Dow extended its rally gaining another 22, advancers ahead of decliners 5-4 & NAZ slipped 1. Bank stocks were down a tad (call that even).
The MLP continued its Oct climb while the REIT index slipped a fraction to 234. Junk bond funds inched higher & Treasuries climbed on growing uncertainties about European debt plan. Oil fell, paring the biggest weekly gain since Feb, as a drop in Japan's industrial output prompted traders to lock in profits from the current rally. Gold declined from a 5-week high on renewed concerns that Europe’s debt crisis will hamper global growth, damping prospects for commodity demand.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Meg Whitman
Photo: Bloomberg
Hewlett-Packard will not spin off its personal computers unit. New CEO Meg Whitman had vowed a quick decision on an issue that was beginning to alienate its PC partners, investors & customers. But the future of WebOS software is uncertain & HPQ is still mulling the software's future, including if it should build a new WebOS-based tablet. "The question now before us is what do we do with WebOS software and do we come back to market with WebOS devices," Whitman said. "It obviously will not be the same device but it will be version 2.0." Meg decided to retain the PC group as the "numbers were incredibly compelling." Separating the PC unit would have cost the company $1.5B in one-time expenses & another $1B annually. The stock rose 1.04 (4%).
Photo: Yahoo
Whirlpool plans to cut 5K jobs, about 10% of its workforce in North America & Europe, as it faces soft demand & higher costs for materials. It also cut its 2011 earnings outlook drastically & reported Q3 results that missed expectations, hurt by higher costs & a slowdown in emerging markets. The company (Maytag & KitchenAid) has been squeezed by soft US demand since the recession & rising costs for materials such as steel & copper. Due to its size, WHR performance provides a window on the economy because it indicates whether consumers are comfortable spending on big-ticket items. To offset slowing North American sales, WHR has turned to emerging markets but those sales have slowed too. It now expects demand to decline 3-5% in North America. Latin America & Asia guidance were also cut. Q3 EP$ was $2.27 versus $1.02 last year. Adjusted EPS was $2.35, short of expectations for $2.73. Revenue rose 2% to $4.63B, below expectations for $4.74B. "Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs," CEO Jeff Fettig said. Unit shipments fell in all regions except Asia, where they rose 4%.. The stock plunged $8.62 (14%).
I know this sounds like a broken record, but this has been nothing short of a stellar month. Today, bulls kept the rally going. Just look at the Dow chart below. By last count, only 4% of the S&P 500 are down in Oct. That could be a record for the measure. But all is not well as employees at WHR found out. Now that the excitement about European debts is quieting down, more questions are being raised about exactly where will the bailout money come from. Even China has just so much. Then there is the debt mess in the US. That will heat up next month when the super committee gives its report & things could get ugly as both sides are digging in their heels. At the big picture level, bulls remain firmly in command. I'm not sure how long that will last.
S&P 500 Financials Sector Index
| Value | 188.84 | |
| Change | -0.43 (-0.2%) |
The MLP continued its Oct climb while the REIT index slipped a fraction to 234. Junk bond funds inched higher & Treasuries climbed on growing uncertainties about European debt plan. Oil fell, paring the biggest weekly gain since Feb, as a drop in Japan's industrial output prompted traders to lock in profits from the current rally. Gold declined from a 5-week high on renewed concerns that Europe’s debt crisis will hamper global growth, damping prospects for commodity demand.
Alerian MLP Index
| Value | 374.89 | |
| Change | 1.87 (0.5%) |
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.000% | |
U.S. 2-year | 0.289% | |
U.S. 10-year | 2.306% |
| CLZ11.NYM | ...Crude Oil Dec 11 | ...93.34 | ... 0.62 | (0.7%) |
Photo: Bloomberg
Hewlett-Packard will not spin off its personal computers unit. New CEO Meg Whitman had vowed a quick decision on an issue that was beginning to alienate its PC partners, investors & customers. But the future of WebOS software is uncertain & HPQ is still mulling the software's future, including if it should build a new WebOS-based tablet. "The question now before us is what do we do with WebOS software and do we come back to market with WebOS devices," Whitman said. "It obviously will not be the same device but it will be version 2.0." Meg decided to retain the PC group as the "numbers were incredibly compelling." Separating the PC unit would have cost the company $1.5B in one-time expenses & another $1B annually. The stock rose 1.04 (4%).
Hewlett-Packard Company (HPQ)
Photo: Yahoo
Whirlpool plans to cut 5K jobs, about 10% of its workforce in North America & Europe, as it faces soft demand & higher costs for materials. It also cut its 2011 earnings outlook drastically & reported Q3 results that missed expectations, hurt by higher costs & a slowdown in emerging markets. The company (Maytag & KitchenAid) has been squeezed by soft US demand since the recession & rising costs for materials such as steel & copper. Due to its size, WHR performance provides a window on the economy because it indicates whether consumers are comfortable spending on big-ticket items. To offset slowing North American sales, WHR has turned to emerging markets but those sales have slowed too. It now expects demand to decline 3-5% in North America. Latin America & Asia guidance were also cut. Q3 EP$ was $2.27 versus $1.02 last year. Adjusted EPS was $2.35, short of expectations for $2.73. Revenue rose 2% to $4.63B, below expectations for $4.74B. "Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs," CEO Jeff Fettig said. Unit shipments fell in all regions except Asia, where they rose 4%.. The stock plunged $8.62 (14%).
Whirlpool Corporation (WHR)
I know this sounds like a broken record, but this has been nothing short of a stellar month. Today, bulls kept the rally going. Just look at the Dow chart below. By last count, only 4% of the S&P 500 are down in Oct. That could be a record for the measure. But all is not well as employees at WHR found out. Now that the excitement about European debts is quieting down, more questions are being raised about exactly where will the bailout money come from. Even China has just so much. Then there is the debt mess in the US. That will heat up next month when the super committee gives its report & things could get ugly as both sides are digging in their heels. At the big picture level, bulls remain firmly in command. I'm not sure how long that will last.
Dow Industrials (INDU)
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