Wall Street rally fizzles as tech, Amazon falter

Amazon has climbed like a rocket since the 2016 election. A correction is long overdue.

a reply to: Irishhaf

The better question is where does it pop at and why

People aren't spending, they bought all that they need too. Immigration people are the new spenders, just like international travels to foreign countries helping out a depressing economy.
An example of this would be the largest mall in Japan: goinjapanesque.com...

I think if it weren't for the foreign tourist we'd see a heck of a lot of empty shops.
Anyway, the ageing of the population is getting older and not buying much. And the younger generation are now shopping at the recycle stores.

Also keep in mind that "what is a dirty political ploy on the economy is" the lottery /gaming gambling that is taking out real buying power in the economy. The large number lottery at 70 numbers is a dirty trick to take money out of the system and make the economy look screwed up which in fact it does. Christmas sales are coming up. It's been said for the last some years overall sales in the malls are way down.

Sorry to say this, but immigration and international tourism nowadays bring in a false flag of economic stability. I see it in this country also. Here, ban the Chinese tourist and you'll see parts of a few major cities go into empty shops. And that is a fact.

a reply to: musicismagic

An economy built on consumer spending has its days limited

originally posted by: toysforadults
a reply to: musicismagic

An economy built on consumer spending has its days limited

I totally agree with you and we see it every where we go.

Here's the deal and is not pretty....no liquidity, meaning there is no base foundation of buyers

We're seeing flash crashes three times a week.

The GbpYen is in freefall almost, they go really slow downsteadylike

The banks have no one to blame, a war would do it.....😣

originally posted by: toysforadults
a reply to: Fallingdown

more like no one is spending

So you’re saying under reporting earnings and not meeting analyst expectations has zero effect on the stock market ?

a reply to: GBP/JPY

exactly, people have no money to spend

a reply to: Fallingdown

prove it

a reply to: CriticalStinker

a reply to: toysforadults



Why would the SEC even take notice ?

But it was Amazon’s weak guidance that sent the stock tumbling 7.1% in after-hours trading.

In its earnings press release, Amazon said it now expects fourth-quarter sales to be between $66.5 billion and $72.5 billion. The midpoint of that range, $69.5 billion, is well short of the $73.8 billion that Wall Street has been expecting. Amazon’s fourth-quarter forecast for operating income of $2.1 billion to $3.6 billion (with a midpoint of $2.85 billion) was also well short of the $3.86 billion estimate.

Pay particular attention to the word “expects”. That means it is a projection and you don’t get in trouble for projections.

www.barrons.com...

Just shut up and buy your lottery tickets.

a reply to: toysforadults

My own personal wag, is unless congress does something (A distinct possibility since they like getting paid), with the end of quantitative easing (quaint phrase for paying big companies to buy stocks in big companies), and the stead rise in Rates I think sooner rather than later.

Probably 4-6 years, I don't think they have much left in the tank for kicking the can down the road.

ETA: probably continued small contractions up to that point, followed by an epic face plant.

originally posted by: underwerks
a reply to: toysforadults

It’s really a shame that most people are so blinded by politics they refuse to see this coming. A lot of people are in for a rude awakening.

Since August the interest rate hikes have been making stocks including Amazon overpriced on a dividend basis when compared to bonds (when the stock price bubble breaks). We are reaching the thick part of the bell curve where even the most stalwart HODL minded stock investors are putting sell stops on their portfolio and finding themselves in cash with a tax liability.

Home sellers are reducing prices for buyers who are facing higher interest rates. Seems fair and historically that process helps the housing market continue to perform. People buy houses with even 6 and 7 percent interest rates if it makes sense and is less expensive then renting.

The real questions are how long is it going to take the price bubbles to burst ,and will the lower resulting prices cause a recession? Theoretically price bubbles can simply correct and continue on at a more reasonable level.

a reply to: Cauliflower

yes but with 50% of the population making 15,000 or less there's fewer buyers in the housing market so who's going to buy the houses even at lower cost?

Me and my GF were talking about the economy earlier and I dont think it's a recession per say, i like my GF's theory that people are just not spending and saving more do to the severity of the last recession. I know we are saving more now a days. Also government contracting is doing very well right now. I dont really know about the private sector so much but there is a lot of money in DoD.

I'm DOWN 5.6% this year on my 401k.

I'm NOT happy about this.

Also, residential building seems to be doing well here where I live. My hood had several empty lots when I bought my house 5 years ago. Now the contractor can't got them build fast enough. He had a home sold before it was build for 350k. But things seem to hit the south a lot slower than the north and west so there might be something happening but we would be the last to feel it.

a reply to: MorpheusUSA

government is spending a boatload of money but that's not a good economic indicator, 80% of the jobs we do are government or education.

that's not good

also, you may be saving but the majority of people aren't,

tradingeconomics.com...

saving's are actually approaching all time lows, when people are making 30k a year and the average rent is $1000 a month that's nearly 50% of your income on rent alone

the problem is people are not making enough money the corporations and banks are sucking us dry

a reply to: MorpheusUSA

you're hood specifically may have building going on but the vast majority of residential new home building is dead I already provided links in the OP it's not reflecting in the actual economic data

originally posted by: Tempter
I'm DOWN 5.6% this year on my 401k.

I'm NOT happy about this.

yeah well move into neodymium and gold since it's down so much this year and brace for the elections it may go back up after the election