Dow fell 32, advancers ahead of decliners 3-2 & NAZ was off 10. The MLP index rose 2 to the 262s & the REIT index was flat at 300. Junk bond funds were mixed as were Treasuries. Oil & gold rebounded after recent selling.
AMJ (Alerian MLP Index tracking fund)
Photo: Yahoo
Orders for long-lasting manufactured goods recorded their biggest drop in 7 months in Mar & a gauge of planned business spending rose only modestly, signs of a slowdown in economic activity. Durable goods orders slumped 5.7% as demand fell almost across the board, the Commerce Dept said. The drop last month in orders for these goods, which range from toasters to aircraft, followed a 4.3% increase in Feb. Expectations were orders to fall only 2.8%. Excluding transportation, orders declined 1.4% after falling 1.7% the prior month. From transportation to primary metals & machinery, orders were weak, the latest indication of cooling in a sector that has played a pivotal role in the economy's recovery from the 2007-09 recession. The dour durable goods report joins other data ranging from employment to retail sales and manufacturing that have suggested the economy lost momentum at the end of Q1.
Orders for U.S. Durable Goods Decline by Most Since August
Photo: Bloomberg
AT&T, a Dow stock & Dividend Aristocrat, dropped the most in almost 3 years as Q1 revenue missed estimates, dragged down by a sluggish landline business & competition with Verizon Wireless. The landline revenue slid 1.8% to $14.7B, hurt by sluggish demand for traditional phone connections, especially among business customers. While the wireless division attracted more subscribers than expected, its growth was still dwarfed by that of Verizon (VZ), another Dow stock. AT&T added 296K contract customers, compared with 677K at VZ. Sales dropped 1.5% to $31.4B verus a projection $31.7B. EPS climbed to 64¢, matching the estimate. AT&T sold 4.8M iPhones, a mixed blessing for the carrier because of the resulting subsidy payments. Like most major US carriers, AT&T offers steep discounts on the iPhone & other smartphones in exchange for a 2-year contract. AT&T did see a rise in its average revenue per user, or ARPU, for wireless customers. The stock sank 2.05.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.053% | |
U.S. 2-year |
0.229% | |
U.S. 10-year |
1.697% |
| CLM13.NYM | ...Crude Oil Jun 13 | ...89.87 |  .....0.69 | (0.8%) |
| GCK13.CMX | ...Gold May 13 | ...1,429.20 | ...20.50 | (1.5%) |
Photo: Yahoo
Orders for long-lasting manufactured goods recorded their biggest drop in 7 months in Mar & a gauge of planned business spending rose only modestly, signs of a slowdown in economic activity. Durable goods orders slumped 5.7% as demand fell almost across the board, the Commerce Dept said. The drop last month in orders for these goods, which range from toasters to aircraft, followed a 4.3% increase in Feb. Expectations were orders to fall only 2.8%. Excluding transportation, orders declined 1.4% after falling 1.7% the prior month. From transportation to primary metals & machinery, orders were weak, the latest indication of cooling in a sector that has played a pivotal role in the economy's recovery from the 2007-09 recession. The dour durable goods report joins other data ranging from employment to retail sales and manufacturing that have suggested the economy lost momentum at the end of Q1.
Orders for U.S. Durable Goods Decline by Most Since August
Photo: Bloomberg
AT&T, a Dow stock & Dividend Aristocrat, dropped the most in almost 3 years as Q1 revenue missed estimates, dragged down by a sluggish landline business & competition with Verizon Wireless. The landline revenue slid 1.8% to $14.7B, hurt by sluggish demand for traditional phone connections, especially among business customers. While the wireless division attracted more subscribers than expected, its growth was still dwarfed by that of Verizon (VZ), another Dow stock. AT&T added 296K contract customers, compared with 677K at VZ. Sales dropped 1.5% to $31.4B verus a projection $31.7B. EPS climbed to 64¢, matching the estimate. AT&T sold 4.8M iPhones, a mixed blessing for the carrier because of the resulting subsidy payments. Like most major US carriers, AT&T offers steep discounts on the iPhone & other smartphones in exchange for a 2-year contract. AT&T did see a rise in its average revenue per user, or ARPU, for wireless customers. The stock sank 2.05.
AT&T Plummets as Sales Miss Estimates on Verizon Competition
AT&T (T)
Photo: Bloomberg
Procter & Gamble, a Dow stock & Dividend Aristocrat, declined after projecting fiscal Q4 earnings that trailed estimates because of unfavorable currency fluctuations & higher marketing costs. EPS will be 69-77¢, below the forecast of 81¢. Results will be affected by increased marketing expenses for new product introductions, CFO Jon Moeller said & foreign currency exchange is also expected to reduce net sales by 2% in the period, P&G said. CEO Bob McDonald last year embarked on a turnaround plan to cut $10B in costs thru 2016 & renew focus on the company’s leading businesses after market share slid. Net sales in the fiscal Q3 rose 2% to $20.6B, trailing the $20.7B estimate. EPS rose 6.4% to 88¢ from 82¢ a year earlier. Excluding some items, profit was 99¢, above the projection of 96¢. The stock tumbled 4.31.
P&G Projects Fourth-Quarter Profit Trailing Analysts’ Estimates
Procter & Gamble (PG)
Apple (AAPL) reported a mish-mash of earnings last night. It announced a whopper $60B share buyback program, the largest ever, but earnings were lower & days of high growth may be over for some time. New product categories are in the wings whatever that means. After buying last night, the shares are down 5 to 401 today. Overall, earnings are not sending a positive signal to the markets.
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