After days of sometimes wild moves in stock markets, Wall Street had a good day on Tuesday. Investors refocused on the continuing strength of the American economy as shares of consumer companies helped lead broad indexes higher.
A panicky global market sell-off — begun Monday when the Standard & Poor’s 500-stock index lost more than 4 percent, its worst decline since August 2011 — dissipated on Tuesday, and the S.&P. 500 ended the session up by about 1.7 percent. The Dow Jones industrial average gained about 2.3 percent.
The consumer discretionary sector of the S.&P. 500 jumped by more than 2 percent, pulled higher by strength in well-known consumer-facing companies like Amazon, Netflix and Home Depot. General Motors also rose after reporting strong earnings and strong demand for its pickup trucks and sport-utility vehicles….
Black people don’t have to kiss his butt for something he didn’t do…
Anybody still think this guys isn’t a racist?
Black lawmakers haven’t celebrated Trump’s claim “that because of my policies, Black Unemployment has just been reported to be at the LOWEST RATE EVER RECORDED” because the White House has failed to articulate which policies he implemented that led to lower unemployment rates for black Americans.
In fact, multiple lawmakers and other Americans have criticized Trump for taking credit for the rate without including important context in his claim.
The rate has been dropping since 2011. The most significant declines happened during the Obama administration, something Trump has failed to acknowledge. In fact, Trump often dismissed declining unemployment rates under Obama as false.
“There’s a good chance that this low number that Trump and company praise isn’t likely to continue at this rate. The Bureau of Labor Statistics shows that the black unemployment rate fluctuates from month to month.”
And that’s what happened.
Just days after Trump’s speech, the black unemployment rate increased by nearly a full point.
After two months of bragging about being responsible for low black unemployment, the White House has yet to respond to the increase in the number of black Americans without work…
— Trump accusing Democrats of treason prompted many left-leaning observers to accuse him of the same thing, which pours additional fuel on the fire and contributes to the tribalism that is tearing America apart. “Not clapping for you isn’t treason, but don’t worry, Mr. President, you could find out the exact definition of treason pretty soon,” Stephen Colbert joked during his opening monologue on CBS last night.
Trump’s speech on taxes, Democrats and the midterms, in three minutes
— “Trump surely does not imagine putting Democrats on trial for treason. Indeed, if you watch the video, you can see him treat the outrageous accusation in an offhand, why-not-go-there manner,” writes columnist Ruth Marcus. “But even if Trump is not ready to round up his political opponents, it is appalling — it is unthinkable — that a president would use this kind of language to describe dissent….
Don’t believe anybody who says they know when this is gonna stop….
And the drop is going around the world’s markets…
Stock markets around the world took a battering Tuesday, following a dramatic sell-off on Wall Street that triggered concerns that a potentially healthy pullback from record highs could morph into a more protracted crash.
Hopes that Wall Street won’t repeat the scale of Monday’s losses helped limit the selling during European trading hours. Futures markets suggested another, but more moderate, drop in the U.S., with the Dow and S&P 500 futures down 0.8% and 0.2%, respectively.
The market mood turned decidedly fearful on Monday when the Dow Jones industrial average posted its biggest percentage decline since August 2011, driven by fears the Federal Reserve will raise interest rates faster than expected due to a pick-up in wages.
That has fed into widespread concerns that markets were stretched following a strong run over the last year that pushed many indexes to record highs. Some also question the possible role of computer-driven algorithmic trading in the precipitous declines or even the ramifications of the rise and fall in the value of virtual currencies, notably bitcoin.
“If investors look at underlying earnings growth and the fundamentals of the global economy, there is reason for optimism,” said Neil Wilson, senior market analyst at ETX Capital.
“However, once this kind of stampede starts, it’s hard to stop.”….
There are drop’s continuing acroos the globe in markets….
Inflation and wage information are some the concerns…
American gas prices are also beginning to climb…
U.S. stocks fluctuated after early losses, while European and Asian equities slumped. Treasuries and the dollar stabilized. Oil fell and copper rose.
S&P 500 Index and Dow Jones Industrial Average each fell more than 1 percent at the open Monday, before a technology rally pulled them back up somewhat. The Stoxx Europe 600 Index retreated for a sixth day, its longest losing streak since November, following similar moves across Asia as both regions took their cue from the U.S. rout on Friday. Yields on core government bonds in Europe fell, while those of 10-year Treasuries edged higher. The pound slumped after data and the euro saw its biggest decline in almost three weeks….
