |
$857.50 |
$842.93 |
|
|
|
|
|
|
* = Open WSS Idea
Comments |
Problem is in the Fed with requirements. The same reason housing is stalled repo's haven't even finished do to the Justice threating the banks about repo's. TJ on 11/10/2014 10:37:02 AM |
Republicans are PRO business,PRO Captalism. Let er Rip!! Dell on 11/10/2014 10:45:05 AM |
The president's attitude must change. The arrogant use of the "pen" for signing executive orders and vetoes will keep government in gridlock. Frank Dalene on 11/10/2014 11:08:59 AM |
The only way they will have more incentive to invest is with a favorable change in the tax code. Rodman Johnson on 11/10/2014 11:36:51 AM |
Not until we repeal the last 10 years of anti growth regulations. Republicans need to show that they're not just a different brand of big gov't regulators. John on 11/10/2014 11:49:21 AM |
Just because the Republicans have a majority in the US House and Senate does not necessarily mean a greater incentive to expand or borrow. We do not know what they are going to do. This election seemed primarily to be a STOP message. We have yet to here what the go forward message is. Lewis W. Gloss on 11/10/2014 1:08:25 PM |
As long as Obama and his gang of anti business nuts are in the White House, there will be little change Keep your eyes on Germany........ It is the canary in the mine. tom wayne on 11/10/2014 1:41:57 PM |
We are hopeful Eduardo Higuchi on 11/10/2014 3:35:34 PM |
predicated on bipartisan cooperation on corporate tax reform that will get signed by the Emperior. Jrsands on 11/10/2014 3:45:18 PM |
Two years is too short a period to base major expansions or borrowing. I think most will wait to see how 2016 will turn out and base their plans on that election. Many of my friends were all set to go if Romney had won, but with Obama, they retreated into a wait and see pattern. Patricia Knapp on 11/10/2014 4:29:14 PM |
Screaming for action within 30 days is a little too frantic. Things won't gain real momentum until we see some real action from Congress & the president-- like bringing back all that corporate money stashed overseas, okaying the Keystone pipeline, and lowering taxes on middle class families. If Obama insists on gridlock, 2016 will make this election look tame. People are pissed. Dennis Howard on 11/10/2014 6:12:11 PM |
Slighty better still have democratic president DAX Mays on 11/10/2014 7:53:47 PM |
dodd frank bill gene on 11/11/2014 4:59:14 AM |
They are not in office yet. Just elected is all. They all talk big before the elections but start ducking and dodging when it is time for real action. I hope things change when they are sw0rn in but I am not holding my breath. John Johnson on 11/17/2014 10:59:59 AM |
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