TONIGHT’S SPEECH!

By Gary Kaltbaum- February 28,2017
Our usual disclaimer: We are not in the tank! We are only about 60-40 on the new president and his policies but what do we know? We really like a bunch of his economic policies but we also really dislike some of it. We really like how he wants to defend the country but we have no idea why he went for this so-called ban. But we remain amazed about the reaction to the new president. When Obama came in, everything was wonderful. All benefit of the doubt was given. He could do no wrong. We are now in opposite land as the new president gets no benefit of the doubt and can do no right. But in case you did not know, we thought it important to make sure you knew some facts about tonight’s address.

Tonight, the new president will be giving a joint address to Congress. He is only one month into his presidency yet quite a few are out calling him a failure. A certain someone named Pelosi actually stated that the new president is letting down the middle class. Really? After one month? An article in USA Today was actually written with the title: “Trump Too Late On Hate!” Really? After one month. All that hate created in one month? There was no hate for the past 8 years? Funny…not seeing anything written up about the trillions of wealth created so far with the market going up but then again, THAT has nothing to do with the new president? Right?

That said:
The new president did not create a dime of the $20 trillion of debt. Many of the people in that room did.

The new president did not create the welfare state in where there is over 80 programs doling out over $1 trillion each year. Many of the people in that room were a party to it.

The new president did not create the serious immigration problem. Many in that room were a party to it and did nothing about it.

The new president did not create the size of the government in which federal spending is now above $4 trillion…up from less than $1.8 trillion in the last year of Clinton. Many in that room oversaw this.

The new president has not been involved in any wars, including Iraq and Afghanistan. Many in that room were.

The new president did not create the Social Security ponzi scheme wherein your SS taxes go to pay off today’s retirees. Many in that room have done nothing about it and its problems.

The new president did not take interest rates down to 0%, screwing savers and distorting markets. Many in the room have watched and done nothing about it.

The new president had nothing to do with what is now called “serious infrastructure” problems. The new president did not promise an $800 billion stimulus bill would go to infrastructure and then spend it elsewhere. Many in that room watched it and said nothing about it.

The new president did not sit idly by while Isis was created and grew to the size it is. (We will leave that one alone!)

The new president did not create the disaster called the NY Knicks…ok, that one was personal.

You get the point. We could go on and on. We have just never seen a time where someone who just became president is already being blamed for all the ills of society. We just needed to set the record straight on who the real culprits are.

Tuesday Pre-Market Look: Stocks In The News Before The Open

Target (TGT) is down 12% in pre-market trading after it reported Q4 adjusted EPS of $1.45, below consesnsus of $1.51, and said it expects full-year adjusted EPS of $3.80 to $4.20, well below expectations of $5.34.

Fiesta Restaurant Group (FRGI) plunged 13% in after-hours trading after it said it will suspend its sale evaluation process due to “softer” company performance and a “weak” industry outlook.

Kona Grill (KONA) slumped nearly 10% in after-hours trading after it reported a Q4 adjusted loss of -39 cents a share, wider than consensus for -33 cents a share loss.

Essendant (ESND) tumbled 11% in after-hours trading after it reported an unexpected Q4 adjusted loss of -2 cents a share, much weaker than consensus for a 28 cent EPS gain.

Triangle Capital (TCAP) dropped 4% in after-hours trading after it announced the commencement of a public offering of 7 million shares of common stock.

Nutrisystem (NTRI) jumped over 15% in after-hours trading after it reported Q4 EPS of 29 cents, better than consensus of 24 cents, and said it sees Q1 revenue of $202 million-$207 million, above consensus of $179.3 million.

Silver Bay Realty Trust (SBY) surged 17% in after-hours trading after Tricon Capital bought the company for $1.4 billion, or $21,50 a share, an 18% premium to Monday’s closing price.

58.com (WUBA) rose 3% in after-hours trading after it reported Q4 gross margin of 89.9%, below consensus of 90.5%.

Kindred Healthcare (KND) rose over 4% in after-hours trading after it reported Q4 core EPS of 8 cents, better than consensus of 5 cents, and then said it sees full-year revenue of $7.1 billion-$7.3 billion, above consensus of $6.89 billion.

Priceline Group (PCLN) rallied over 3% in after-hours trading after it reported Q4 adjusted EPS of $14.21, well above consensus of $12.97.

Jabil Circuit (JBL) was dowmngraded to ‘Market Perform’ from ‘Strong Buy’ at Raymond James.

U.S. Steel (X) rose 3% in after-hours trading after it was upgraded to ‘Outperform’ from Market Perform’ at Cowen.

Square (SQ) slid 2% in after-hours trading after it announced a $350 million offering of convertible senior notes due in 2022.

Hertz Global Holdings (HTZ) climbed over 2% in after-hours trading after Gamco said it increased its stake in the company to 6.18% from 5.1%.

EOG Resources (EOG) gained 2% in after-hours trading after it reported a Q4 adjusted loss of -1 cent a share, narrower than expectations for a -14 cent a share loss.

Hudson Pacific Properties (HPP) lost nearly 2% in after-hours trading after it announced the commencement of a public offering of 8.5 million shares of common stock.

Realty Income (O) lost nearly 2% in after-hours trading after it announced the commencement of a public offering of 8 million shares of common stock.

Source: FoxBusiness, Bloomberg, CNBC, Barchart, Reuters

Tuesday’s Morning Look

Market Update:

Stock futures are quiet ahead of Tuesday’s open as the market continues to flirt with record highs.

Gary’s Thoughts: Very quiet but lots of  jello moving on the plate. Really watching the biotechs here after yesterday’s move. Tonight, the new president speaks.

Economic Calendar:

  • GDP 8:30 AM ET
  • International Trade in Goods 8:30 AM ET
  • Redbook 8:55 AM ET
  • S&P Corelogic Case-Shiller HPI 9:00 AM ET
  • Chicago PMI 9:45 AM ET
  • Consumer Confidence 10:00 AM ET
  • Richmond Fed Manufacturing Index 10:00 AM ET
  • State Street Investor Confidence Index 10:00 AM ET
  • Esther George Speaks 12:45 PM ET
  • Patrick Harker Speaks 3:00 PM ET
  • Farm Prices 3:00 PM ET
  • John Williams Speaks 3:30 PM ET
  • Bullard Speaks 6:30 PM ET

Highlights:

  • Trump expected to announce big changes to his budget…increase defense spending and decrease funding for government agencies such as the EPA.
    Gary’s Thoughts: Holding opinion until I see it.
  • For Warren Buffett, America’s Best Days Always Lie Ahead
    Gary’s Thoughts: We have been saying this forever but if we do nothing about the trajectory of debt created by those wonderful humans in Washington…there will be a day of reckoning.

Hedge fund billionaire David Tepper says he’s ‘still long stocks’ and ‘still short bonds’

http://www.cnbc.com/2017/02/27/investing-david-tepper-likes-stocks-doesnt-like-bonds.html

Warren Buffett on Amazon: ‘I don’t have a good answer’ on why I didn’t buy it long ago $AMZN

http://www.cnbc.com/2017/02/27/warren-buffett-on-amazon-i-dont-have-a-good-answer-on-why-i-didnt-buy-it-long-ago.html

Trump Tells Large Health Insurers to Expect ‘Something Special’

https://www.bloomberg.com/politics/articles/2017-02-27/trump-tells-large-health-insurers-to-expect-something-special

Required Reading

Listen To Monday’s Investor’s Edge Radio Show: 02/27/2017

Listen To Monday’s Investor’s Edge Radio Show: 02/27/2017

Click Here: http://archives.warpradio.com/btr/investorsedge/022718.mp3