with the Department of Justice and ten republican states bringing their action today. It will last for years and the DOJ will lose, as they did with the AT&T merger. Coming two weeks before the election it reeks of politics. Google thinks the suite is “deeply flawed.” It’s the first time in history antitrust suit was brought where consumers get the service for free. How much have you paid Google lately? If Google were based in Texas, Florida, or Kansas, this suit would never be happening.
at 1.553 million, up a staggering 22% YOY and a 13-year high. I wondered why I was suddenly getting a lot of flat tires on the freeway. They’re caused by nails and screws falling off the back of pickup trucks on the way to jobs. The long-term structural housing shortage continues. 30-year money at 2.75% makes a big difference.
missing subscriber growth targets by a wide margin. The salad days of the “stay at home” boom are now firmly in the rearview mirror. Nearly half of their subscriber growth came from Asia, especially South Korea. The US is already (NFLX) saturated. I’ll keep watching Schitt’s Creek anyway, the top Emmy earner. The company now has over 1,000 shows in production after a long content drought.
with the shares up a stunning 18% off blockbuster earnings. The multimedia messaging and photo-sharing app, home of Snapchat, lost only $200 million in Q3, down 12% YOY. Daily users jumped from 238 to 249 million on the quarter. The app is a favorite of the under 16 crowd.
the bitter fruit of its misadventure in Malaysia. The case from the DOJ has been a drag on the stock for years where claims went as high as $5 billion. Helping foreign despots launder money has never been a profitable business model.
from 82 in August to an all-time high. The housing market is the hottest it has ever been. All the action is in single-family homes, material costs are through the roof, and labor shortages are severe. Good luck finding a handyman these days. The big question is whether the boom will spread to the rest of the economy. I think it will.
Biden Tax Plan Could Raise California Max Tax Rate to 62%.
Ah yes, but we’ll be allowed an extra $100,000 in deductions after state and local tax deductions are restored and the limit on home mortgage deductions is lifted. Sounds like a win to me. This is why real estate prices in the Golden State went nowhere for three years until Biden started to pull ahead in the polls.
Goldman Sachs Says a Blue Wave Will Increase Spending
and boost the stock market. Total one-party control of the government eliminates the haggling that we are currently seeing in Washington and will deliver more Covid-19 aid faster. It should more than offset the ill effects of tax increases on the economy. This is now the conventional view.
delivering a third consecutive quarter of losses when the rest of tech is making money hand over fist. It’s so last century. That’s why the company is breaking itself up. Avoid (IBM) like last week’s fish.
to reach a stimulus deal. If not, the country is going to have to wait until January. The House clearly has the strong cards. The House passed its bill in March. No deal could bring the pre-election selloff I have been expecting. Stay short the (SPY).
as the US epidemic takes a run at a third peak. Any higher and markets will start to notice….to the downside. The disease is rampant in the upper Midwest and several battleground states. Europe is looking bad too, with the Czech Republic showing the greatest per capita infection rate. Where can you walk around Corona-free? China, which moved the soonest, and the harshest against the virus.
to the upside. The Invesco Solar ETF (TAN) is up an eye-popping 212% since April. The expectation is that the former vice president will deliver a new golden age of alternative energy subsidies. Has anyone wondered by Tesla (TSLA) is going up? Its last round of subsidies ran out five years ago.
to Gen Xers mostly, but Millennials as well. Of course, they have all the money, with a 53% ownership of all stocks, compared to 27% for Gen Xer’s and a mere 3% for Millennials. The Greatest Generation, born before 1946, have been shrinking their share ownership since 1990 and own only 17% of the total now. A coming jump in capital gains taxes will accelerate the process.
cashing in on this year’s frenetic trading. Picking up E*TRADE for $13 Billion and Eaton Vance for $7 billion will further add to the bottom line. Profits from wealth management jumped to $4.7 billion. I remember when total assets under management were $4.7 billion. Buy (MS) on dips. It will be a great “roaring twenties” stock.
at the Tuesday World Series opener. I thought this was a joke when I first saw it. An hour late and a dollar short. Never find that the car doesn’t exist yet. Production doesn’t begin for a year. Avoid (GM) like last year’s clunker.
over getting a stimulus package through before the election. It was never going to happen. Trump wants to hand the democrats an economy laid waste. Stimulus has been the main support for the stock market for the past month. Sell rallies.
most due to cancellations of the grounded Boeing 737 MAX. (BA) really saved the bacon of most of the world’s airlines by failing to deliver right before the pandemic hit and global airline demand collapsed. Still, it’s a record you don’t want to hold. Buy (BA) on dips.