Tag Archives: NYSE

Impact of Potential Stock Trade Tax

Should a tax being imposed on stock trades, this could create a huge impact on the entire New York Stock Exchange.  According to Stacey Cunningham, NYSE president:

NYSE president Stacey Cunningham warned on Tuesday that the unthinkable was possible, saying the hallowed financial institution on Wall Street could flee if the state imposes a tax on stock trades.

“While New York has remained a centre of gravity for the financial industry, many employees of ‘Wall Street’ firms are migrating to Florida, Texas and other states with hospitable tax policies. If lawmakers opt to reinstate th[e tax that was abolished in 1981 by the State of New York] at tax, the NYSE may need to follow the lead of those relocating firms. Some of our customers are already asking about our willingness to relocate.”

Still, it has not been put into effect yet and executives from the state governor’s office are expressing opposition to the measure. For example, Robert Mujica the Budget Director working for Cuomo said:

“The only nexus you have with the stock transfer tax is the idea that the transactions occur in the state because the computer servers happen to be here. Move the servers, you move the transaction, you don’t collect anything from the tax.”

NYSE Second Quarter Results

NYSEKeeping abreast of quarterly results is important for stock prices.  But it’s not the only thing that matters: payout increases are also matters to be watched.  Still, according to an Investopedia article written by Ben McClure, “a company’s ability to hit earnings estimates is important to the price of your stocks.  If a company exceeds expectations, it’s usually rewarded with a jump in its share price.  If a company falls short of expectations – or even if it just meets expectations – the stock price can take a beating.”

When it comes to delivering stable results, Republic Services (NYSE:RSG) can be relied upon.  Investors can feel confident that the waste disposal services firm will deliver predictable results each quarter.  As CEO Don Slager said: “Our second quarter results continue to demonstrate the stability and predictability of our business, and the strength of our operating model. Strong pricing performance, positive volume growth and contributions from our strategic initiatives keep us well positioned to achieve our full year financial guidance.”

B&G Foods, Inc. (NYSE:BGS) is another firm that reported impressive earnings for the second quarter, totaling 30.3 million. Adjusted earnings came to 57 cents per share.  Given that the results were higher than expectations on Wall Street (for 46 cents per share from a Zacks Investment Research estimate), if McClure’s theory above is correct it will likely be “rewarded with a jump in its share price.”

Republic Services is also focused on its payout increases and so given its boost of 7% in this area for the seventh consecutive year, the firm “believes that the dividend increase reflects its confidence in future cash flows as well as its commitment to return cash to investors.”  So while quarter earnings are important, payout increases should not be ignored.  Investopedia staff wrote in a different article, that “dividend-paying stocks are usually more mature and predictable. Though this may be dull for some, the combination of a consistent dividend with an increasing stock price can offer an earnings potential powerful enough to get excited about.”