For all that things are ‘Strong’ with the Economy….
Some people think they ain’t…or about to NOT be…..
Stock prices fell sharply from near record highs Friday, with the Dow Jones industrial average tumbling 666 points, or 2.5%, to close out the worst week on Wall Street in years.
The main trigger was growing concern about rising interest rates and inflation, and their impact on stocks going forward, as the yield on the 10-year Treasury note reached its highest peak in four years, analysts said.
But they said that many of the fundamental factors that have driven stocks higher — including rising corporate earnings — remain intact, and that Friday’s trading had no signs of panic selling…..
The Trump Labor Department is reporting a larger than expected increase in jobs and a increase in wages for January…
One should know that 18 states raised the min wage rate , so part of the wage gain was government mandated….And there is a weather thing in the figures….
The labor market got off to strong start in 2018 as employers added a larger-than-expected 200,000 jobs to payrolls and wage gains accelerated in January to the fastest annual pace since the recovery began, the Labor Department said Friday.
The nation’s unemployment rate held steady at a 17-year low of 4.1% for the fourth straight month.
The sustained low unemployment and solid job growth show that the U.S. economy is performing well and that the tightening labor market may finally be starting to push up wages….
Jobless rates for groups can be volatile, and last month’s figures included annual population adjustments by the Labor Department that make for difficult comparisons with the prior month.
The above-consensus payroll print and increase in average hourly earnings was partly tempered by a drop in the length of the workweek, which thereby weighs on aggregate income creation. However, elevated absences and curtailments due to inclement weather may have impacted the workweek, so the dip is likely to be temporary — and hence less troubling that what would otherwise be the case….
One could be seeing that economy gain that Donald Trump is saying he has accomplished in the last year could be slipping away….
Drop in productivity….
Why it matters: The drop, which economists blamed on a shortage of workers, signals that the Trump administration’s goal of growing the economy at a sustained 3% rate might be harder than previously thought…..
As in most things Donald J. Trump resides in an Alternate Universe….
From where I see it?
America IS a Great Country….
It is a mix of people that have been , and still SHOULD, come from different places…
It SHOULD support it’s rich and poor….
It SHOULD look after its old….
And it SHOULD NOT judge people by their color, religion, sex or who they love….
This from The Rev. Dr. Chuck Currie, a United Church of Christ minister…
…..The United States is an exceptional nation. Our diversity, embrace of pluralism and democratic institutions makes the United States unique. Sadly, these great traits are all under assault by the Trump administration today.
Today — as we judge the state of the Union — we must keep in mind that white nationalists freely rally in our cities. The president of the United States has embraced an effectively Muslim ban to keep members of one religion out of our nation. Immigrants and women are taunted with racist and misogynist slurs on social media. Those taunts come from cowards who hide behind anonymous Twitter handles but also, sometimes, from the president himself.
Economic indicators alone do not show us the state of the union. We are more divided in our nation than at any time since the Civil War. The president and his allies stoke that division for partisan gain.
As a minister in the United Church of Christ (and as a parent and professor), I believe that the state of the union can only be strong when our political leaders put the common good of the nation over the temporal political gains of one party or another. Each day, Americans face racism, sexism, homophobia and the moral evils of a now unchecked tax policy that allows the gap between the rich and poor to thrive while poverty grows.
For the majority of Americans who reject the rancor of today, I say the state of our union is weak but the people of this country are resilient. We must — through our colleges and universities, churches, mosques and synagogues, city halls and state capitals — resist the politics of our time and reassert a moral vision of our nation in which all are lifted up and none left behind….
But the Middle Eastern countries will STILL control the enrgy marketplace…Because American oil production is decentralized…Nationalizing it is simply NOT the way America operates and is illegal…Other countries do the opposite, thus they can influence the markets…
In its January Oil Market Report, the International Energy Agency (IEA) predicts “explosive” growth in U.S. oil production, in reaction to rising oil prices. In a recent congressional hearing, Fatih Birol, Executive Director of the IEA, described the United States as “the undisputed oil and gas leader in the world over the next several decades.” U.S. production is forecast to exceed 10 million barrels per day in 2018, surpassing Saudi Arabia and behind only Russia.
