Finally... the FOMC meeting day is here! Yippee! Aren't you tired of this crappy trendless market? I know I am. From the looks of the early morning 60 minute chart on the ES Futures we might drop back to that lower rising trendline around 1995 currently, which is around the intraday low yesterday and would be a double bottom.
On the upside we now can see the short rising trendline point just above the gap fill from January 2nd of this year. It looks like it's around the 2025-2030 area right now. So that's the upside target and the downside is around 1995 now but rising. If there is a "shakeout" move to the downside after the FOMC (or before it?) the next big support is around 1980 from the prior horizontal consolidation several days back.
So for now I guess we wait to hear what Janet Yellen says after the meeting. I think it's a lose lose scenario where if she raises rates the market won't like that for sure and if she doesn't raise rates it will be interpreted as the economy is weaker then thought and the market won't like that either. But I do expect a squeeze out first before the reality sinks in on Thursday or Friday from whatever she says.
Anbang Insurance Group, a well-connected Chinese conglomerate, has agreed to pay $6.5 billion for a portfolio of Four Seasons and other luxury hotels owned by the Blackstone Group, according to numerous recent reports—and is gunning to take control of Starwood’s Westin, Sheraton, and W Hotels as well. Many of the properties potentially changing hands include longtime deal-making locations for US business men, tech titans and Hollywood.
Neither deal has been officially announced yet, but the buyout of Blackstone’s Strategic Hotels & Resorts 16 properties is the more immediate and likely of the two (Anbang is competing with Marriott International for Starwood).
The Blackstone deal includes the Four Seasons hotels in Washington DC, Jackson Hole, and Silicon Valley to New York City’s Central Park-facing Essex House and the Ritz Carlton south of San Francisco. Overall, it could net Anbang more than 7,500 of the US’s most expensive hotel rooms—common sites for sensitive business negotiations, diplomatic glad-handing, closed-door conferences, and maybe even the occasional illicit affair. And that should be terrifying to their long-time guests.
U.S. Secretary of State Colin Powell with Singapore Prime Minister Goh Chok Tong at the Four Seasons Hotel in Washington in 2004.(Reuters/Mannie Garcia)
Anbang has deep connections to China’s Communist Party—Chairman Wu Xiaohui was married to the granddaughter of Deng Xiaoping, while Chen Xiaolu, the son of a prominent People’s Liberation Army official is on the board of directors.
It’s a party that US officials and privacy experts believe is behind numerous hacks of US government and corporate information technology systems, sometimes for “theft of intellectual property and trade secrets,” as data security company CloudStrike said last October, sometimes to pick up personal employee data, and other times to “download files ranging from emails to contracts.”
As the US and other companies and governments fret over China’s rapid expansion beyond its borders, everything from deal terms to IT “back doors” to the South China sea is being discussed, sometimes in the very rooms that will now be owned by Anbang, and across the very Wi-Fi systems the company will now control.
Neither Blackstone or the Four Seasons in Washington, which traditionally hosts numerous diplomatic meetings, replied to questions from Quartz. A US Treasury spokesman said she could not comment on whether the committee that reviews foreign investments was looking at the Anbang/Blackstone deal.
Electronic communications are closely monitored in China, sometimes even in citizens’ and visitors’ homes, and harvested information can emerge when it benefits the government. In 2014, when Britain’s GlaxoSmithKline chief in China was being investigated for a bribery scandal, a video of him having sex with a woman who was not his wife was made public. The video was filmed at his Shanghai apartment.
The US State Department seems to be taking all possible security concerns seriously: After Anbang took over the the midtown New York Waldorf Astoria in late 2014, president Barack Obama bucked decades of tradition and chose to stay elsewhere during the 2015 United Nations General Assembly meetings. The State Department also said after the Anbang takeover it is reviewing whether the Waldorf should still be the permanent home of the US ambassador to the UN, as it has been since 1947.
“There are a range of considerations that influence where the president will stay when he’s not at the White House,” the White House spokesman said at the time. “Those considerations include everything from available space to cost and to security.” An unnamed State Department official was more direct with The New York Times (paywall) about security concerns, saying “Why else would you not stay at the Waldorf?”
Uber became a massive company by giving people rides, but now it wants to give your dinner a ride. After testing the UberEATS service in the main Uber app for a few months, the Android version of UberEATS is now in the Play Store. It's only available in a few cities right now, but the residents of those cities are not very happy with the service, judging by the early reviews.
The premise of UberEATS is that users will be able to order food from restaurants in their area that usually would not deliver. It's not a new idea, but Uber already has a fleet of drivers out there, ready to deliver food in between picking people up. The service is available right now in Chicago, Houston, Los Angeles, San Francisco, and Toronto. More cities are coming soon.The app lets you place orders at supported restaurants, or get "instant deliveries" from a list of featured items. It offers estimated delivery times, but many of the complaints in the Play Store focus on massively delayed orders. Inaccurate open hours and general app bugs are also a theme. The courageous among you can still give it a shot.
Oracle's ongoing reinvention was reinforced by a strong cloud performance in a third-quarter report Tuesday, amid mixed overall results.
Over the past few years the Redwood City business software giant has rewritten its applications for the cloud, and is adding a cloud center on a 27-acre site in Austin, Texas.
"Our cloud business is now in hyper-growth phase," said Oracle co-CEO Safra Catz, saying the report reflects "a fantastic quarter."
