Dow inched up 7, advancers just ahead of decliners & NAZ lost 3. The Financial Index was up a fraction to 237. The MLP index fell another 2 to the 224s & the REIT index was up pocket change to 278. Junk bond funds slipped lower & Treasuries saw buying, pushing the yield on the 10 year Treasury back below 2%. Oil was even & gold gained $5, still in its longer range trading zone above the mid 1600s.
AMJ (Alerian MLP Index tracking fund)
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Treasury 10-year note yields traded at almost the highest since Apr as the US announced plans to sell $72B of debt next week. The Treasury called on Congress to pass a longer-term increase to the US debt limit as it said the gov will sell its first issue of floating-rate notes within the next year. The 10-year note yield straddled 2% for a 6th day. Federal Reserve (FED) bond purchases will reach $1.1T before the current stimulus program expires Q1 2014. The yield on the 10 year Treasury reached 2.06% on Feb 4, the most since Apr 12. Treasury market volatility rose as measured by the Bank of America Merrill Lynch MOVE index rose to 64.8 yesterday from 63.1. The measure has climbed from 53.6 on Jan 23, & since Jan 25 has held above 59.7, the average since the FED announced its $40B a month mortgage purchase plan of Sep 13. Treasury’s debt-limit-increase request follows the pres on Mon signing legislation temporarily suspending the $16.4T debt limit until May 18. “We plan to issue a final rule on floating-rate notes in the coming months, with the first floating-rate-note auction still expected to occur within the next year,” the Treasury announced. The statement also said it expects to gradually increase the issuance of Treasury Inflation Protected Securities (TIPS) in 2013. The Treasury. will also sell $32B in 3-year notes on Feb 12, $24B in 10-year notes on Feb 13, & $16B in 30-year bonds on Feb 14.
U.S. 10-Year Note at 10-Month High as Treasury Plans Sale
$
Photo: Bloomberg
Time Warner net income grew 51% in Q4 even as revenue was largely unchanged. Rising fees from cable & satellite companies & higher ad revenue at the TV networks offset revenue declines at the movie studio & magazine businesses. The company also announced a div increase & a new plan to buy back shares. The television networks business drove the performance as revenue there grew 5%, offsetting declines elsewhere. The Warner Bros. studio business had a weaker release lineup, though it managed to report an operating profit with an emphasis on higher-profit TV production. The Time magazine business, smallest of the 3, has announced layoffs to reflect reduced demand for print editions. Adjusted for one-time items, EPS came to $1.17, beating the $1.10 forecast. Revenue edged down to $8.16B from $8.19B a year earlier. Analysts expected revenue of $8.22B. The quarterly div was raised 11% to 28¾¢ ($1.15 annualized). The board also authorized $4B in stock buybacks. The company expects 2013 adjusted EPS to be up in the low double-digit percentage, an estimate that reflects the anticipated restructuring charges at Time Inc. The projected range is $3.61-$3.77 & analysts had expected $3.66 for 2013. The stock jumped $1.96, its highest price in a decade. The stock rose $2.05 to $52.01. a 10 year high.
Time Warner Profit Beats Analysts’ Estimates on Television Affiliate Fees
Time Warner (TWX)
Photo: Yahoo
Ralph Lauren posted a 27% increase in its fiscal Q3 profit as the company enjoyed continued momentum in spending among its affluent shoppers in the US & improving trends in Europe during the crucial winter holidays. The results are an improvement from H1, when cotton costs soared & the company was bearing costs to eliminate some of its businesses to focus on the most profitable ones. But the company managed to navigate thru the rough patches & delivered better-than-expected results. RL brands sell at department stores, its own shops & thru other retailers. "Our third-quarter performance is a testament to the enduring appeal of our brand and the dedication of our passionate team," CEO Ralph Lauren said. "Our orientation as a design-led, marketing and merchandising organization has enabled us to deepen our connection with our customers, particularly as we expand our portfolio of products and lifestyle sensibilities." EPS was $2.31, ahead of $1.78 a year earlier. Revenue rose 2.2% to $1.79B. Analysts had expected EPS of $2.20 on revenue of $1.85. Retail sales rose 6% to $1.1B. Revenue at stores open at least a year rose 4%. The disruption caused by Superstorm Sandy depressed Q3 comparable sales by 1 to 2 percentage points. For fiscal Q4, RL expects net revenue to be up by a mid-single-digit percentage, reflecting an 8-11% increase in retail revenue & flat wholesale revenue. Assuming a 5% increase, that would mean revenue would reach $1.7B, similar to the $1.74B forecast. The stock shot up $9.72 to almost $150 (near its highs reached last year).
