Markets started the day higher & continued on that plateau for the rest pf the day. Dow finished up 89, advancers over decliners a moderate 3-1 & NAZ exploded 68, helped by a a surge from Apple.
The MLP index back off 2 to the 393s but the REIT index went up 2+ to the 258s (a new yearly high). Junk bond funds were higher & Treasuries slipped a little. Oil capped the longest rally in almost 2 months after the Federal Reserve said it expects growth to accelerate gradually & held off on more steps to boost the economy. Gold continues to slosh around the mid 1600s, finding little strength after the FOMC meeting.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Yahoo
The Federal Reserve (FED) does not expect the first increase in its borrowing costs before late 2014. FED projections showed 7 officials now believe it would be appropriate to raise rates some time in 2014, up from 5 in Jan, while no policymakers see the first rate hike after 2015. In Jan, 2 felt rates should not be raised until 2016. The Fed, which made no shift in monetary policy, bumped up its US economic growth forecast for 2012 but lowered it for the next 2 years. The forecasts showed it expects the still-high 8.2% jobless rate to fall faster than it did previously. After its meeting, the FED described the economy as expanding moderately, just as it did last month, & said the unemployment rate had declined but remains elevated. In Mar, it had said the jobless rate had declined "notably." It nodded to "some signs of improvement" in the housing sector &, while repeating that they expect moderate economic growth in coming quarters, said the recovery should then "pick up gradually." "To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the committee expects to maintain a highly accommodative stance for monetary policy," according to the FED. Basically, steady as she goes.
Photo: Bloomberg
Apple shot up after reporting that robust demand for its iPhone in China, almost doubling quarterly profits. EPS was $12.30, as sales rose 59% to $39B. Analysts predicted EPS of $10.02 on revenue of $37B. Demand from Chinese consumers helped it sell a higher- than-predicted 35M iPhones in fiscal Q2, making China responsible for 20% of sales, up from 12% last year. CEO Cook said there will be “a lot more opportunity” in China as he introduces the iPad & expands operations there. The company sold 11.8M iPads, which was updated last month to include a high-definition screen & faster processor. 67M iPads have been sold since its introduction 2 years ago. It took the company 24 years to reach that milestone with the Mac computer,. China has made up a growing slice of results since the introduction of the iPhone (accounting for almost 60% of revenue) there in 2009. With a population of more than 1B people, it accounted for $7.9B of revenue in the qtr, (triple the level of a year ago). The stock rebounded almost $50 to $610 today (after falling $90 in the prior 2 weeks). AAPL will pay its first div shortly, details to be announced.
Exxon Mobil, a Dow stock & Dividend Aristocrat, increased its Q2 div to 57¢, up 10¢ (21%), from 47¢ in Q1. XOM has increased its div annually for 30 consecutive years. The stock rose 40¢ & yields 2.6%. Meanwhile, Coca-Cola, another Dow stock which has increased its annual div for 50 consecutive years, is splitting its stock 2-1. The stock rose 79¢.
Exxon Mobil Hikes Dividend by 21%
Markets had a 2nd good day, powered by earnings again. The FED did not add anything, but that was to be expected. However, the gains did not push the averages to new highs. Dow is 175 below its 2012 high & S&P 500 has to get above 1400 (currently at 1390). If the bulls are serous about taking the markets higher, this will be the time to demonstrate that.
The MLP index back off 2 to the 393s but the REIT index went up 2+ to the 258s (a new yearly high). Junk bond funds were higher & Treasuries slipped a little. Oil capped the longest rally in almost 2 months after the Federal Reserve said it expects growth to accelerate gradually & held off on more steps to boost the economy. Gold continues to slosh around the mid 1600s, finding little strength after the FOMC meeting.
JPMorgan Chase Capital XVI (AMJ)
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.086% | |
U.S. 2-year | 0.266% | |
U.S. 10-year | 1.988% |
| CLM12.NYM | ...Crude Oil Jun 12 | ...104.11 | ... 0.56 | (0.5%) |
The Federal Reserve (FED) does not expect the first increase in its borrowing costs before late 2014. FED projections showed 7 officials now believe it would be appropriate to raise rates some time in 2014, up from 5 in Jan, while no policymakers see the first rate hike after 2015. In Jan, 2 felt rates should not be raised until 2016. The Fed, which made no shift in monetary policy, bumped up its US economic growth forecast for 2012 but lowered it for the next 2 years. The forecasts showed it expects the still-high 8.2% jobless rate to fall faster than it did previously. After its meeting, the FED described the economy as expanding moderately, just as it did last month, & said the unemployment rate had declined but remains elevated. In Mar, it had said the jobless rate had declined "notably." It nodded to "some signs of improvement" in the housing sector &, while repeating that they expect moderate economic growth in coming quarters, said the recovery should then "pick up gradually." "To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the committee expects to maintain a highly accommodative stance for monetary policy," according to the FED. Basically, steady as she goes.
Apple shot up after reporting that robust demand for its iPhone in China, almost doubling quarterly profits. EPS was $12.30, as sales rose 59% to $39B. Analysts predicted EPS of $10.02 on revenue of $37B. Demand from Chinese consumers helped it sell a higher- than-predicted 35M iPhones in fiscal Q2, making China responsible for 20% of sales, up from 12% last year. CEO Cook said there will be “a lot more opportunity” in China as he introduces the iPad & expands operations there. The company sold 11.8M iPads, which was updated last month to include a high-definition screen & faster processor. 67M iPads have been sold since its introduction 2 years ago. It took the company 24 years to reach that milestone with the Mac computer,. China has made up a growing slice of results since the introduction of the iPhone (accounting for almost 60% of revenue) there in 2009. With a population of more than 1B people, it accounted for $7.9B of revenue in the qtr, (triple the level of a year ago). The stock rebounded almost $50 to $610 today (after falling $90 in the prior 2 weeks). AAPL will pay its first div shortly, details to be announced.
Apple Inc. (AAPL)
Exxon Mobil, a Dow stock & Dividend Aristocrat, increased its Q2 div to 57¢, up 10¢ (21%), from 47¢ in Q1. XOM has increased its div annually for 30 consecutive years. The stock rose 40¢ & yields 2.6%. Meanwhile, Coca-Cola, another Dow stock which has increased its annual div for 50 consecutive years, is splitting its stock 2-1. The stock rose 79¢.
Exxon Mobil Hikes Dividend by 21%
Exxon Mobil Corporation (XOM)
Coca-Cola Company (The) (KO)
Markets had a 2nd good day, powered by earnings again. The FED did not add anything, but that was to be expected. However, the gains did not push the averages to new highs. Dow is 175 below its 2012 high & S&P 500 has to get above 1400 (currently at 1390). If the bulls are serous about taking the markets higher, this will be the time to demonstrate that.
Dow Industrials
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