Jul 18, 2014
Click here for this week's charts.
Second quarter earnings announcements came fast and furious all week long providing intelligence on a stronger economy.
-
Google Announcement Excerpt:
Revenues and other information - Google Inc. revenues for the quarter ended June 30, 2014 were $15.96 billion, representing a 22% increase over second quarter of 2013 revenues of $13.11 billion. GAAP EPS (including impact from net income (loss) from discontinued operations) in the second quarter of 2014 was $4.99 on 686 million diluted shares outstanding, compared to $4.77 in the second quarter of 2013 on 677 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2014 was $6.08, compared to $4.96 in the second quarter of 2013. Read more
-
IBM Announcement Excerpt:
Diluted EPS: - GAAP: $4.12, up 42 percent; - Operating (non-GAAP): $4.32, up 34 percent; Net income: - GAAP: $4.1 billion, up 28 percent; - Operating (non-GAAP): $4.3 billion, up 21 percent; Gross profit margin: - GAAP: 49.1 percent, up 50 basis points; - Operating (non-GAAP): 49.8 percent, up 10 basis points; Revenue: $24.4 billion: - Down 2 percent; down 1 percent adjusting for divested customer care outsourcing business; - Software, Services adjusting for divested customer care outsourcing business and Global Financing grew; Systems and Technology declined Read more
-
Celanese Announcement Excerpt:
Second quarter 2014 financial highlights: Achieved record adjusted earnings of $1.47 per share, up 11 percent from the prior quarter and 31 percent from same quarter prior year Net sales up 7% from 2Q 2013 Read more
Dividends Matter! A 40% Pay Raise???
- Dividends paid by Standard & Poor’s 500 Index companies will climb almost as much in the next five years as they did during the last four, according to Rod Smyth, RiverFront Investment Group LLC’s chief investment strategist. Read more
- Prior NetWorth Radio guest Rod Smyth, Chief Investment Strategist at RiverFront predicts 7% average annual growth in dividend payouts by the S&P 500 for the next 5 years. Read more
Interest Rates Drop Again!
30 Yead T-Bond Index (TYX) - Yead to Date Chart 
- Graph courtesy of Bloomberg L.P.
Those who bet on a rate spike using derivatives pay the price:
ProShares Ultrashort 20+ Year Treasury (TBT US) - Year to Date
Chart 
- Graph courtesy of Bloomberg L.P.
Summer Planning Season Tip of the Week:
- This is a great time of the year to run hypothetical tax returns with your CPA.
- Turbo Tax software can also provide a great way to test questions on deductions and explore ways to reduce tax liabilities before its too late.
- Clean out the garage? Donations can include a reasonable amount of in kind donations.
- Call us to coordinate an investment tax planning conference call with your tax advisor.
- Warning for 2015: The IRS is reportedly going enforce a one rollover per year rule. The rule could be used to potentially disallow large pension rollovers if there was a smaller rollover utilized in the same year. Read more