AMJ (Alerian MLP Index tracking fund)
TTreasury yields:
U.S. 3-month |
0.068% | |
U.S. 2-year |
0.252% | |
U.S. 10-year |
1.967% |
| CLH13.NYM | ...Crude Oil Mar 13 | ....96.63 | ... 0.01 | (0.0%) |
Treasury 10-year note yields traded at almost the highest since Apr as the US announced plans to sell $72B of debt next week. The Treasury called on Congress to pass a longer-term increase to the US debt limit as it said the gov will sell its first issue of floating-rate notes within the next year. The 10-year note yield straddled 2% for a 6th day. Federal Reserve (FED) bond purchases will reach $1.1T before the current stimulus program expires Q1 2014. The yield on the 10 year Treasury reached 2.06% on Feb 4, the most since Apr 12. Treasury market volatility rose as measured by the Bank of America Merrill Lynch MOVE index rose to 64.8 yesterday from 63.1. The measure has climbed from 53.6 on Jan 23, & since Jan 25 has held above 59.7, the average since the FED announced its $40B a month mortgage purchase plan of Sep 13. Treasury’s debt-limit-increase request follows the pres on Mon signing legislation temporarily suspending the $16.4T debt limit until May 18. “We plan to issue a final rule on floating-rate notes in the coming months, with the first floating-rate-note auction still expected to occur within the next year,” the Treasury announced. The statement also said it expects to gradually increase the issuance of Treasury Inflation Protected Securities (TIPS) in 2013. The Treasury. will also sell $32B in 3-year notes on Feb 12, $24B in 10-year notes on Feb 13, & $16B in 30-year bonds on Feb 14.
U.S. 10-Year Note at 10-Month High as Treasury Plans Sale
$Photo: Bloomberg
Time Warner net income grew 51% in Q4 even as revenue was largely unchanged. Rising fees from cable & satellite companies & higher ad revenue at the TV networks offset revenue declines at the movie studio & magazine businesses. The company also announced a div increase & a new plan to buy back shares. The television networks business drove the performance as revenue there grew 5%, offsetting declines elsewhere. The Warner Bros. studio business had a weaker release lineup, though it managed to report an operating profit with an emphasis on higher-profit TV production. The Time magazine business, smallest of the 3, has announced layoffs to reflect reduced demand for print editions. Adjusted for one-time items, EPS came to $1.17, beating the $1.10 forecast. Revenue edged down to $8.16B from $8.19B a year earlier. Analysts expected revenue of $8.22B. The quarterly div was raised 11% to 28¾¢ ($1.15 annualized). The board also authorized $4B in stock buybacks. The company expects 2013 adjusted EPS to be up in the low double-digit percentage, an estimate that reflects the anticipated restructuring charges at Time Inc. The projected range is $3.61-$3.77 & analysts had expected $3.66 for 2013. The stock jumped $1.96, its highest price in a decade. The stock rose $2.05 to $52.01. a 10 year high.
Time Warner Profit Beats Analysts’ Estimates on Television Affiliate Fees
Time Warner (TWX)
Photo: Yahoo
Ralph Lauren posted a 27% increase in its fiscal Q3 profit as the company enjoyed continued momentum in spending among its affluent shoppers in the US & improving trends in Europe during the crucial winter holidays. The results are an improvement from H1, when cotton costs soared & the company was bearing costs to eliminate some of its businesses to focus on the most profitable ones. But the company managed to navigate thru the rough patches & delivered better-than-expected results. RL brands sell at department stores, its own shops & thru other retailers. "Our third-quarter performance is a testament to the enduring appeal of our brand and the dedication of our passionate team," CEO Ralph Lauren said. "Our orientation as a design-led, marketing and merchandising organization has enabled us to deepen our connection with our customers, particularly as we expand our portfolio of products and lifestyle sensibilities." EPS was $2.31, ahead of $1.78 a year earlier. Revenue rose 2.2% to $1.79B. Analysts had expected EPS of $2.20 on revenue of $1.85. Retail sales rose 6% to $1.1B. Revenue at stores open at least a year rose 4%. The disruption caused by Superstorm Sandy depressed Q3 comparable sales by 1 to 2 percentage points. For fiscal Q4, RL expects net revenue to be up by a mid-single-digit percentage, reflecting an 8-11% increase in retail revenue & flat wholesale revenue. Assuming a 5% increase, that would mean revenue would reach $1.7B, similar to the $1.74B forecast. The stock shot up $9.72 to almost $150 (near its highs reached last year).
Ralph Lauren Profit Tops Estimates as European Demand Improves
Ralph Lauren (RL)
Stocks were groping around, looking for direction. Earnings were fairly good but euro worries represent a dark cloud over the market. Euro meetings this week will reveal how much there is to worry about on that side of the pond. In the US, there is no shortage to material of worry about. John Boehner just said he will oppose any delay of $1.2T in automatic US spending reductions set to begin Mar 1 unless Congress replaces them with other “cuts and reforms.” Those sound like fighting words, but Dow is less than 200 away from setting a new record after a 1500 rise in the last 10 weeks.
Dow Jones Industrials
Ralph Lauren (RL)
Stocks were groping around, looking for direction. Earnings were fairly good but euro worries represent a dark cloud over the market. Euro meetings this week will reveal how much there is to worry about on that side of the pond. In the US, there is no shortage to material of worry about. John Boehner just said he will oppose any delay of $1.2T in automatic US spending reductions set to begin Mar 1 unless Congress replaces them with other “cuts and reforms.” Those sound like fighting words, but Dow is less than 200 away from setting a new record after a 1500 rise in the last 10 weeks.
Dow Jones Industrials
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