The company reported total revenue of $9 billion and earnings per share of 64 cents, including some one-time expenses. Analysts polled by Thomson Reuters had expected revenue of $9.12 billion and earnings of 62 cents per share. Fully reported earnings of 50 cents per share met analysts' estimates.
Oracle headquarters in Redwood City, Calif., Wednesday, May 14, 2015. (Patrick Tehan/Bay Area News Group) (Patrick Tehan)
Oracle's board declared a 15-cent-per-share dividend and authorized a $10 billion share buyback.
The company blamed the strengthening U.S. dollar for putting a crimp on sales. Revenue was down 3 percent from the same quarter last year, and profit was down 14 percent.
As one of several legacy Silicon Valley giants shifting to the cloud, Oracle's strategy seemed born out by a strong report on cloud sales.
Total cloud revenues were $735 million, up 40 percent, while total on-premise software revenue declined 4 percent to $6.3 billion. Those numbers show that on-premise revenue from software purchased and used at customers' locations is still the heart of a company shifting to meet the migration to the cloud.
Service revenues sagged 7 percent to $793 million.
"Had the dollar not strengthened," earnings per share would have been 4 percent higher, Catz said in a conference call with analysts. "Assuming no more wild currency swings, this fiscal year will turn out to have been the trough year for operating income," she said.
Co-CEO Mark Hurd said that Oracle added nearly a thousand new software-as-a-service customers during the quarter, with some snatched from competitor Workday.
Larry Ellison, Oracle's founder and chairman, said that while Oracle still does "an awful lot" of database software that is bought and used by customers at their businesses, business are moving it to the cloud. "We see the next generation of our database business predominantly in the cloud," he said.
Oracle shares closed up slightly at $38.74, but rose nearly 4 percent in after-hours trading to $40.20 a share
In recent months, Valeant has come to be seen as an egregious example of profiteering in the drug industry: Its executives have been called to testify before Congress, and Hillary Clinton has mentioned Valeant by name in a campaign ad.
Valeant’s practice of buying old drugs and sharply raising their prices is being investigated by federal authorities, as is its relationship to a mail-order pharmacy, Philidor, which it used to help get around efforts by pharmacies and insurance companies to substitute cheaper generics for some of the company’s costly drugs. Valeant has since cut its ties to Philidor.
On Tuesday, the company said it would discontinue buying drugs and raising their prices. “We’re no longer in the market for underpriced assets,” Mr. Pearson said.
The company also lowered its guidance, saying it now expected revenue of $11 billion to $11.2 billion in 2016, compared with its previous estimate of $12.5 billion to $12.7 billion. The company also said its adjusted earnings per share for the year would be $9.50 to $10.50, instead of the previously expected $13.25 to $13.75.
It also said it lost $336.4 million in the final quarter of 2015; the numbers it released had not been audited and Valeant did not provide comparable figures from 2014.
William Ackman’s hedge fund Pershing Capital owns a large stake in Valeant.
Mr. Pearson said that a continuing inquiry into Valeant’s accounting practices by an ad hoc board committee was preventing the company from filing its annual financial statement on time.
Mr. Pearson said he hoped the company could file its annual financial statement by April, but “I can’t commit to that.” Failing to do so could mean that debtors would be able to require Valeant to pay them back faster and limit their future borrowing, although they could grant waivers, which the company said it would seek.
The company was due to file the report at the end of February and now has until the end of April.
When companies seek waivers from banks, the banks typically require a payment to grant the waiver, which could be as much as 1 percent of the company’s bank debt, said Vicki Bryan, a senior analyst at Gimme Credit.
The cascade of negative news seemed to have transformed even some of Valeant’s most supportive analysts into skeptics, as they pelted Mr. Pearson with questions, challenging the company’s financial statements and even, at one point, asking if his comments could be trusted.
Given the sharply lowered financial guidance, “How did so much change so quickly with the business?” asked Chris Schott, an analyst with J. P. Morgan who has an overweight rating on the stock, along with a price target of more than $275.
Financial Adviser on Valeant’s Plunge
“They're better off dead than alive,” said Joshua M. Brown, a financial adviser at Ritholtz Wealth Management, on the drug maker's debt load.
Another analyst with a buy rating, Shibani Malhotra of Nomura, asked: “How can we be confident in what you’re saying today, given that you were positive in December and January?”
“We have to do a better job,” Mr. Pearson responded. “We’ve had some underperforming businesses. That’s on us. That’s totally on us.”
Not everyone was as skeptical: William A. Ackman of Pershing Square Capital Management, the company’s second-largest shareholder and a major Valeant booster, stood by his investment on Tuesday, noting that Pershing’s vice chairman recently joined Valeant’s board.
“We are going to take a much more proactive role at the company to protect and maximize the value of our investment,” he said in a note to investors Tuesday. “We continue to believe that the value of the underlying business franchises that comprise Valeant are worth multiples of the current market price.”
Mr. Pearson said Valeant would focus on paying down its debt, hold off making major acquisitions and work on restoring its credibility. He also said the company was considering selling some nonessential assets, but he declined to be specific.
“It’s a bit of a starting-over point at this point, for me and the company,” Mr. Pearson said. “And clearly if we don’t deliver, then again that’s on me.”
BREAKING: Metrorail will shut down completely Wednesday(!)
by David Alpert • March 15, 2016
The entire Metro rail system will shut down for at least 29 hours starting at midnight Tuesday night to inspect and replace the kinds of cables that caused Monday's fire. Wiedefeld is currently holding a press conference to reveal more about his plans. We'll update this post as the story develops.
