How did IBM just beat consensus EPS? Simple: in Q3 IBM used a 12.5% effective tax rate, tied with the lowest it has used in the 21st century. Had IBM used the already depressed tax rate from Q3 2015 of 18.2%, it would have reported non-GAAP EPS of $3.09, missing consensus by 14 cents.
Following today's Deutsche Bank fireworks, Goldman reports that "crisis” questions are being asked: “is there risk of a financial crisis re-run” and “can a large European bank face a liquidity event”? To answer these questions we look at the total liquidity accessible to Deutsche Bank, and what are the options facing the bank next.
The ink on the OPEC "deal" is not dry yet, and in fact it won't be until November when the actual deal which breaks down the oil production quota for every OPEC member is ratified - if that ever happens - and already the bickering has begun
With Deutsche Bank foundering, oil tumbling to lows not seen since August 11, and futures taking on water, a sticksave had to come from somewhere to avoid another Friday risk-parity fund deleveraging. We got just that moments ago courtesy of Intel, which announced just before the market open that Q2 revenue is expected to be above the company's previous outlook.
On the current path, the world is experiencing the largest artificial asset allocation in modern history, one that is driven by a misguided interest rate regime that has lost its efficacy and is producing more harm than good. Yet the fear of withdrawal pain is keeping central bankers from doing the inevitable: Quit. The response is predictable: "I need the drugs!"
If the ERP is responsible for 92% of the S&P500 move since 2012, or just over 800 points, that would imply that central bank policies are directly responsible for approximately 40% of the "value" in the market; any moves to undo this support could result in a drop that leaves the S&P in the neighborhood of ~1,400.
"Today's market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we've seen in our history. The restructuring will eliminate up to 5,500 positions, representing approximately 7 percent of our global workforce, and we will take action under this plan beginning in the first quarter of fiscal 2017."
Despite endless bloviation on the strength of the consumer and the 'recovery' about to happen any day/week/month now, this morning retail giant Target guided lower for 2H 2016 on the back of a "challenging environment in the back half of the year."
It has been one of the greater paradoxes of the record S&P rally from the February lows: how has the market continued to rise even with unprecedented outflows? In other words, "Who's buying equities?" Overnight, Barclay's chief equity strategist Keith Parker asks that very question, and gives the following answer.
Unfortunately, it appears too late to reverse the tidal wave of system failure that has been brewing for three decades now.But there is a sliver of hope.If Donald Trump is elected, eschews a law and order crusade and does not capitulate to the destructive policies of the Wall Street/Washington/bicoastal establishment, there is a way forward..
As the following charts from Deutsche Bank show, on a GAAP basis, trailing 12 month GAAP margins have now tumbled to the lowest level since before the global financial crisis; in fact the last time GAAP net margins were here was some time in 2006, when the S&P was trading about 700 points lower.