Dow dropped 164, decliners over advancers 4-1 & NAZ fell 32. The MLP Index sank 6+ to 458 & the REIT index was also off 6+, to the 292s. Junk bond funds sold off & Treasuries fluctuated wildly, with the 10 year yield flattish near 2.15%. Oil is doing little while gold is finding a few buyers at its depressed levels,
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
Apple's CEO Tim Cook said his staff “has several more game changers” in the pipeline. The company has “some incredible plans,” Cook said yesterday. He singled out television & wearable computing as areas of interest. A new product hasn't been released since Oct, turning up pressure to debut something fresh to reignite sales growth. Cook’s tenure has been marked more by controversies, including criticism of the company’s tax practices & labor standards in China, than by blockbuster gadgets. “What we have to do is focus on products,” Cook said. “If we do that right, if we make great products that enrich people’s lives, then the other things will happen.” In his clearest indication yet that the company is considering electronics that can adorn the body, Cook said that wearable computing could be a “profound area,” & that the wrist is particularly “interesting.” Cook said devices such as Glass from Google (GOOG), a computer for the eyes, might struggle to go mainstream. “People that do wear them generally want them to be light, to be unobtrusive,” Cook said. “They probably want them to reflect their fashion.” AAPL has a “grand vision” for television, which remains an area of interest, Cook said. It has sold more than 13M units of the TV set-top box, exceeding internal expectations, Cook said. The stock is up $4, but has a dreary chart over the last year.
Photo: Yahoo
Greece's central bank warned that unemployment & the recession are likely to be worse than expected this year, while a leading intl organization said the country's slow financial recovery might even force it to seek additional bailout loans. The Bank of Greece said the economy is likely to contract by a further 4.6% in 2013, with unemployment set to reach 28%. The figure is worse than the 4.2% contraction & 26.6% jobless rate predicted by the gov & the country's rescue lenders. The economy shrank an estimated 6.4% in 2012 & 7.1% in 2011. The Organization for Economic Co-operation & Development said it expected the Greek economy to remain in recession next year. It forecast the economy would contraction by 1.2% & the unemployment would stay at 28.4%. A sobering assessment of the situation.
Greece receives gloomy forecasts AP
US banks reported record net income of $40.3B for Q1, as lower loan-loss provisions helped offset a decline in interest income, the Federal Deposit Insurance Corp said. Banks’ earnings came on the heels of the 2nd-most profitable year in industry history, the FDIC said today. Industry profits were widespread with 92% of banks reporting positive income even as interest-income margins continued to tighten. Lenders set aside $11B for bad loans, a 23% reduction from a year earlier, & asset quality continued to improve with $16B in charge-offs. “Asset quality continues to improve, more institutions are profitable and the number of failures and problem institutions continues to decline,” FDIC Chairman Martin Gruenberg said. “However, industry revenue remains flat, primarily due to lower net interest margins and slow growth in loan portfolios.” Loan balances dropped by $36.8B, led by a 5.2% decline in credit-card balances, the FDIC said. Their profits are being helped by reversing charges for loan losses, not a recurring benefit to earnings.
Banks Had Record $40.3 Billion First-Quarter Earnings, FDIC Says
Stocks are stumbling again on worries about that the FED will slow or end its bond buying program. This is another vivid reminder that markets have risen largely from the benefit of low interest rates, not so much from an improved economy. Of course, the recent sell-off is way overdue for this overbought market & more selling may lie ahead. It's tough to figure out of thee disarray in DC is a plus or minus.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.04% | |
U.S. 2-year |
0.29% | |
U.S. 10-year |
2.14% |
| CLN13.NYM | ...Crude Oil Jul 13 | ....94.83 |  ...0.18 | (0.2%) |
| GCK13.CMX | ...Gold May 13 | ...1,381.30 | ...2.20 | (0.2%) |
Photo: Bloomberg
Apple's CEO Tim Cook said his staff “has several more game changers” in the pipeline. The company has “some incredible plans,” Cook said yesterday. He singled out television & wearable computing as areas of interest. A new product hasn't been released since Oct, turning up pressure to debut something fresh to reignite sales growth. Cook’s tenure has been marked more by controversies, including criticism of the company’s tax practices & labor standards in China, than by blockbuster gadgets. “What we have to do is focus on products,” Cook said. “If we do that right, if we make great products that enrich people’s lives, then the other things will happen.” In his clearest indication yet that the company is considering electronics that can adorn the body, Cook said that wearable computing could be a “profound area,” & that the wrist is particularly “interesting.” Cook said devices such as Glass from Google (GOOG), a computer for the eyes, might struggle to go mainstream. “People that do wear them generally want them to be light, to be unobtrusive,” Cook said. “They probably want them to reflect their fashion.” AAPL has a “grand vision” for television, which remains an area of interest, Cook said. It has sold more than 13M units of the TV set-top box, exceeding internal expectations, Cook said. The stock is up $4, but has a dreary chart over the last year.
Apple (AAPL)
Photo: Yahoo
Greece's central bank warned that unemployment & the recession are likely to be worse than expected this year, while a leading intl organization said the country's slow financial recovery might even force it to seek additional bailout loans. The Bank of Greece said the economy is likely to contract by a further 4.6% in 2013, with unemployment set to reach 28%. The figure is worse than the 4.2% contraction & 26.6% jobless rate predicted by the gov & the country's rescue lenders. The economy shrank an estimated 6.4% in 2012 & 7.1% in 2011. The Organization for Economic Co-operation & Development said it expected the Greek economy to remain in recession next year. It forecast the economy would contraction by 1.2% & the unemployment would stay at 28.4%. A sobering assessment of the situation.
Greece receives gloomy forecasts AP
US banks reported record net income of $40.3B for Q1, as lower loan-loss provisions helped offset a decline in interest income, the Federal Deposit Insurance Corp said. Banks’ earnings came on the heels of the 2nd-most profitable year in industry history, the FDIC said today. Industry profits were widespread with 92% of banks reporting positive income even as interest-income margins continued to tighten. Lenders set aside $11B for bad loans, a 23% reduction from a year earlier, & asset quality continued to improve with $16B in charge-offs. “Asset quality continues to improve, more institutions are profitable and the number of failures and problem institutions continues to decline,” FDIC Chairman Martin Gruenberg said. “However, industry revenue remains flat, primarily due to lower net interest margins and slow growth in loan portfolios.” Loan balances dropped by $36.8B, led by a 5.2% decline in credit-card balances, the FDIC said. Their profits are being helped by reversing charges for loan losses, not a recurring benefit to earnings.
Banks Had Record $40.3 Billion First-Quarter Earnings, FDIC Says
Stocks are stumbling again on worries about that the FED will slow or end its bond buying program. This is another vivid reminder that markets have risen largely from the benefit of low interest rates, not so much from an improved economy. Of course, the recent sell-off is way overdue for this overbought market & more selling may lie ahead. It's tough to figure out of thee disarray in DC is a plus or minus.
Dow Jones Industrials
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