Dow rose 112, advancers over decliners 2-1 & NAZ was up 3. The Financial Index was up an anemic 1 to 174 as worries about European sovereign debts remain alive & well.
The MLP index rose 1% or 4 to the 363s while the REIT index hardly budged at 223. Junk bond funds were mixed & Treasuries sold off as stocks rose. Oil had a good day, taking it above $96 which had been considered a key support level many months ago. Gold fell the most in 3 weeks as demand for a haven eased after Italian bond yields dropped & a new Greek leader was named, reducing concerns about Europe’s sovereign-debt.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
The federal gov began the budget year with a smaller deficit in Oct than a year ago. The deficit, the first month of FY2012, totaled $98.5B according to the Treasury Dept, down from $140.4B in Oct 2010. However, even with the improvement, the deficit remains extraordinarily will keep pressure on politicos as they debate spending cuts & tax increases. For all of the FY2012, the CBO predicts the deficit will be $973B, below the $1.3T imbalance from the budget year that just ended (2nd highest ever). But it would still be higher than any previous deficit before fiscal year 2009. The CBO's lower projected deficit for this year is based on an expectation that revenues, helped by a slowly improving economy, will outpace the growth in gov spending. Still, a big reason for the smaller Oct deficit was an accounting shift. Roughly $31B in benefit payments for Oct went out in late Sep. Federal benefits are paid on the first day of the month. But because Oct 1 fell on a Sat, the payments went out a day earlier & were accounted for in last year's deficit. By way of contrast, a decade ago, the gov was running surpluses & $T deficits seemed unimaginable. Now, the nation's debt is $14.9T.
Federal gov't runs $98.5B deficit in October AP
Photo: Bloomberg
Cisco, a Dow stock, reported EPS of 33¢ for the qtr ended in Oct. Excluding the cost of share-based compensation, tax effects & other items, EPS was 43¢, beating the estimate of 40¢. Revenue grew nearly 5% to $11.3B, also beating estimates. The company has been trying to right its ship, after running into trouble because of its sprawling attempts to expand into as many "adjacent" markets as possible. It killed the Flip Video camcorder business less than 2 years after buying it & it's cutting the work force by thousands. Results for the latest qtr show that business is recovering even as the company is cutting costs. One analyst said CSCO is "turning the corner" & upgraded the stock from "Neutral" to "Buy," raising the price target to $22 from $19. Another raised his estimates "moderately," given the uncertain economy, taking his price target from $20 to $22 & rates the shares a "Buy." The stock rose $1.00 & is well off its lows under $15 earlier this year.
Apple stock fell amid concern that supply constraints are threatening sales of the iPad & iPhone. One prediction is that iPad shipments will be reduced to 12M from 14M in this qtr based on word from AAPL suppliers. Slower sales of AAPL gadgets is also predicted. However other reports say concerns were overblown. The conflict illustrates how difficult it is to predict AAPL financial results. Another analyst lowered the outlook for quarterly EPS to $9.53 from $9.89 because of “surprise revisions to orders” from AAPL suppliers. The latest monthly survey of suppliers showed the weakest results this year. But there are always analysts who maintain their bullish outlook for the stock. The stock fell $10 to $385.
Apple Shares Slip Amid Supply Concerns
After being oversold, the markets had a muted recovery. A sense of relatve calm coming from Europe was the basis of today's rising stock prices. Sounds good, but this could have a very short half-life because the European debt mess hasn't gone way. The new PM in Greece still has an impossible job trying to enforce austerity measures (budget cuts & higher taxes). Italy has its work cut out for it if it wants to solve its debt problems. Then there is the super committee in DC. The 10.6K level in the Dow has proven important in 2011. First it was a ceiling, now it serves as a floor. Watch out below if it's broken thru.
