Dow shot up 101, advancers over decliners 3-1 & NAZ added 19. Banks did not participate in the rally. The Financial Index was up only a fraction to 206.
The MLP index rose 1+ to the 394s & the REIT index was up 3+ to the 255s, a new yearly high. Junk bond funds were higher & Treasuries saw selling. Oil was up along with the rising stock market & even gold had a modest gain.
Christine Lagarde
Photo: Bloomberg
European govs were told the burden for fixing debt woes lies with them as the Group of 20 warned the 2-year crisis still threatens global growth. At the G-20 meeting in DC ministers from Canada, Australia & the US joined the IMF in pressing Europe to intensify efforts to quell the turmoil as it spreads to Spain. The G-20 cited “the situation in Europe” first in a list of drags on the world economy. Managing IMF Director Lagarde said the lender serves as an emergency backstop & that Europe must protect itself, boost economic growth by cutting debt. Italian & Spanish bonds fell today as the G-20 noted “stress has increased as of late.” “Countries have to take measures,” Lagarde said. “I am in charge of improving the stability and I need to have the umbrella in case the clouds break into a nasty rain.” Lagarde is looking to increase a lending capacity of about $380B & has so far raised more than $320B with Russia becoming the latest nation to chip in ($10B). The lending amount will be lower than the total amount raised because the IMF must keep some cash on hand. The lender wants the money to help insulate the intl economy from dangers such as European contagion, high unemployment and rising oil prices. The European debt mess is far from over.
Photo: Yahoo
McDonald's, a Dow stock & Dividend Aristocrat, is still seeing its value meals & specialty drinks pay off with budget-conscious diners. Net income rose 7% in Q1, in line with expectations. Global sales rose 7.3% at restaurants that were open at least 13 months, driven by gains from all regions. A big part of the success story in recent years has been the rollout of popular menu items such as coffee frappes & fruit smoothies, which have high profit margins & bring in customers throughout the day. Customers also love them because it's a way to have a treat for a couple of bucks. EPS in Q1 rose to $1.23, above $1.15 last year. In the US, sales at restaurants open at least 13 months were up 8.9%, as new menu items like Chicken McBites, updated restaurants & warm weather drew customers. Results also benefitted from an extra day in the Leap Year. Sales in Europe, the biggest market, rose 5% despite economic turmoil & severe weather in many parts of the region. Sales in Asia Pacific, Middle East & Africa rose 5.5%, led by China, Australia & Japan. The stock rose $2.35.
McDonald’s Profit Climbs 4.8% as New Items Drive Sales
Photo: Yahoo
General Electric, a Dow stock, Q1 profit & revenue topped forecasts, helped by strong demand for energy equipment & railroad locomotives. Orders had risen 20% in Q1 & selling prices had improved in most of its businesses. "Global markets are improving, but volatility remains," CEO Immelt said. He confirmed the company's 2012 growth forecast, saying, "everything we see in the first quarter supports double-digit earnings growth." GE's transportation unit, which makes locomotives, posted 41% sales growth, while revenue at the GE Capital arm it is cutting back declined 12%. EPS was 29¢, down from 31¢ last year. The results include a $200M charge for exiting its Irish mortgage business, as well as gains from the sale of NBC Universal & a finance unit. Factoring out one-time items, EPS came to 34¢, topping the the forecast of 33¢. Profit margins dipped to 13.8% of sales from 14.3% a year earlier, but GE said that higher selling prices would help the company reach its goal of boosting overall 2012 profit margins to a target of 15.4% of sales. Revenue fell 8.2% to $35.2B, but was above the $34.7B expected. The revenue decline reflects the continued scaling back of GE Capital & the sale of a majority stake of the NBC Universal entertainment business. Revenue at industrial businesses was up 14% with the strongest growth from the energy & railroad locomotive units. The stock was up 34¢.
Markets are ending the week an an up note & good earnings from Dow stocks are bringing out buyers. Gas at the pump eased back to $3.88, still high enough to put the pinch on consumers. Dow is back above 13K, but that doesn't mean much after it's been hugging that line for more than 2 months. This is the middle of earnings season, but the big picture shows a mixture of results. The reports should have been more impressive if the economy had a truly strong rebound.
