Stocks set to rise after Obama extends tax cuts.

[Sub Atomic]

Stocks set to rise after Obama extends tax cuts

NEW YORK—An extension of tax cuts for all Americans is giving stocks a lift.

All three major indexes are set to rise Monday after President Barack Obama signed a $858 billion package Friday renewing tax cuts for another two years and extending expiring unemployment benefits through next year.

The package is expected to boost economic growth, although critics say it will unnecessarily increase the federal budget deficit.

Ahead of the opening bell, Dow Jones industrial average futures are up 35, or 0.3 percent, to 11,465. S&P 500 futures are up 5, or 0.4 percent, to 1,243. Nasdaq 100 futures are up 11, or 0.5, to 2,224.

.snip.

http://www.denverpost.com/business/ci_16902738#ixzz18ewwt6Jv


Nothing about unemployment falling or companies gearing up to hire more workers or any glimmer of light at the end of this dark tunnel we're in.

Thanks Obama.

[mmonk]

1. Anyone who invests in stocks other than performance, market share,

and balance sheet is an idiot. Such stories are propaganda by the corporate media.

[Lasher]

11. True, stocks are taking a dump right now.

If you had bought shares at the open to do a little day trading you would be getting soaked right now.

[jaxx]

2. Boosting economic growth is all about unemployment falling

and companies hiring more workers. They go together.

[TheKentuckian]

6. No it isn't. That is "common wisdom" that doesn't mesh with reality.

Economic growth has been decoupled from creating employment, In fact, most of the growth has come on the back of productivity gains and gambling on securities.

We have just observed a decade where growth has come with wage destruction and not a single net job created. You have direct evidence that you can and do have growth and at the same time have job losses.
The wealth (aka fruit of growth) is being funneled into few hands and in many cases no goods or services are required for profits.

I don't think your calculus accounts for globalization, automation, or complex financial instruments. Your logic applies to world we no longer live in.

[jaxx]

7. Jobs are the last thing to return. All the words in the world won't change that.

Growth does move the economy and therefore the jobs along.

[TheKentuckian]

16. Keep ignoring your lying eyes then. Decoupling is a real and serious factor.

Words have meaning, that is their purpose.

Productivity increases will not just be given up for shits and giggles.

The jobs have been going way before the crash and the profits have increased. Why are there going to be jobs created if your costs are down and your profits are up unless you are forced to play by different rules?

The distribution is serious as a heart attack too. As the wealth is in fewer hands it places a limit on activity. No matter how extravagant the few are, they can not maintain the output of the masses.

Automation is real, it is a factor everywhere. You at your computer replaced several folks already.

Globalization has an impact. Companies will take advantage of lower labor costs and even less regulation to squeeze more profits.

This isn't about words but the real world effects they describe. There are less and less jobs spread out among more people everyday and would be so to a lesser degree almost no matter what but the profit motive without safeguards seeks it.

The amount of economic activity not tied to goods nor services is vexing. A huge amount of our "growth" creates almost no jobs and certainly destroys many more. Betting on securities is activity and can and does contribute growth but the jobs are pretty damned sparse. The percentage of activity in this rabbithole is considerable.

We've got real factors in play here that act as serious gravity to your simple common wisdom. This isn't physics or a hard science where laws are at work and even with those rules of the universe, situation has significant impact.

An economy is a means to distribute resources to people. They can and do break down.

[dixiegrrrrl]

12. Well stated.

the only "boosts economic growth" will be via the stock market, which has essentially been
a rigged casino for years now.

the tax cuts package was just another way of "extend and pretend" everything is fine, put off the moment of real debt reckoning.

[RB TexLa]

10. In a recession/depression cash is king. Adding labor costs with as much uncertainty as there is

would be very stupid. You want to cut as much cost as you can across everything.

[Nite Owl]

3. The bond market is the one to

be watching. It is vastly larger and of more importance. It is looking like yields are rising/price falling which isn't a good thing.

[dkf]

4. It puts the Fed in a bind.

[ladjf]

5. Maybe or maybe not. The futures numbers are nothing out of the

ordinary at this point. If there is a good up-wards run today, that would be encouraging.

[madrchsod]

8. the rich get richer and the jobless gets fucked

my oh my, those stock options are gold today.

[old mark]

9. Juse found another story stating employers plan to hire....temps!

Sorry, but our profits are up, we are working our people like dogs and making a fortune without more regular employees-but we will hire a few of you at minimum wage, part time with no benefits, if you behave and are properly grateful to your masters...The new America-Merry christmas, and we want to cut social security, too....

Link to NYT article;
http://www.nytimes.com/2010/12/20/business/economy/20temp.html?_r=1&partner=rss&emc=rss&src=ig


mark

[dixiegrrrrl]

15. the new norm.

It makes sense to the struggling business who are getting margin compression,
and unfortunately makes sense to large businesses who just want to increase profit
year over year.

Making "just enough" profit seems such a quaint idea anymore, sadly.

[MoonRiver]

13. Monday 10:02 Central Time

DOW and S&P up less than 2 points. Nasdaq down 0.33.

[spanone]

14. wrong....down -48 points

[gratuitous]

17. Aren't the tax cuts supposed to create jobs?

That would mean the stock market should go down, because the horrifying prospect of more people working will mean reduced corporate profits and shareholder distributions. And that's socialism!

/Fox mode