We continue our reporting and analysis of Q3 earnings where today we discuss, Boeing, Microsoft, Caterpillar, Tesla, and Ford. Regarding Boeing, Caterpillar, and Ford, these companies saw a drop in top and bottom line results; however, Ford did beat expectations on the top line. Microsoft beat expectations on both the top and bottom lines. Tesla meanwhile surprised markets and reported a profit. Shares of Tesla are trading near $300/share in after-hours trading an increase of over $40/share. Despite weaker reports and lower guidance, major market indexes still closed higher for the day – albeit most of the gains came during the last moments of the trading session.
One such reason for the last burst of energy could be the Federal Reserve’s intervention in the markets. We informed our audience that the Fed’s involvement in the overnight repo market was not going to be temporary. And not only were we correct on that, but we stated that the Fed would have to go bigger than ever before and guess what? That’s exactly what was declared today. The O/N repo market will now increase to $120B from $75B and the term repo market will now increase to $45B from $30B. This in plain English means that there are not enough US dollars in the system to meet the demand of these market participants and/or the banks that normally would make a market are not doing so. Neither is a good scenario and The Kapital News is of the mindset that something chilling is occurring not beneath the surface, but is soon going to rupture and make itself known. This will likely show itself in the form of bankruptcies and/or emergency calls to bail-out industries – particularly smaller and mid-sized banks. The piper wants paid and after a decade’s long experiment of low interest rates, negative interest rates, QE, and QT – he wants paid his principal and interest. The problem? There aren’t enough dollars to pay him back and this is evidenced by the O/N market, the term repo market, the restart of QE – although we’re not supposed to call it that, and further rate cuts from the Fed. Two cuts thus far and we expect at least one more by year-end and it will likely happen next week. Oh, and it’s not just the Fed. The People’s Bank of China, (PBOC), are also intervening in their O/N markets. Things are just great all over the place! (sarcasm)
The fake news portion of our podcast focused on testimony provided today by Facebook’s CEO, Mark Zuckerberg, before a House panel. The Democrats attacked the Facebook CEO as if he’s supposed to be responsible for fact-checking all political ads. Are you serious? The same Democrats that lied about the effects of Obamacare? The same Democrats that lied about evidence that would conclusively tie President Trump with Russia? The same Democrats who think everything can be provided for free – just simply tax a handful of individuals and all will be paid for? Are you kidding me? Do these same Democrats question the executives of TV stations as to whether or not they’re fact-checking every political ad that they air? Are the Democrats attempting to stifle free speech? While it’s not a good thing to lie, you do have the right to do so. And as Zuckerberg stated, it’s healthy for a Democracy to see if their political candidates are lying. Well said sir and may that sink into the dense thinking of the Democrats. Clearly another display in public of how the Democratic party is all about control and it’s their way or the highway. Such a sad state of affairs, but at least they’re stupid enough to make these comments in daylight – we can be thankful for that. Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #Recession #Facebook #Boeing #Microsoft #Tesla #FakeNews #Rigged #Economy #Politics #Justice #Truth #Peace