US Corporate Profits Fall, US Government Deficit Rises
$DIA, $SPY, $QQQ, $VXX
The federal government last month recorded the biggest monthly budget deficit since February, and the deficit so far this budget year is running 10% higher than a year ago.
The US Treasury Department said Wednesday that the deficit came in at $112.8-B in July, highest since February’s $192.6-N but down from $149.2-B in July 2015. For the 1st 10 months of the budget year, which ends on 1 October, the deficit was $513.7-B, up from $465.5-B a year earlier.
The government runs a deficit when it spends more than it collects in taxes and other revenue.
So far this budget year, government revenues are flat to unchanged from a year earlier but spending is up 2%. Spending rose on interest payments and Medicaid.
Revenue from corporate taxes is down 12% YTD, reflecting a fall in business profits.
The Congressional Budget Office predicts the Y 2016 deficit will total $590-B, up from last year’s budget gap of $439-B, largely because of lower-than-expected revenues.
Accumulating budget deficits add to the federal debt, now nearly $19.4-T. That figure includes $5.4-T the government owes itself, mostly from borrowing from the Social Security trust.
The Center for a Responsible Budget estimates that Hillary Clinton’s budget plan, including an expansion Barack Obamacare (the Affordable Care Act), would add $250-B to the debt over a decade.
Wednesday, the US major stock market indexes finished at: DJIA -37.39 at 18495.66, NAS Comp -20.90 at 5204.58, S&P 500 -6.25 at 2175.49
Volume: Trade was light again, with about 745-M/shares exchanged on the NYSE
- Russell 2000 +7.7% YTD
- S&P 500 +6.4% YTD
- DJIA +6.1% YTD
- NAS Comp +3.9% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Bullish (0.43)||Bullish (0.46)||Bullish (0.33)||Very Bullish (0.50)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Bullish (0.38)||Bullish (0.35)||Bullish (0.29)||Very Bullish (0.50)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Bullish (0.29)||Neutral (0.07)||Very Bullish (0.58)||Neutral (|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Bearish (-0.27)||Neutral (0.00)||Very Bearish (-0.53)||Bearish (-0.29)|