Down goes the Dow

Yes, I wrote that. What's wrong with it?

Lemons,

Take it any way you want. I plan to discuss this with my daughter.

Igy

I'm confused.

Lemons wrote:

I'm confused.

Figy thinks you're his "stalker". Poor guy doesn't even know the meaning of the word. Where's that irony guy when you need him.

Nike earnings makes for an interesting case study of GAAP vs Non GAAP. They beat estimates. But apparently, they beat only thanks to a large one time tax benefit.

In this case it seems that GAAP is a more favorable metric for Nike. Take that tax benefit away and it sounds like they only just match estimates, with negative signs of lower margins going forward.

But again, what is non GAAP? All it really means is some kind of adjustment to GAAP. It may, or may not include taking out tax items. It can be whatever you want it to be. Its a useful tool to strip out 'the noise" so you can see something more specific about the a company. But its also a tool to just cherry pick the numbers.

Ryan,

Good point, but Wall Street will highlight the number that is most favorable to the stock narrative. If I recall correctly that was the case with Microsoft in recent quarters, using non-GAAP beat then a GAAP. Not including the write of the failed Nokia business in one, and then using the earned lower tax rate in the other.

That's convenient!

I haven't delved into the Nike numbers but I am assuming the accounting may involve their decision to jettison the golf business.

Igy

Why would you ignore a tax benefit that affects the bottom line? That doesn't make sense.

Rocket Scientist wrote:

Obviously clarification was needed because you weren't completely clear in your previous post. This isn't rocket science.

Just because you feigned ignorance in order to attack my post does not mean that it was not quite clear and understood by anyone with an IQ of 80 or more. Your pathetic attempt as swatted away. Give it up.

HI, K5! You must realize that responding to that post is the opposite of having it "swatted away". Also it appears you don't understand the meaning of "feigned ignorance". But keep on plugging. Even a blind squirrel occasionally finds an acorn.

U.S. stock futures struggled to hold on to positive territory on Thursday as the initial euphoria over a preliminary agreement on oil output faded and crude prices drifted south.

Away from commodities, investors will be watching out for weekly jobless claims and other data, as well as for a crowded lineup of Federal Reserve speakers, including Chairwoman Janet Yellen.

Dow Jones Industrial Average futures were trading flat at 18,238, as were S&P 500 futures futures at 2,162.75. Nasdaq-100 index futures were off 3.75 points to 4,864.50.

The S&P 500 index closed up 0.5% on Wednesday, led by a 4.3% surge in the energy sector. The Organization of the Petroleum Exporting Countries reached an "understanding" over limiting crude production and is considering cutting output to between 32.5 million and 33 million barrels a day, The Wall Street Journal reported.

The price of West Texas Intermediate crude surged 5% overnight on the news, driving energy stocks higher. But oil prices drifted lower Thursday as doubts lingered over the details of the planned agreement. Crude prices were last down 0.6% to $46.79 a barrel.

Oil prices are still facing a "major range boundary that mirrors broader consolidation trends in the financial sector," said John Kicklighter, chief currency strategist at DailyFX, in a note to clients.

"It will take more than a cap on supply from even this large producer of a vital commodity to change the sentiment of the entire financial system; and developing a trend independent of general congestion is fraught with danger," said Kicklighter.

While U.S. stock futures were trading within a narrow range, markets rallied across Asia and Europe and the Japanese yen fell as oil-price gains triggered an appetite for riskier assets such as stocks. The yen is traditionally viewed as place to hide when investors fear economic or global uncertainty.

"Back in the 1960s journalists developed a term for the gap between what the Johnson Administration told us about the Viet Nam War, and the truth about how bad it really was. They called it the “Credibility Gap.” Today that’s an apt description of the gap between what the stock market and its media and government cheerleaders tell us about the US economy, and reality. We face a chaotic withdrawal from the fantasy. A day of reckoning is coming."

Lee Adler, 9/28/2016

Ghost of Igloi wrote:

"Back in the 1960s journalists developed a term for the gap between what the Johnson Administration told us about the Viet Nam War, and the truth about how bad it really was. They called it the “Credibility Gap.” Today that’s an apt description of the gap between what the stock market and its media and government cheerleaders tell us about the US economy, and reality. We face a chaotic withdrawal from the fantasy. A day of reckoning is coming."

Lee Adler, 9/28/2016

hey Igy

I'd go the other way - the entire country seems to think the US is in some kind of tailspin of declining everything.

the truth is that our economy is the envy of the world. Not perfect of course, but jeez...nearly full employment, rising wages, steady growth, off the charts private sector job creation, poverty rates dropping like a stone...

You are truly a fvcking idlot. Try shoving your head further up your American asz.

agip,

Perhaps with age one tends to be cynical and skeptical of things which in the past you would discount. I am no different than most. I do feel that I am generally more open to change than most my age.

I am optimistic, as always, about our country's future, however I do feel that there is a reluctance on the part of all our politicians to tackle the hard challenges (deficits, entitlements, policeman of the world, Social Security, Medicare, healthcare). The Federal Reserve's unwillingness to move off the zero bound continue to create serious economic distortions.

Likewise, I feel our corporate leaders are making decisions that are more short term oriented (stock buy backs, lack of reinvestment in productive activities, executive compensation, unfairness of compensation between executives and the average worker) rather than investing in the future growth for the company and employees (shareholder orientation). Today's hearings concerning Wells Fargo, who I am a client of, demonstrates how the shareholder has been put in front of both the long term benefit of the company and it's employees. Unfortunately Wells Fargo is not an exception.

I do see some correlation to the current period and the post Vietnam era. That is, Middle East wars and post period country malaise as Jimmy Carter called it. Lastly, I do believe there is a credibility GAAP, between what is the true earnings of S&P 500 and the Wall Street narrative.

Hope your running is going well. I missed all of last week; the wife and I drove over to the Oregon coast for our birthdays. I'm 66 and she's 62, both eligible for Social Security now! I ran tempos on the track yesterday and felt the time off, and I gained two pounds. Doesn't take much slacking to put things in reverse.

Igy

agreed that long term is a serious problem -hard not to see a sovereign debt crisis and big inflation in the future. But who knows when.

Happy birthday(s)! Social Security eh. Are you going to wait to start the cash?

I've been feeling good running - temps and humidity finally falling and I'm feelign fairly spry and strong. I want to race this weekend but it's probably going to rain so I'll put it off a week. But my end goal is sort of December-May so early days.

Forza!

agip,

Best on the running. I need to formulate some goals. The Idaho Senior Games was a good start for me, perhaps I will look toward an indoor mile or spring 5k. We'll see. The fall is nice for running here so first step will be just to increase my weekly volume and go from there.

I plan to keep working full time until I am 70. At that time I will have maxed Social Security and she can take the spousal benefit. My wife was a teacher, but spent most of her working years as a stay at home mom. That was tough financially when I was a coach, but good for our children (son and daughter).

Igy

agip,

Article by Ruchir Sharma, in Wall Street Journal. Sharma is a Morgan Stanley Global Strategist.

http://www.wsj.com/articles/trump-tees-up-a-necessary-debate-on-the-fed-1475102579

Igy

10 hedge funds cut exposure to Deutsche Bank (DB) citing counter party risk.

Igy