Odds of a double dip continue to drop. We now have three companies in three different fields that have not tried to dampen expectations for the second half of the year: Intel in tech, CSX in transports, and Alcoa in aluminum.
When Treasury man Tim Geithner told me last week in a CNBC interview that the Obama administration wanted a 20-20 limit on the tax rates for investor capital gains and dividends, it may have turned stock markets around 180 degrees from the nasty bear correction that began in late April. No one, most of all me, wants to see any increase in these tax rates. But the Geithner pledge created a lot more certainty, especially on dividends, which will not go up to the 40 percent personal tax rate on ordinary income.
The results don't reflect well on the home states of these leaders, regardless of their politics.
If the economy goes down a second time, it will not likely recover easily or quickly. The unemployment rate will rise into the teens and conditions reminiscent of the Great Depression will prevail through much of the nation.
The President and CEO of Diamond Offshore, Larry Dickerson, said, "With new contracting severely restricted in the Gulf of Mexico as a result of the uncertainties surrounding the offshore drilling moratorium, we are actively seeking international opportunities to keep our rigs fully employed."
Maybe enough to spark some real job growth by the end of the year.
Both beat earnings consensus: Alcoa by $0.01, at $0.13, and CSX by $0.09, at $1.07. At Alcoa, after tax operating income was above expectations in all four major segments: alumina, aluminum, and the downstream segments of flat rolled products and engineered products.
It’s also worth noting that the deal has a tiered break-up fee, which is only 1.7 percent ($85 million) of the deal price for the next 50 days, before jumping to $190 million.
Alcoa kicks off earnings Monday. It always pleases me that AA starts earnings season, because it is a pretty simple story. also: Big week for IPOs. There are several interesting companies looking to go public next week:
Three seminal issues have driven the recovery of the past two years: Government rescue money, bank stress tests, and exceptionally low interest rates - all products of government intervention.
Many corporate executives and investors believe that the policies of the current administration...
The U.S. and Russia orchestrated the largest spy swap since the Cold War, exchanging 10 spies arrested in the U.S. for four convicted in Russia in a tightly choreographed diplomatic dance Friday at Vienna's airport.
There have been reports this morning that the SEC is considering the promulgation of new rules for stock trading. Here's what my sources are telling me...
Greece has passed major changes in its pension system, raising the retirement age to 65 and cutting benefits. There will be a debt issuance next week. Spain will also allow savings banks to be be be bought by private investors, including outsiders.
It remains unclear how the assets on European banks’ balance sheets will be marked down under various stresses. So, will there be a need for significant capital at European banks and if the stress tests are deemed worthy, will that allow those banks to raise the necessary capital?
In their own 'Private Idaho', the media moguls gathered here in Sun Valley attending the Allen & Co conference are on their own discovery and having plenty to say about the economy and government regulation and what it all means for the future of their industry.
Plus, get the Treasury secretary's thoughts on derivatives, the economy, Fannie and Freddie and more.
Warren Buffett says Tony Hayward should not continue as BP's CEO, so that the American people can "feel better" about the company's response to its massive oil spill in the Gulf of Mexico. In a videtaped interview with Willow Bay for the Huffington Post and Yahoo News, Buffett says it is not in the interest of either BP or the nation for Hayward to keep his job.
June retail sales report: better than most expected, but not a game changer. Numbers were good for the most part, but not enough to change anyone's opinion. The back half remains murky due to the macro data, which right now does not support a robust recovery.
Taxes on US businesses are about average compared to those in the rest of the world, Treasury Secretary Tim Geithner told CNBC Wednesday.