Nasdaq futures weaken after weak Netflix forecast; inflation concerns

Nasdaq 100 futures slipped on Friday after a weak forecast from Netflix coupled with inflation concerns sent its shares along with other streaming companies spiraling lower, with Wall Street’s main indexes headed for another week of losses.



Netflix Inc plunged 19.6% in premarket trading after the streaming giant fell short of market forecasts for new subscribers at the end of last year and offered a downbeat outlook for early 2022.

The tech-heavy index has particularly come under pressure after rising Treasury yields and expectations of a more aggressive Federal Reserve in controlling inflation hit growth shares.

The central bank’s policy meeting next week will offer more clarity on its fight against surging inflation, after data earlier this month showed consumer prices rising to its highest level in four decades in December.

MacDailyNews Take: Oh, but it’s “transitory.” 🤣 (We like to chuckle at overmatched clowns in the early morning.)

Analysts also raised doubts about business prospects of pandemic market favorites including Netflix and Peloton Interactive on Thursday.

MacDailyNews Take: It took years of work to fix U.S. runaway inflation four decades ago, but, hey, every cloud has a silver lining: A decade-plus of boom times followed.

‘Tis best to get a handle on inflation, if you know how, while you still can.MacDailyNews, May 11, 2021

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

Inflation is repudiation. — Calvin Coolidge

Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man. — Ronald Reagan

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  1. Gee, couldn’t be that their gigantic heads and the greed of brokers created projections that were absurdly outside the realm of possibility, could it? It’s really time people grow up and stop playing the unicorn game.

  2. When Reagan entered the Oval Office in 1980, he inherited an economy struggling with runaway inflation. In January 1980, inflation was 13.9 percent. By April, it had increased to 14.8 percent.

    For anyone who lived through the late 1970s to early 1980s inflation era, life was tough.

    Fortunately, by the late 1980s, Reagan’s free-market policies, coupled with a hike in interest rates, had wrestled inflation down to a more sustainable 4.6 percent.

    Since the late 1980s, inflation has remained off of Americans’ radar of things to worry about. That is, until now.

    According to the Federal Reserve Bank of San Francisco, inflation is driven by two primary factors: demand-pull inflation and cost-push inflation.

    “Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economy’s productive capacity. Cost-push inflation, on the other hand, occurs when prices of production process inputs increase. Rapid wage increases or rising raw material prices are common causes of this type of inflation.”

    Unfortunately, it seems as if we could be caught in a Chinese finger trap inflationary environment. In other words, we could be getting it from both ends.

    But that is only part of the current inflation story. Another, potentially far more ominous cause of inflation occurs when the government floods the system with currency and people’s confidence in the currency goes south fast.

    We saw this play out in Weimar, Germany to disastrous effect. It is also currently happening in Venezuela, where money printing knows no end.

    And, astonishingly, in 2021 America, we could be headed down this same disastrous road… the U.S. government has pumped trillions of “new money” into the system.

    It doesn’t take an economist to understand that when the government prints trillions of new dollars, the value of existing dollars declines.

    And so, unless the Biden administration takes a page out of Reagan’s inflation-killing playbook, the next decade could resemble the stagflation that ailed the U.S. economy during the 1970s. After all, history does tend to repeat itself.Chris Talgo, The Hill, May 13, 2021

    − − −

    “Don’t underestimate Joe’s ability to fuck things up.” – Barack Obama, himself a master

  3. For most, inflation is a pay cut. For anyone who is on the fixed income of an annuity, SS, paycheck, if the check doesn’t adjust for inflation you have received a pay cut. Unfortunately too many don’t make the connection because the check amount doesn’t change.

    Dollars = goods and services. If the amount of dollars significantly increases while the amount of good and services available doesn’t rise near the same, you get noted inflation. In this case the dollars rose a lot while goods and services didn’t rise at all and even ebbed in some instances, this will create abnormally high inflation. This isn’t a difficult concept to understand.

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