Photo by mike on Flickr.
Wiedefeld said the investigation into Monday's cable fire revealed "commonalities" between last year's L'Enfant fire and this. He said, "When I say safety is our highest priority, I mean it. That sometimes means making tough, unpopular decisions, and this is one of those times. I fully recognize the hardship this will cause."
The chance of another fire is "very, very low," added Wiedefeld, but "as the person responsible for the life and safety" of riders and workers, he felt this action was necessary.
The agency will inspect 600 underground jumper cables during the shutdown, which will take until 5 am Thursday. If inspectors find other cables that need replacing, they will announce further closures or single-tracking.
What will Wednesday's commute be like?
Will there be car-mageddon? This may show how much the region needs Metro (and a safe and well-maintained Metro).
Buses will continue to run and Wiedefeld said WMATA will increase bus service for schools. Many residents may try the bus for the first time—though those buses might be stuck in massive traffic.
#whichwmata pic.twitter.com/A02ufPxmnp
—sharrowsDC (@sharrowsDC) March 15, 2016
If you can bike, Wednesday would be a good day. Capital Bikeshare is sure to be stretched to the limit.
Odds of my getting a @bikeshare bike tomorrow? Odds of finding a place to dock it if I manage to snag one? Corrals please!
—Shaun Courtney (@SCourtneyDC) March 15, 2016
A lot of people immediately realized ride-hailing services will likely see some heavy demand. Travis Maiers wrote, "Uber's going to be expensive tomorrow, that's for sure."
Uber's official response to DC Metro shutdown pic.twitter.com/BRiBDpwfJE
—Alex Bruns (@ABBruns) March 15, 2016
Ronit Dancis said, "Elected officials take note: this is what happens when you don't fund maintenance of public infrastructure and public utilities."
David Alpert is the founder of Greater Greater Washington and its board president. He worked as a Product Manager for Google for six years and has lived in the Boston, San Francisco, and New York metro areas in addition to Washington, DC. He now lives with his wife and daughter in Dupont Circle.
Not much to add that wasn't said yesterday. There's still a possibility that we drift down to find support from the rising trendline today, which is coming in around the 1990 area as I thought it would yesterday. It's resting at horizontal support right now in the 2000 zone, and appearing like it wants to turn back up.
Since today is Tuesday and the market is still waiting for the FOMC tomorrow the market will likely chop around again today with light volume. I'm not expecting an clear directional trades today as it could turn up anytime without dropping to the rising trendline around 1990, or go up early for some small 5-8 point B wave and back down later for the C wave into that rising support line. For me, it's not work trying to play. I'll wait for the tag of the January 2nd level after the FOMC meeting or the day afterwards before shorting.
This zone is the gap window to gap fill area from January 2nd and it's still the area I'm expecting to see the market hit before rolling over and starting a multiday downtrend.
Early look at the MACD's show the 2 hour and 60 minute chart dropping some but trying to turn back up.
We are now on the June contract of the ES Futures and it's running lower then the March contract that just expired last. The numbers are different now but the gap is still "the gap", so nothing has really changed. The target on the SPX is 2038.20 for gap window and 2043.83 for gap fill. Somewhere in that range is where I expect the market to end this rally up from the 1800's area low back in January.
As for today I don't see a clear picture. It looks like it wants to pullback some, which here on this futures chart it has horizontal support around 2000 and a rising trendline of support about 1982 right now (and rising). So possibly we get some kind of choppy move down into that rising trendline today and early Tuesday. By then it might have risen to the 1990 area? Or we just find support at the horizontal line around 2000 and make that final pop higher on Tuesday?
There nothing clear today. At this point I'm not focused too much on the technical analysis or the elliottwave count as both are being manipulated right now. My thoughts are based on historical data of the last 18 of 19 years showing clearly that the January 2nd level was revisited in all but one year. Therefore I think we'll make this revisit too, so we will then have 19 of 20 years for it happening.
I never went back past 20 years, so it could be much more if one wants to do a longer study. For me though, considering the low odds of the market seeing that January 2nd area later this year, or at any future time this year, I have to strongly believe that they will hit that target area now on this rally up as there's not likely to be another chance late on. So I'll be waiting for "The Big Short" to appear today/tomorrow or later this week.
Backtest of rising wedge yesterday produced a nice sell off but it didn't hold as is back up again like nothing happened.
Early look at the MACD's show the 2 hour and 60 minute chart ready to rollover, but with trapped bears I bet they just chop sideways most of today and/or go up a little more later today.
Yesterday I had all but given up on the Thursday/Friday low but after that early morning backtest on the futures failed to get back inside the rising wedge and then the market had a nice drop. Looking at it closer you can now see the A wave down was from last Friday's high to this Tuesday's low. Then the B wave up started and ended at the open on Thursday, followed by the C wave down. This wasn't that easy to spot until afterwards. I think I mentioned something about that lower falling trendline being hit on my Tuesday update? Maybe it was Wednesday? But it just grinded higher to hit the upper falling trendline by Wednesday's close.
Then Thursday it gaped up over it and quickly failed to hold after it did the backtest of the rising wedge. At that point it could have found support at the upper falling trendline but it fell through it and finally went down to hit the lower falling trendline around the 1967 low (March futures contract). Kinda of a tricky wave that one was, but I still felt strongly that we'd go back up as 18 of the last 19 years have revisited their January 2nd opens and I still expect that to happen. I don't see it today but I do think we'll get up there sometime next week.
