Dow rose 93 to new highs not seen since 2008, advancers ahead of decliners 4-1 & NAZ gained 33. Bank stocks led the charge with the Financial Index up 3+ to 211 (one month high). The MLP index continues on its winning ways, up a fraction to 399, & the REIT index rose 3+ to almost 264, a new high since the middle or 2008. Junk bond funds inched higher while Treasuries pulled back after recent gains. Oil & gold are marking time.
Construction spending barely rose in Mar as investment in public projects dropped to a 5-year low, according the Commerce Dept which could see the Q1 economic GDP estimate lowered. Construction spending edged up 0.1% to an annual rate of $808B, after a revised 1.4% drop in Feb. Expectations had been for construction spending to rise 0.5% after a previously reported 1.1% decline in Feb. But overall construction spending was up 6% compared to Mar 2011. Private construction spending increased 0.7% after falling 1.9% in Feb. Spending on residential projects rose 0.7%, partly reflecting home improvements. Investment in multifamily residential projects fell 3.1%, while outlays for single-family buildings increased 3.8%. Residential construction grew at its fastest pace since Q2 2010. Private nonresidential construction rebounded 0.7% in Mar, breaking 2 straight months of declines. Spending on public sector construction fell 1.1% to $276B, the lowest level since Feb 2007 as outlays on state & local gov projects dropped 1.6% to the lowest level since Nov 2006. More mixed data on this important sector for the economy.
Photo: Bloomberg
Pfizer, a Dow stock, reported higher-than-expected quarterly earnings as improved profit margins & strong sales of its Lyrica nerve-pain drug partly offset plunging demand for its Lipitor cholesterol fighter which is facing cheaper generic rivals. Sales of Lipitor fell 42% to $1.4B. EPS was 24¢ compared with 28¢ last year (when results suffered because of a litigation charge & costs of revamping research operations). Excluding special charges to boost productivity & address legal matters, Pfizer earned 58¢, compared with 60¢ last year but better than 56¢ expected. PFE is now eagerly awaiting US approvals of 2 potential blockbuster treatments: blood clot preventer Eliquis & tofacitinib to treat rheumatoid arthritis. In the meantime, it's squeezing growth out of older medicines, including Lyrica, whose sales jumped 16% to almost $1B, fueled by growing demand in Japan. Sales of painkiller Celebrex rose 7% to $634M, while sales of arthritis treatment Enbrel rose 3% to $899M. Premarin, its line of female hormone replacement drugs, topped forecasts, with sales rising 11% to $261M. But sales of its Prevnar vaccines against pneumonia & other infections fell 6% to $941M due to fewer children getting booster shots during the period & a lower US birth rate for eligible patients versus a year ago. Total revenue fell 7% to $15.4B, just below expectations of $15.47B. The stock fell 13¢.
Pfizer Profit Beats Estimates as Drugmaker Readies Animal Health Spin-Off
Photo: Bloomberg
Chrysler, Ford & General Motors reported Apr sales that exceeded estimates. Chrysler sales climbed 20% to 141K light vehicles. Ford deliveries slipped 5.1% to 179K cars & light trucks, & GM sales fell 8.2% to 213K. But they beat estimates of a 16% gain for Chrysler, 5.7% drop for Ford & 9% decline for GM. Chrysler added 2.1 percentage points of market share in Q1 compared with a year earlier and has reported 11 consecutive months of year-over-year sales gains exceeding 20%. CEO Marchionne is counting on the new Dodge Dart compact, which begins production this week, to boost deliveries later this year after a 5-month streak of 30% sales gains. Toyota's (TM) US light vehicle sales rose 12%, better than the average estimate for a 10% gain. GM also raised its forecast for full-year US light-vehicle sales to 14-14.5M, up from 14M. The company cited “higher than expected” Q1 industry sales & expectations the US economy will keep growing. Autos are leading the strong manufacturing performance in the US.
