NEW YORK (CNNMoney.com) -- A stock selloff gained speed Thursday as investors dumped technology and other large cap stocks amid weaker economic reports, a stronger dollar and continued jitters in the aftermath of last week's selloff.
The market wariness overshadowed Ford Motor's first profit in 4 years and President Obama's announcement of a push for jobs.
NEW YORK (CNNMoney.com) -- A stock selloff gained speed Thursday as investors dumped technology and other large cap stocks amid weaker economic reports, a stronger dollar and continued jitters in the aftermath of last week's selloff.
The market wariness overshadowed Ford Motor's first profit in 4 years and President Obama's announcement of a push for jobs.
Source:CNNMoney.com
Showing posts with label Obama's speech US STOCKS. Show all posts
Showing posts with label Obama's speech US STOCKS. Show all posts
Thursday, January 28, 2010
State of the Union: Obama's national security rhetoric bogs him down
In sum, this State of the Union comes from a president still struggling to reconcile his lofty campaign hopes with the hard realities of governing, and the pressing demands of domestic politics with his inescapable responsibilities as commander in chief.
Source:shadow.foreignpolicy.com/
BEFORE THE BELL: US Stock Futures Up After Obama Speech; Ford Climbs
U.S. stock futures rose Thursday as markets assessed President Barack Obama's State of the Union address, while upbeat results from Ford Motor Co. and others also contributed to a positive tone.
S&P 500 futures rose 5.1 points to 1099.70 and Nasdaq 100 futures rose 4.75 points to 1813.70. Futures on the Dow Jones Industrial Average added 37 points.
Speaking to the nation and members of Congress in a high-stakes policy address, President Barack Obama late Wednesday used his first State of the Union speech to call for a host of job creation measures and a redoubled effort to finish health-care reform in the midst of a newly challenging political environment for him and his party.
Stock markets in Europe and Asia--which also were getting their first opportunity to react to the Fed statement--were generally stronger, with the Nikkei 225 up 1.6% in Tokyo and the pan-European Dow Jones Stoxx 600 rising 1%.
Obama's call for tax breaks, as well as a less strident attack on banks vs. what was seen last week, appeared to go down well overseas.
The economics calendar features weekly jobless claims and December durable goods orders, with both sets of reports due at 8:30 a.m., EST.
A vote in the Senate on the confirmation of Federal Reserve Chairman Ben Bernanke also is due, with expectations that the Fed chairman will squeak through.
Earnings rolled in from giants including Ford Motor Co. (F), up 3% after returning to a profit and as Toyota Motor (TM, 7203.TO) expanded its car recall; Nokia Corp. (NOK), up 11% after stronger-than-forecast quarterly profit; and Eastman Kodak Co. (EK), up nearly 14% after a profit from the ex-Dow component.
On the downside, Qualcomm Inc. (QCOM) tumbled nearly 9% on a cut sales outlook, and Nokia rival Motorola Inc. (MOT) dropped on a worse-than-forecast quarter.
After the close, Microsoft Corp.(MSFT) and Amazon.com Inc. (AMZN) report results.
Yields on 10-year Treasury bonds were steady at 3.66%, and the dollar index rose slightly.
Platinum futures by $26 an ounce, while crude oil futures rose 54 cents a barrel.
On an event-filled Wednesday--the Fed growing more optimistic on the economy as it held rates, Apple Inc.(AAPL) introducing the iPad, Toyota Motor Corp. (TM, 7203.TO) recalling cars, Treasury Secretary Tim Geithner defending the American International Group Inc. (AIG) bailout and several earnings--U.S. stocks rose, with the Dow industrials rising 41 points, the Nasdaq Composite adding 17 points and the S&P 500 growing 5 points.
-By Steve Goldstein;44 2078 429 424; AskNewswires@dowjones.com
DOW JONES NEWSWIRES
Among the companies whose shares are expected to actively trade in Thursday's session are Nokia Corp. (NOK) and Netflix Inc. (NFLX) and E*Trade Financial Corp. (ETFC).
American depositary shares of Finland's Nokia rose 13% to $14.55 premarket after the world's largest mobile phone maker maintained its key financial targets for 2010 and posted a stronger-than-expected rise in fourth quarter net profit as margins improved.
Netflix's fourth-quarter profit climbed 36% on higher sales and margins, and the company added more than 1 million subscribers during the quarter to reach its year-end target of 12.3 million. Shares jumped 16% to $59.11 in late trading as the online DVD-rental pioneer's earnings topped its forecast while revenue was in line with guidance.
