chek't id
tyb's
S&P 500, Nasdaq gain on Nvidia, White House stock incentive report
The U.S. market will be closed on Monday for Presidents Day.
The S&P 500 ended modestly higher on Friday following strong earnings from Nvidia and a report late in the session that the White House was considering a tax incentive for Americans to buy stocks. Uncertainties surrounding the coronavirus epidemic and downbeat economic data had put a damper on investor sentiment for much of the day.
But a CNBC report that the Trump administration could introduce a tax incentive for people earning less than $200,000 to invest up to $10,000 in U.S. stocks gave the markets a late boost.
“In an election year, especially when the president is getting backlash that the tax cut benefits only the rich, seeking a way to democratize the stock market to low income earners would be a popular maneuver,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta.
While the S&P 500 and the Nasdaq closed modestly higher, the Dow lost ground. The three major stock averages headed into the U.S. holiday weekend having posted their second consecutive weekly advances. U.S. Treasury yields declined as investors bought safe-haven government debt ahead of the long holiday weekend after soft retail sales data. In the precious metals market, U.S. gold futures GCcv1 settled up 0.5% at $1,586.40.
The coronavirus, now called Covid-19, has taken 1,380 lives and infected 63,851 people, according to Chinese authorities. In a recent Reuters survey of 40 economists, the respondents see China’s economy in the current quarter suffering its slowest growth since the financial crisis, but believe the downturn will be short-lived if the outbreak is contained.
“The true economic implications of the coronavirus are still unknown,” Sroka said, adding “at the end of the day, earnings matter more for the sustainability of stocks than near-term headlines.”
Indeed, of the 387 companies in the S&P 500 having reported fourth-quarter results, 77.4% have surprised Wall Street expectations to the upside, according to Refinitiv data. Analysts now see fourth-quarter earnings rising at an annual pace of 2.6%, a striking reversal of the 0.3% decline seen on Jan 1.
In economic news, lackluster retail sales and industrial production data appeared to justify the U.S. Federal Reserve’s wait-and-see stance regarding its accommodative monetary policy, reiterated by Fed Chair Jerome Powell earlier this week in Washington.
The Dow Jones Industrial Average .DJI fell 25.23 points, or 0.09%, to 29,398.08, the S&P 500 .SPX gained 6.22 points, or 0.18%, to 3,380.16 and the Nasdaq Composite .IXIC added 19.21 points, or 0.2%, to 9,731.18.
Seven of the 11 major sectors in the S&P 500 closed in the black, with defensive real estate .SPLRCR and utilities .SPLRCU stocks seeing the biggest gains. Energy shares .SPNY were the biggest losers.
NVIDIA Corp (NVDA.O) jumped 7.0% after the chipmaker’s beat-and-raise earnings report, even as it forecast a $100 million hit from the coronavirus. Online travel services platform Expedia Inc (EXPE.O) surged 11.0% after the online travel services company forecast strong quarterly core earnings despite uncertainties surrounding the Covid-19 virus. EBay Inc (EBAY.O) gained 2.6% after providing better-than-expected current-quarter profit guidance.
Advancing issues outnumbered declining ones on the NYSE by a 1.11-to-1 ratio; on Nasdaq, a 1.24-to-1 ratio favored decliners. The S&P 500 posted 74 new 52-week highs and five new lows; the Nasdaq Composite recorded 130 new highs and 60 new lows.
Volume on U.S. exchanges was 6.60 billion shares, compared with the 7.62 billion average over the last 20 trading days.
https://www.reuters.com/article/us-usa-stocks/sp-500-nasdaq-gain-on-nvidia-white-house-stock-incentive-report-idUSKBN2061RJ
this new plan (floated by the WH) is a good idea as it will allow the ordinary pepe's to benefit from the rising markets.
Still need the complete details however the moar the market rises and interest rates stay low it is like a noose on the neck of the system.
Low interest rates = fucked to the pile of debt that the system currently has on it's books.
in other market related news…
Kraft Heinz bonds fall into ‘junk’ territory after downgrades
https://www.marketwatch.com/story/kraft-heinz-bonds-fall-into-junk-territory-after-downgrades-2020-02-14
Berkshire Buys New Stakes In Kroger, Biogen, SPY, VOO: Full 13-F Summary
https://www.zerohedge.com/markets/berkshire-buys-new-stakes-kroger-biogen-spy-voo-full-13-f-summary
https://finance.yahoo.com/quote/%5EGSPC
https://www.kitco.com/charts/livegold.html
https://www.marketwatch.com/investing/bond/tmubmusd10y
habby valentine's day to all…
It's light on details but what it should do is give you a tax incentive , i.e break, to put $10k in stocks if you make less than $200k/yr. This is good step towards allowing people to benefit from the rising mkts. The biggest complaint is that the top portion of society owns most of the equity now so the rising markets do not really help us.. it benefits them. So why not make it easier for us to grab some of that performance right? It's never a guarantee thing but I do not think that POTUS would advocate this if it was not the right place to be. Still early days and need all the details.
Best I can do without moar finite details. A tax anon may be able to add some additional information-I always had someone do my taxes so if there was a screw-up it was on them.
racer anons will get this
let's hope so. I haven't watched it for a long time. I will be.
I am fully aware of that anon- I also do the insider sales so I know what they are doing. Sometimes you need to just go with it. It took me some time to shake off the knowledge that I accumulated over 30 years in doing this…not an easy thing. Also said that nothing is a guarantee too. The system has much larger problems with the pile of shitty debt that is has and this will not be much of an impact either way. POTUS has to try something…let's see how it shakes out.
chek't tips
I am not seeing an equal amount of buying to the large amount of sales reported-someone has to buy it. Most likely going off in the dark pools and if not (doubt it as the amounts being sold would kill an equity if dropped on it in normal transactions-way too much volume and most of them at one price point-not an average of multiple trans.) there are ways to get it back via the EO's and DOJ clawbacks-SEC is worthless.
you are absolutely correct-they always have. The fin media goes to great lengths to convince you that it's ok and speculation is naturally a great thing-it can be but most of the time it is not. The CBOE and NYSE need a good proper cleansing of these built-in attitudes. Only then will real price discovery occur.
kek-doesn't understand that exchanges are used by real people and the only option for retail.
thanks for your glowing review… 28 poster.