As for today... probably a whole lot of nothing. The short term charts are overbought but I really don't think they are going to give back any ground on the downside today. I suspect it will either grind higher slowly or just chop sideways most of the day and go up some near the close. They want that January 2nd level revisited and I don't see the bulls stopping until they hit it. I have my Dad's funeral at 11am so I'll be gone all day and won't be in the chatroom. I may appear to be there as I'll stay logged in but after 11am don't expect me to respond back. Have a great weekend all and get ready to short big next week.
Nice backtest of the rising wedge. If the futures can get back inside the wedge then they might be able to fill a gap in the 2030 area from 12/31/2015.
MACD's reset to bullish on this 2 hour and the 6 hour, 4 hour and 60 minute chart. The SPX also reset on its' 60 minute chart, but will be making negative divergence with this higher high in the market.
Thinking back to all the things I've learned it natural to forget some of them I guess. One of those things was something some one told me about the market having a tendency to revisit the yearly opening price at some point that year. This gap fill of 2030.25 is the end of 2015's close and the open this year was 2018.25 (gap window) on the futures. On the SPX it's 2038.20 for gap window on the opening day of 01/02/2016, with gap fill at 2043.83 from 12/31/2015.
I just quickly looked back 20 year and noticed that every year except 2013 had one month somewhere that year that came back to the opening price of that year. So if if opened and went down for January it might come back up in February or March to revisit it, or even later in the year, but it did at some point before the year ended. Only 2013 opened, ripped higher and never revisited that open before the year ended.
This tells me that there's very good odds that we'll revisit the opening level at some point this year and naturally with it being so close now you have to think it's going to do it within the next week or so before going back down. Normally I'd say it's possible for it to do it later this year if it fails here this time but considering that we are now in a bear market and very likely put in the high back in May of 2015 I'm not expecting to see this area revisited later this year... so "now" is the likely time to hit it.
So, it might be a slow grind up into later this week or early next week with some small pullbacks but considering that 18 of the last 19 years it did revisit the opening level it might be wise to just let this market chop and grind until it finally hits its' target. I was expecting a low today or Friday but right now it's looking like we had the low yesterday. We'll see I guess? I think I'll just watch for now and not take any shorts (or longs) until I see either that 2030 area hit or something clearly to trade on the short side.
Downward falling trendline still holding and keeping the market from making a higher high.
This lower falling trendline should offer some support on the downside.
The MACD's on aren't showing any clear direction.
The SPX 60 minute chart still looks bearish but the ES Futures are mixed and seem to be holding the market up and preventing a large drop. While I'm still looking for a low by the end of this week it's certainly not looking like it wants to go down to the 1930 area right now. But, as we all know, they can drop it all in one day if they want to. So I'm not ruling it out just yet.
Today I'll be looking for the market test that falling trendline around 1995 or so on the futures. The short term charts look mixed and don't really support a strong move up or down right now. But by the end of the day they should align together in the same direction. If they have a early sell off to that lower falling trendline in the 1970 range then they should align bullish at the end of the day. If they chop around all day up in the 1985-1995 range then they should align bearish and rollover into the close. But early on today it's looking like a coin toss on the direction. Neither bull nor bear is winning here, as it's a directionless ship just drifting right now.
The Better Business Bureau on Tuesday briskly refuted a number of statements that Republican presidential candidate Donald Trump has made about Trump University, the now-defunct real estate seminar provider that many students allege was a scam.
In last Thursday's Republican debate, the candidate defended Trump University despite the multiple lawsuits brought by former students and the state of New York.
Challenged by Fox News moderator Megyn Kelly about Trump University's D-minus rating from the Better Business Bureau, Trump said that "right now it is an A."
During a commercial break, Trump was caught on camera presenting the debate hosts with a piece of paper that he said showed that rating. "The Better Business Bureau just sent it," Trump can be heard telling Fox News moderator Bret Baier. "This just came in, we just got it."
Trump handed a fax to the @FoxNews anchors during the #GOPDebate just a bit ago pic.twitter.com/EvVbvFZAgK
— Independent Journal (@INJO) March 4, 2016
But according to the Better Business Bureau, very little of what Trump said is true.
"The BBB did not send a document of any kind to the Republican debate site last Thursday evening," the nonprofit organization said on Tuesday. "The document presented to debate moderators did not come from BBB that night."
As to Trump's basic claim, the watchdog group said, "Trump University does not currently have an A rating with BBB. The BBB Business Review for this company has continually been 'No Rating' since September 2015. Prior to that, it fluctuated between D- and A+."
Following the debate on Thursday, Trump tweeted what he said was the official A rating for the Trump Entrepreneur Initiative, a later name for Trump University.
The Better Business Bureau report, with an A rating for Trump University. #GOPDebate https://t.co/ldJ5EFp3HM pic.twitter.com/1K9u09CFQQ
— Donald J. Trump (@realDonaldTrump) March 4, 2016
On Tuesday, the Better Business Bureau said, "The document posted on social media on Thursday night was not a current BBB Business Review of Trump University. It appeared to be part of a Business Review from 2014."
Furthermore, the nonprofit stated, "Trump University has never been a BBB Accredited Business. The document handed to the debate moderators on Thursday night could not have been an actual 'Better Business Bureau accreditation notice' for this business."
