Morning Commentary
“We must begin thinking like a river if we are to leave a legacy of beauty and life for future generations.”
¯ David Brower
“Life is like the river, sometimes it sweeps you gently along and sometimes the rapids come out of nowhere.”
¯ Emma Smith
Once again, it’s all about the new economy versus the old economy. Last night, after the close, Amazon (AMZN) blew away Wall Street consensus, sending its shares to the moon- the true definition of parabolic. The company is living up to the hype of 1999, and the mighty breadth and images of its namesake. Indeed, Amazon is a raging beauty this morning.
The Street was looking for a loss of $0.11; instead, Bezos and company posted a gain of $0.19 that was driven by sales in electronics.
North America
Revenue +26%
Electronics +31%
International (constant currency)
Revenue +22%
Electronics +31%
All the big names and new economy names reported last night after the bell beat big.
Where are the Buyers?
What happens when the big pockets of corporate America run dry and there are no buyers of stock in the open market? In the first quarter of this year, publicly traded companies bought back $140 billion shares, surpassing the total of the fourth quarter 2014; however, the overall trend looks lower after peaking in the first quarter of last year.
For all the talk of irrational exuberance, individual investors simply are not buying individual stocks. While one could argue that trillions in corporate buy-backs are a form of manipulation, it’s also a sign of confidence, but it’s not foolproof. The last time buy-backs peaked was in 2007- the year before the fall…or as Fred Sanford would say, “The big one!”
Another driving force of the rally has been mergers and acquisitions (there really isn’t such a thing as mergers of equals as one company always ends up running the show), which are on a record pace for potentially five trillion dollars in deals.
The Donald Show
Trump-mania hits Texas as the Donald goes to Laredo and has another showdown with the media. Once elected, he is promising to bring jobs back from around the world; will he even run as a Republican?
The relentless attacks from members of his own party and the media have the Donald talking about the third party. Right now, the polls suggest it would be a losing proposition and that it would only help Hillary, but the real estate mogul says it’s an option.
Trump’s third party run…sour grapes?
Poll
Wash Post
One point that Trump is making that is hard to argue is how both parties have melded together, and there does not seem to be much difference. The GOP is trying to cap airline fees on bags, while next week’s cover of Time will feature a Bush or Clinton for the 100th time!
Question:
Have the political parties become indistinguishable, both in the pockets of special interest? If so, what can voters do to disrupt this?
In the meantime, Donald Trump has had an epiphany this week! A couple years ago, Trump was ready to sue Mac Miller over his song that featured the mogul. Although, he does not care about the vulgar parts, he loves it now.
I have said it for years that the GOP can win blacks, Hispanics, and millennials by embracing luxury rap and their desire to be rich!
Take over the world when I'm on my Donald Trump (bleep)
Look at all this money, ain't that some (bleep)?
-Mac Miller
Moreover, don’t be fooled. People love the American dream and they love rich people. However, they are frustrated because they feel left out of the party. Teach a man and woman how to make bread, allow them to take chances, and then move out of the way!
Today’s Session
The major equity markets had a bit of a rough start this morning. The NASDAQ is trading all over the place, while the Dow Jones Industrial Average and S&P 500 attempt to break even.
Comments |
Damn your 1000 % right Ramon Espinosa on 7/24/2015 11:51:52 AM |
I just listened to Hillary on FOX and then checked the Market - good news AGAIN? My question is "What is wrong with the Republicans"? They react to everything the Democrats do, whether it is unconstitutional or illegal or both, like they are helpless and afraid. They make empty-threats and nothing ever gets done. If Hillary is elected in 2016 and she executes her proposed financial plan; I predict the country will collapse into a deep level of socialism. I have written and called my Senators and Rep until I am "blue in the face"...NOTHING! As the situation exists today, I may vote for Trump just because he cannot be intimidated, and has a long history of getting things done. I do not care for our one-party system!! I also do not care for Socialism!! Who do we know who was raised by communist parents? Who is/has caused the planet to "begin to explode"? FMT on 7/24/2015 2:59:28 PM |
It's a sad state of affairs. The Republicans have no leadership. Trump is not considered mainstream by the media and its hard to beat the promise of getting things for free in the Democrats redistribution of wealth. But as we've seen, the ignorant will remain ignorant. E.V. Wagoner on 7/24/2015 4:30:22 PM |
Tweet |
3/28/2024 1:39 PM | Fruitful Quarter |
3/28/2024 9:50 AM | LISTEN TO THE MARKET |
3/27/2024 1:40 PM | Mostly Higher |
3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
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