NEW YORK (TheStreet) -- Popular searches on the Internet include spending cuts as $85 billion in federal spending cuts will go into effect Friday unless President Obama and Congress can come to a last-minute agreement.
The pending cuts are tied back to a deal to increase the debt ceiling in August 2011. Democrats and Republicans are at an impasse over how to replace the cuts totaling $1.2 trillion over nine years. Of that amount, $85 billion would occur in the remainder of this fiscal year.
Although Obama is set to meet with congressional leaders Friday morning, there is little expectation that a deal will be reached to stave off the automatic cuts. The president is required by law to sign an order that will reduce federal spending by 11:59 p.m. on Friday.
As the cuts likely wouldn't take effect for a few weeks, there is hope that a solution would still be reached. If no resolution is found, the Congressional Budget Office said budget reductions will likely cause about a 0.6 percentage-point drop in economic growth this year. Obama has warned that sequestration could potentially devastate a shaky economy.
Cablevision Systems (CVC) is trending as the cable company reported a fourth-quarter operating loss, dragged down by Hurricane Sandy. Cablevision reported a net loss from continuing operations of $83.7 million, or 32 cents a share, compared with a profit of $60.5 million, or 22 cents, a year ago. Sales dropped 1.6% to $1.66 billion, below analysts' expectations of $1.7 billion. The company also lost more customers than analysts predicted. Cablevision reported a loss of 50,000 video customers, 5,000 high-speed Internet subscribers and 10,000 voice customers. CEO James Dolan said challenges related to Sandy "had a strong negative impact" on the company's fourth-quarter results. About $111 million in costs were added during the period due to Sandy. The company's programming costs are expected to rise about 12% this year. Cablevision already announced it was raising prices by $2.98 a month to cover rising costs of sports programming as well as charging its Internet subscribers another $5 a month.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV