Stocks rally on surprise EU deal
The Dow surges more than 200 points after Eurozone leaders agree to bail out banks and ease austerity measures. Oil jumps nearly 6%. US consumer sentiment drops to a 6-month low. Personal income and spending are little changed.
By Andrea Tse
Stocks shot higher Friday as global markets cheered concrete steps announced at the European Union summit to relieve the region's debt crisis.
Leaders agreed to ease austerity measures and rescue banks directly from a regional bailout fund. They also revealed a $149 billion economic growth plan for the eurozone.
Benchmark U.S. crude jumped $4.49, or 5.8%, to $82.18 per barrel in New York, while Brent crude rose by $4.09, or 4.5%, to $95.45 per barrel in London, The Associated Press reported.
The Thomson Reuters/University of Michigan's final reading on Consumer sentiment dropped to a six-month low in June, Reuters reported, falling to 73.2 from 79.3 in May. It was the lowest reading since December.
The U.S. Commerce Department reported Friday that Americans' personal income rose 0.2% in May, as expected, matching April's tiny increase. Spending was essentially unchanged, also as expected, after a downwardly revised increase of 0.1% for April. The personal saving rate was 3.9% in May, compared with 3.7% in April.
Research In Motion (RIMM) disappointed Wall Street on Thursday with its fiscal-first-quarter results. The BlackBerry maker reported a much wider-than-anticipated loss, pushed back the launch of the BlackBerry 10 until the first calendar quarter of 2013, and announced plans to lay off 5,000 employees, roughly 30% of its workforce.
Nike (NKE) posted fiscal-fourth-quarter earnings Thursday that missed analysts' expectations. The sneaker maker reported a profit of $549 million, or $1.17 a share, on revenue of $6.47 billion for the three months ended in May; analysts were expecting earnings of $1.37 a share on revenue of $6.51 billion. The company attributed the year-over-year decline in earnings to lower gross margin, higher SG&A spending, a higher effective tax rate and costs related to restructuring operations in western Europe.
Constellation Brands (STZ) will buy the remaining 50% of Crown Imports that it doesn't already own from Anheuser-Busch for $1.85 billion after Anheuser-Busch's deal to buy Modelo. Constellation and Modelo owned Crown as a joint venture.
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@ NU. The answer to your guestion is easy. The price of oil has gone since now that Europe has fxied their problems that mean all the world's economic problems are now over. As a result, the good times will once again roll, we will all spend more, hence drive more, hence buy homes again.
Keep in mind that nothing has changed. The people responsible for creating, causing, preventing, and reporting on the worst financial bust since the Great Depression are still out there, running the show. None of the them has been prosecuted. None of them have gone to jail. In fact, our government is still calling many of them before Congress (like Jamie Dimon -- the guy that lost 2-billion (now 9-billion) dollars doing the same stuff that almost destroyed the world economy in 2008).
So really, nothing has changed. The game remains the same. Except that the governments are so broke that they will do anything, say anything to steal you money. Bankrupt your pension plans, steal from social security, under-fund (more stealing) from your phony pension plans. Whatever it takes. Just as long they continue gettting their free pensions and free health care, all paid for by the taxpayer. We're such a bunch of suckers and fools.
More growth, more demand for oil, more cash per barrel.
If you want it cheap, we either need an alternative or another crash.
i'm expecting to be in the same or similar tax bracket. PLUS i expect changes to the tax bracketry once i retire. that pool of baby boomers will be too big a glut of cash to simply let it slip away.
>>> So you're suggesting that you'll be at the same or higher marginal tax rate when you have no more earned income? If you have that much in your 401K to push you to ever higher tax brackets, doesn't that mean you would have paid more tax on it when you actually earned it?<<<<
It's the private market socializing the costs of the fund because it's best for the ongoing health of the fund.
Here's one just for Fat Pussyhead -
Fat Pussyhead will be shedding Fat Pussyhead tears in November when he loses his MITTENS!!!
Fat Pussyhead - You're such a loser. I know you've never even walked on a Mercedes lot, much less own one So, please don't pretend.. Duh head!!
If you have that much in your 401K to push you to ever higher tax brackets, doesn't that mean you would have paid more tax on it when you actually earned it?
monitoring accounts have a fixed fee associated with them. if it's $1200, charge me $1200. if i have $250k sitting in an account, i shouldn't be paying 1% or $25k for something that truly costs $1200 to maintain. (or actually near zero after the non recurring computer programing charge is paid in full).
the number of small people is FAAAAAAR lower than the number of people with only say $20,000 in their account.
>>>>The percentages in the fund versus flat costs allow people to save who don't have much to save. It would be hard to get started saving in one of these funds if you were faced with a flat 1,200 fee every year.<<<<<
"Under the deal, European leaders agreed to create a single supervisory body to oversee the eurozone's banks which could use the single currency area's rescue funds, the European Financial Stability Facility or European Stability Mechanism, to aid banks directly without adding to governments' debt."
Am I reading this right? They are going to manipulate the bailout funds, through a newly formed agency, to make it look like these countries aren't adding more government debt...........which in fact, if they are receiving bailout funds, they really are creating more government debt.
If I'm reading this correctly, it sounds a hell of a lot like a Money Laundering scheme.
tax now, tax later, it's all the same. the deferment was sold as a lower cost overall, but i don't see it that way anymore. with government controls i will likely never get back 100% of what i put into the 401K-IRA's. they define my death date.
if for instance i find i have a terminal disease at 70 and they feel i should get my 401K money doled out until i'm 80, i can't gather my money and enjoy a final trip to hawaii. how much is left in my 401K account unspent will determine just how high a tax that 401K program really is.
>>>>>>Can I just point out that we ARE taxed on money not going into a 401K? It's pre-tax money, that's the point. It encourages savings by offering a tax incentive.<<<<<
Fatty.....Retardo has said little about the ramifications of the AHA also,unlike you?........First, most Americans don't have a clue overall how it will effect them...Only the spin that they have heard from talking heads; Many which have an agenda.
Your final statement "of the proof is in the pudding" is probably what most should wait to taste.
We are already long on Medicare, that we didn't need, but were "forced" to have.......SO,
How much worst can it get??
OMG!!! How many of you right-wing Conservative true believers lost your assets today betting against Obama OR Europe? Idiots!! This market will be up 40 percent by Christmas but don't get too excited because Bush left us $20 trillion in debt and Congress won't help approve a plan to reduce it. That's o.k. because Obama will win in a landslide now and God willing Congress will be 100 percent replaced. If the Republicans still control Congress in January 2013 then get out of U.S. stocks because anarchy is next as the poor eat the rich. Fox news is a sounding board for rich criminals who control the 99 percenters with false religion and lies and propoganda. Obama 2012 !!!!
Steve: The percentages in the fund versus flat costs allow people to save who don't have much to save. It would be hard to get started saving in one of these funds if you were faced with a flat 1,200 fee every year.
One Rock, One Air supply and one source of h/2 0(Water). Back spacing won't solve the greed problem. Personal debt. reduction to bail out the Lower Middle Class & Poor is good.
President Obama was crazy to spend the tarp money the way he did.
Giving the money to the ones who stole it was and is crazy. (the banks, hedge fund managers) Mitt. & Corporate Raiders.
I would purpose giving the tax payers with the income listed below.
Couples with an combined income of $ 70,000.00 or less Would have gotten a one time Tax credit of
$ 45,000.00. with children. Without children $35,000.00
A Single Parent with an income of 35,000.00 or less. Would have gotten a one time Tax credit of
$ 35,000.00 with children 20 or under living at home. A single would have gotten $ 17,500.00 with no children that qualify.
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