E*Trade Financial's fourth-quarter loss narrowed as the online broker posted significantly lower loan-loss provisions and noted net charge-offs fell sequentially. Shares rose 1.8% to $1.68 in after-hours trading.
The crisis facing Toyota Motor Corp. (TM) deepened Thursday as the company said its large-scale recall, stemming from a faulty accelerator pedal problem, would spread to Europe on an undetermined number of vehicles. China's quality watchdog also said one of Toyota's China joint ventures will recall 75,552 RAV4 sport-utility vehicles because of the same problem. Shares fell 1.9% to $78.27 in light premarket trading.
Qualcomm Inc.'s (QCOM) fiscal first-quarter profit more than doubled on higher sales and a large prior-year write-down. Shares fell 9.9% to $42.52 after hours as the world's largest wireless-chip maker lowered its fiscal-year revenue guidance on a "subdued economic recovery in developed regions, including Europe and Japan, combined with relative strength at the lower end of the market" but backed its earnings guidance. ThinkEquity and Morgan Keegan both cut their ratings on the stock.
Align Technology Inc.'s (ALGN) fourth-quarter profit fell 82% from a year earlier, when the company recorded a big tax benefit, but the orthodontic-products maker saw surprisingly strong sales growth. The company expects that strength to continue into the current quarter, forecasting current-quarter earnings above analysts' views. Shares rose 14% to $18.99 in light premarket trading.
AstraZeneca PLC's (AZN) fiscal-year results are "essentially disappointing," an analyst said, noting both the 2009 results and the pharmaceutical company's guidance for a 2010 miss of consensus expectations. The analyst said while the medium term sales outlook given by the company is a little more optimistic, this is somewhat precarious as it implies success in a couple of quite high risk drug trials. The company posted a smaller-than-forecast 24% jump in fourth-quarter net profit, helped by rising sales of cholesterol pill Crestor and its swine flu vaccine. ADSs fell 3.2% to $48.06 premarket.
Ball Corp.'s (BLL) fourth-quarter earnings more than doubled amid prior-year charges while sales rose. The plastic and metal packaging company also said it expects earnings growth this year, even though it said it would be tough to beat least year's first-quarter results, which were helped by inventory gains. Shares rose 7% to $54 in premarket trading.
Bristol-Myers Squibb Co.'s (BMY) fourth-quarter profit soared on higher sales as well as a gain related to its split-off of Mead Johnson Nutrition Co. (MJN). The drug maker also predicted 2010 revenue above analysts' views, though it projected earnings in line. Shares increased 1.2% to $24.60 premarket.
Cabot Corp.'s (CBT) fiscal first-quarter profit soared as the chemicals and specialty materials company's sales volumes saw double-digit growth and margins improved. Shares rose 2.5% to $27.24 in late trading as the earnings far exceeded Wall Street's expectations.
Cardinal Health Corp.'s (CAH) fiscal second-quarter earnings fell 26%, but adjusted earnings topped analysts' forecasts. The second-biggest drug distributor in the U.S. also raised its fiscal-year earnings guidance again, sending shares up 3.4% to $32.37 premarket.
Citrix Systems Inc.'s (CTXS) fourth-quarter profit climbed 47% as the virtualization and infrastructure software company posted higher revenue globally as well as in all its businesses. Even as results topped expectations, shares dropped 4.2% to $40.23 after hours.
Eastman Kodak Co. (EK) reversed a loss in the fourth quarter amid cost cuts, growth in its digital products businesses and improved profit margins. Shares jumped 14% premarket to $5.36 as results were well above analysts' expectations. Chairman and Chief Executive Antonio M. Perez said, "Momentum is returning" to the company that has been dealing with lagging demand and the continued shift to digital photography.
Eli Lilly & Co. (LLY) swung to a fourth-quarter profit, with results falling short of analysts' estimates, as the company booked a $4.73 billion charge in the year-earlier quarter from its purchase of ImClone Systems Inc. The drug maker's fourth-quarter results were "highlighted by volume-based revenue gains, improved gross margins and quality earnings growth," said Chairman and Chief Executive John C. Lechleiter. Shares rose 1.7% to $37 premarket.
First Financial Bancorp (Ohio) (FFBC) shares rose 2.4% to $15.50 premarket as the bank holding company priced its 5.6 million share offering at $15.14 each--Wednesday's closing price.