The MLP index rose 1+ to the 394s & the REIT index was up 3+ to the 255s, a new yearly high. Junk bond funds were higher & Treasuries saw selling. Oil was up along with the rising stock market & even gold had a modest gain.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.066% | |
U.S. 2-year | 0.270% | |
U.S. 10-year | 1.984% |
| CLK12.NYM | ...Crude Oil May 12 | ...103.90 | ... 1.63 | (1.6%) |
| GCJ12.CMX | ....Gold Apr 12 | .........1,645.10 | ... 4.50 | (0.3%) |
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Photo: Bloomberg
European govs were told the burden for fixing debt woes lies with them as the Group of 20 warned the 2-year crisis still threatens global growth. At the G-20 meeting in DC ministers from Canada, Australia & the US joined the IMF in pressing Europe to intensify efforts to quell the turmoil as it spreads to Spain. The G-20 cited “the situation in Europe” first in a list of drags on the world economy. Managing IMF Director Lagarde said the lender serves as an emergency backstop & that Europe must protect itself, boost economic growth by cutting debt. Italian & Spanish bonds fell today as the G-20 noted “stress has increased as of late.” “Countries have to take measures,” Lagarde said. “I am in charge of improving the stability and I need to have the umbrella in case the clouds break into a nasty rain.” Lagarde is looking to increase a lending capacity of about $380B & has so far raised more than $320B with Russia becoming the latest nation to chip in ($10B). The lending amount will be lower than the total amount raised because the IMF must keep some cash on hand. The lender wants the money to help insulate the intl economy from dangers such as European contagion, high unemployment and rising oil prices. The European debt mess is far from over.
McDonald's, a Dow stock & Dividend Aristocrat, is still seeing its value meals & specialty drinks pay off with budget-conscious diners. Net income rose 7% in Q1, in line with expectations. Global sales rose 7.3% at restaurants that were open at least 13 months, driven by gains from all regions. A big part of the success story in recent years has been the rollout of popular menu items such as coffee frappes & fruit smoothies, which have high profit margins & bring in customers throughout the day. Customers also love them because it's a way to have a treat for a couple of bucks. EPS in Q1 rose to $1.23, above $1.15 last year. In the US, sales at restaurants open at least 13 months were up 8.9%, as new menu items like Chicken McBites, updated restaurants & warm weather drew customers. Results also benefitted from an extra day in the Leap Year. Sales in Europe, the biggest market, rose 5% despite economic turmoil & severe weather in many parts of the region. Sales in Asia Pacific, Middle East & Africa rose 5.5%, led by China, Australia & Japan. The stock rose $2.35.
McDonald’s Profit Climbs 4.8% as New Items Drive Sales
McDonald's Corporation (MCD)
General Electric, a Dow stock, Q1 profit & revenue topped forecasts, helped by strong demand for energy equipment & railroad locomotives. Orders had risen 20% in Q1 & selling prices had improved in most of its businesses. "Global markets are improving, but volatility remains," CEO Immelt said. He confirmed the company's 2012 growth forecast, saying, "everything we see in the first quarter supports double-digit earnings growth." GE's transportation unit, which makes locomotives, posted 41% sales growth, while revenue at the GE Capital arm it is cutting back declined 12%. EPS was 29¢, down from 31¢ last year. The results include a $200M charge for exiting its Irish mortgage business, as well as gains from the sale of NBC Universal & a finance unit. Factoring out one-time items, EPS came to 34¢, topping the the forecast of 33¢. Profit margins dipped to 13.8% of sales from 14.3% a year earlier, but GE said that higher selling prices would help the company reach its goal of boosting overall 2012 profit margins to a target of 15.4% of sales. Revenue fell 8.2% to $35.2B, but was above the $34.7B expected. The revenue decline reflects the continued scaling back of GE Capital & the sale of a majority stake of the NBC Universal entertainment business. Revenue at industrial businesses was up 14% with the strongest growth from the energy & railroad locomotive units. The stock was up 34¢.
General Electric Company (GE)
Markets are ending the week an an up note & good earnings from Dow stocks are bringing out buyers. Gas at the pump eased back to $3.88, still high enough to put the pinch on consumers. Dow is back above 13K, but that doesn't mean much after it's been hugging that line for more than 2 months. This is the middle of earnings season, but the big picture shows a mixture of results. The reports should have been more impressive if the economy had a truly strong rebound.
Dow Industrials
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