Ahead of the Bell: Dow futures are trading up 23 points and S&P futures are trading up 2 points after aluminum producer Alcoa kicked off the 4th quarter earnings season by beating analyst forecasts, although they cautioned the budget talks in Washington could hinder the positive outlook for global demand in 2013. Year end results are expected to be better than the 3rd quarter, particularly since many companies lowered guidance for the final quarter of 2012.
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Ok, so Congress was able to pull together a last minute deal to avoid the fiscal cliff and spark a triple digit rally. Can anyone say “relief rally?” In case you missed it, here is a quick cheat sheet on the deal:
Income taxes: The Bush-era tax cuts will remain permanently in place for the vast majority of Americans. Those individuals who make more than $400,000 a year—or families makingover $450,000 will see their tax rates increase from 35% to 39.6%.
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Ahead of the Bell: Dow futures are trading up 10 points and S&P futures are trading up 2 points. Hours before the deadline on the fiscal cliff on the last day of 2012, Congress and the White House still have not struck a deal.
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As the US approaches the fiscal cliff, triggering what could potentially result in huge tax increases and spending cuts on January 1st, 2013, many public companies have accelerated payments of their 2013 dividends so they occur before the end of this year and/or they have declared special, one-time dividends to be paid this year. Some companies have even decided to issue new debt to pay for special distributions.
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In the aftermath of President Obama’s reelection and facing the looming fiscal cliff, several key Republicans recently suggested they won’t be bound by an Americans for Tax Reform pledge to oppose any and all tax increases. For years, that pledge, popularized by anti-tax crusader Grover Norquist, has been used to hold GOP lawmakers’ feet to the fire when it comes to accepting revenue hikes.
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Ahead of the Bell: Dow futures are trading up 10 points and S&P futures are trading up 2 points. Pessimism over the fiscal cliff continues to drag on global financial markets and political posturing between Democrats and Republicans have equity markets clinging to every bit of news from Washington. President Obama and congressional leaders are negotiating on how to avoid steep automatic tax hikes and deep spending cuts that will kick in at the end of the year, unless they can reach a deal.
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