Flextronics International Ltd.'s (FLEX) fiscal third-quarter profit more than quadrupled sequentially as the company's sales rose and gross margin expanded. The results beat its October guidance, and the company provided fiscal fourth-quarter guidance ranges for adjusted earnings and revenue that were mostly higher than analysts' estimates. Despite the results, shares fell 3.8% to $6.83 in after-hours trading.
Green Mountain Coffee Roasters Inc.'s (GMCR) fiscal first-quarter fell 13% on a prior-year patent settlement as results handily topped analysts' expectations. Shares gained 2.5% to $82.01 as the company again raised its forecast for the year.
Kirby Corp.'s (KEX) fourth-quarter profit dropped 24% as demand continued weak. Shares dropped 6.9% to $33.50 after hours on lower-than-expected results for the owner of a fleet of tank barges.
LSI Corp. (LSI) swung to a fourth-quarter profit as the storage-chip maker saw "increasing signs of an early-stage recovery" in information-technology spending. But shares dropped 7% to $5.58 after hours.
Oshkosh Corp. (OSK) swung to a fiscal first-quarter profit, as better-than-expected revenue growth and higher margins helped the specialty-vehicle maker easily top Wall Street's expectations. Shares rose 3.9% to $37. 39 premarket.
Potash Corp. of Saskatchewan (POT) posted a significant drop in fourth-quarter earnings, hurt by the continued effects of the global economic downturn on potash sales volumes and prices for potash, phosphate and nitrogen products. The integrated fertilizer company also forecasted continued production curtailments. The company also forecast first-quarter and full-year earnings below analysts' views. Shares fell 3.9% to $105.30 premarket.
Solutia Inc. (SOA) swung to a fourth-quarter profit on higher sales volumes and lower costs as well as $470 million in prior-year impairment and restructuring charges. Shares gained 9.7% to $13.90 in late trading as the specialty chemicals company's results far exceeded Wall Street's expectations.
Symantec Corp. (SYMC) swung to a fiscal third-quarter profit on continued strength in the antivirus-software maker's consumer business and as results improved at the security and compliance business. Shares slid 4.8% to $17.71 in late trading although results were better than the company projected.
Teradyne Inc. (TER) swung to a fourth-quarter profit--the second in a row after four consecutive quarterly losses--on higher sales and a prior-year goodwill write-down of $329.7 million. Shares rose 5.3% to $10.80 in after-hours trading as the semiconductor testing equipment maker predicted first-quarter results far above Wall Street's expectations.
Janney Capital Markets cut its rating on Tetra Tech Inc. (TTEK) to neutral from buy, saying despite a solid fiscal first quarter, the provider of consulting and engineering services "has thrown in the towel early on construction project delays, laying off employees and cutting its earnings forecast for the year, citing lack of visibility on near-term project awards."
Textron Inc.'s (TXT) fourth-quarter loss narrowed after large prior-year charges for exiting some financial-services businesses, as the defense contractor and aircraft maker's core income declined less than analysts expected. But the company continued to keep its expectations in check, setting its 2010 earnings targets way below analysts' views. Shares slid 2.4% to $20.50 premarket.
Tractor Supply Co. (TSCO), the largest farm and ranch dealer in the U.S., reported fourth-quarter earnings jumped 55% on margin and sales gains. For 2010, the company forecast earnings view above analysts' estimates, while its outlook for revenue was in line with consensus. Shares rose 2.5% to $53.50 in after-hours trading.
Tyco International Ltd. (TYC) fiscal first-quarter earnings rose 9% on cost cuts at the diversified manufacturer. Tyco's ADT security business, the biggest segment by revenue, was also the company's strongest in the most recent period, posting an 14% jump in income as sales inched up 1%. Shares rose 3.2% to $37.65 in light premarket trading.
Source:online.wsj.com/
S&P 500 futures rose 5.1 points to 1099.70 and Nasdaq 100 futures rose 4.75 points to 1813.70. Futures on the Dow Jones Industrial Average added 37 points.
Speaking to the nation and members of Congress in a high-stakes policy address, President Barack Obama late Wednesday used his first State of the Union speech to call for a host of job creation measures and a redoubled effort to finish health-care reform in the midst of a newly challenging political environment for him and his party.
Stock markets in Europe and Asia--which also were getting their first opportunity to react to the Fed statement--were generally stronger, with the Nikkei 225 up 1.6% in Tokyo and the pan-European Dow Jones Stoxx 600 rising 1%.
Obama's call for tax breaks, as well as a less strident attack on banks vs. what was seen last week, appeared to go down well overseas.
The economics calendar features weekly jobless claims and December durable goods orders, with both sets of reports due at 8:30 a.m., EST.
