Dow fell 54, advancers & decliners were equal & NAZ was off 7. The Financial Index was off pocket change.
The MLP & REIT indices were each up a fraction after recent weakness. Junk bond funds & Treasuries were mixed, although their yields are very near recent lows. Oil & gold rose.
Greece pledged another effort to prevent the collapse of a 2nd rescue package from creditors, aiming to complete talks this week. Premier Papademos said he would try to meet German-led demands for a bigger debt writedown by investors & deeper budget cuts by his gov. EU & IMF officials are thrashing out budget measures to unlock the aid needed to keep the gov functioning. Leaders left a summit late yesterday with no accord over how to plug Greece’s widening budget hole. German Chancellor Merkel voiced frustration with the Greece’s failure to carry out an economic makeover. “Greece’s debt sustainability is especially bad,” Merkel said. “You have to find a way through more action by the Greek government, more contributions by private creditors, for example, in order to close this gap.” The summit was the 16th in the 2 years since the Greek debt emergency provoked a Europe-wide drama. The Greek debt mess is going nowhere fast.
Greece Fights for Second Bailout as EU Leaders Seal Common Fiscal Accord
Photo: Bloomberg
Consumer confidence retreated in Jan after 2 straight months of big gains. The Conference Board reported its Consumer Confidence Index stands at 61.1, down from a revised 64.8 in Dec & significantly under the prediction of 68, after surging from 40.9 in Oct. The Conference Board said that even though consumers were more upbeat about jobs, they were less optimistic about income prospects. Rising gas prices have also taken a toll on sentiment. A reading of 90 indicates a healthy economy, a level the index hasn't approached since Dec 2007 when the recession began. The confidence numbers are watched closely because consumers' spending accounts for about 70% of US economic activity.
Consumer Confidence in U.S. Declined in Jan
Photo: Yahoo
Exxon Mobil, a Dow stock & Dividend Aristocrat, Q4 profit narrowly beat expectations as production of natural gas & crude oil slipped. The company posted EPS of $1.97, compared with $1.85 in the year-ago period & slightl;ly ahead of expectations of $1.96. The profit was its lowest for 2011. Revenue rose 16% to $121.6B, beating expectations of $119.7B. The price jump for oil helped lift XOM profit in the upstream unit, which produces oil & natural gas, by 18%. Land sales also lifted results, Still, the weak economy harmed margins. Profit at the downstream unit (i.e. gas pumps) fell 13% & the chemical unit, which makes plastics & related products, saw profit drop 49%. XOM spent $10B in Q4 on capital projects & exploration, in line with the same period in 2010. The stock fell 1.42.
Exxon Profit Rises as Crude Oil Prices Soar
Photo: Yahoo
United Parcel Service posted a better-than-expected quarterly profit & forecast 9-15% growth this year as US demand & growing e-commerce activity offsets an uneven global economy. Q4 profit was down sharply because of a change in how UPS accounts for its pension expenses. Factoring that change out, profit would have risen, helped by strong growth in the company's consumer business -- driven by online shopping during the recent holiday season -- which offset less-robust growth outside the US. UPS set an initial 2012 EPS target of $4.75-$5 for 2012, 9-15% growth over 2011 & comparable to the $4.80 analysts expect. CEO Davis said that UPS expects continued strong demand in its home market. "The U.S. is one of the few economies where expectations are greater than last year," Davis said. Q4 EPS fell to 74¢ from $1.02 in the prior year. These results included a $527M charge related to a change in how it accounts for pension expenses. UPS carries 6% of US GDP & 2% of worldwide GDP. The stock was off 86¢.
UPS Profit Forecast for Year Tops Estimates as Shipping Demand Increases
Markets are stumbling around once again. The lingering Greek debt mess haunts all markets. But earnings are getting the most attention today & they have been less than inspiring. S&P warned that health care costs for a number of Group of 20 countries, including the US, could hurt growth prospects & harm their creditworthiness. While Dow will have an up month for Jan, it has pulled back to where it was 2 weeks ago. Earnings & Greece have dominated the news with a negative bias.
