Dow rose 48 (closing at the high again), advancers over decliners more than 3-2 & NAZ gained 16. The MLP index was up 5+ to 457 & the REIT index rose a fraction to the 208s. Junk bond funds were mixed & Treasuries lost ground. Oil is heading for 100 (again) & gold posted the biggest gain
in almost 2 weeks as demand for bars & jewelry increased in India & China.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
Coca-Cola, a Dow stock & Dividend Aristocrat, will make lower-calorie options & clear calorie labeling more widely available around the world, intensifying a push against critics who say its drinks pack on the pounds. It already offers diet drinks in most markets but there's no consistency in their availability, particularly in emerging markets such as China & India. KO will support programs that encourage physical activity & no longer market to kids younger than 12 (already in place for the US). It has been more aggressive in trying to convince customers its products can be part of a healthy lifestyle. Earlier this year, the company aired its first TV ad addressing the matter in the US & has since been rolling out the spot to other countries. The ad touts Coca-Cola's wide range of lower-calorie offerings. But execs also stand by full-calorie drinks, saying that physical activity plays an important role in fighting obesity. "There is a place for all of our beverages in a healthy lifestyle," CEO Muhtar Kent said in a call with reporters. Its goal is to have diet options available wherever regular versions are sold. The stock fell 26¢.
Coca-Cola to Show Calories While Ceasing Ads for Under 12s
Photo: Bloomberg
Delta Air Lines will start paying a div & buy back shares, common in other industries but rare for airlines. It will pay a quarterly div of 6¢ in Sep & plans to buy back $500M of its stock by mid-2016. Of the large US airlines, only Southwest Airlines (LUV) pays a div (at an annual rate of a penny). DAL last paid a div 10 years ago. After buying Northwest in an all-stock deal in 2008, it has posted annual profits for 3 consecutive years & has been using the money to pay down debt. Adjusted debt was just $11.7B at the end of last year, down from $17B at the end of 2009. DAL said it's on track to reduce borrowings to $10B by the end of this year, a goal originally set for late 2012. Its 5-year plan calls for it to "achieve and maintain" adjusted debt of $7B. The stock rose 60¢.
Delta’s $1 Billion Dividend-Buyback Ends Decade-Long Gap
Bank of America, another Dow stock, needs to show a steady stream of profit before satisfying demands for a higher div, CEO Brian Moynihan said. “The No. 1 issue is to get the recurring earnings stream back where it should be,” & then address the mix of divs & stock buybacks, Moynihan said at the annual shareholders meeting. BAC, swamped by costs tied to defective mortgages, has posted 4 quarterly profit increases since he became CEO in 2010. Moynihan has made restoring shareholder payouts a priority. This year, he won Fed support to buy back as much as $5B in stock. “Right now, the best course for the company is to buy back the stock,” Moynihan said. Bad mortgages & related legal costs were the main drags on Q1 results, & he wants to get those “down to zero.” The stock rose 11¢.
BofA Must Show Steady Profit Before Raising Payout, CEO Says
The bears continue to hibernate, so the bulls are left in command of the markets. It's that simple. There is no special economic support for this rise except that those who missed the leg up in the last year feel they have to get in now, always a dangerous sign. Earnings season is winding down & they were fairly well received because the estimates were not too high. But one common theme is that sales have been sluggish. Dysfunctional DC is doing what it does best, nothing, & bulls are taking that as a positive. Not sure how long this will last.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Teasury yields:
U.S. 3-month |
0.04% | |
U.S. 2-year |
0.22% | |
U.S. 10-year |
1.76% |
| CLM13.NYM | ...Crude Oil Jun 13 | ....96.67 |  ...1.05 | (1.1%) |
Photo: Bloomberg
Coca-Cola, a Dow stock & Dividend Aristocrat, will make lower-calorie options & clear calorie labeling more widely available around the world, intensifying a push against critics who say its drinks pack on the pounds. It already offers diet drinks in most markets but there's no consistency in their availability, particularly in emerging markets such as China & India. KO will support programs that encourage physical activity & no longer market to kids younger than 12 (already in place for the US). It has been more aggressive in trying to convince customers its products can be part of a healthy lifestyle. Earlier this year, the company aired its first TV ad addressing the matter in the US & has since been rolling out the spot to other countries. The ad touts Coca-Cola's wide range of lower-calorie offerings. But execs also stand by full-calorie drinks, saying that physical activity plays an important role in fighting obesity. "There is a place for all of our beverages in a healthy lifestyle," CEO Muhtar Kent said in a call with reporters. Its goal is to have diet options available wherever regular versions are sold. The stock fell 26¢.
Coca-Cola to Show Calories While Ceasing Ads for Under 12s
Coca-Cola (KO)
Photo: Bloomberg
Delta Air Lines will start paying a div & buy back shares, common in other industries but rare for airlines. It will pay a quarterly div of 6¢ in Sep & plans to buy back $500M of its stock by mid-2016. Of the large US airlines, only Southwest Airlines (LUV) pays a div (at an annual rate of a penny). DAL last paid a div 10 years ago. After buying Northwest in an all-stock deal in 2008, it has posted annual profits for 3 consecutive years & has been using the money to pay down debt. Adjusted debt was just $11.7B at the end of last year, down from $17B at the end of 2009. DAL said it's on track to reduce borrowings to $10B by the end of this year, a goal originally set for late 2012. Its 5-year plan calls for it to "achieve and maintain" adjusted debt of $7B. The stock rose 60¢.
Delta’s $1 Billion Dividend-Buyback Ends Decade-Long Gap
Delta Air Lines (DAL)
Bank of America, another Dow stock, needs to show a steady stream of profit before satisfying demands for a higher div, CEO Brian Moynihan said. “The No. 1 issue is to get the recurring earnings stream back where it should be,” & then address the mix of divs & stock buybacks, Moynihan said at the annual shareholders meeting. BAC, swamped by costs tied to defective mortgages, has posted 4 quarterly profit increases since he became CEO in 2010. Moynihan has made restoring shareholder payouts a priority. This year, he won Fed support to buy back as much as $5B in stock. “Right now, the best course for the company is to buy back the stock,” Moynihan said. Bad mortgages & related legal costs were the main drags on Q1 results, & he wants to get those “down to zero.” The stock rose 11¢.
BofA Must Show Steady Profit Before Raising Payout, CEO Says
Bank of America (BAC)
The bears continue to hibernate, so the bulls are left in command of the markets. It's that simple. There is no special economic support for this rise except that those who missed the leg up in the last year feel they have to get in now, always a dangerous sign. Earnings season is winding down & they were fairly well received because the estimates were not too high. But one common theme is that sales have been sluggish. Dysfunctional DC is doing what it does best, nothing, & bulls are taking that as a positive. Not sure how long this will last.
Dow Jones Industrials
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