With the earnings expectation bar set so very, very low on the companies reporting, one would think they should beat the expectation.
In an attempt to capitalize on this thesis, Gordon is selling the IBM November 145/150 call spread for $1.83. In other words, Gordon is selling the November 145-strike call and buying the November 150-strike call, which will allow him to keep the full $1.83 per share, so long as IBM is below $145 at November expiration. IBM shares closed Thursday at $143.67.
Counties fell for a pitch on tax-free bonds for prisons and got nailed with millions in IRS fines.
James Parkey spent more than a decade crisscrossing the U.S. selling poor counties on a way to get rich quick. He’d help local governments issue tax-free bonds to build private prisons that would rent beds to the federal government, mainly to hold undocumented immigrants. Parkey’s model for financing lockups, which he promoted with help from a team of bond dealers, consultants, and lawyers, led to a boom in prison construction. While the jails succeeded in many places, almost two dozen defaults followed in cities and counties from Florida to Montana as the prisons struggled to fill beds amid the sudden glut. Then the IRS got involved.
As of July, eight detention center deals were being investigated over their tax-exempt financing, according to an IRS document. Several other counties in Texas and Arizona have settled with the government, paying as much as $1.9 million and refinancing their prisons with taxable debt, including at least three developed by Parkey and his network. In most cases the deals were “basically snake oil,” says Bob Libal, executive director of Grassroots Leadership, a nonprofit in Austin opposed to private prisons.
Parkey, an architect, got into the correctional facilities business in the 1970s, when Texas ordered counties to rebuild their crumbling jails. In the 1990s he founded Corplan Corrections in Irving to focus on prison design and development. “You do one, you do two, you do 10, you do 20, and I guess you’re an expert,” says Parkey, who declined to comment on tax issues. In the wake of the Sept. 11 terrorist attacks, he assembled a team to visit counties eager to kick-start their economies. It included two bond underwriters, a feasibility consultant, a Houston-based builder, and a rotating cast of private prison operators, including Emerald Correctional Management of Shreveport, La.
The number of announced layoffs by U.S.-based companies surged in September from the previous month, driven by job cuts at Hewlett-Packard, global outplacement firm Challenger, Gray & Christmas reported Thursday.
U.S.-headquartered companies put 58,877 jobs on the chopping block last month, up 43 percent from just more than 41,000 in August and the third highest monthly total this year.
Just hours after the Russian parliament waved through military intervention in Syria, its first air strikes in the civil war-torn Middle Eastern country were confirmed. This came after tense discussions between President Barack Obama and his Russian counterpart Vladimir Putin over the best course of action in Syria at the United Nations earlier this week.
Obama just needs to sit down and have a little chat with Syrian President and the ISIS leaders just like they did with Iran. Diplomatic talks with them is much better than all this fighting. And Obama needs to put a stop on talking about the President of Syria needs to step down.
Companies stepped up hiring in September, indicating the U.S. job market is standing firm in the face of weaker global demand, according to a private report based on payrolls.
A 200,000 increase in employment followed a revised 186,000 rise in the prior month, figures from the ADP Research Institute showed Wednesday. The median projection of economists surveyed by Bloomberg called for an advance of 190,000.
The additions to company headcounts are consistent with resilient demand in the U.S. even as some industries face challenges of weaker overseas sales. Labor Department data on Friday are projected to show payroll gains accelerated this month compared with August.
“The U.S. job machine continues to produce jobs at a strong and consistent pace,” Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said in a statement. Moody’s produces the figures with ADP. “Despite job losses in the energy and manufacturing industries, the economy is creating close to 200,000 jobs per month. At this pace, full employment is fast approaching.”
Estimates in the Bloomberg survey ranged from gains of 120,000 to 215,000 after a previously reported August advance of 190,000.
Earnings announcement* for IBM: Oct 19, 2015. International Business Machines Corporation is expected* to report earnings on 10/19/2015 after market close. The report will be for the fiscal Quarter ending Sep 2015.
Should be good for MO.
Anheuser-Busch InBev NV said it intends to make an offer for SABMiller Plc to unite the world’s two biggest beermakers and brands including Budweiser and Peroni, creating a company that would control about half the industry’s profit.
Will he last 1 year? While Australia's revolving door of prime ministers appears unsettling.
Europe is quick to criticize the US on their boarder problems, but now the shoe is on the other foot.
President Obama on Thursday directed his administration to admit 10,000 Syrian refugees next year.
We have not learned our lesson yet. Time for another big CRASH, maybe it will hurt more than the last one. It has really got to hurt so everyone learns this time.
Glencore also said it had suspended copper production for 18 months from its Katanga operation.
Well their Sarbanes–Oxley procedures for their failover also failed.