Why the Stock Market Doesnt Like Republicans

[Professor Fate]

26,115.65 for the Dow at the closing bell, only eight days after passing 25,000. The only thing that stopped the Dow today, was the closing bell itself!

Also today, and this is HUGE:

Apple announces plans to repatriate billions in overseas cash, says it will contribute $350 billion to the US economy over the next 5 years

Apple says the new tax law will help it will contribute $350 billion to the U.S. economy over the next five years.

It says it will create 20,000 new jobs and open a new campus.

Apple expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States.

https://www.cnbc.com/2018/01/17/apple-a ... years.html

Tired of winning yet?

[Wabash]

The tax bill will also contribute to more debt.

[Professor Fate]

Will it? That $38 Billion will cut into that, as will the payroll taxes on those 20,000 new jobs. And that's just one company. More and more will be following suit.

[Wabash]

That has never happened. Tax cuts only bring deficits.

[Omar Bongo]

Less than a third of all households hold at least $10,000 in stocks compared to 93 percent of those households in the top 1 percent...since the late 1980s, about 80 percent of the value of the market has been held by the top 10 percent

How's that Prof.?

[John Q. Public]

Before you get too giddy about this, Professor, the new campus and the 20,000 jobs are in customer service. Likely it will be in a low-wage area - which is a good thing, but they aren't 20,000 high-paying, Silicon Valley jobs. And the $350 billion is a projection of total economic impact. It isn't payroll and it isn't for certain.

It's great that they're doing it but the information does need to be run through a reality filter.

[Omar Bongo]

$350 billion + $38 billion - $1.5 trillion = -$1.112 trillion

So much win

[MDDad]

Before you get too giddy about this, Professor, the new campus and the 20,000 jobs are in customer service. Likely it will be in a low-wage area - which is a good thing, but they aren't 20,000 high-paying, Silicon Valley jobs.

Isn't that what some people here said during eight years of the Obama "recovery", and were poo-poo'd for it?

[Professor Fate]

Also from Apple:

Bloomberg is reporting that, " Apple Gives Employees $2,500 Bonuses After New Tax Law."

The iPhone maker will begin issuing stock grants to most employees worldwide in the coming months, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The move comes on the same day Apple said it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years, funding an additional technical support campus, data centers and 20,000 new employees.

Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday. The Cupertino, California-based company joins a growing list of American businesses that have celebrated the introduction of corporate-friendly tax law with one-time bonuses for staff. AT&T Inc., Comcast Corp., JetBlue Airways Corp. and Wal-Mart Stores Inc. also said they were giving bonuses.

In an email to employees reviewed by Bloomberg, Apple Chief Executive Officer Tim Cook said the move demonstrated his “confidence in Apple’s future” and that both full-time and part-time employees across all departments are eligible. Cook also said Apple would contribute twice the amount of each employee’s charitable donations, up to $10,000, through the end of the year.

Apple workers below a senior-level known as director will be eligible to receive stock units. The company has more than 120,000 employees, including those at its retail stores.

https://www.bloomberg.com/news/articles ... ew-tax-law

My anti-Trump son just got $2500 richer.

[Omar Bongo]

Isn't that what some people here said during eight years of the Obama "recovery", and were poo-poo'd for it?

Exactly. During nearly eight solid years of job growth under Obama, all we heard from Republicans was that either the numbers were cooked, or they were the wrong kind of jobs...amazing, isn't it?

[Wabash]

[John Q. Public]

And they expect us to get all excited about some one-time write-downs with no economic impact beyond a couple months.

[Omar Bongo]

Now where are those wage increases...I know they're around here somewhere...

[Wabash]

That is a good point. If the jobs pay so poorly that the workers qualify for public assistance then what good are they?

[Professor Fate]

The Walt Disney Co. will give $1,000 bonuses to 125,000 employees, and will invest $50 million in an education funding program, and will provide up to $25 million annually for the program.

[Wabash]

Wow! Companies used to pay middle class wages when their rate of taxation was higher. The bar has been lowered so far that when they throw out some pocket change we are supposed to be ecstatic about it.

What is the compensation of their principal officers vis a vis their employees who do all the work?

I'm betting they gave themselves more than a $1,000.

[John Q. Public]

Bank of America gave $1000 bonuses to its employees and raised rates on its customers.

[Professor Fate]

Is that a serious post JQ? The left never cares about that in their clamor to raise the minimum wage.

[Professor Fate]

by MDDad » Thu Dec 21, 2017 2:25 pm
...there are roughly 6 million companies in the United States that employ people and pay them a salary or a wage. If half of them had announced wage increases and bonuses, or a third of them, or a quarter of them, I'd be impressed. But three or four of them doesn't really roast my chestnuts.

So, MDDad, are your chestnuts getting warmer?

Starbucks is the latest to share the wealth from the new tax law.

Starbucks is dishing out pay increases and stock bonuses to employees, becoming the latest major employer to boost compensation after Congress approved a tax cut that will benefit businesses.

The coffeeshop chain said it would spend $120 million on wage hikes that will vary in magnitude throughout the country. The company said it already pays more than minimum wage in all of its markets.

The Seattle-based company will also give stock grants to everyone employed at the company's stores, plants and support centers as of Jan. 1. Hourly retail workers will get at least $500 in shares while store managers will get $2,000.

Altogether, Starbucks said it would spend more than $250 million on the increased wages and benefits.

The company credited "recent changes in the U.S. tax law," saying they "accelerated" the decision.

Starbucks will also offer additional parental leave for six paid weeks to all non-birth parents. And it will create 8,000 new retail jobs.

https://www.usatoday.com/story/money/20 ... 060883001/

[MDDad]

No, Professor, the chestnuts are still cool. The math is a bit sketchy, but I don't think we've taken much of a percentage bite out of 6 million yet.