Dow slid 21, advancers ahead of decliners 4-3 & NAZ was up 3. The Financial Index slipped a tad to 203. The MLP index rose 2+ to the 394s (near its 5 week highs) & the REIT index was up a fraction to 266. Junk bond funds were generally higher & Treasuries were mixed, although the 10 year Treasury posted a gain. Oil rose from reduced offshore output in the Gulf of Mexico. Gold slipped in profit taking but its charts is strong.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
Home prices in 20 US cities went up in Jun for the first time since a tax credit boosted sales in early 2010, indicating the industry is starting to rebound. The S&P/Case-Shiller index increased 0.5% from Jun 2011 after falling 0.7% in the year to May. The last year-over-year increase took place in Sep 2010. Nationally, prices jumped in Q2 by the most in more than 6 years. The lowest mortgage rates on record & a decline in sales of distressed properties may help the market contribute to the economic expansion that is now in its 4th year. A more sustained rebound may require easier lending conditions, which would also give consumers a lift after a report today showed household confidence sank to the lowest level of the year. The S&P/Case-Shiller 20-City index was projected to drop 0.05% & estimates ranged from declines of 1.5% to a 1% gain. Property values in all the US increased 1.2% in Q2 from the same time in 2011 compared with a 1.4% drop in Q1. They jumped 6.9% from the previous 3 months before seasonal adjustment. The gauge increased 2.2% after taking those changes into account, the best performance since Q4 2005. Home prices in the 20 cities adjusted for seasonal variations increased 0.9% in Jun from the prior month & unadjusted prices climbed 2.3%. Another sign of modest recovery in housing.
HJ Heinz said strength in emerging markets & a better tax rate will help push its fiscal Q1 earnings above expectations. EPS was 87¢, beating the forecast of 80¢. A year ago, EPS was 78¢ (excluding one-time items). Fiscal Q1 results are scheduled to be reported tomorrow. Growth in emerging markets, improved productivity & a favorable tax rate all helped results, said CEO Johnson. HNZ is focusing on countries such as Brazil, China, Russia & Indonesia, which are growing faster than the US & Western Europe. But it is also facing higher costs & has offset that by cutting costs of its own by closing up to 8 factories of its 81 plants worldwide to lower costs & improve productivity. The update came as the company conducted its annual shareholder meeting. At the meeting, Johnson said net income, excluding one-time charges, would rise "despite the headwinds of a still weak economy and adverse foreign currency trends." The stronger dollar lowers the value of overseas sales. That effect amounted to 4¢ per share. The stock rose 95¢.
Heinz expects emerging markets to boost 1Q AP
Samsung Galaxy S II
Photo: Bloomberg
Apple is seeking a ban on sales of 8 models of Samsung smartphones in the US & the extension of a preliminary ban on a tablet computer after winning a patent trial against the company. Yesterday a jury found Samsung infringed on 6 of 7 patents at stake in the trial & named the phones it wants barred. The list includes several devices in the bestselling Galaxy lineup. The effect on Samsung sales will be negligible because the list only includes older devices that will account for about 1% of profits next year. But the impact could be larger if AAPL manages to broaden a ban to newer devices & block 80% of all Samsung phones. “We will take all necessary measures to ensure the availability of our products in the U.S. market,” a Seoul-based spokesman for Samsung said in an e-mail. The verdict’s potential impact on Samsung’s research spending & its plans for new products is negative for the company, Moody’s said. It won’t immediately affect its credit rating or outlook because the Suwon, South Korea-based company has “a strong diversified business position and substantial financial cushion to absorb the cash damages,” Moody’s said. AAPL stock slipped about $1 from its record highs.
Apple Seeks Ban on Sales of Eight Samsung Phones After U.S. Court Victory
Today was a typical day for trading in late Aug, a good time to take a nap because there is little going on. Even in Europe, most of the biggies aren't doing a lot. 4 years ago the markets were slipping & sliding as we went into the 2 big conventions. They produced a lot of hot air, but not a peep by anybody about a stock market that was going to fall off the cliff by the end of Sep. While Sep is the weakest month of the year, a repeat of that performance is not expected this time. As slow as trading is now, market activity will probably slow further for the rest of the week.