Here's the current review of the Trump Entrepreneur Initiative.
Better Business Bureau
Not only did the Better Business Bureau refute Trump's claims about Trump University's current grade; it also refuted his claim that the enterprise has "a 98 percent approval rating from the people who took the course [because] people like it ... many did tremendously well, and made a lot of money."
Here's how the bureau tells it: "During the period when Trump University appeared to be active in the marketplace, BBB received multiple customer complaints about this business. These complaints affected the Trump University BBB rating, which was as low as D- in 2010."
How did it ever have an A rating?
The company closed in 2011, and after that, the Better Business Bureau said, "no new complaints were reported." Complaints that are more than three years old "automatically rolled off of the Business Review, [and] over time, Trump University's BBB rating went to an A in July 2014 and then to an A+ in January 2015."
Trump, however, claimed the opposite was true. He said the Better Business Bureau simply hadn't had enough information about Trump U, and that's why it received a D-minus. "Before they had the information," the program scored poorly, he said, but "once they had the information ... it is right now an A."
More than 5,000 people are suing Trump and Trump University in California, where a class action suit alleges that many students spent more than $30,000 on what they were told would be a real estate investment mentorship, personally designed and overseen by Trump.
Watch the real estate mogul's promotional video for Trump University:
In fact, the former students allege that Trump played no part in designing the course, choosing the teachers or mentoring students.
A second case brought by New York Attorney General Eric Schneiderman was cleared by an appeals court to move forward last week. This means voters are likely to hear a lot more about Trump University in the coming months.
The candidate tried to play down the seriousness of the allegations on Thursday, yelling, "It's just a minor case! It's a minor case!" over the voices of debate moderators.
On Monday, Trump also released a video (see below) in which he singled out two people who asserted they'd been scammed by his seminar company. He accused them of saying "horrible things" and warned "we're looking" for a third person.
A spokeswoman for Trump's campaign and a lawyer for Trump's business both declined to comment on the Better Business Bureau's statement.
Donald Trump speaks during a campaign rally on March 7, 2016, in Madison, Miss.
Donald Trump gets an ‘F’ for a video he posted to YouTube purporting to tell the “truth” about Trump University, the real-estate program that has been the subject of three ongoing lawsuits alleging fraud.
In the video, Trump holds up a sheet of paper showing that the Better Business Bureau gave Trump University an “A” rating, claiming it proves that what he said during the March 3 debate was correct. That’s false. As we wrote in our debate story, the most recent BBB rating for Trump University that we could find for the program was a “D-” in 2010 — which is when the school stopped taking new students.
But Trump keeps insisting he is right, even when the evidence proves him wrong. He tweeted a screenshot of the “A” rating after the debate. He posted a video to YouTube on March 7, criticizing Fox News for refusing to correct the record during the debate. He tweeted about that, too.
Trump video, March 7: "Well, I turned out to be right. Before the end of the debate I gave them [the Fox moderators] the ‘A’ — we had it sent to us — and here’s the ‘A’ rating from the Better Business Bureau, and they refused to put it on that night …. So we have an A rating not a D- rating."
Let this be the last word on Trump University’s rating, and it comes from the Better Business Bureau, which issued a statement March 8 “in response to a number of inaccurate reports that continue to be repeated.”
Better Business Bureau, March 8: During the period when Trump University appeared to be active in the marketplace, BBB received multiple customer complaints about this business. These complaints affected the Trump University BBB rating, which was as low as D- in 2010. As the company appeared to be winding down, after 2013, no new complaints were reported. Complaints over three years old automatically rolled off of the Business Review, according to BBB policy. As a result, over time, Trump University’s BBB rating went to an A in July 2014 and then to an A+ in January 2015.
That means what Trump literally holds out as evidence is meaningless and misleading.
Trump University was never licensed as a university and had to change its name to The Trump Entrepreneur Initiative in May 2010. (The BBB rating Trump holds up in the video shows the exact date as May 21, 2010.) Trump’s program stopped accepting new students in 2010, as Alan Garten, an attorney for Trump and his former school, told CNN in an interview in September 2015 (at about the 1 minute mark).
So, the school stopped taking new students and the complaints stopped, too. That had a direct effect on the “A” rating that Trump now boasts about. The BBB statement says, “BBB ratings are based on information we obtain about a business, including complaints received from the public. The reporting period is three years.” Once the old complaints “rolled off the Business Review,” as the BBB statement put it, the Trump program’s rating went up to an “A” in July 2014. The BBB stopped rating the Trump Entrepreneur Initiative in September 2015.
Trump holds up an image of an “A” rating for the Trump Entrepreneur Initiative, not Trump University. That would have been on or about July 2014 — three years after the school stopped taking new students.
For more about Trump’s misleading statements about Trump University please see our item, “Trump’s Defense of his ‘University'.” That article also covers another misleading claim that Trump makes in the YouTube video about students who took the courses and rated them as “excellent.”
Signs were passed around Monday before a Trump rally in Concord, N.C.Credit Travis Dove for The New York Times
Donald J. Trump has been boasting that his contentious Trump University educational program earned an “A” rating from the Better Business Bureau, but the bureau says it has no rating at all.
Mr. Trump, who holds the lead in delegates for the Republican presidential nomination, is facing a civil fraud lawsuit over Trump University, which was renamed the Trump Entrepreneur Initiative in 2010. Customers have complained that the course was a hoax.