The MLP index rose 1% or 4 to the 363s while the REIT index hardly budged at 223. Junk bond funds were mixed & Treasuries sold off as stocks rose. Oil had a good day, taking it above $96 which had been considered a key support level many months ago. Gold fell the most in 3 weeks as demand for a haven eased after Italian bond yields dropped & a new Greek leader was named, reducing concerns about Europe’s sovereign-debt.
ALERIAN MLP Index (^AMZ)
DJ REIT INDEXDJR (^DJR)
Click below for the market update:
Treasury yields:
U.S. 3-month | 0.000% | |
U.S. 2-year | 0.230% | |
U.S. 10-year | 2.052% |
| CLZ11.NYM | ...Crude Oil Dec 11 | ...97.62 | ... 1.88 | (2.0%) |
The federal gov began the budget year with a smaller deficit in Oct than a year ago. The deficit, the first month of FY2012, totaled $98.5B according to the Treasury Dept, down from $140.4B in Oct 2010. However, even with the improvement, the deficit remains extraordinarily will keep pressure on politicos as they debate spending cuts & tax increases. For all of the FY2012, the CBO predicts the deficit will be $973B, below the $1.3T imbalance from the budget year that just ended (2nd highest ever). But it would still be higher than any previous deficit before fiscal year 2009. The CBO's lower projected deficit for this year is based on an expectation that revenues, helped by a slowly improving economy, will outpace the growth in gov spending. Still, a big reason for the smaller Oct deficit was an accounting shift. Roughly $31B in benefit payments for Oct went out in late Sep. Federal benefits are paid on the first day of the month. But because Oct 1 fell on a Sat, the payments went out a day earlier & were accounted for in last year's deficit. By way of contrast, a decade ago, the gov was running surpluses & $T deficits seemed unimaginable. Now, the nation's debt is $14.9T.
Federal gov't runs $98.5B deficit in October AP
Cisco, a Dow stock, reported EPS of 33¢ for the qtr ended in Oct. Excluding the cost of share-based compensation, tax effects & other items, EPS was 43¢, beating the estimate of 40¢. Revenue grew nearly 5% to $11.3B, also beating estimates. The company has been trying to right its ship, after running into trouble because of its sprawling attempts to expand into as many "adjacent" markets as possible. It killed the Flip Video camcorder business less than 2 years after buying it & it's cutting the work force by thousands. Results for the latest qtr show that business is recovering even as the company is cutting costs. One analyst said CSCO is "turning the corner" & upgraded the stock from "Neutral" to "Buy," raising the price target to $22 from $19. Another raised his estimates "moderately," given the uncertain economy, taking his price target from $20 to $22 & rates the shares a "Buy." The stock rose $1.00 & is well off its lows under $15 earlier this year.
Cisco Systems, Inc. (CSCO)
Apple stock fell amid concern that supply constraints are threatening sales of the iPad & iPhone. One prediction is that iPad shipments will be reduced to 12M from 14M in this qtr based on word from AAPL suppliers. Slower sales of AAPL gadgets is also predicted. However other reports say concerns were overblown. The conflict illustrates how difficult it is to predict AAPL financial results. Another analyst lowered the outlook for quarterly EPS to $9.53 from $9.89 because of “surprise revisions to orders” from AAPL suppliers. The latest monthly survey of suppliers showed the weakest results this year. But there are always analysts who maintain their bullish outlook for the stock. The stock fell $10 to $385.
Apple Shares Slip Amid Supply Concerns
Apple Inc. (AAPL)
After being oversold, the markets had a muted recovery. A sense of relatve calm coming from Europe was the basis of today's rising stock prices. Sounds good, but this could have a very short half-life because the European debt mess hasn't gone way. The new PM in Greece still has an impossible job trying to enforce austerity measures (budget cuts & higher taxes). Italy has its work cut out for it if it wants to solve its debt problems. Then there is the super committee in DC. The 10.6K level in the Dow has proven important in 2011. First it was a ceiling, now it serves as a floor. Watch out below if it's broken thru.
Dow Industrials (INDU)
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