This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Best of Kass

NEW YORK ( TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Among his posts this past week, Kass wrote about continued uncertainty on the fiscal front, his disappointment with corporate earnings and the details of his position in bonds.

Please click here for information about subscribing to RealMoney Pro.


Risk-Off Ahead?
Originally published on Friday, Jan. 18 at 9:23 a.m. EST.

Republicans will likely kick the can down the road for another six months.

It is increasingly clear that the Republicans will likely offer a deal to kick the debt ceiling extension (of $575 billion-plus) down the road for another six months.

In turn, it could now be expected that the Republican Party will use the leverage of sequestration and continuing resolutions, which have March 1 and March 27 deadlines, to get their spending cuts.

My view is that this will produce continued uncertainty in business/consumer confidence, earnings and spending, exposing the market to some more risk -- consistent with my notion of a January S&P 500 high.

As it relates to my short bond position, if this is the outcome, it could delay the widely anticipated interest rate rise over the next few months.

At the time of publication, Kass was short SPY.


Earnings So Far
Originally published on Friday, Jan. 18 at 8:44 a.m. EST.

It is always good to review the facts.

Brian Sozzi comments in Columnist Conversation that earnings are disappointing.

I agree.

It is always good to review the facts.

It is very early in the earnings season, with only about 10% of the S&P 500 reporting fourth-quarter 2012 results.

Thus far, 62% of the earnings reports exceeded expectations and 22% were worse than consensus. Operating earnings are up 4% year over year for those that have already reported profit results, which is in line with expectations but below forecasts of a week or more ago.

Sales are beating consensus by about 52% while 45% have missed. But if you take out the financials, less than 45% are ahead of expectations. This compares favorably to third quarter 2012, when 32% beat consensus on the top line (25% excluding financials).

As we enter 2013, the tug of war between the fiscal drag of austerity/spending cuts and higher tax rates on the consumer are competing against a better housing and jobs market and a modest turn in the manufacturing sector.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
TBT $48.53 3.60%
AAPL $123.99 -1.40%
FB $77.94 0.49%
GOOG $524.40 -1.20%
TSLA $231.27 -0.72%

Markets

DOW 17,804.42 -123.78 -0.69%
S&P 500 2,079.63 -9.83 -0.47%
NASDAQ 4,915.6960 -23.6310 -0.48%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs