S&P 500 FINANCIALS INDEX
The Alerian MLP Index was up 2 to 325 while the Dow Jones REIT Index rose almost 4 to 204. Junk bond funds were higher. The VIX dropped 1.70 on easing fears in the stock markets. Easing fears translated to lower Treasury prices. The yield on the 10 year Treasury bond rose 6 basis points to 2.63% but remains near its 16 month lows. The € was up a smidgen to just over $1.28½.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
VIX --- 2 weeks
10-Year Treasury Yld Index --- 2 weeks
Oil has modest gains while gold is digesting yesterday's big gain.
|CLU10.NYM||...Crude Oil Sep 10||...75.70 ||... 046 |
|GCQ10.CMX||...Gold Aug 10||...1,227.40||... 0.30 |
Gold Super Cycle!!!
Industrial production rose in Jul on the strength of manufacturing, as auto factories stayed open & businesses replaced worn-out equipment. Output at the nation's factories, mines & utilities increased 1.0% in Jul, according to the Federal Reserve. Factory output, the largest component, grew 1.1%, the biggest jump in nearly a year. Boosting output were auto plants that kept operating when they normally shutter for summer renovations. Even without the strong auto sector, factory output rose 0.6%. Business equipment production grew 1.8%, the most of any major market group. That number has remained positive since Feb while consumer goods & construction supplies have been uneven. However, Jun results were revised to show a 0.1 % decline, the first decrease since the previous Jun.
U.S. Industrial Production Rises More Than Forecast
Wal-Mart (WMT), a Dow stock & Dividend Aristocrat, reported a 3.6% increase in Q2 net income & raised earnings guidance for FY2010 as it benefits from cost-cutting & robust global growth in China, Brazil & Mexico. WMT reported EPS of 97¢ for the period ended Jul 31, above 89¢ last year. Revenue rose almost 3% to $103.7B. Expectations were for EPS of 96¢ on revenue of $105.3B. Revenue at stores open at least a year fell 1.4%, worse than the 0.26% expected. At its namesake stores, that measure fell 1.8% while at Sam's Clubs, the measure was up 1%. The 1.4% decline marked the 5th straight quarterly drop. WMT now expects it will earn $3.95-4.05 per share for the year, up from $3.90-$4. The stock was up $1.
Wal-Mart Profit Climbs, Earnings Forecast Increased
Wal-Mart --- 2 years
Home Depot (HD), Dow stock, posted a higher-than-expected quarterly profit & raised full-year EPS guidance to $1.90 from continuing operations in FY2010, up 2¢ from its prior forecast. While sales missed expectations in a weak economy, HD still expects an increase of 2.6% (down from prior guidance of 3.5%) for the rest of the year. This implies 2% same-store sales gain in H2. HD has tightly managed costs to offset tepid sales. EPS rose to 72¢ in Q2 ended August 1 from 66¢ last year which beat expectations of 71¢. Sales rose 1.8% to $19.4B. Sales at stores open at least a year rose 1.7% globally, below expectations of 2.3%. The stock was up 71¢.
Home Depot Profit Tops Analysts' Estimates as Sales Increase
Home Depot --- 2 years
Stocks are finally having their day in the sun after Dow has been under 10.4K for almost a week. Once again, it will have to blast above 10½K in a convincing fashion to be meaningful. However the high profile earnings reports were only so-so. Much of the good news comes from cost cutting & stronger results outside the US. Stronger US sales would be most significant & that is not happening!
Dow Jones Industrials --- 2 weeks
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