Dow clawed up 3, decliners ahead of advancers 3-2 & NAZ inched up 1. The Financial Index lost 1 to the 212s. The MLP index was off 3 to the 406s & the REIT index fell 1+ to the 258s. Junk bond funds were mixed (near their best levels of the year) & Treasuries advanced. Oil & gold were each a tad higher.
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Photo: Yahoo
Goodyear Tire results fell short of expectations as problems in Europe offset cost cuts & profits in North America. Additional cuts are coming because of economic uncertainty. These numbers highlight a problem that is plaguing many global companies in auto-related businesses. Profits in North America are being offset by falling earnings in Europe as the region's economy continues to unravel on concerns about gov debt. EPS was 41¢ for Q3, down from 60¢ a year earlier. Excluding one-time items such as restructuring costs & asset write-offs EPS was 53¢, below the 59¢ forecast. Revenue fell 13% to $5.26B as the slowing European economy cut tire sales. Analysts expected $5.87B. CEO Richard Kramer said GT still expects $1.6B in segment operating income & positive cash flow in 2013. But he added the company will have to change its methods of getting there, relying more heavily on North America & less on intl operations than previously thought. That means more cost cuts, focused on Europe & Latin America, to improve results. "We're looking at what actions we're going to need to take to the extent we continue to see a soft-volume environment, and what actions we would have to take if the volume environment is even weaker than we expect," he said. The stock slumped 10% or $1.29.
Goodyear Falls After Missing Analysts’ Estimates: Detroit Mover
Photo: Yahoo
Apple stock fell below $600 for the first time in 3 months, after it warned that costs of making new products will cut into profits in the holiday qtr. Its earnings for the latest qtr also missed expectations. AAPL said profits for the rest of the year would fall from last year because it's launching so many new products. It expects mammoth sales, but new products are more expensive to make than older ones. The iPhone 5 was launched a month ago & it announced 2 new iPads & 3 new Macs this week. In addition, it's shipping new iPods. While analysts took the adjustment in stride, knowing that Apple nearly always lowballs its estimates, several cut earnings estimates for the fiscal year that started this month. AAPL shares have now lost more than $100 from their all-time peak on Sep 21, the day the iPhone went on sale in the US & 8 other countries. The market cap has fallen $106B from its record. The stock finished down $5. That's $13 above its low at $591.
Apple stock falls under $600 after holiday warning AP
The IMF says Spain's banking sector has made good & timely progress in meeting the terms of its bailout. The IMF is monitoring Spanish gov progress in reforming the banking sector, which has been badly hurt by a property sector collapse in 2008. Spain agreed to the reforms in exchange for a €100B ($129B) loan from fellow eurozone nations to help prop up its banks. Its report says that important progress was made in reforming the financial sector & "all deadlines established in the Memorandum of Understanding agreed between the Spanish and European authorities have been met." The report said that "capital shortfalls need to be quickly made up" & "non-viable banks promptly wound down." Limited good news on this front.
IMF says Spain's banks making good progress AP
The 2% annual growth rate for GDP is being made to sound like a big achievement. Well, for those expecting 1% it was. But it still ranks as cheerless. Growth should be 3%, if not 4%, to reduce unemployment which remains high & shows no signs of coming down significantly. The stream of earnings reports, good but not great, is the real story at the big picture level. That trend should continue into Q4 & probably beyond in the new year. Earnings season is winding down & it has to be rated as a big disappointment. But stocks take this in stride & Dow has not strayed far from 13K where it has been nearby all year (except for the sell-off in May Jun). Stock markets are on defense.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.106% | |
U.S. 2-year |
0.293% | |
U.S. 10-year |
1.751% |
| CLZ12.NYM | ...Crude Oil Dec 12 | ...86.02 | ... 0.03 | (0.0%) |
Goodyear Tire results fell short of expectations as problems in Europe offset cost cuts & profits in North America. Additional cuts are coming because of economic uncertainty. These numbers highlight a problem that is plaguing many global companies in auto-related businesses. Profits in North America are being offset by falling earnings in Europe as the region's economy continues to unravel on concerns about gov debt. EPS was 41¢ for Q3, down from 60¢ a year earlier. Excluding one-time items such as restructuring costs & asset write-offs EPS was 53¢, below the 59¢ forecast. Revenue fell 13% to $5.26B as the slowing European economy cut tire sales. Analysts expected $5.87B. CEO Richard Kramer said GT still expects $1.6B in segment operating income & positive cash flow in 2013. But he added the company will have to change its methods of getting there, relying more heavily on North America & less on intl operations than previously thought. That means more cost cuts, focused on Europe & Latin America, to improve results. "We're looking at what actions we're going to need to take to the extent we continue to see a soft-volume environment, and what actions we would have to take if the volume environment is even weaker than we expect," he said. The stock slumped 10% or $1.29.
Goodyear Falls After Missing Analysts’ Estimates: Detroit Mover
Goodyear Tire (GT)
Apple stock fell below $600 for the first time in 3 months, after it warned that costs of making new products will cut into profits in the holiday qtr. Its earnings for the latest qtr also missed expectations. AAPL said profits for the rest of the year would fall from last year because it's launching so many new products. It expects mammoth sales, but new products are more expensive to make than older ones. The iPhone 5 was launched a month ago & it announced 2 new iPads & 3 new Macs this week. In addition, it's shipping new iPods. While analysts took the adjustment in stride, knowing that Apple nearly always lowballs its estimates, several cut earnings estimates for the fiscal year that started this month. AAPL shares have now lost more than $100 from their all-time peak on Sep 21, the day the iPhone went on sale in the US & 8 other countries. The market cap has fallen $106B from its record. The stock finished down $5. That's $13 above its low at $591.
Apple stock falls under $600 after holiday warning AP
Apple (AAPL)
The IMF says Spain's banking sector has made good & timely progress in meeting the terms of its bailout. The IMF is monitoring Spanish gov progress in reforming the banking sector, which has been badly hurt by a property sector collapse in 2008. Spain agreed to the reforms in exchange for a €100B ($129B) loan from fellow eurozone nations to help prop up its banks. Its report says that important progress was made in reforming the financial sector & "all deadlines established in the Memorandum of Understanding agreed between the Spanish and European authorities have been met." The report said that "capital shortfalls need to be quickly made up" & "non-viable banks promptly wound down." Limited good news on this front.
IMF says Spain's banks making good progress AP
The 2% annual growth rate for GDP is being made to sound like a big achievement. Well, for those expecting 1% it was. But it still ranks as cheerless. Growth should be 3%, if not 4%, to reduce unemployment which remains high & shows no signs of coming down significantly. The stream of earnings reports, good but not great, is the real story at the big picture level. That trend should continue into Q4 & probably beyond in the new year. Earnings season is winding down & it has to be rated as a big disappointment. But stocks take this in stride & Dow has not strayed far from 13K where it has been nearby all year (except for the sell-off in May Jun). Stock markets are on defense.
Dow Jones Industrials
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