Dow moved up 24, advancers over decliners 2-1 & NAZ went up 20. Selling finally hit MLPs taking the index down 3 to the 458s & the REIT index lost pocket change just above 300. Junk bond funds were higher while Treasuries did little. Oil
climbed for a 6th day as fewer Americans filed first-time
claims for unemployment insurance payments & the
market broke through technical resistance. Gold also had a good day.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
AMJ (Alerian MLP Index tracking fund)
| CLM13.NYM | ...Crude Oil Jun 13 | ....93.69 |  ...2.26 (2.5%) |
Photo: Yahoo
Exxon Mobil, a Dow stock & Dividend Aristocrat, net income for Q1 increased 0.5% while revenue fell 12%. EPS was $2.12, ahead of the $2.05 forecast & $2 earned last year. But revenue dropped to $109B from $124B & production fell 3.5%. Oil production slipped 1% as its oil fields experienced natural declines from peak
production. Production fell in Europe, Africa & Australia, but those
declines were partly offset by increases in the US, Canada & Asia. Revenue was also reduced by oil prices that were $8.66 per barrel lower than last year. Natural gas output fell 5.9% worldwide, driven by an 8.7% decline in the US where gas producers have been cutting
back production starting last year after natural gas prices fell to
decade-lows in the wake of the historically warm winter of 2011 - 2012. Refining operations took advantage of lower oil prices, &
the chemicals business benefited from lower natural gas prices in the
US compared with overseas. Results were also helped by a sharp decline in corp &
financing expenses, attributable to "favorable tax impacts." The stock lost 1.32.
UPS posted
higher Q1 earnings than estimated as it carried more purchases
to online shoppers. EPS was $1.04, excluding some costs & gains,
topping the $1.01 estimate. The company also reiterated its full-year forecast of $4.80-5.06, which compared with a $4.99 estimates
from analysts. It benefited from a 4.4% increase in domestic
deliveries driven by consumer purchases & returns of items
such as clothing & electronic devices that helped push sales up 2.3% to $13.4B. The company handles more than
16M packages & envelopes a day worldwide, making it a
bellwether for the economy. Profit in the US business climbed 9% while the operating margin expanded 70 basis points to
13.1%. The intl unit’s earnings dropped
4.2%, excluding charges from the company’s attempt to
purchase TNT Express (TNTE). UPS had to pay TNTE a breakup fee of €200M ($261M) after dropping the €5.1B bid when European regulators moved to block it. “Domestically, we’re fairly confident the U.S. economy
will be stable, if unexciting,” CFO Kurt
Kuehn said. “International trade
flows are volatile so we have to be aware of that.” The stock gained 1.90.
UPS Affirms Full-Year Forecast After First-Quarter Profit Beats Estimates
Time Warner Cable lost phone subscribers for the first time in Q1, after years of poaching them from phone companies. The net loss of 22K phone subscribers was attributable to households opting to go wireless-only, & TWC said it had changed its plans to make it less likely that households would sign up for phone service if they didn't need it. There were also weak trends in TV subscriptions, with a loss of net 118K cable TV customers, to end with 12.1M subscribers. In Q1 EPS was $1.34, up 5% from $1.20 per share a year earlier. Per-share results got an 8¢ boost from a 6% drop in the number of outstanding shares, the result of company repurchases. Excluding merger & other items, EPS was $1.41, up 8.5% from a year ago & that beat the average estimate by 4¢. Revenue rose 7% to $5.48B, slightly below expectations of $5.49B. Excluding the acquisitions of Insight, a small cable company, in Feb last year, revenue would have risen about 3.1%, mainly due to broadband services. The stock fell 54¢.
Time Warner Cable loses phone subscribers in 1Q AP
Stocks had a good day from the jobless claims report & earnings. However enthusiasm faded in the last 2 hours of trading with Dow closing near its lows. The GDP report is coming tomorrow & there may be worries that the report will disappoint. Traders are expecting to see that the economy grew around a 3% annual rate in Q1 despite higher Social Security taxes & federal budget cuts. The goal of budget cuts are to make them as painful as possible because taxpayers are making life harder for highly paid gov employees. The MLP index also pulled back, no surprise considering MLPs have been on pretty much a straight up run for about a year.
UPS Affirms Full-Year Forecast After First-Quarter Profit Beats Estimates
United Parcel Service (UPS)
Time Warner Cable lost phone subscribers for the first time in Q1, after years of poaching them from phone companies. The net loss of 22K phone subscribers was attributable to households opting to go wireless-only, & TWC said it had changed its plans to make it less likely that households would sign up for phone service if they didn't need it. There were also weak trends in TV subscriptions, with a loss of net 118K cable TV customers, to end with 12.1M subscribers. In Q1 EPS was $1.34, up 5% from $1.20 per share a year earlier. Per-share results got an 8¢ boost from a 6% drop in the number of outstanding shares, the result of company repurchases. Excluding merger & other items, EPS was $1.41, up 8.5% from a year ago & that beat the average estimate by 4¢. Revenue rose 7% to $5.48B, slightly below expectations of $5.49B. Excluding the acquisitions of Insight, a small cable company, in Feb last year, revenue would have risen about 3.1%, mainly due to broadband services. The stock fell 54¢.
Time Warner Cable loses phone subscribers in 1Q AP
Time Warner Cable (TWC)
Stocks had a good day from the jobless claims report & earnings. However enthusiasm faded in the last 2 hours of trading with Dow closing near its lows. The GDP report is coming tomorrow & there may be worries that the report will disappoint. Traders are expecting to see that the economy grew around a 3% annual rate in Q1 despite higher Social Security taxes & federal budget cuts. The goal of budget cuts are to make them as painful as possible because taxpayers are making life harder for highly paid gov employees. The MLP index also pulled back, no surprise considering MLPs have been on pretty much a straight up run for about a year.
Dow Jones Industrials
No comments:
Post a Comment