AMJ (Alerian MLP Index tracking fund)
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.096% | |
U.S. 2-year | 0.268% | |
U.S. 10-year | 1.627% |
| CLV12.NYM | ...Crude Oil Oct 12 | ....96.26 | ... 0.79 | (0.8%) |
Home prices in 20 US cities went up in Jun for the first time since a tax credit boosted sales in early 2010, indicating the industry is starting to rebound. The S&P/Case-Shiller index increased 0.5% from Jun 2011 after falling 0.7% in the year to May. The last year-over-year increase took place in Sep 2010. Nationally, prices jumped in Q2 by the most in more than 6 years. The lowest mortgage rates on record & a decline in sales of distressed properties may help the market contribute to the economic expansion that is now in its 4th year. A more sustained rebound may require easier lending conditions, which would also give consumers a lift after a report today showed household confidence sank to the lowest level of the year. The S&P/Case-Shiller 20-City index was projected to drop 0.05% & estimates ranged from declines of 1.5% to a 1% gain. Property values in all the US increased 1.2% in Q2 from the same time in 2011 compared with a 1.4% drop in Q1. They jumped 6.9% from the previous 3 months before seasonal adjustment. The gauge increased 2.2% after taking those changes into account, the best performance since Q4 2005. Home prices in the 20 cities adjusted for seasonal variations increased 0.9% in Jun from the prior month & unadjusted prices climbed 2.3%. Another sign of modest recovery in housing.
HJ Heinz said strength in emerging markets & a better tax rate will help push its fiscal Q1 earnings above expectations. EPS was 87¢, beating the forecast of 80¢. A year ago, EPS was 78¢ (excluding one-time items). Fiscal Q1 results are scheduled to be reported tomorrow. Growth in emerging markets, improved productivity & a favorable tax rate all helped results, said CEO Johnson. HNZ is focusing on countries such as Brazil, China, Russia & Indonesia, which are growing faster than the US & Western Europe. But it is also facing higher costs & has offset that by cutting costs of its own by closing up to 8 factories of its 81 plants worldwide to lower costs & improve productivity. The update came as the company conducted its annual shareholder meeting. At the meeting, Johnson said net income, excluding one-time charges, would rise "despite the headwinds of a still weak economy and adverse foreign currency trends." The stronger dollar lowers the value of overseas sales. That effect amounted to 4¢ per share. The stock rose 95¢.
Heinz expects emerging markets to boost 1Q AP
HJ Heinz (HNZ)
Photo: Bloomberg
Apple is seeking a ban on sales of 8 models of Samsung smartphones in the US & the extension of a preliminary ban on a tablet computer after winning a patent trial against the company. Yesterday a jury found Samsung infringed on 6 of 7 patents at stake in the trial & named the phones it wants barred. The list includes several devices in the bestselling Galaxy lineup. The effect on Samsung sales will be negligible because the list only includes older devices that will account for about 1% of profits next year. But the impact could be larger if AAPL manages to broaden a ban to newer devices & block 80% of all Samsung phones. “We will take all necessary measures to ensure the availability of our products in the U.S. market,” a Seoul-based spokesman for Samsung said in an e-mail. The verdict’s potential impact on Samsung’s research spending & its plans for new products is negative for the company, Moody’s said. It won’t immediately affect its credit rating or outlook because the Suwon, South Korea-based company has “a strong diversified business position and substantial financial cushion to absorb the cash damages,” Moody’s said. AAPL stock slipped about $1 from its record highs.
Apple Seeks Ban on Sales of Eight Samsung Phones After U.S. Court Victory
Apple (AAPL)
Today was a typical day for trading in late Aug, a good time to take a nap because there is little going on. Even in Europe, most of the biggies aren't doing a lot. 4 years ago the markets were slipping & sliding as we went into the 2 big conventions. They produced a lot of hot air, but not a peep by anybody about a stock market that was going to fall off the cliff by the end of Sep. While Sep is the weakest month of the year, a repeat of that performance is not expected this time. As slow as trading is now, market activity will probably slow further for the rest of the week.
Dow Jones Industrials
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