The MLP & REIT indices were each up a fraction after recent weakness. Junk bond funds & Treasuries were mixed, although their yields are very near recent lows. Oil & gold rose.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.056% | |
U.S. 2-year | 0.219% | |
U.S. 10-year | 1.837% |
| CLH12.NYM | ....Crude Oil Mar 12 | ...100.27 | ..... 1.49 | (1.5%) |
| GCG12.CMX | ....Gold Feb 12 | ........1,742.60 | ... 11.60 | (0.7%) |
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Greece pledged another effort to prevent the collapse of a 2nd rescue package from creditors, aiming to complete talks this week. Premier Papademos said he would try to meet German-led demands for a bigger debt writedown by investors & deeper budget cuts by his gov. EU & IMF officials are thrashing out budget measures to unlock the aid needed to keep the gov functioning. Leaders left a summit late yesterday with no accord over how to plug Greece’s widening budget hole. German Chancellor Merkel voiced frustration with the Greece’s failure to carry out an economic makeover. “Greece’s debt sustainability is especially bad,” Merkel said. “You have to find a way through more action by the Greek government, more contributions by private creditors, for example, in order to close this gap.” The summit was the 16th in the 2 years since the Greek debt emergency provoked a Europe-wide drama. The Greek debt mess is going nowhere fast.
Greece Fights for Second Bailout as EU Leaders Seal Common Fiscal Accord
Consumer confidence retreated in Jan after 2 straight months of big gains. The Conference Board reported its Consumer Confidence Index stands at 61.1, down from a revised 64.8 in Dec & significantly under the prediction of 68, after surging from 40.9 in Oct. The Conference Board said that even though consumers were more upbeat about jobs, they were less optimistic about income prospects. Rising gas prices have also taken a toll on sentiment. A reading of 90 indicates a healthy economy, a level the index hasn't approached since Dec 2007 when the recession began. The confidence numbers are watched closely because consumers' spending accounts for about 70% of US economic activity.
Consumer Confidence in U.S. Declined in Jan
Exxon Mobil, a Dow stock & Dividend Aristocrat, Q4 profit narrowly beat expectations as production of natural gas & crude oil slipped. The company posted EPS of $1.97, compared with $1.85 in the year-ago period & slightl;ly ahead of expectations of $1.96. The profit was its lowest for 2011. Revenue rose 16% to $121.6B, beating expectations of $119.7B. The price jump for oil helped lift XOM profit in the upstream unit, which produces oil & natural gas, by 18%. Land sales also lifted results, Still, the weak economy harmed margins. Profit at the downstream unit (i.e. gas pumps) fell 13% & the chemical unit, which makes plastics & related products, saw profit drop 49%. XOM spent $10B in Q4 on capital projects & exploration, in line with the same period in 2010. The stock fell 1.42.
Exxon Profit Rises as Crude Oil Prices Soar
Exxon Mobil Corporation (XOM)
United Parcel Service posted a better-than-expected quarterly profit & forecast 9-15% growth this year as US demand & growing e-commerce activity offsets an uneven global economy. Q4 profit was down sharply because of a change in how UPS accounts for its pension expenses. Factoring that change out, profit would have risen, helped by strong growth in the company's consumer business -- driven by online shopping during the recent holiday season -- which offset less-robust growth outside the US. UPS set an initial 2012 EPS target of $4.75-$5 for 2012, 9-15% growth over 2011 & comparable to the $4.80 analysts expect. CEO Davis said that UPS expects continued strong demand in its home market. "The U.S. is one of the few economies where expectations are greater than last year," Davis said. Q4 EPS fell to 74¢ from $1.02 in the prior year. These results included a $527M charge related to a change in how it accounts for pension expenses. UPS carries 6% of US GDP & 2% of worldwide GDP. The stock was off 86¢.
UPS Profit Forecast for Year Tops Estimates as Shipping Demand Increases
United Parcel Service, Inc. (UPS)
Markets are stumbling around once again. The lingering Greek debt mess haunts all markets. But earnings are getting the most attention today & they have been less than inspiring. S&P warned that health care costs for a number of Group of 20 countries, including the US, could hurt growth prospects & harm their creditworthiness. While Dow will have an up month for Jan, it has pulled back to where it was 2 weeks ago. Earnings & Greece have dominated the news with a negative bias.
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