Mr. Trump’s Republican opponents have pounced on the issue as an example of Mr. Trump employing shady business practices. During a debate last week. Mr. Trump insisted that after receiving a “D-minus” from the Better Business Bureau, the program’s rating improved to an “A” once it supplied the necessary paperwork.
He released a three-minute video on YoutTube on Monday explaining the situation.
“We have an ‘A’ rating, not a ‘D-minus’ rating,” Mr. Trump said, holding up a document that showed the Better Business Bureau giving his business an “A.”
But the bureau, a nonprofit organization, said on Tuesday that Trump University had had “no rating” since September and that the document that was circulating on social media appeared to be old. Meanwhile, it suggested that the improvement in Trump University’s rating was because the program was winding down, not because customers were happier with the product.
“During the period when Trump University appeared to be active in the marketplace, B.B.B. received multiple customer complaints about this business,” the organization said in a statement. “These complaints affected the Trump University B.B.B. rating, which was as low as D– in 2010. As the company appeared to be winding down, after 2013, no new complaints were reported.”
Trump University’s rating improved to an “A” in 2014 because reviews roll off of its system after three years.
Hope Hicks, a spokeswoman for the Trump campaign, disputed the notion that there had been any problems with Mr. Trump’s education initiative.
“They gave the program a rating, and they admit that the rating was an ‘A+,'” Ms. Hicks said. “Any lower ratings were given prior to the submission of documentation and other applicable paperwork. Once submitted, the program was awarded an even higher rating than previously shared.”
The Trump campaign did not comment on whether the Trump Entrepreneur Initiative was still operating. The organization’s sparse website offers a login for existing members. The telephone number supplied by Mr. Trump in his “Trump University Truth” video was not in service on Tuesday.
Stocks are pulling back in afternoon trading, led by declines in energy companies as the price of crude oil and other commodities turn lower. Murphy Oil fell 12 percent and oil rig operator Transocean lost 8 percent Tuesday. Traders were also discouraged by weak trade figures from China.
KEEPING SCORE: The Dow Jones industrial average fell 45 points, or 0.3 percent, to 17,029 as of 1:13 p.m. Eastern time. The Standard & Poor's 500 index fell 13 points, or 0.6 percent, to 1,989. The Nasdaq composite gave up 30 points, or 0.6 percent, to 4,678.
THE QUOTE: "We're overbought," said Chief Investment Officer Bill Stone of PNC Asset Management Group, noting that the S&P 500 is up about 10 percent from mid-February. "People are taking some profits off of the larger run-up from the low."
Specialists Robert Nelson, center, and James Sciulli, right, work on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in early trading, led by declines in materials and energy companies. (AP Photo/Richard Drew)
SHAKE QUAKE: Hamburger chain Shake Shack plunged $4.80, or 11 percent, to $37.43 after delivering quarterly results and an outlook that disappointed investors.
URBAN JUMPS: Urban Outfitters jumped $4.56, or 16 percent, to $32.72. Late Monday, the retailer reported strong earnings and improved margins during the holiday season. The Philadelphia-based company said it earned $72.9 million, or 61 cents per share, in its fourth quarter ended Jan. 31, better than analysts expected.
DIVIDED AT UNITED: United Continental fell 56 cents, or 1 percent, to $57.05 after two investment firms went public on an effort to add six of its nominees to the board of directors. They also want to give a prominent role to the ex-CEO credited with saving Continental more than a decade ago. The two firms, Altimeter Capital Management and PAR Capital Management, own a combined 7.1 percent stake of the airline.
Trader Timothy Nick, left, works on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in morning trading Tuesday as oil prices slip and energy companies drop sharply. (AP Photo/Richard Drew)
OIL FALLS: Benchmark U.S. crude fell $1.08, or 2.9 percent, to $36.82 a barrel on the New York Mercantile Exchange. It jumped $1.98 on Monday. Brent crude, which is used to price international oils, fell $1.16, or 2.8 percent, to $39.68 a barrel.
CHINA TRADE: China's exports plunged 25 percent in February from a year earlier, as weak global demand and a business shutdown during the Lunar New Year holiday combined to depress sales. Customs data Tuesday also showed imports fell 14 percent.
EUROPE DOWN: France's CAC 40, Germany's DAX and Britain's FTSE 100 each fell 0.9 percent.
Trader Robert McQuade, left, works on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in morning trading Tuesday as oil prices slip and energy companies drop sharply. (AP Photo/Richard Drew)
ASIA'S DAY: Japan's benchmark Nikkei 225 dropped 0.8 percent and South Korea's Kospi lost 0.6 percent. Hong Kong's Hang Seng index shed 0.7 percent.
CURRENCIES: The euro rose to $1.1046, up from $1.1013. The dollar edged down to 112.77 yen from 113.27 yen.
BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 1.82 percent from 1.91 percent late Monday.
Trader Christopher Morie works on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in morning trading Tuesday as oil prices slip and energy companies drop sharply. (AP Photo/Richard Drew)
Trader William McInerney works on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in morning trading Tuesday as oil prices slip and energy companies drop sharply. (AP Photo/Richard Drew)
Trader Tommy Kalikas works on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in morning trading Tuesday as oil prices slip and energy companies drop sharply. (AP Photo/Richard Drew)
Traders Eric Schumacher, left, and Daniel Kryger work on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in morning trading Tuesday as oil prices slip and energy companies drop sharply. (AP Photo/Richard Drew)
Trader George Ettinger, left, works on the floor of the New York Stock Exchange, Tuesday, March 8, 2016. Stocks are pulling back in morning trading Tuesday as oil prices slip and energy companies drop sharply. (AP Photo/Richard Drew)
The Office of the New York State Comptroller confirmed that the average Wall Street bonus has declined by 9 percent in 2015 to $146,200. The figure is bigger compared to the levels seen in the most recent financial crisis, but smaller compared to figures from 10 years ago.
