Dow gained 21, advancers ahead of decliners 2-1 & NAZ jumped 21, led by a 12+ gain at Apple (AAPL). The MLP index was up pocket change in the 456s (record territory) & the REIT index rose 3 to the 304s, a new post Lehman collapse high. Junk bond funds edged higher & Treasuries were flattish. Oil fell,
capping a monthly drop, before a report that may show that US
supplies climbed to a 22-year high. Gold inched higher.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
The pres said Congress has focused on short-term solutions to the budget standoff when it must instead negotiate with him on a “bigger deal” to lower the deficit & help spur economic expansion. Obama, speaking at a news conference, said the automatic budget cuts that started taking effect Mar 1 are damaging to the economy & hurting US citizens. He said that while there is “a genuine desire” among some lawmakers to reach an agreement, others are letting politics stand in the way. “I cannot force Republicans to embrace those common sense solutions,” Obama said. Lawmakers were elected “to do what’s right for their constituents and the American people.” Instead, he said, Congress has become “pretty dysfunctional.” The administration & Reps have been locked in a 2-year stalemate over finances that has hindered efforts to spur the economy after the worst recession in 7 decades. A grand bargain to curb the long-term deficit has proved elusive, with Dems resisting cuts to Medicare & Social Security, & Reps opposing tax increases. Obama cited quick congressional action to let the Federal Aviation Administration work around across-the-board spending cuts to end days of flight delays stemming from air-traffic controller furloughs as an example the short-term actions that lawmakers have been taking. DC remains stuck in neutral.
Cyprus approved a multi-billion bailout agreement with intl creditors aimed at preventing the crisis-hit country from going bankrupt. The agreement was passed as expected with 29 votes in favor & 27 against. Cyprus struck the €23B ($30B) deal with its euro partners & the IMF last month. Voting in favor were the ruling center-right Democratic Rally party & its ally, the Democratic party, which together hold exactly half the seats. Casting the deciding vote was right-wing European Party leader Demetris Syllouris. "If there was another realistic alternative, our decision would surely be different. Unfortunately, we have no other choice," said Democratic party leader Marios Garoyian. A gov spokesman hailed the vote as a decision of "responsibility" that underscores the country's determination to deal with an "unprecedented economic crisis." He said that the gov will dedicate itself to implementing the terms of the bailout agreement & to keep the country in the eurozone & EU. All party leaders were urged, whether they voted for or against the deal, to rally around the gov. "Above all is Cyprus' salvation." But anger still lingers over the deal's terms, which include forcing depositors to take major losses on savings over €100K in the country's 2 biggest lenders. The 2nd-largest lender, Laiki, is being wound down & folded into the bigger Bank of Cyprus. Other European parliaments, including those of Germany & the Netherlands, have already signed off on the accord & Cypriot lawmakers have already approved most of its terms. Ahead of the vote on the bailout, Cypriot lawmakers approved additional, bailout-mandated public sector pay cuts and a property tax. The first installment of bailout cash should arrive by mid-May.
Cyprus Parliament Approves Bailout
Photo: Yahoo
Pfizer, a Dow stock, Q1 net income rose 53% despite falling sales, mainly because it took big charges a year ago. Results fell short of expectations, & the company lowered its profit & sales forecasts for the year, blaming sudden worsening currency exchange rates. The company is struggling because generic competition is reducing revenue for 2/3 of its drugs, more than a dozen of which are former blockbusters that brought in $1B+ annually. The biggest hit has been generic versions of Lipitor, which was the world's best-selling drug for nearly a decade until it lost exclusivity in the US in 2011 & in much of Europe last year. Annual revenue of Lipitor, which once brought in $13B, dropped 55% to $626M in Q1. In Q1 EPS was 38¢, versus 28¢ a year earlier. Excluding one-time items, adjusted EPS was 54¢, a penny under than the forecast. Results were boosted by a $490M gain from the transfer of some product rights to its joint venture in China. One year ago, PFE took charges totaling $1.66B, for litigation, acquisition & other costs. Revenue was $13.5B, down 9% from $14.9B a year earlier & below expectations of $13.99B. Besides the loss in revenue from some off-patent drugs, there were declines in revenue of some big sellers protected by patents, including Viagra, which was down 7% at $461M. Revenue for the consumer health products jumped 12% to $811M. Revenue rose 5% to $2.4B in emerging markets such as China. Going forward, CFO Frank D'Amelio said the steady weakening of the ¥, € & other currencies versus the dollar since Jan is expected to cut revenue by almost $1B over the course of the year. As a result, the revenue forecast was cut by that amount, to $55.3-$57.3B. The EPS forecast excluding one-time items was cut 6¢ to $2.14-$2.24 due to the lower revenue forecast & its Feb IPO of 20% of its animal health business, now called Zoetis. The stock sank 1.36, the biggest loser in the Dow.
