Last week I was concerned that the Obama (why do I always want spell it O’Bama?) glow was peaking. And I worried that this may have an impact on markets. There was some evidence for my concern: Majority Leader Reid’s comment , “I don’t work for the President” for one. Second; Minority Leader Boehner’s comments upon reviewing Obama’s stimulus package: “OMG, I simply cannot believe this.” These bi-partisan rebukes don’t make things warm and fuzzy for the incoming President.
Something is Happening Here–“young people speaking their minds”
How does one describe just what is going on? Am not sure a 1967 anit-war anthem is entirely appropriate to describe what is going on but the title works. And I like the song and seeing a teen-aged Stephen Stills and Neil Young. But something is happening here: YouTube – For What It’s Worth – Buffalo Springfield.
He went to dinner
Last week Obama went to dinner. And he went George Will’s house. According to Reuters: “Guests at Will’s dinner party reportedly included William Kristol, a founder and editor of The Weekly Standard and a leader of the neoconservative movement that was so influential in the Bush administration.
Also reportedly in attendance were David Brooks of the New York Times, Charles Krauthammer of the Washington Post, Michael Barone of U.S. News & World Report, Peggy Noonan of the Wall Street Journal, Larry Kudlow of CNBC and Paul Gigot of the Wall Street Journal.”
This was a remarkable event. but even more astounding has been the feed-back of those attending. Take a look at Larry Kudlow’s gushing explanation about his feelings toward the President Elect: Details Of My Dinner With President-Elect Obama Scroll down for the video.
This morning, on Fox News, I thought Bill Kristol was going to cry as he explained his reaction to the dinner and to Obama. Later, David Brooks, on Meet the Press, could not contain himself saying, in effect, that Obama has all the stuff to make a great president. And on Stephanopoulos, George Will conceded that the only thing that will resuscitate the Republican Party in the short-term is “failure” of the Democrat-led recovery. BTW, he was not hoping for failure, only commenting on what it would take to regain status.
Obama went into the snake pit and charmed them all. In all comments of the attendees I heard “smart”, “willing to listen”, fresh approach”, “bold”, on and on. Clearly, we are in a special time in our country’s history. So, am feeling the Obama glow may now have legs.
Back to reality.
This week five companies in the Dow 30 Industrial index report earnings. These are JNJ, UTX, IBM, MSFT and GE. Watch, especially, GE on Friday. Should they tank expectations ($0.37 vs $0.68) on Friday there is a real chance their AAA status will be at risk. Other majors such as Abbot, eBay, Union Pacific, Schlumberger, Apple and Lockhead Martin also report. This could be a pivotal week in understanding just how badly these companies are being impacted by the consumer and industrial slow down. The conference calls will be most telling. Forward guidance will be critical to maintaining any kind of positive momentum to the markets.
As if the wretched economy was not enough…..
On Saturday, North Korea said it had “weaponized” 30.8 kilograms of plutonium, enough for four to six nuclear bombs. There is some suspicion that this may be posturing against South Korea. Aside from the danger of the bombs this is relevant because a number of hedge funds have recently invested in South Korea. So, it will interesting to see how Asian markets react on Monday. Korean markets are up 1.2% this year in their currency but down about 6% in dollar terms.
Lastly
Being registered with the SEC and NASD prevented me from entering into class actions. I’m sure you get these all the time, I do. Since I am now allowed to participate I will, sometimes. send in one of the lengthy questionnaires and make copies of confirms, if I can find them. Well, yesterday I received a check for $104 from something called Lipuma Class Action. It was against American Express and while I have no memory of completing the questionnaire I quickly deposited the check.
Have a terrific day off tomorrow. I am looking forward to the coronation, er, the inaugural a great deal.