A statement released by the Office of the New York State Comptroller confirmed that the average bonus paid in the security industry has declined by 9 percent in 2015 to $146,200, spurred by the 10.5 percent decline in industry-wide profits.
"Wall Street bonuses and profits fell in 2015, reflecting a challenging year in the financial markets," wrote New York State Comptroller Thomas DiNapoli in the statement, adding that the ongoing weakness in the worldwide economy and the volatility of markets could also lead to lower profits for this year.
"Both the state and city budgets depend heavily on the securities industry and lower profits could mean fewer industry jobs and less tax revenue," warned DiNapoli.
In 2014, the average Wall Street bonus was reported at $160,280. The figure has declined as brokerages and large banks have been met with low demand for fixed-income products due to the uncertainty surrounding interest rates.
The average bonus figure is still bigger compared to the levels seen in the most recent financial crisis, but smaller compared to average bonus figures from 10 years ago and falling further from the all-time average high of $191,360 recorded in 2006.
DiNapoli, however, noted that while profits were down, employment in New York City in the securities industry increased by 2.7 percent last year, averaging 172,400 jobs over 2015. In addition, 4,500 positions were opened last year, compared to only 2,400 positions opened in the previous year.
The average salary of Wall Street positions remains strong, however, with average salary including bonuses rising 14 percent to $404,800 for 2014 compared to the previous year. The data is not yet available for 2015.
Wall Street bankers are not at the worst of times though. In comparison, the median household income for 2014 in the United States was $53,657, according to the Census Bureau.
What should worry bankers, however, is the fact that big banks in New York are laying off employees to deal with the downturn in banking profits. Last year, Morgan Stanley let go of 1,200 employees, and last week, Bank of America issued the pink slip to 205 people.
Nearly every month a new, more advanced drone seems to pop up showing off new designs and performance features.
Similarly, security companies are attempting to keep up with those advances with drone-stopping countermeasures, the latest being the SkyWall.
UK-based OpenWorks Engineering is offering the device — which looks like a gun from a flashforward scene in Terminator 2 — as a means to neutralize drones that spy on celebrities, compromise the security of government officials and are used to transport illegal contraband.
SkyWall100 drone stopper gun.
"SkyWall gives you a physical barrier in the sky," reads the company's description of the device. "The system can be rapidly reloaded, allowing multiple drone threats to be engaged by a single operator."
The most important feature of SkyWall is that it not only stops the flight of a drone but, once it captures a drone, it deploys a mini-parachute, bringing the drone back to earth with no damage, allowing authorities to keep it intact for subsequent investigation.
The SkyWall100 as it captures a drone in flight.
In terms of accuracy, the SkyWall, which is essentially a compressed air launcher in gun form, uses a laser-equipped SmartScope to acquire the target and shoot a smart projectile at the drone. Once the smart projectile reaches the drone, it releases netting at just the right moment to stop the drone's flight.
The device has a range of about 330 feet, operates with what the company describes as "near silent" noise level and can be reloaded in just eight seconds. OpenWorks showed off how the system works in a video (above) posted on Thursday.
Scheduled to be publicly demonstrated next week at the UK Home Office’s Security and Policing Event, the company hopes to see the first commercial versions of the prototype device in use by the end of 2016.
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MACD's on the 6 hour chart are drifting now and suggests that this 60 minute MACD won't have much power to rally back up today. There's also a new falling trendline to hold back any rally that should force the futures to only put in a lower high then yesterday.
Looking at all the hits of this large rising wedge from the 1800 area low, with the lower highs now being made, it's looking more and more like the high was put in last Friday as wedge gets tighter and tighter near the end. The SPX 60 minute chart is also looking ready to rollover today as well. With Friday and yesterday's 2 peak highs making a downward sloping trendline of resistance the ideal shorting spot would be a hit of it today at some point. It's making a small triangle inside the larger rising wedge. If the market holds the wedge today then it should be stuck inside this triangle staying above the lower trendline of the rising wedge from the 1800 area low and below the new downward falling trendline from the Friday/Monday highs.
This could take all day, but near the close we could see the break of the wedge start, or they just hold us inside it and break it Wednesday with a gap down move? Either way, it's looking much more likely that we'll start a move down this week that should whack a third or so off this rally up, taking us to the 1930's on the SPX... most likely by this Thursday or Friday.
In the event the falling trendline of resistance is broken-through and a higher high is put in then I'd wait to see if they can push it up to the 2020 area before shorting. So that trendline would be my ideal spot to short today... hopefully right at the close of the day. I'd look to exit that short (after taking it near the trendline) when Friday's high gets broken through as then we could see another squeeze up to 2020 (or higher?). But with the SPX charts looking very close to rolling over I don't see this lasting too much longer.
ANDREWS, TX - JANUARY 20: The price of gas is advertised at a fuel station in the Permian Basin oil field on January 20, 2016 in the oil town of Andrews, Texas. Despite recent drops in the price of oil, many residents of Andrews, and similar towns across the Permian, are trying to take the long view and stay optimistic. The Dow Jones industrial average plunged 540 points on Wednesday after crude oil plummeted another 7% and crashed below $27 a barrel.