Chrysler Leads U.S. Automakers Beating Sales Estimates
The bulls are back from their long holiday weekend & bidding up prices. Bank stocks deserve special attention with prices near highs reached on at the end of Mar. MLPs are also recovering after a sluggish period in Mar & much of Apr. And REITs are at multi year highs. Europe debts woes have vanished, although Spain looks iffy, & a slowdown in the US economy does not bother investors. Dow is at a 4 year high, making the bulls very happy.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.097% | |
U.S. 2-year | 0.262% | |
U.S. 10-year | 1.937% |
| CLM12.NYM | ...Crude Oil Jun 12 | ...104.75 | ... 0.12 (0.1%) |
| GCK12.CMX | ...Gold May 12 | ......1,667.60 | ... 4.20 (0.3%) |
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Construction spending barely rose in Mar as investment in public projects dropped to a 5-year low, according the Commerce Dept which could see the Q1 economic GDP estimate lowered. Construction spending edged up 0.1% to an annual rate of $808B, after a revised 1.4% drop in Feb. Expectations had been for construction spending to rise 0.5% after a previously reported 1.1% decline in Feb. But overall construction spending was up 6% compared to Mar 2011. Private construction spending increased 0.7% after falling 1.9% in Feb. Spending on residential projects rose 0.7%, partly reflecting home improvements. Investment in multifamily residential projects fell 3.1%, while outlays for single-family buildings increased 3.8%. Residential construction grew at its fastest pace since Q2 2010. Private nonresidential construction rebounded 0.7% in Mar, breaking 2 straight months of declines. Spending on public sector construction fell 1.1% to $276B, the lowest level since Feb 2007 as outlays on state & local gov projects dropped 1.6% to the lowest level since Nov 2006. More mixed data on this important sector for the economy.
Construction Spending Up, Investment in Public Projects Hits Five Year Low
Reuters Pfizer, a Dow stock, reported higher-than-expected quarterly earnings as improved profit margins & strong sales of its Lyrica nerve-pain drug partly offset plunging demand for its Lipitor cholesterol fighter which is facing cheaper generic rivals. Sales of Lipitor fell 42% to $1.4B. EPS was 24¢ compared with 28¢ last year (when results suffered because of a litigation charge & costs of revamping research operations). Excluding special charges to boost productivity & address legal matters, Pfizer earned 58¢, compared with 60¢ last year but better than 56¢ expected. PFE is now eagerly awaiting US approvals of 2 potential blockbuster treatments: blood clot preventer Eliquis & tofacitinib to treat rheumatoid arthritis. In the meantime, it's squeezing growth out of older medicines, including Lyrica, whose sales jumped 16% to almost $1B, fueled by growing demand in Japan. Sales of painkiller Celebrex rose 7% to $634M, while sales of arthritis treatment Enbrel rose 3% to $899M. Premarin, its line of female hormone replacement drugs, topped forecasts, with sales rising 11% to $261M. But sales of its Prevnar vaccines against pneumonia & other infections fell 6% to $941M due to fewer children getting booster shots during the period & a lower US birth rate for eligible patients versus a year ago. Total revenue fell 7% to $15.4B, just below expectations of $15.47B. The stock fell 13¢.
Pfizer Profit Beats Estimates as Drugmaker Readies Animal Health Spin-Off
Pfizer, Inc. (PFE)
Chrysler, Ford & General Motors reported Apr sales that exceeded estimates. Chrysler sales climbed 20% to 141K light vehicles. Ford deliveries slipped 5.1% to 179K cars & light trucks, & GM sales fell 8.2% to 213K. But they beat estimates of a 16% gain for Chrysler, 5.7% drop for Ford & 9% decline for GM. Chrysler added 2.1 percentage points of market share in Q1 compared with a year earlier and has reported 11 consecutive months of year-over-year sales gains exceeding 20%. CEO Marchionne is counting on the new Dodge Dart compact, which begins production this week, to boost deliveries later this year after a 5-month streak of 30% sales gains. Toyota's (TM) US light vehicle sales rose 12%, better than the average estimate for a 10% gain. GM also raised its forecast for full-year US light-vehicle sales to 14-14.5M, up from 14M. The company cited “higher than expected” Q1 industry sales & expectations the US economy will keep growing. Autos are leading the strong manufacturing performance in the US.
Chrysler Leads U.S. Automakers Beating Sales Estimates
General Motors Company (GM)
Ford Motor Company (F)
The bulls are back from their long holiday weekend & bidding up prices. Bank stocks deserve special attention with prices near highs reached on at the end of Mar. MLPs are also recovering after a sluggish period in Mar & much of Apr. And REITs are at multi year highs. Europe debts woes have vanished, although Spain looks iffy, & a slowdown in the US economy does not bother investors. Dow is at a 4 year high, making the bulls very happy.
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