Financial Review

Financial Review Market Scorecard 07-23-2014

DOW – 26 = 17,086 SPX + 3 = 1987 NAS + 17 = 4473 10 YR YLD un = 2.46% OIL = 103.12 GOLD – 3.50 = 1305.00 SILV – .06 = 21.01

READ MORE →
Financial Review

Another Day Another Dollar

  The Standard & Poor’s 500 index rose to an all-time high, as Apple boosted technology companies and health-care shares rallied through another busy day of earnings reports. The Dow was lower, mainly due to Boeing – we’ll get to that in a moment. Apple hit its highest level since 2012, based on earnings reported after the close yesterday.   Profits at S&P 500 members probably rose 6.2 percent in the second quarter, while sales gained 3.3 percent. Let’s knock out a few earnings reports:   Facebook posted $791 million in net income, or 30 cents a share, compared with $333 million or 13 cents a share in the second quarter of 2013; revenue totaled $2.9 billion compared to $1.8 billion in the year ago period. Mobile advertising represented 62% of its ad revenue; they have figured out Facebook on a smartphone. Facebook now claims 1.32 billion monthly users.   AT&T was once the telephone company, now it’s the second largest US mobile provider; they earned  $3.6 billion or 68 cents per share in the second quarter, down from $3.8 billion or 71 cents per share a year ago; even as revenue increase from $32.1 billion to $32.6 billion.   Biogen Idec rallied 11 percent after raising its full-year forecast, while Intuitive Surgical jumped 18 percent as results topped estimates.   At first blush, Boeing’s numbers looked good; the aerospace giant earned $2.40 per share, easily beating estimates of $2 per share; the company lifted its earnings outlook for the …

READ MORE →
Financial Review

Financial Review Market Scorecard 07-22-2014

  DOW + 61 = 17,113 SPX + 9 = 1983 NAS + 31 = 4456 10 YR YLD – .01 = 2.46% OIL – .17 = 104.42 GOLD – 4.70 = 1308.50 SILV + .04 = 21.07

READ MORE →
Financial Review

Curb Your Enthusiasm

  We start with a couple of economic reports. The National Association of Realtors reports existing home sales were up 2.6% in June to a seasonally adjusted rate of 5.04 million, compared to 4.91 million in May. Sales in June were 2.6% higher than last month, but were 2.3% below the June 2013 rate. Total inventory rose 2.2% in June to 2.3 million existing homes for sale; unsold inventory is up 6.5% from a year ago.   At June’s pace of sales, there was a 5.5 month supply of homes for sale. The Realtors’ group considers a 6-month supply to be a balanced market. Higher supplies favor buyers and lower supplies favor sellers. The Federal Housing Finance Agency says home prices in May rose 0.4% from the prior month and were 5.5% above their level of May 2013. Distressed sales accounted for just 11% of sales in June, down from 15% last year, 25% in 2012, and 30% in 2011. Fewer distressed sales probably explains why there were fewer sales than June of last year.   The Consumer Price Index, or CPI, measures inflation at the retail level; the CPI increased 0.3% in June. The core CPI looks at prices excluding food and energy, which is important for people who don’t eat food or drive cars or use electricity; core CPI was up 0.1% in June. On a year over year basis, CPI is up 2.1%, and the core CPI is up 1.9%. The big driver for the increase in …

READ MORE →
Financial Review

Financial Review Market Scorecard 07-21-2014

DOW – 48 = 17,051 SPX – 4 = 1973 NAS – 7 = 4424 10 YR YLD – .01 = 2.47% OIL + 1.46 = 104.59 GOLD + 1.30 = 1313.20 SILV + .04 = 21.03

READ MORE →
Financial Review

A Three Legged Stool

  First leg: Let’s start with earnings reporting season, which kicks into full gear this week with 140 of the S&P 500 companies posting results.   Netflix reported a profit of $71 million, or $1.15 a share, on revenue of $1.34 billion. This was in line with expectations, but for Netflix, an important component is how fast they are adding subscribers; turns out – pretty fast; 1.69 million new net streamers in the second quarter; 570,000 in the US and 1.12 million international subscribers; now topping 50 million worldwide.   Allergan, the Botox company, posted better than expected 2Q profits and sales but also announced it is cutting 1,500 jobs in a restructuring.  BB&T, the southeastern financial company, posted weak 2Q results as mortgage activity lagged; this has been a theme among banks for the second quarter, but the bigger banks have been compensating with profits in investment banking and trading; smaller, regional banks find it harder to compete in that arena. Chipotle Mexican Grill, theme park operator Six Flags, oilfield services company Halliburton, Manpower Group, and chip-maker Texas Instruments all reported better than expected results.   Tomorrow we’ll get the earnings report from McDonalds; after the close we’ll get earnings from Microsoft and Apple. Wednesday’s results include Facebook. Thursday we’ll hear from General Motors and Amazon.com.   So far, earnings season has been strong, of the S&P 500 companies that reported through the end of last week, earnings are up 7.6% from the same period last year on 4.2% …

READ MORE →
Financial Review

Financial Review Market Scorecard 07-18-2014

DOW + 123 = 17,100 SPX + 20 = 1978 NAS + 68 = 4432 10 YR YLD + .01 = 2.48% OIL – .31 – 102.88 GOLD – 7.30 = 1311.90 SILV – .27 = 20.99

READ MORE →