A vote in the Senate on the confirmation of Federal Reserve Chairman Ben Bernanke also is due, with expectations that the Fed chairman will squeak through.
Earnings rolled in from giants including Ford Motor Co. (F), up 3% after returning to a profit and as Toyota Motor (TM, 7203.TO) expanded its car recall; Nokia Corp. (NOK), up 11% after stronger-than-forecast quarterly profit; and Eastman Kodak Co. (EK), up nearly 14% after a profit from the ex-Dow component.
On the downside, Qualcomm Inc. (QCOM) tumbled nearly 9% on a cut sales outlook, and Nokia rival Motorola Inc. (MOT) dropped on a worse-than-forecast quarter.
After the close, Microsoft Corp.(MSFT) and Amazon.com Inc. (AMZN) report results.
Yields on 10-year Treasury bonds were steady at 3.66%, and the dollar index rose slightly.
Platinum futures by $26 an ounce, while crude oil futures rose 54 cents a barrel.
On an event-filled Wednesday--the Fed growing more optimistic on the economy as it held rates, Apple Inc.(AAPL) introducing the iPad, Toyota Motor Corp. (TM, 7203.TO) recalling cars, Treasury Secretary Tim Geithner defending the American International Group Inc. (AIG) bailout and several earnings--U.S. stocks rose, with the Dow industrials rising 41 points, the Nasdaq Composite adding 17 points and the S&P 500 growing 5 points.
-By Steve Goldstein;44 2078 429 424; AskNewswires@dowjones.com
DOW JONES NEWSWIRES
Among the companies whose shares are expected to actively trade in Thursday's session are Nokia Corp. (NOK) and Netflix Inc. (NFLX) and E*Trade Financial Corp. (ETFC).
American depositary shares of Finland's Nokia rose 13% to $14.55 premarket after the world's largest mobile phone maker maintained its key financial targets for 2010 and posted a stronger-than-expected rise in fourth quarter net profit as margins improved.
Netflix's fourth-quarter profit climbed 36% on higher sales and margins, and the company added more than 1 million subscribers during the quarter to reach its year-end target of 12.3 million. Shares jumped 16% to $59.11 in late trading as the online DVD-rental pioneer's earnings topped its forecast while revenue was in line with guidance.
E*Trade Financial's fourth-quarter loss narrowed as the online broker posted significantly lower loan-loss provisions and noted net charge-offs fell sequentially. Shares rose 1.8% to $1.68 in after-hours trading.
The crisis facing Toyota Motor Corp. (TM) deepened Thursday as the company said its large-scale recall, stemming from a faulty accelerator pedal problem, would spread to Europe on an undetermined number of vehicles. China's quality watchdog also said one of Toyota's China joint ventures will recall 75,552 RAV4 sport-utility vehicles because of the same problem. Shares fell 1.9% to $78.27 in light premarket trading.
Qualcomm Inc.'s (QCOM) fiscal first-quarter profit more than doubled on higher sales and a large prior-year write-down. Shares fell 9.9% to $42.52 after hours as the world's largest wireless-chip maker lowered its fiscal-year revenue guidance on a "subdued economic recovery in developed regions, including Europe and Japan, combined with relative strength at the lower end of the market" but backed its earnings guidance. ThinkEquity and Morgan Keegan both cut their ratings on the stock.
Align Technology Inc.'s (ALGN) fourth-quarter profit fell 82% from a year earlier, when the company recorded a big tax benefit, but the orthodontic-products maker saw surprisingly strong sales growth. The company expects that strength to continue into the current quarter, forecasting current-quarter earnings above analysts' views. Shares rose 14% to $18.99 in light premarket trading.
AstraZeneca PLC's (AZN) fiscal-year results are "essentially disappointing," an analyst said, noting both the 2009 results and the pharmaceutical company's guidance for a 2010 miss of consensus expectations. The analyst said while the medium term sales outlook given by the company is a little more optimistic, this is somewhat precarious as it implies success in a couple of quite high risk drug trials. The company posted a smaller-than-forecast 24% jump in fourth-quarter net profit, helped by rising sales of cholesterol pill Crestor and its swine flu vaccine. ADSs fell 3.2% to $48.06 premarket.
Ball Corp.'s (BLL) fourth-quarter earnings more than doubled amid prior-year charges while sales rose. The plastic and metal packaging company also said it expects earnings growth this year, even though it said it would be tough to beat least year's first-quarter results, which were helped by inventory gains. Shares rose 7% to $54 in premarket trading.
Bristol-Myers Squibb Co.'s (BMY) fourth-quarter profit soared on higher sales as well as a gain related to its split-off of Mead Johnson Nutrition Co. (MJN). The drug maker also predicted 2010 revenue above analysts' views, though it projected earnings in line. Shares increased 1.2% to $24.60 premarket.
Cabot Corp.'s (CBT) fiscal first-quarter profit soared as the chemicals and specialty materials company's sales volumes saw double-digit growth and margins improved. Shares rose 2.5% to $27.24 in late trading as the earnings far exceeded Wall Street's expectations.
Cardinal Health Corp.'s (CAH) fiscal second-quarter earnings fell 26%, but adjusted earnings topped analysts' forecasts. The second-biggest drug distributor in the U.S. also raised its fiscal-year earnings guidance again, sending shares up 3.4% to $32.37 premarket.
Citrix Systems Inc.'s (CTXS) fourth-quarter profit climbed 47% as the virtualization and infrastructure software company posted higher revenue globally as well as in all its businesses. Even as results topped expectations, shares dropped 4.2% to $40.23 after hours.
Eastman Kodak Co. (EK) reversed a loss in the fourth quarter amid cost cuts, growth in its digital products businesses and improved profit margins. Shares jumped 14% premarket to $5.36 as results were well above analysts' expectations. Chairman and Chief Executive Antonio M. Perez said, "Momentum is returning" to the company that has been dealing with lagging demand and the continued shift to digital photography.
Eli Lilly & Co. (LLY) swung to a fourth-quarter profit, with results falling short of analysts' estimates, as the company booked a $4.73 billion charge in the year-earlier quarter from its purchase of ImClone Systems Inc. The drug maker's fourth-quarter results were "highlighted by volume-based revenue gains, improved gross margins and quality earnings growth," said Chairman and Chief Executive John C. Lechleiter. Shares rose 1.7% to $37 premarket.
First Financial Bancorp (Ohio) (FFBC) shares rose 2.4% to $15.50 premarket as the bank holding company priced its 5.6 million share offering at $15.14 each--Wednesday's closing price.
Flextronics International Ltd.'s (FLEX) fiscal third-quarter profit more than quadrupled sequentially as the company's sales rose and gross margin expanded. The results beat its October guidance, and the company provided fiscal fourth-quarter guidance ranges for adjusted earnings and revenue that were mostly higher than analysts' estimates. Despite the results, shares fell 3.8% to $6.83 in after-hours trading.
Green Mountain Coffee Roasters Inc.'s (GMCR) fiscal first-quarter fell 13% on a prior-year patent settlement as results handily topped analysts' expectations. Shares gained 2.5% to $82.01 as the company again raised its forecast for the year.
Kirby Corp.'s (KEX) fourth-quarter profit dropped 24% as demand continued weak. Shares dropped 6.9% to $33.50 after hours on lower-than-expected results for the owner of a fleet of tank barges.
LSI Corp. (LSI) swung to a fourth-quarter profit as the storage-chip maker saw "increasing signs of an early-stage recovery" in information-technology spending. But shares dropped 7% to $5.58 after hours.
Oshkosh Corp. (OSK) swung to a fiscal first-quarter profit, as better-than-expected revenue growth and higher margins helped the specialty-vehicle maker easily top Wall Street's expectations. Shares rose 3.9% to $37. 39 premarket.
Potash Corp. of Saskatchewan (POT) posted a significant drop in fourth-quarter earnings, hurt by the continued effects of the global economic downturn on potash sales volumes and prices for potash, phosphate and nitrogen products. The integrated fertilizer company also forecasted continued production curtailments. The company also forecast first-quarter and full-year earnings below analysts' views. Shares fell 3.9% to $105.30 premarket.
Solutia Inc. (SOA) swung to a fourth-quarter profit on higher sales volumes and lower costs as well as $470 million in prior-year impairment and restructuring charges. Shares gained 9.7% to $13.90 in late trading as the specialty chemicals company's results far exceeded Wall Street's expectations.
Symantec Corp. (SYMC) swung to a fiscal third-quarter profit on continued strength in the antivirus-software maker's consumer business and as results improved at the security and compliance business. Shares slid 4.8% to $17.71 in late trading although results were better than the company projected.
Teradyne Inc. (TER) swung to a fourth-quarter profit--the second in a row after four consecutive quarterly losses--on higher sales and a prior-year goodwill write-down of $329.7 million. Shares rose 5.3% to $10.80 in after-hours trading as the semiconductor testing equipment maker predicted first-quarter results far above Wall Street's expectations.
