Dow rose 34, advancers ahead of decliners by a modest 10% & NAZ was up 23. The Financial Index slipped 1+ to the 196s. The MLP index added 1+ to almost 400, not seen since early Mar, & the REIT index lost 3 to 265. Junk bond funds edged higher, near their yearly highs, & Treasuries saw profit taking. Oil advanced to the highest level in 8 weeks on rising concern that faltering stability in the MidEast will disrupt supplies. Gold had a modest rebound but remains under $1600.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
Manufacturing in the Philadelphia region contracted for the 3rd straight month in Jul, a sign of further weakness in the economy. But some say the report mostly reflects a regional slowdown. The Federal Reserve Bank of Philadelphia said its index of regional manufacturing activity rose to -12.9, up from -16.6 in Jun. Any reading below zero indicates contraction. Some parts of the report improved. New orders & shipments rose, though both remained in negative territory. But an index measuring employment dropped sharply from 1.8 to -8.4. Manufacturing contracted nationwide in Jun for the first time in 3 years, the Institute for Supply Management said last week. Europe's financial crisis & slower growth in emerging markets such as China & India have dampened demand for US exports. This report differs from a New York Fed survey, released Mon, that said factories were expanding in that region. And the Beige Book yesterday said manufacturing improved in 10 of the central bank's 12 regions.
Manufacturing in Philadelphia Area Falls for Third Month
Photo: Bloomberg
Walgreen, a Dividend Aristocrat, customers will soon be able to fill prescriptions for Express Scripts Holding (ESRX) after the 2 giants settled their long-running dispute, removing a concern that has weighed on the WAG shares for a year. WAG will be part of the broadest network of drugstores available to clients of pharmacy benefit manager ESRX, as of Sep15. Sales at WAG have suffered since it stopped filling prescriptions for consumers with ESRX coverage at the end of 2011 due to a contract dispute. ESRX has gained even more scale due to its recent acquisition of rival Medco. However, it's not clear how many of ESRX clients will sign up for the broad network that will include WAG. Also, it is unclear what WAG will do to entice patients who have filled prescriptions elsewhere since the beginning of 2012 to return to its 7900 stores. WAG estimated that leaving ESRX network would cost it about $5.3B in sales. Since Jan, sales at existing stores have fallen every month. WAG stock jumped 3.61 (12%).
Walgreen Climbs Most Since 2008 on Contract Renewal With Express Scripts
Photo: Bloomberg
Morgan Stanley swung to a profit in Q2, though revenue declined due to a slowdown in trading & dealmaking volume. EPS was 29¢ compared with a loss of 38¢ a year-ago. MS also lost money in Q1. Results included a $350M gain from changes in credit spreads, but generally beating what had been expected. A 48% drop in trading revenue compares with an increase of more than 11% at Goldman Sachs (GS). Clients shied away from doing business with the firm while Moody’s weighed a credit-rating downgrade, MS said. Excluding accounting adjustments, EPS was 16¢, below the 29¢ estimate. 3K jobs have already been cut in 2012 & that number is expected to climb to 4K by year’s end. Revenue dropped to $6.95B from $9.21B a year earlier. Book value per share rose to $31.02 from $30.74 at the end of Q1. The stock slumped 74¢.
Morgan Stanley Shares Decline After Earnings Tumble 50%
Little was decided today. Dow was up all day, but was unable to make a significant advance. IBM (IBM), United Tech (UTX) & Boeing (BA) gave the Dow its gain while 15 stocks fell. All week breadth in the markets has been weak, not a good sign. Meanwhile MLPs have been very strong in Jun & Jul. The index is within 12 of setting a new record. How many stock can make that claim? As long as hopes are high on a QE3 & dreary news from Europe is minimal, the stock market will probably continue to climb.
AMJ (Alerian MLP Index tracking fund)
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Treasury yields:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.214% | |
U.S. 10-year | 1.513% |
| CLQ12.NYM | ...Crude Oil Aug 12 | ...92.48 | ... 2.61 | (2.9%) |
Manufacturing in the Philadelphia region contracted for the 3rd straight month in Jul, a sign of further weakness in the economy. But some say the report mostly reflects a regional slowdown. The Federal Reserve Bank of Philadelphia said its index of regional manufacturing activity rose to -12.9, up from -16.6 in Jun. Any reading below zero indicates contraction. Some parts of the report improved. New orders & shipments rose, though both remained in negative territory. But an index measuring employment dropped sharply from 1.8 to -8.4. Manufacturing contracted nationwide in Jun for the first time in 3 years, the Institute for Supply Management said last week. Europe's financial crisis & slower growth in emerging markets such as China & India have dampened demand for US exports. This report differs from a New York Fed survey, released Mon, that said factories were expanding in that region. And the Beige Book yesterday said manufacturing improved in 10 of the central bank's 12 regions.
Manufacturing in Philadelphia Area Falls for Third Month
Walgreen, a Dividend Aristocrat, customers will soon be able to fill prescriptions for Express Scripts Holding (ESRX) after the 2 giants settled their long-running dispute, removing a concern that has weighed on the WAG shares for a year. WAG will be part of the broadest network of drugstores available to clients of pharmacy benefit manager ESRX, as of Sep15. Sales at WAG have suffered since it stopped filling prescriptions for consumers with ESRX coverage at the end of 2011 due to a contract dispute. ESRX has gained even more scale due to its recent acquisition of rival Medco. However, it's not clear how many of ESRX clients will sign up for the broad network that will include WAG. Also, it is unclear what WAG will do to entice patients who have filled prescriptions elsewhere since the beginning of 2012 to return to its 7900 stores. WAG estimated that leaving ESRX network would cost it about $5.3B in sales. Since Jan, sales at existing stores have fallen every month. WAG stock jumped 3.61 (12%).
Walgreen Climbs Most Since 2008 on Contract Renewal With Express Scripts
Walgreens (WAG)
Morgan Stanley swung to a profit in Q2, though revenue declined due to a slowdown in trading & dealmaking volume. EPS was 29¢ compared with a loss of 38¢ a year-ago. MS also lost money in Q1. Results included a $350M gain from changes in credit spreads, but generally beating what had been expected. A 48% drop in trading revenue compares with an increase of more than 11% at Goldman Sachs (GS). Clients shied away from doing business with the firm while Moody’s weighed a credit-rating downgrade, MS said. Excluding accounting adjustments, EPS was 16¢, below the 29¢ estimate. 3K jobs have already been cut in 2012 & that number is expected to climb to 4K by year’s end. Revenue dropped to $6.95B from $9.21B a year earlier. Book value per share rose to $31.02 from $30.74 at the end of Q1. The stock slumped 74¢.
Morgan Stanley Shares Decline After Earnings Tumble 50%
Morgan Stanley (MS)
Little was decided today. Dow was up all day, but was unable to make a significant advance. IBM (IBM), United Tech (UTX) & Boeing (BA) gave the Dow its gain while 15 stocks fell. All week breadth in the markets has been weak, not a good sign. Meanwhile MLPs have been very strong in Jun & Jul. The index is within 12 of setting a new record. How many stock can make that claim? As long as hopes are high on a QE3 & dreary news from Europe is minimal, the stock market will probably continue to climb.
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