Friday, August 16, 2013

GIANT RESET IS COMING? CNCB JUST SAID THIS LOOKS LIKE A REPEAT OF 2007 STOCK MARKET CRASH AND OBAMA’S ECONOMIC APPROVAL PLUNGES TO 35%

2007 all over again?












With so many on Wall Street fighting over the valuation of stocks and worrying whether the market rally has gotten ahead of itself, one economist tells CNBC that prices in today’s market look eerily similar to 2007.
Dan Seiver, editor of the Pad System Report and a professor of finance at San Diego State University, bases his long-term valuation model on Value Line’s median appreciation potential, which he said has shown statistically to have predictive value of where the market is headed.
“Right now, that number is relatively low. It’s down in the range that it was in 2007,” Seiver told “Squawk on the Street” on Thursday. “That tells me that over the next few years, the returns on stocks aren’t going to be particularly good and they could even be negative.”
http://www.cnbc.com/id/100965728
Cramer: ‘Giant reset’ looming for markets
A “giant reset” is looming for the markets because the improving economy is simply not trickling down to companies’ bottom lines, CNBC’s Jim Cramer said Thursday.
“Macro is great, but when you have to go deal with companies, it’s bad,” Cramer said on “Squawk on the Street.”
“We have to deal with the four walls of the corporate canvas, and they are simply not able to turn this macro positive into micro earnings gains, and that’s a real conundrum, particularly when the 10-year is signaling that happy days are here again,” he said.
http://www.cnbc.com/id/100965252
Obama’s Economic Approval Slips to 35%
Was 42% in June; decline mirrors drop in overall approval
PRINCETON, NJ — Despite President Barack Obama’s renewed focus on the nation’s economy this summer, he scores worse with Americans on the economy than he did in June. His approval rating on the issue, now 35%, is down seven percentage points, and his ratings on taxes and the federal budget deficit are each down five points. During the same period, his overall approval rating is down three points.


Recent Trend in President Obama's Overall and Issue Job Ratings, June vs. August 2013
http://www.gallup.com/poll/163985/obama-economic-approval-slips.aspx?utm_source=alert&utm_medium=email&utm_campaign=syndication&utm_content=morelink&utm_term=Presidential%20Job%20Approval
Preps end run around Congress to hike cell phone tax…
Dow skids 200+
http://www.cnbc.com/id/100965138

Wal-Mart, Macy’s, Kohl’s Cut Profit Outlook; Cisco to Cut 4,000 Jobs, Blames Weak Economic Recovery

The earnings hit parade keeps on rolling, but not in the directions bulls wanted or expected. And with stocks priced well beyond perfection, today’s reaction should hardly be a surprise. Yet, treasury yields soared once again in spite of poor earnings, and in spite of a flat industrial production report.
Wal-Mart, Macy’s, Kohl’s Cut Profit Outlook
Yahoo!Finance reports Wal-Mart cuts profit outlook on shopper worries
 Wal-Mart Stores Inc. cut its annual profit and revenue outlook Thursday as the world’s largest retailer expects a tough economy at home and abroad to continue to squeeze its low-income shoppers through the rest of the year.
Wal-Mart also reported second-quarter results that missed Wall Street estimates. The company’s stock fell nearly 2 percent in premarket trading.
Wal-Mart’s sober assessment of consumer spending adds to worries in earnings from Macy’s Inc. and Kohl’s Corp. Both lowered their expectations for the year after reporting disappointing results.
Wal-Mart said recent tax changes have further put pressure on its shoppers. Americans are dealing with a 2 percentage-point increase in payroll taxes that took effect Jan. 1. That means that take-home pay for a household earning $50,000 a year has been sliced by $1,000.
“The retail environment remains challenging in the U.S. and our international markets, as customers are cautious in their spending,” Wal-Mart Chief Financial Officer Charles Holley said in a statement. He noted a “reluctance” among its customers to spend on discretionary items like flat-screen TVs.
Cisco to Cut 4,000 Jobs, Blames Weak Economic Recovery
The Wall Street Journal reports Cisco to Cut 4,000 Jobs, Blames Weak Economic Recovery.
Read more at http://globaleconomicanalysis.blogspot.com/2013/08/wal-mart-macys-kohls-cut-profit-outlook.html#xYvqumtI0BT8TR4H.99
Wal-Mart, Cisco, taper talk send Dow down 200 points
http://www.marketwatch.com/story/us-stocks-drop-sharply-as-yields-climb-2013-08-15

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