The Dow was up 9, decliners ahead of advancer 3-2 & NAZ slipped pennies, hurt by falling Apple (AAPL) stock. The MLP index shot up 4+ to 465, a new record, & the REIT index was up 1+ to the 314s, another new high since 2007. Junk bond funds did little & Treasuries pulled back. Oil was higher while gold resumed its slump on speculation that the Federal Reserve may scale back
debt purchases, curbing demand for the precious metals as a
store of value.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
“Apple executives want the public to focus on the U.S. taxes the company has paid, but the real issue is the billions in taxes it has not paid,” Senator Carl Levin said at a hearing where the company’s CEO Tim Cook was to appear. Today’s hearing was called to air accusations the AAPL has created a web of offshore entities to avoid paying $B in US taxes. Levin said AAPL employs “offshore tax strategies whose purpose is tax avoidance, pure & simple.” It avoids $1M hourly in taxes, Levin said, linking the shortfall to US gov deficits that forced “budget slashing” cuts. Cook & 2 other executives were to appear before the Permanent Subcommittee on Investigations. The panel led by Levin yesterday released a report saying AAPL’s subsidiaries include 3 entities that have no home country for tax purposes. “Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven,” Levin said yesterday. “Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars while claiming to be tax resident nowhere.” Its cash is largely held in US banks in dollar-denominated assets, segregated into a portion that can be used for domestic operations & a portion that can be used only for intl investments, the company said. It doesn’t use foreign subsidiaries or gimmicks to avoid US taxes, said the testimony. The company also said the Irish subsidiaries, which are cost-sharing arrangements, have helped fund AAPL research & development activities & taken on risks, leading to bigger profits & higher-paying jobs in the US. The darling of Wall street is in the HOT SEAT! The stock slumped 7 & has a dreary charts since last Sep.
Apple Seen Using Loopholes to Evade $9 Billion in Taxes
Photo: Bloomberg
Hone Depot, a Dow stock, posted Q1 profit that topped estimates & raised its forecast for earnings this year as the housing rebound boosts renovation spending. EPS rose 83¢ from 68¢ a year earlier. Analysts projected 76¢. HD is benefiting from rising home prices that are giving homeowners the confidence to start projects & spend more. Revenue rose 7.4% to $19.1B, topping the $18.6B estimate, as the average customer purchase increased 5% to $57.24. Profit this year will be $3.52 a share, up from a previous estimate of $3.37, the company said. The guidance includes the effect of share repurchases already made & HD plans to make this year. Analysts are estimating $3.54. The stock gained $1.40.
Home Depot Raises Forecast as Housing Recovery Boosts First-Quarter Profit
Stocks continue on their meandering ways. There is no exciting corp news, other than darling AAPL being grilled in DC. Dow has advanced almost 2K since Sep when AAPL, with the largest market cap, reached its record. Quite a diversion that is hard to explain. The devastation in Oklahoma is taking attention away from the markets. There are a lot of people who need a great deal of attention & help.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.04% | |
U.S. 2-year |
0.24% | |
U.S. 10-year |
1.98% |
| CLM13.NYM | ...Crude Oil Jun 13 | ...96.57 |  ,,..0.14 | (0.1%) |
| GCK13.CMX | ...Gold May 13 | ...1,363.90 | ...20.40 | (1.5%) |
Photo: Bloomberg
“Apple executives want the public to focus on the U.S. taxes the company has paid, but the real issue is the billions in taxes it has not paid,” Senator Carl Levin said at a hearing where the company’s CEO Tim Cook was to appear. Today’s hearing was called to air accusations the AAPL has created a web of offshore entities to avoid paying $B in US taxes. Levin said AAPL employs “offshore tax strategies whose purpose is tax avoidance, pure & simple.” It avoids $1M hourly in taxes, Levin said, linking the shortfall to US gov deficits that forced “budget slashing” cuts. Cook & 2 other executives were to appear before the Permanent Subcommittee on Investigations. The panel led by Levin yesterday released a report saying AAPL’s subsidiaries include 3 entities that have no home country for tax purposes. “Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven,” Levin said yesterday. “Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars while claiming to be tax resident nowhere.” Its cash is largely held in US banks in dollar-denominated assets, segregated into a portion that can be used for domestic operations & a portion that can be used only for intl investments, the company said. It doesn’t use foreign subsidiaries or gimmicks to avoid US taxes, said the testimony. The company also said the Irish subsidiaries, which are cost-sharing arrangements, have helped fund AAPL research & development activities & taken on risks, leading to bigger profits & higher-paying jobs in the US. The darling of Wall street is in the HOT SEAT! The stock slumped 7 & has a dreary charts since last Sep.
Apple Seen Using Loopholes to Evade $9 Billion in Taxes
Apple (AAPL)
Photo: Bloomberg
Hone Depot, a Dow stock, posted Q1 profit that topped estimates & raised its forecast for earnings this year as the housing rebound boosts renovation spending. EPS rose 83¢ from 68¢ a year earlier. Analysts projected 76¢. HD is benefiting from rising home prices that are giving homeowners the confidence to start projects & spend more. Revenue rose 7.4% to $19.1B, topping the $18.6B estimate, as the average customer purchase increased 5% to $57.24. Profit this year will be $3.52 a share, up from a previous estimate of $3.37, the company said. The guidance includes the effect of share repurchases already made & HD plans to make this year. Analysts are estimating $3.54. The stock gained $1.40.
Home Depot Raises Forecast as Housing Recovery Boosts First-Quarter Profit
Home Depot (HD)
Stocks continue on their meandering ways. There is no exciting corp news, other than darling AAPL being grilled in DC. Dow has advanced almost 2K since Sep when AAPL, with the largest market cap, reached its record. Quite a diversion that is hard to explain. The devastation in Oklahoma is taking attention away from the markets. There are a lot of people who need a great deal of attention & help.
Dow Jones Industrials
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