Pfizer Q1 profit up, but drugmaker cuts outlook AP
Apr closed on whimper. The MLP index was up 1 for the month. not far from the record high set last week. REITs also had a good month as did junk bond funds, near multi year highs. After a slow start for earnings season, a few buyers returned to bring the Dow higher & it closed near record levels. Earnings season is winding down. Today's price swings mean little coming on the last day of the month.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.048% | |
U.S. 2-year |
0.209% | |
U.S. 10-year |
1.669% |
| CLM13.NYM | ...Crude Oil Jun 13 | ...93.22 |  ...1.28 | (1.4%) |
The pres said Congress has focused on short-term solutions to the budget standoff when it must instead negotiate with him on a “bigger deal” to lower the deficit & help spur economic expansion. Obama, speaking at a news conference, said the automatic budget cuts that started taking effect Mar 1 are damaging to the economy & hurting US citizens. He said that while there is “a genuine desire” among some lawmakers to reach an agreement, others are letting politics stand in the way. “I cannot force Republicans to embrace those common sense solutions,” Obama said. Lawmakers were elected “to do what’s right for their constituents and the American people.” Instead, he said, Congress has become “pretty dysfunctional.” The administration & Reps have been locked in a 2-year stalemate over finances that has hindered efforts to spur the economy after the worst recession in 7 decades. A grand bargain to curb the long-term deficit has proved elusive, with Dems resisting cuts to Medicare & Social Security, & Reps opposing tax increases. Obama cited quick congressional action to let the Federal Aviation Administration work around across-the-board spending cuts to end days of flight delays stemming from air-traffic controller furloughs as an example the short-term actions that lawmakers have been taking. DC remains stuck in neutral.
Cyprus approved a multi-billion bailout agreement with intl creditors aimed at preventing the crisis-hit country from going bankrupt. The agreement was passed as expected with 29 votes in favor & 27 against. Cyprus struck the €23B ($30B) deal with its euro partners & the IMF last month. Voting in favor were the ruling center-right Democratic Rally party & its ally, the Democratic party, which together hold exactly half the seats. Casting the deciding vote was right-wing European Party leader Demetris Syllouris. "If there was another realistic alternative, our decision would surely be different. Unfortunately, we have no other choice," said Democratic party leader Marios Garoyian. A gov spokesman hailed the vote as a decision of "responsibility" that underscores the country's determination to deal with an "unprecedented economic crisis." He said that the gov will dedicate itself to implementing the terms of the bailout agreement & to keep the country in the eurozone & EU. All party leaders were urged, whether they voted for or against the deal, to rally around the gov. "Above all is Cyprus' salvation." But anger still lingers over the deal's terms, which include forcing depositors to take major losses on savings over €100K in the country's 2 biggest lenders. The 2nd-largest lender, Laiki, is being wound down & folded into the bigger Bank of Cyprus. Other European parliaments, including those of Germany & the Netherlands, have already signed off on the accord & Cypriot lawmakers have already approved most of its terms. Ahead of the vote on the bailout, Cypriot lawmakers approved additional, bailout-mandated public sector pay cuts and a property tax. The first installment of bailout cash should arrive by mid-May.
Cyprus Parliament Approves Bailout
Photo: Yahoo
Pfizer, a Dow stock, Q1 net income rose 53% despite falling sales, mainly because it took big charges a year ago. Results fell short of expectations, & the company lowered its profit & sales forecasts for the year, blaming sudden worsening currency exchange rates. The company is struggling because generic competition is reducing revenue for 2/3 of its drugs, more than a dozen of which are former blockbusters that brought in $1B+ annually. The biggest hit has been generic versions of Lipitor, which was the world's best-selling drug for nearly a decade until it lost exclusivity in the US in 2011 & in much of Europe last year. Annual revenue of Lipitor, which once brought in $13B, dropped 55% to $626M in Q1. In Q1 EPS was 38¢, versus 28¢ a year earlier. Excluding one-time items, adjusted EPS was 54¢, a penny under than the forecast. Results were boosted by a $490M gain from the transfer of some product rights to its joint venture in China. One year ago, PFE took charges totaling $1.66B, for litigation, acquisition & other costs. Revenue was $13.5B, down 9% from $14.9B a year earlier & below expectations of $13.99B. Besides the loss in revenue from some off-patent drugs, there were declines in revenue of some big sellers protected by patents, including Viagra, which was down 7% at $461M. Revenue for the consumer health products jumped 12% to $811M. Revenue rose 5% to $2.4B in emerging markets such as China. Going forward, CFO Frank D'Amelio said the steady weakening of the ¥, € & other currencies versus the dollar since Jan is expected to cut revenue by almost $1B over the course of the year. As a result, the revenue forecast was cut by that amount, to $55.3-$57.3B. The EPS forecast excluding one-time items was cut 6¢ to $2.14-$2.24 due to the lower revenue forecast & its Feb IPO of 20% of its animal health business, now called Zoetis. The stock sank 1.36, the biggest loser in the Dow.
Pfizer Q1 profit up, but drugmaker cuts outlook AP
Pfizer (PFE)
Apr closed on whimper. The MLP index was up 1 for the month. not far from the record high set last week. REITs also had a good month as did junk bond funds, near multi year highs. After a slow start for earnings season, a few buyers returned to bring the Dow higher & it closed near record levels. Earnings season is winding down. Today's price swings mean little coming on the last day of the month.
Dow Jones Industrials
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