This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Last-Ditch Effort to Avoid Automatic Spending Cuts: Hot Trends

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 - Get Report) 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.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CVC $18.10 -1.10%
P $15.76 -2.70%
AAPL $124.31 -0.10%
FB $81.44 -0.94%
GOOG $541.53 -1.20%


DOW 17,702.49 -73.63 -0.41%
S&P 500 2,061.28 -6.61 -0.32%
NASDAQ 4,874.6850 -26.20 -0.53%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs