Dow added 56, advancers over decliners almost 4-1 & NAZ jumped 56 helped by a 48 rise in Apple (AAPL) stock. The Financial Index was up a fraction in the 205s, little changed in Apr.
The MLP index fell 1 to the 294s & the REIT index was up 2 to the 257s, a new yearly high. Junk bond funds were mixed to higher after having a good month in Apr & Treasuries were lower. Oil gained while gold lost a tad & hasn't been doing much in 2012.
Photo: Bloomberg
Orders for durable goods in the US fell in Mar, the most in 3 years, indicating manufacturing could contribute less to growth this year. Bookings dropped 4.2%, the biggest decrease since Jan 2009, after a revised 1.9% gain the prior month, according to the Commerce Dept. The forecast was for a 1.7% decline. Slowdowns in Europe & China may limit exports, while business investment cools after the strongest 10-qtr performance in a decade, leading to a slowdown in manufacturing. But improving sales led by pent-up demand for autos, are supporting companies in the US. Orders for durables excluding transportation equipment decreased 1.1% after a 1.9% advance. They were projected to rise 0.5%. Demand for transportation equipment dropped 12.5%, the most since Nov 2010, led by a 48% plunge in civilian aircraft bookings. Bookings for automobiles & parts increased 0.1% after a 2% rise the previous month.
Orders for U.S. Goods Decrease by the Most in Three Years
Caterpillar, a Dow stock, profit rose 29% in Q1 & beat expectations as the company relied on its growing mining business & sales to buyers looking to replace aging equipment. It increased profit guidance for the 2012, but the new forecast may not be strong enough to comfort concerns over the state of the global economy. CAT is utilizing its strength in the mining business, bolstered by the 2011 acquisition of Bucyrus along with healthy commodity prices, to ride out softening conditions in emerging markets & a weak construction market. In addition, North American customers are scrambling to replace aging machinery. "We remain on track...at a time when construction activity remains depressed and economies in Europe, China and Brazil have slowed," CEO Oberhelman said. "Although it's tough to predict the exact timing, we expect positive economic growth moving forward." The slowing in China & Brazil comes as those countries "took steps in 2011 to slow their economies and bring inflation under control," Oberhelman said. Both economies are expected to ease their policies, Caterpillar said. EPS was $2.37 (the highest on record), compared with $1.84 last year. Sales rose 23% to $16B. Analysts projected EPS of $2.13, however revenue fell short of the $16.2B expected. The company increased EPS outlook for 2012 to $9.50 from $9.25 previously. The revenue outlook was kept at $68-$70B. The backlog continued to grow, ending at $30.7B versus $21B last year. The stock fell 2.76.
Caterpillar Ups Outlook as Profits Jump 29%
Photo: Yahoo
Boeing, a Dow stock, posted higher-than-expected quarterly profit, helped by an increase in commercial airplane deliveries & it raised its earnings forecast for 2012. Production is being raised on commercial airplanes to meet increased demand while battling defense budget constraints. EPS in Q1 rose to $1.22 from 78¢ last year. Excluding a gain from resolved litigation, EPS was $1.11, beating the estimate of 94¢. The company, which competes with Airbus for orders, said revenue rose 30% to $19.4B, topping expectations for $18.4B. The order backlog increased to $380B, from $356B at the beginning of the year. The company raised the upper end of its 2012 EPS forecast to $4.35 from $4.25 while keeping the low end at $4.15. It affirmed its 2012 revenue outlook of $78-$80B. The stock rose 2.26.
Boeing Jumps as Profit Beats Estimates, Outlook Raised
This week, earnings have been behind moves in the stock markets. Yesterday, Dow stocks ATT (T), UnitedTech (UTX) & 3M (MMM) reported good earnings. After the close AAPL got all the attention with another great report. But it was not all rosy. iPad sales were just shy of the estimate & the Mac business is weak. China accounted for $8B in sales (much of it from iPhones). But the market was happy. Dow is back over 13K, good but with less vigor than I would have expected given these earnings reports. Dow is where is was 6 weeks ago.