Janney Capital Markets cut its rating on Tetra Tech Inc. (TTEK) to neutral from buy, saying despite a solid fiscal first quarter, the provider of consulting and engineering services "has thrown in the towel early on construction project delays, laying off employees and cutting its earnings forecast for the year, citing lack of visibility on near-term project awards."
Textron Inc.'s (TXT) fourth-quarter loss narrowed after large prior-year charges for exiting some financial-services businesses, as the defense contractor and aircraft maker's core income declined less than analysts expected. But the company continued to keep its expectations in check, setting its 2010 earnings targets way below analysts' views. Shares slid 2.4% to $20.50 premarket.
Tractor Supply Co. (TSCO), the largest farm and ranch dealer in the U.S., reported fourth-quarter earnings jumped 55% on margin and sales gains. For 2010, the company forecast earnings view above analysts' estimates, while its outlook for revenue was in line with consensus. Shares rose 2.5% to $53.50 in after-hours trading.
Tyco International Ltd. (TYC) fiscal first-quarter earnings rose 9% on cost cuts at the diversified manufacturer. Tyco's ADT security business, the biggest segment by revenue, was also the company's strongest in the most recent period, posting an 14% jump in income as sales inched up 1%. Shares rose 3.2% to $37.65 in light premarket trading.
Source:online.wsj.com/
Obama’s small business proposals get mixed reviews
“We should start where most new jobs do -- in small businesses, companies that begin when an entrepreneur takes a chance on a dream, or a worker decides it’s time to become her own boss,” the president said.
To help small businesses grow, the president proposed:
• Using $30 billion in Troubled Asset Relief Program funds to provide cheap capital to community banks for use in making loans to small businesses;
• Eliminating capital gains taxes on investments in small businesses, an idea Obama proposed during the presidential campaign;
• Continuing tax incentives that allow small businesses to immediately write off much of the cost of investments in new equipment instead of having to depreciate it over time; and
• Creating a tax credit for small businesses that hire new workers or raise the wages of existing workers.
John Arensmeyer, CEO of Small Business Majority, said the proposals address a broad range of needs facing small firms.
“Collectively they start to attack different aspects of the problem,” he said.
Leaders of other small business organizations, however, question how effective the proposals would be.
Obama’s plan to use TARP funds to spur community banks to make loans to small businesses was first unveiled in October, for example. The Treasury Department has not been able to get the program off the ground, however, because community banks are leery of the strings and stigma attached to taking TARP funds.
A recent survey by the National Small Business Association found that one-third of small businesses can’t get adequate financing. To be effective, the president’s lending initiative “must start now,” said NSBA President Todd McCracken.
Other small business groups would rather see TARP ended than have the funds applied to another program, even one designed to help small businesses.
“Given the mood of the country on spending and the bailout money, I don’t see this program going anywhere,” said Karen Kerrigan, president and CEO of the Small Business and Entrepreneurship Council.
The president also supports legislation that would extend provisions in the economic stimulus bill that increased the government guarantee on the Small Business Administration’s flagship 7(a) loans and reduced or eliminated fees on 7(a) loans and 504 loans, which primarily are used for real estate. Most small business groups support this proposal, even though Bill Rys, tax counsel for the National Federation of Independent Business, points out that SBA loans represent only a small percentage of lending to small businesses.
Small businesses also support Obama’s proposal to extend incentives for business investment, such as bonus depreciation and higher Section 179 expensing limits. These incentives make buying new equipment easier because businesses can write off more of the cost now instead of later.
“They incentivize businesses to make their businesses more profitable,” said Giovanni Coratolo, vice president of small business policy at the U.S. Chamber of Commerce.
These investment breaks also “have a leveraging effect,” Coratolo said, because they also create customers for the businesses that make equipment.
“Businesses planning for an upturn in the economy would be encouraged to start making the investments in equipment that will be part of getting going again and hiring workers back,” said Clint Stretch, managing principal for tax policy at Deloitte Tax.
Rys said extending these breaks is a good idea, but it’s “not a game changer” because the weak economy has kept many small businesses from taking advantage of them. Capital expenditures by small businesses are at the lowest level they’ve been in the 35-year history of NFIB’s monthly survey of business owners, Rys said.
Source:washington.bizjournals.com/
Wednesday, January 27, 2010
HUD secretary stays home from Obama speech :Post#365 at this blog
WASHINGTON -- One member of President Barack Obama's Cabinet has been picked to watch his State of the Union address on television.