Every year, the IRS compiles a dirty dozen list of the worst tax scams, in order to help the American public avoid becoming victims. Some aren't applicable to most people, such as using offshore accounts to avoid paying taxes, but many are perpetrated by scam artists to victimize honest, hardworking taxpayers. With that in mind, here are four scams to watch out for in 2016, and some tips on how to avoid them.
IRS phone scams: Know what the IRS won't do Every year, thousands of individuals are targeted for phone scams. Since October 2013, the IRS has received reports of nearly 900,000 contacts and over 5,000 phone-scam victims who have collectively paid more than $26.5 million.
Basically, tax-related phone scams typically involve a caller posing as an IRS agent. The caller may use an official-sounding IRS title or badge number, and the caller ID may even show "IRS" or something similar. Often, the caller will tell you that you owe the IRS money, and will try to threaten or trick you into paying -- maybe even by threatening arrest or loss of your driver's license. The "agent" will then demand immediate payment via a wire transfer or prepaid debit card.
In other variations of the scam, callers may tell you that you're entitled to a big tax refund you weren't aware of in order to steal your bank account or other personal identifying information.
The best way to identify and avoid phone scams is to be aware of what the IRS will never do. Specifically, the IRS will never:
Call to demand immediate payment, or call at all about taxes owed without sending you a bill first.
Demand payment without the opportunity to appeal or question the amount owed.
Require a specific payment method. A legitimate IRS tax debt can be paid by check or through one of the IRS' payment processing partners.
Ask for a credit or debit card number over the phone.
Threaten to have you arrested for non-payment.
If you think a call is a scam, hang up the phone immediately. Report the scam to the IRS. If you think the call may be legitimate, or if you want to see if you actually owe taxes, call the IRS at 1-800-829-1040, and actual IRS employees can assist you.
Identity theft: Safeguard your information and file early Identity theft has become a serious problem when it comes to tax returns. Scammers will use the identifying information of taxpayers to file phony tax returns with made-up income, deductions, and credit, and then pocket a hefty tax return.
Unfortunately, this is the one scam on this list that isn't 100% avoidable. In fact, many people don't even know they're a victim until they try to file their own taxes, only to find out that a return has already been submitted in their name.
In recent years, the IRS has stepped up efforts to catch and prevent fraudulent returns. In fact, in 2015 the IRS initiated 776 identity theft investigations, resulting in 774 convictions -- the average of which resulted in 38 months of jail time. Plus, the process of dealing with identity theft has improved in recent years. The IRS now provides assistance and a clear road map to resolving tax-related identity theft cases.
Even so, ID theft remains a big problem. The best way to avoid a fraudulent return is to file your taxes as early in the tax season as possible, and to safeguard your identifying information like your Social Security number and address.
Phishing scams: Know what to look for Similar to phone scams, except using the Internet, phishing involves sending you a fake email or directing you to a fake website in an effort to steal your money or personal information.
Simply put, "The IRS won't send you an email about a tax bill or refund out of the blue," according to IRS Commissioner John Koskinen. In other words, if you get an unexpected email from the IRS, don't even click on it.
When it comes to websites, you should be aware that the official IRS website is www.irs.gov, and any legitimate IRS website will begin with that address. So, if a website begins with some other variation, such as "IRSgov.com" or anything similar, it's a fake.
Can you really trust your tax preparer? Most tax preparers are honest service providers who will complete your return to the best of their ability, but there are some less-than-honest preparers as well.
There are several forms of tax return preparer fraud. Some encourage you to not claim some of your income, or to invent deductions and credits you're not really qualified for in order to inflate your tax refund. A dead giveaway here is preparers who charge a percentage of your refund -- stay away from those. Other fraudulent tax preparers are simply out to steal your personal information and/or pocket your tax refund.
With that in mind, here are a few ways to be sure your return preparer is legitimate, and to avoid becoming a victim:
Ask for the preparer's IRS Preparer Tax Identification Number (PTIN). Paid return preparers are required to have one.
Ask if they have any other credentials, such as being a Certified Public Accountant (CPA) or attorney.
Ask about fees -- preparers are not allowed to base fees on a percentage of your refund. Avoid preparers who promise a bigger refund than the competition.
Ask the preparer to e-file your return -- it's the safest and most accurate way to file.
Legitimate preparers will ask to see your records and receipts.
Never, ever sign a blank return.
Review your tax return thoroughly before signing.
Scams will always exist, so read up on the latest Unfortunately, as long as there are big sums of money involved, tax fraud will always exist. Therefore, it's important to keep up to date with the latest tax scams to avoid as things evolve. That way, you'll always be a step ahead of scam artists who want to steal your money and you'll have a lower chance of being victimized.
The $15,978 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.
Finally... the FOMC meeting day is here! Yippee! Aren't you tired of this crappy trendless market? I know I am. From the looks of the early morning 60 minute chart on the ES Futures we might drop back to that lower rising trendline around 1995 currently, which is around the intraday low yesterday and would be a double bottom.
The app lets you place orders at supported restaurants, or get "instant deliveries" from a list of featured items. It offers estimated delivery times, but many of the complaints in the Play Store focus on massively delayed orders. Inaccurate open hours and general app bugs are also a theme. The courageous among you can still give it a shot.
