Markets rise on mixed earnings reports

Dow advanced 52 to 1094 (another yearly high), advancers over decliners 3-1 & NAZ rose 20. Even though earnings were mediocre (some better than others), they were good enough on balance to bring out buyers. Banks rebounded after recent setbacks but earnings from Wells Fargo (WFC) did not encourage buyers.


S&P 500 FINANCIALS INDEX

Value 205.88

Change 1.58

% Change 0.8%

MLPs keep flying. The Alerian MLP Index is up 2 to the 266s, another yearly high & almost back to its level on Sep 1 of last year when it was 270 (prior to its plunge). It's also up an amazing 100+ since its lows below 160 earlier this year. In addition, distributions have been paid. REITs, also high yields, have been struggling in the last 3 months. After rising off their lows, their index has been flattish near 160 (today up about 2). Junk bond funds continue to rise, reducing their high yields to around 10-12% (not far above levels in the "good old days"). The enormous interest in high yield sectors is from decreased fears about the markets. The VIX, volatility or fear index, is back down to 20, the lowest level since the markets plunged & it soared in Sep 2008. Treasuries sold off, the yield on the 10-year Treasury bond went up 8 basis points to 3.42% near its midpoint in recent months. Oil is down pennies, still in the 78s while gold fell 7 to 1050.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 3 months




VIX --- 2 years





Earnings reports from heavyweights were mixed. Morgan Stanley (MS) went up 2, but the others were flat to lower. Lilly (LLY), a Dividend Aristocrat with a yield of almost 6%, raised its guidance for the full year by 10¢ but the stock slipped 94¢. Last night Yahoo (YHOO) reported a favorable report, they rose 80¢. Boeing (BA) is the only Dow stock in this group.

• Morgan Stanley profit ends losing streak- Reuters
• Eli Lilly posts 3Q profit ahead of Street views- AP
• Boeing posts $1.6BM loss for 3Q on plane charges- AP
• Continental loses $18 million in third quarter- AP
• Wells Fargo 3Q profit rises to $3.2 billion- AP

Yahoo Tops Analysts’ Estimates After Cutting Expenses



Earnings reports dominate the news. MLPs are reporting earnings & distributions with a few qtr over qtr distribution increases so far. Earnings from regular companies follow the pattern they've followed all year, beating estimates (but maybe down from last year) is good enough. Markets are giving these reports a mixed reaction.

Dow Jones Industrials --- 2 weeks




SeekingAlpha.com featured my article in first place as the most popular today:

Dividend Aristocrats: 3 to Watch by Avi Morris

Stock markets are having one of their best years in history. Most averages are up over 50% from their lows in March. As usual, the gains have not been spread around equally. Some of the Dividend Aristocrats have been left behind and represent superior opportunities for value investors.

http://seekingalpha.com/article/167648-dividend-aristocrats-3-to-watch