Nov 14, 2012|
What's Up On Wall Street - Steven Russolillo, WSJ
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
It's kind of a funny day on Wall Street here's what's going on the market -- in the stock market that is open however -- the bond market is not -- and so. You're -- trading treasuries today hollow and bonds are not trading at all but stocks are. And it would appear at least on my screen that we're getting in just a little bit of a bump in stock prices. Just a little bit the Dow's up nine at the NASDAQ up ten S&P is up two -- history or dollars and cents to 1735. Oil that's also up it's up thirteen cents. 8619. And I will say this AD the numbers that come from today's trading. Are not terribly relevant because the the volumes going to be very low. You know kids are not in school banks are closed so my guess is you're gonna have a volume day today. You know 50% of the norm. And then you're also gonna have some very bright light volume days next week next Wednesday will the day before Thanksgiving will be a very light trading volume day. And also the Friday after Thanksgiving the market opens but only for few hours. So it's going to be very light trading day on Friday after Thanksgiving as -- think there's going to be a little bit of or at least a lot of. Of volatility and uncertainty. In the next few weeks -- leading up to see. Holidays in the end the year -- these negotiations meetings taking place with the fiscal cliff. The the fiscal cliff I think the Smart money has figured out we're not gonna go over the fiscal cliff you know it'll be a negotiated settlement on. I think what you're seeing -- is a lot of people I know we sought on Wednesday and Thursday last week. When you've got the negative political reaction -- people unhappy with their candidate not winning. But then the other side of it is you've got people that say. Gee I've owned the shares of Microsoft. Since 1982. Rival the shares of apple since 1985. You know what I'm gonna sell them now I'm gonna sell my shares of apple today. And pay 15%. Federal capital gains tax because I'm not planning to die with those shares and as a result if I sell them next year or anytime after January 1. The taxes and going to be 50% anymore it's going to be. 20/20 530% so I think a lot of what you have going on. Right now. Right is people who have highly appreciated assets selling out those stocks locking in those capital gains paying it at 50% so you have big. Quarter for tax receipts disease people are gonna pay taxes but the it just makes sense if you know you're gonna sell -- -- He use apple or Microsoft is an example why not sell it in pay 50% as opposed to holding it and paying some unknown rate next year. Our our guest is Stephen Russell from the Wall Street Journal he joins us every Monday to help us understand what's going on -- in the morning. -- my assessment of the selling some of the selling anyway and I think we should anticipated -- continue. Is a lot of it's being done for tax purposes I read that today's Wall Street Journal is a matter of fact. That you know a lot of people are harvesting gains and then re buying shares. Shortly thereafter is that consistent with what you're seeing. Yeah you know back. But it that the big chance that one on last week I you know you have the big that should be counted on on Wednesday and Thursday -- -- election and market but I know you know -- get the rally on Tuesday's election where you know I only have a piece on -- need it but what it. I don't know which group of leading -- but that it got sort of you know that got up -- mop up in the obviously did not last -- -- as. You alluded to district -- within the big worry. Because I don't know what that it's actually going to be -- it to make thirteen so. You know and all the right -- at one a -- -- -- expand the -- eleven. That's the only. They're really not a Chapman meant that the opposite full well calmed it's some sort of -- Sooner than later so. I wanted to see this sort of that this cloud hanging over the market because people don't know what you know the old cliche that could be as well you know they -- seven yards and -- as you know. If people sort of take what you know but that. We've got to be if there's. Clarity. -- could not a good number and it hired and he won the Olympic sort of numbered them deal that's reached. I think about will be viewed optimistically but all that happened so. You know -- -- just worried about what the and the more worried yet. I think that the more ball you're gonna be. Many. -- the traders -- in a tough spot here too though Stephen because if they sell those stocks right and you get a negotiation. To the fiscal cliff. You could have a 10% pop in a matter days so let's say you sell your stock because you wanna lock in the gains -- you're on your concerned about the fiscal left. And then some weekend break the the the Republicans and the Democrats get together and they negotiate something that's palatable right to both sides. Boy you could barely get you could miss out on a 10% rally. All exactly it means that their big concern while because Ukraine and what happened that they did not come to an eleventh hour deal what do. Bulb go on -- that went bankrupt earlier. Absolutely that's the question actually and when he's in the big bucks and that you mentioned earlier you mentioned Apple Mac but apple now on more than one. Who bought so you know huge drop -- you have some people that are looking at. Try to earnings were choked a valuation -- I wish Patrick apple. Basically like. What you're well though. You're right if there is some sort of deal that happened and you get a inquiry is all it you're right he could he -- -- but you know -- -- -- out on a bill. Dot that -- -- but I don't think most are now on the bad. You know that that is not like. Though and -- Wheatley as it has been directing air. It may get worse. All right well Stephen that's gives us something to look forward to doesn't. -- Wikipedia a little bit scarier. All right thank you cnet's Stephen Russell from the Wall Street Journal he's down in New York he's in the trenches. He's during the same thing -- volatility. Is the name of the game. -- -- -- We we are going to see hikes are text number is 68680. By email address is Barry Armstrong at wrko.com. If you have a question or comment. Kind of interesting because it's -- I holiday we have some time here -- where we can interact with the audience and you can service there interpreter 68680. June will be your voice. Right okay so they texted me saying -- we got beat -- -- -- your questions and June will be your voice a party got a couple emails that I'll address so. That's the name of the game right here text questions email questions very are strong at wrko.com. Text number 68680 this is a funny story.