Housing and Urban Development Secretary Shaun Donovan has been tapped to stay away from the speech in case a calamity were to strike the Capitol.
The White House typically selects one member of the Cabinet to remain in a safe place and skip attending the event that draws the Cabinet, top White House officials, Congress and the Supreme Court.
White House spokesman Josh Earnest said shortly before the speech that Donovan had been given that assignment.
Secretary of State Hillary Rodham Clinton also is missing, but that's because she is traveling in London.
Source:washingtonpost.com/
Housing and Urban Development Secretary Shaun Donovan has been tapped to stay away from the speech in case a calamity were to strike the Capitol.
The White House typically selects one member of the Cabinet to remain in a safe place and skip attending the event that draws the Cabinet, top White House officials, Congress and the Supreme Court.
White House spokesman Josh Earnest said shortly before the speech that Donovan had been given that assignment.
Secretary of State Hillary Rodham Clinton also is missing, but that's because she is traveling in London.
Source:washingtonpost.com/
Virginia's McDonnell plans stately response to Obama
RICHMOND -- Virginia's new Republican governor, Robert F. McDonnell, planned to talk about his views on the limited role of government, the need to rein in federal spending and the merits of offshore drilling as part of his party's response to the president's State of the Union address, according to early excerpts released Wednesday evening.
McDonnell was to deliver the nine-minute speech in the House of Delegates' chamber of the state's Capitol, a building designed by Thomas Jefferson. McDonnell invited 250 guests -- family members, friends, supporters and, at the last minute, a few Democrats -- as he tried to create a mini-State of the Union setting.
The setup was a clear departure from other State of the Union responses, which are generally delivered alone, often in an intimate setting. Four years ago, Gov. Tim Kaine (D) delivered his party's rebuttal from the Executive Mansion's ballroom.
Last year, Louisiana Gov. Bobby Jindal delivered what was considered a flat speech from an empty room in the Louisiana governor's mansion, a setting that did not seem to flatter the young politician.
The congressional staffers and McDonnell advisers who organized this year's response sought a more commanding setting with an audience sure to applaud his vision for the country.
"I'm never going to match the ambience of the halls of Congress and the president of the United States, the leader of the free world," McDonnell told reporters earlier Wednesday. "I thought it would be a nice venue to invite a fair number of people so that they could hear the speech, to have a better backdrop than just a talking head on camera."
The theatrics surrounding the speech consumed Capitol Square, where a row of trucks was parked to assist FOX News, whose turn it was in a rotating pool of media organizations to air the speech.
The cost of the $30,000 event was paid for by the Republican Governors Association and the political action committees of McDonnell and Senate Minority Leader Mitch McConnell (R-Ky.).
Congressional leaders chose McDonnell to deliver the response because of the way he campaigned and has so far governed: as a problem-solver who could appeal to Democrats and independents by talking about jobs and the economy.
In his first major national speech, according to the excerpts, McDonnell echoed many of the themes in his inaugural address two weeks earlier, calling for limited government and individual responsibility.
"The circumstances of our time demand that we reconsider and restore the proper, limited role of government at every level," he said.
McDonnell was expected to praise Obama for supporting charter schools and for sending 30,000 more troops to Afghanistan. But he also prepared to say that Republicans have serious concerns over recent steps the government has taken regarding terrorism suspects.
Across Virginia, Organizing for America, an arm of the Democratic National Committee, was holding State of the Union parties, and Republicans were throwing their own parties to watch their new governor take his turn in the national spotlight.
Republicans in Richmond reveled in the moment, but Democrats continued to criticize McDonnell for giving the speech while failing to provide more guidance on how to close a multibillion-dollar budget.
"He's going to give a response having been in office for two weeks, on a country that goes from sea to shining sea," said Sen. A. Donald McEachin (D-Richmond). "He's going to be talking about a budget that has a nearly trillion-dollar deficit. He's going to be talking about, potentially, wars in foreign countries. He's had enough time to be able to talk to us about the State of the Union. But he hasn't had enough time to talk to tell me and the 9th Senatorial District or my colleagues on this floor about $4 billion in cuts?"
House Minority Leader Ward L. Armstrong (D-Henry) said he was invited to attend the speech late in the day through a personal call from McDonnell. "It may be a little late, but I'm not offended," Armstrong said.
McDonnell will be the third Virginian to deliver the response in five years: Kaine gave it in 2006, just after he took office, and U.S. Sen. James Webb (D) delivered it in 2007.
Source:washingtonpost.com/
McDonnell was to deliver the nine-minute speech in the House of Delegates' chamber of the state's Capitol, a building designed by Thomas Jefferson. McDonnell invited 250 guests -- family members, friends, supporters and, at the last minute, a few Democrats -- as he tried to create a mini-State of the Union setting.
The setup was a clear departure from other State of the Union responses, which are generally delivered alone, often in an intimate setting. Four years ago, Gov. Tim Kaine (D) delivered his party's rebuttal from the Executive Mansion's ballroom.
Last year, Louisiana Gov. Bobby Jindal delivered what was considered a flat speech from an empty room in the Louisiana governor's mansion, a setting that did not seem to flatter the young politician.
The congressional staffers and McDonnell advisers who organized this year's response sought a more commanding setting with an audience sure to applaud his vision for the country.
"I'm never going to match the ambience of the halls of Congress and the president of the United States, the leader of the free world," McDonnell told reporters earlier Wednesday. "I thought it would be a nice venue to invite a fair number of people so that they could hear the speech, to have a better backdrop than just a talking head on camera."
The theatrics surrounding the speech consumed Capitol Square, where a row of trucks was parked to assist FOX News, whose turn it was in a rotating pool of media organizations to air the speech.
The cost of the $30,000 event was paid for by the Republican Governors Association and the political action committees of McDonnell and Senate Minority Leader Mitch McConnell (R-Ky.).
Congressional leaders chose McDonnell to deliver the response because of the way he campaigned and has so far governed: as a problem-solver who could appeal to Democrats and independents by talking about jobs and the economy.
In his first major national speech, according to the excerpts, McDonnell echoed many of the themes in his inaugural address two weeks earlier, calling for limited government and individual responsibility.
"The circumstances of our time demand that we reconsider and restore the proper, limited role of government at every level," he said.
McDonnell was expected to praise Obama for supporting charter schools and for sending 30,000 more troops to Afghanistan. But he also prepared to say that Republicans have serious concerns over recent steps the government has taken regarding terrorism suspects.
Across Virginia, Organizing for America, an arm of the Democratic National Committee, was holding State of the Union parties, and Republicans were throwing their own parties to watch their new governor take his turn in the national spotlight.
Republicans in Richmond reveled in the moment, but Democrats continued to criticize McDonnell for giving the speech while failing to provide more guidance on how to close a multibillion-dollar budget.
"He's going to give a response having been in office for two weeks, on a country that goes from sea to shining sea," said Sen. A. Donald McEachin (D-Richmond). "He's going to be talking about a budget that has a nearly trillion-dollar deficit. He's going to be talking about, potentially, wars in foreign countries. He's had enough time to be able to talk to us about the State of the Union. But he hasn't had enough time to talk to tell me and the 9th Senatorial District or my colleagues on this floor about $4 billion in cuts?"
House Minority Leader Ward L. Armstrong (D-Henry) said he was invited to attend the speech late in the day through a personal call from McDonnell. "It may be a little late, but I'm not offended," Armstrong said.
McDonnell will be the third Virginian to deliver the response in five years: Kaine gave it in 2006, just after he took office, and U.S. Sen. James Webb (D) delivered it in 2007.
Source:washingtonpost.com/
US STOCKS SNAPSHOT-Futures advance on Obama's speech
NEW YORK, Jan 27 (Reuters) - U.S. stock index futures added gains in late after-hours trading on Wednesday as investors took President Barack Obama's State of the Union speech as toning down some of the rhetoric that unnerved investors last week when he unveiled new restrictions on U.S. banks.
If you go back to what he said last week it was incredible how adversarial he was from a standpoint of the financial system: banks and fat-cats on Wall Street versus poor little Americans," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio. "It seems from what I've heard he has toned down the rhetoric."
S&P 500 futures SPc1 rose 5.30 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures DJc1 gained 51 points, and Nasdaq 100 futures NDc1 added 7.25 points. (Reporting by Ellis Mnyandu; Editing by Tomasz Janowski)
Source:reuters.com/
If you go back to what he said last week it was incredible how adversarial he was from a standpoint of the financial system: banks and fat-cats on Wall Street versus poor little Americans," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio. "It seems from what I've heard he has toned down the rhetoric."
S&P 500 futures SPc1 rose 5.30 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures DJc1 gained 51 points, and Nasdaq 100 futures NDc1 added 7.25 points. (Reporting by Ellis Mnyandu; Editing by Tomasz Janowski)
Source:reuters.com/
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