This incredible surge in production begs the question—is the United States taking on Saudi Arabia’s role in the oil market? It’s an interesting question, and certainly one that the current administration raises with its emphasis on “energy dominance.” But the answer is no—the U.S. industry will never play a similar role to Saudi Arabia’s in the oil market, no matter how much U.S. oil production grows….
In the United States, the oil industry is made up of dozens of companies that make individual investment and production decisions, based on their own costs, financial positions, and appetites for risk. The U.S. oil industry will never act as one to manage the market or raise prices. In fact, such behavior is illegal under anti-trust law. But this is exactly how Saudi Aramco and the other OPEC members operate—it is the very purpose of OPEC….
The Law, as written DOES penalize state with higher income taxes….
The executives of those states are banding together to file a civil suit against the law on the grounds that it discriminates against their state’s financial’s at a time when those states actually send MORE money to Washington then they get back….
The governors said in a statement that their states would form a coalition to file the lawsuit. They argue the tax law blocks the states from being able to fully govern and “unfairly targets New York and similarly situated states in violation of the Constitution,” according to a statement.
“New Yorkers will not stand idly by as the federal government fires an economic missile at the fiscal health of our state,” New York Gov. Andrew Cuomo (D) said. “The elimination of full state and local deductibility is a blatantly partisan and unlawful attack on New York that uses our hardworking families and tax dollars as a piggy bank to pay for tax cuts for corporations and other states.”
New Jersey Gov. Phil Murphy (D), another party to the lawsuit, also ripped the tax plan as “a clear and politically motivated punishment of blue states — like New Jersey and our neighbors — who already pay far more to the federal government than we receive.”
And Connecticut Gov. Dannel Malloy (D) similarly panned the legislation…..
It seems that those businesses are hiring but salaries aren’t growing much…..With gas prices ticking up and interest rates about rise due to the inflation and a tax cut kicking in that will reward businesses but take money from a good amount of middle class wage earners, huh?
The holiday buying was just Holiday buying…
During Donald Trump’s first year things has picked up in the American economy….But economists see tell tale signs that things will start to erode…
Meanwhile Donald Trump is in Switzerland lecturing other countries and beating his chest on an American economy that is poised to have a cold…
Fourth-quarter GDP growth forecasts ranged from 2.2 percent to 3.8 percent, according to the Bloomberg survey. Household purchases, which account for about 70 percent of the economy, were projected to rise 3.7 percent, according to the survey median. The latest gain in consumer spending added 2.58 percentage points to growth.
Another standout was corporate demand. Business equipment investment expanded at a 11.4 percent annualized rate after a 10.8 percent gain in the prior period. That added 0.62 percentage point to fourth-quarter growth.
The economy also got a boost from housing for the first time in three quarters. Residential construction increased at a 11.6 percent annualized rate, contributing 0.42 percentage-point to growth.
While the boost from tax cuts and a strong labor market may provide support to the economy, growth may be less robust. GDP gains are projected to cool to 2.5 percent as early as this quarter, according to economists’ forecasts compiled by Bloomberg.
One reason is that household spending will be hard pressed to accelerate further. Wage gains remain tepid even with steady hiring and the lowest unemployment rate since 2000. Gasoline expenses are ticking up, consumer debt is rising, and borrowing costs are projected to keep rising gradually as the Fed tightens monetary policy….
Donald Trump gets a chance to try to sell HIS (And his inner staff guys) conflicted thoughts to a captive audience…
On one hand he complained about free trade….
On the other hand he affirmed support for free trade the stuff of TPP and NAFTA….
Donald Trump seemed to be reading from a script that was written by 15 people in a room and handed to him….
President Donald Trump used part of his address to world and corporate leaders in Davos to lecture them about “unfair” trade practices, saying his administration is trying to “reform the international trading system.”
But he also signaled a shift in thinking, saying he is willing to consider a massive Asia-U.S. trade pact.
Trump wore several hats during his remarks, at times playing the role of salesman in chief for America by urging companies to bring their operations to the U.S. At other points, he cast himself as the new sheriff in town by pledging to crack down on what he views as other countries taking advantage of America with their “predatory” trade practices….
Before Trump spoke, a prominent business figure delivered a soft warning to the U.S. president against turning the world’s most powerful country too far inward….