The MLP index fell 1 to the 294s & the REIT index was up 2 to the 257s, a new yearly high. Junk bond funds were mixed to higher after having a good month in Apr & Treasuries were lower. Oil gained while gold lost a tad & hasn't been doing much in 2012.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.277% | |
U.S. 10-year | 1.996% |
| CLM12.NYM | ...Crude Oil Jun 12 | ...103.85 | .... 0.30 | (0.3%) |
| GCJ12.CMX | .....Gold Apr 12 | .......1,639.60 | ... 3.40 | (0.2%) |
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Orders for durable goods in the US fell in Mar, the most in 3 years, indicating manufacturing could contribute less to growth this year. Bookings dropped 4.2%, the biggest decrease since Jan 2009, after a revised 1.9% gain the prior month, according to the Commerce Dept. The forecast was for a 1.7% decline. Slowdowns in Europe & China may limit exports, while business investment cools after the strongest 10-qtr performance in a decade, leading to a slowdown in manufacturing. But improving sales led by pent-up demand for autos, are supporting companies in the US. Orders for durables excluding transportation equipment decreased 1.1% after a 1.9% advance. They were projected to rise 0.5%. Demand for transportation equipment dropped 12.5%, the most since Nov 2010, led by a 48% plunge in civilian aircraft bookings. Bookings for automobiles & parts increased 0.1% after a 2% rise the previous month.
Orders for U.S. Goods Decrease by the Most in Three Years
Caterpillar, a Dow stock, profit rose 29% in Q1 & beat expectations as the company relied on its growing mining business & sales to buyers looking to replace aging equipment. It increased profit guidance for the 2012, but the new forecast may not be strong enough to comfort concerns over the state of the global economy. CAT is utilizing its strength in the mining business, bolstered by the 2011 acquisition of Bucyrus along with healthy commodity prices, to ride out softening conditions in emerging markets & a weak construction market. In addition, North American customers are scrambling to replace aging machinery. "We remain on track...at a time when construction activity remains depressed and economies in Europe, China and Brazil have slowed," CEO Oberhelman said. "Although it's tough to predict the exact timing, we expect positive economic growth moving forward." The slowing in China & Brazil comes as those countries "took steps in 2011 to slow their economies and bring inflation under control," Oberhelman said. Both economies are expected to ease their policies, Caterpillar said. EPS was $2.37 (the highest on record), compared with $1.84 last year. Sales rose 23% to $16B. Analysts projected EPS of $2.13, however revenue fell short of the $16.2B expected. The company increased EPS outlook for 2012 to $9.50 from $9.25 previously. The revenue outlook was kept at $68-$70B. The backlog continued to grow, ending at $30.7B versus $21B last year. The stock fell 2.76.
Caterpillar Ups Outlook as Profits Jump 29%
Caterpillar, Inc. (CAT)
Boeing, a Dow stock, posted higher-than-expected quarterly profit, helped by an increase in commercial airplane deliveries & it raised its earnings forecast for 2012. Production is being raised on commercial airplanes to meet increased demand while battling defense budget constraints. EPS in Q1 rose to $1.22 from 78¢ last year. Excluding a gain from resolved litigation, EPS was $1.11, beating the estimate of 94¢. The company, which competes with Airbus for orders, said revenue rose 30% to $19.4B, topping expectations for $18.4B. The order backlog increased to $380B, from $356B at the beginning of the year. The company raised the upper end of its 2012 EPS forecast to $4.35 from $4.25 while keeping the low end at $4.15. It affirmed its 2012 revenue outlook of $78-$80B. The stock rose 2.26.
Boeing Jumps as Profit Beats Estimates, Outlook Raised
Boeing Company (The) (BA)
This week, earnings have been behind moves in the stock markets. Yesterday, Dow stocks ATT (T), UnitedTech (UTX) & 3M (MMM) reported good earnings. After the close AAPL got all the attention with another great report. But it was not all rosy. iPad sales were just shy of the estimate & the Mac business is weak. China accounted for $8B in sales (much of it from iPhones). But the market was happy. Dow is back over 13K, good but with less vigor than I would have expected given these earnings reports. Dow is where is was 6 weeks ago.
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