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Afternoon Note

Financial Missteps

By Charles Payne, CEO & Principal Analyst
2/14/2019 1:34 PM
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While the early rout in the market is easing, there are pockets of distress that are concerning, especially the action in financials.   The worst performing sector of the session is being led lower by AIG after the insurance giant posted massive earnings miss, coming up short in the equity and credit markets.  

The news brings back the nightmare of all the twist and turns the government went through to save the company during the financial crisis.  Ultimately, $182 billion in taxpayer funds went to steady the ship, and while some would argue the government made a $23 billion profit, the fact is, the burden should not have fallen on the American public.  

The persistent missteps in financials seem to go beyond poor trading and might speak to boarder issues. I will continue to dig and ask questions.

Sector Watch

S&P 500 Index

-0.44%

Communication Services (XLC)

+0.20%

Consumer Discretionary (XLY)

-0.46%

Consumer Staples (XLP)

-1.16%

Energy (XLE)

+0.52%

Financials (XLF)

-1.45%

Health Care (XLV)

-0.08%

Industrials (XLI)

-0.53%

Materials (XLB)

-0.44%

Real Estate (XLRE)

+0.06%

Technology (XLK)

-0.01%

Utilities (XLU)

-0.34%

 

Amazon Bolts

Amazon is out of Queens, as the company has abandoned its selection of Long Island City as a co-HQ2 selection. The implications range from political to economic.

It’s a clear political victory for AOC (Alexandria Ocasio-Cortez) & Co and others pushing back on corporate welfare and gentrification trends.  Of course, the promise of 55,000 jobs and billions in salaries is appealing.  But none of that was guaranteed, causing many to wonder why the richest man in the world needed such a sweetheart deal.

NASDAQ Big Hurdle

I like the action in the NASDAQ, which can reverse the trend of lower highs going back to last September with a close above 7,441.  As much as I think it’s important for broader distribution of market leadership, it’s the names that drive the NASDAQ that will bring in the most sideline money the fastest.

 


Comments
AMAZON CANCELLING THE PROPOSED HQ IN NYC WAS NOT A VICTORY FOR THAT SLEAZE BAG CORTEZ IT WAS ANOTHER BACKLASH OF LIBERAL JERKS WHO ARE RUINING THE COUNTRY THE PROTESTORS WERE HISPANICS AND BLACKS WHO WOULD NOT QUALIFY FOR ANY JOB THAT REQUIRES BRAINS WE WELCOME THE COMPANY HERE IN TENNESSEE WE DONT ADVOCATE INFANTICIDE OR HAVE STUPID STATE INCOME TAXES
THANKS YOU NYC FOOLS

ERNEST REMUS on 2/14/2019 2:49:09 PM
Hey Charles could you help me out, Amazon was bringing 25,00 jobs paying an average of 150,000 dollars a year and those employees would be paying 13% state taxes would that not help the local community’s or am I misreading this.

John on 2/14/2019 4:24:37 PM
 

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