The Obama Bull just won't quit:
sym Apr-end Today MTD
dow 16580.84 16717.17 0.82%
nas 4114.56 4242.618 3.11%
spx 1883.92 1923.57 2.10%
hp 33.06 33.5 1.33%
Consumer Sentiment shy of estimates
May Reuters/UofM Consumer Sentiment: 81.9 vs. 82.5 expected and 81.8 prior.
May Chicago PMI rises to 65.5
May Chicago PMI: 65.5 vs. 61 consensus, 63 prior.
1. Deleveraging is in the past:
2. Fiscal and regulatory drag is diminishing:
3. The worst is over for Europe:
4. Fed signaling has turned positive:
5. The energy boom continues:
Don't think we had so much cereal, sugar in cereal, hormone pumped meats and preservatives that have 2 year shelf lives back then.
Personal Income and Outlays
Apr Personal Income and Outlays: Income +0.3% m/m vs. +0.4% expected, +0.5% prior (unrevised).
Personal spending -0.1% m/m vs. +0.2% expected, +1.0% prior (revised).
The news must have been leaked or anticipated as the ten year crashed all week to 3 month low while indices making new all time highs daily.
Q1 GDP revised to decline of 1%
GDP Q1: -1% vs. -0.5% expected, +0.1% previous.
| 8:33 AM | 2 Comments
Initial Jobless Claims declines by 27K
Initial Jobless Claims: -27K to 300K vs. 317K consensus, 327K prior (revised) (326K prior).
Continuing claims -17K to 2.63M.
The rest of the country should thank California to keep on generating businesses for them. We don't mind to take care of the economy for our little brothers ... we are family after all.
Forget about countries vs countries or red vs blue states. How soon we have forgotten the Watts riot or Anti war marches in the 60's & 70's. Even today, California is easily divided into 2 politicial factions and not just based on the have and have nots. Heck, big families are routinely divided into Mom and Dad favorites vs the rest. Fireworks during inheritance wars.
After 6 years of ZIRP and QE, it is safe to conclude that trickle down has not worked. Statistics from the Fash Boys noted that Stock ownership (and home ownership) decreased:
Before the flash crash, 67 percent of U.S. households owned stocks; by the end of 2013, only 52 percent did: The fantastic post-crisis bull market was noteworthy for how many Americans elected not to participate in it. It wasn’t hard to see why their confidence in financial markets had collapsed. As the U.S. stock market had grown less comprehensible ...
Only Dallas was short:
Dallas Fed business index falls in May
May Dallas Fed Manufacturing Outlook: 8 vs. +9.6 expected, +11.7 prior.
Production: 11 vs. 24.7 prior.
Capacity Utilization: 9.4 vs. 18.7 prior.
PMI Services Index Flash at 58.4
US May PMI Services Index Flash 58.4 vs consensus of 55.4, 55.0 in Apr.
What Great Recession?
Richmond Fed survey beats estimates
May Richmond Fed Mfg. Survey: +7 vs. +5 forecast, +7 previous.
Consumer Confidence at 83.0
May Consumer Confidence: 83.0, inline with consensus; 82.3 in Apr. (revised).
Durable goods rises 0.8%
Apr. Durable Goods: +0.8% vs. -0.8% expected, +3.6% prior (revised).
Ex-transport +0.1% vs. -0.1% expected, +2.9% prior (revised).
S&P Case-Shiller Home Price Index rises in March
S&P Case-Shiller Home Price Index: +0.9% M/M vs. +0.7% expected, +0.8% prior.
+12.4% Y/Y vs. +11.9% expected, +12.9% prior.
FHFA Housing Price Index
Mar. FHFA Housing Price Index +0.7% vs. consensus +0.5%, +0.6% prior.
You are right. Growing companies do not layoff people as in Apple or Facebook. HWP grew from a handful of people to 100K plus without laying off anyone until Carl broke THE HP WAY in 2002. They did so by not acquiring companies in order to layoff people for synergy and consolidation as you have pointed out.
With tens of major campuses closed, no doubt American workers shouldered vast majority of the layoffs. Recall Lew Platt realized that the per employee sales/profit were tainted by cheaper labor by offshore workers (components, calculators and PCs), he adjusted the profit sharing to bonus plans which turned out to have little change to average bonuses during his era before Carl sneaded into Palo Alto by Hackborn in 2008.
The good ones were long gone, either picked off by head hunters or friends who worked at google, facebook, apple, vmware, juniper, twitter, ebay and dozens of other start ups up and down the peninsula edifices.
There are many who are not going anyway because they are highly compensated and have family to feed, educate, clothe and house. Obamacare may have freed a few with chronic pre-existing health problems but the rest will keep stiff upper lips or start to back stab each other near the exist.
Time to BOYCOTT HP products. Last year, I bought a Dell, another kindle, a Mac laptop battery, one iPhone (may be late 2013?) ... The only HP stuff I bought were ink cartridges. This year, I got a chrome TV plug-in and looking for another PC and 23" monitors. They won't be HP brand.
HP is in S&P only. The Obama rally continues even when Congress continue to do nuthin on the Infrastructure job bill or the Nat Gas energy bill.
What a missed opportunity for America.
Only the working stiffs are outraged. Problem is that most will keep stiff upper lips out of fear ... they have mortgages, kids to feed and bills to pay. So sad.