Dow slipped 21, decliners over advancers 3-2 & NAZ was off 1. The MLP index was flat at 451 & the REIT index was off 1+ to the 283s. Junk bond funds rose & Treasuries were flattish. Oil & gold also are seeing quiet trading.
AMJ (Alerian MLP Index tracking fund)
The gov in China said the nation’s financial system must “better” serve economic growth under a prudent monetary-policy framework as the cost of borrowing on the interbank market surged. Authorities will boost credit support for industries defined as strategic & those that are labor-intensive, the State Council said. The nation must more firmly guard against financial risks, according to the central gov website. The comments follow a jump in the 7 day repurchase rate, a gauge of interbank funding availability, to the highest level since Jun 2011. Slowing economic growth combined with a crackdown on illegal capital inflows, efforts to rein in shadow banking & a campaign to control home prices have contributed to increased borrowing costs & the central bank has refrained from using reverse-repurchase agreements to inject funds into the interbank market since Feb 7. The State Council meeting today discussed how the financial industry can support a restructuring of China's economy. Chinese leaders have sought to reduce the nation’s reliance on investment & exports for economic growth. China must push forward interest-rate liberalization, encourage corp overseas investment, boost bond issuance & support those seeking to buy their first homes, according to the statement & bank lending for projects in industries with overcapacity must be banned, the State Council said. Economic problems in China are disturbing.
China Says Financial System Must Support Economy as Rates Rise
Photo: Yahoo
FedEx Corp reported a higher-than-expected quarterly profit, but also said it was cutting more capacity between the US & Asia. In particular, the express unit, FedEx's biggest source of revenue, has suffered as more cost-conscious international customers opt to use container ships instead of costly overnight shipment by air. Intl priority shipment volumes fell 2%, while intl export revenue per package fell 2% as rates dropped. "Our profit improvement program is progressing, but we continue to see the effects of customers selecting lower-rate international services," CFO Alan B. Graf Jr. said. "FedEx Express will further decrease capacity between Asia and the United States in July." EPS was 95¢, compared with $1.73 a year earlier. Excluding costs of a business realignment program &aircraft impairment charges, the company earned $2.13 a share. Analysts were expecting $1.96. Revenue rose 3.6% to $11.4B, with FedEx Express revenue up 3% at almost $7B. Revenue for the ground segment, which has been a strong performer, was $2.8B, up 12. Average daily volume grew 10% helped by market share gains & growth in e-commerce. FDX forecast earnings growth of 7-13%, excluding special items, for its new fiscal year, assuming US GDP growth of 2.3%, world GDP growth of 2.7% & the current outlook for fuel prices. Analysts were expecting EPS of $7.31. The stock rose 3.73.
FedEx Sees 2014 Profit Gain Up to 13% Amid Cutting Costs
Photo: Bloomberg
General Motors, which broke ground on a new Cadillac assembly plant in China, forecast demand for luxury autos will grow at a slower pace than the total vehicle market this year. Sales of premium cars will probably increase about 4% this year, or about half the pace that GM had expected at the start of the year, Bob Socia, GM’s China head, said. It expects total industry sales to increase about 7-8% this year. Demand for luxury items have slumped since President Xi Jinping ordered officials to cut down on lavish spending & stepped up investigations into graft. Sales in China are slowing at a time when European car deliveries are tumbling to a 20-year low. GM aims to more than triple Cadillac sales by 2015 in China to 100K as it brings out a new model every year through 2016. CEO Dan Akerson has said the luxury brand is a priority in the company’s plan to invest $11B in China thrU 2016. The automaker is targeting to win 10% of China’s luxury market by 2020. The stock was up 14¢.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.05% | |
U.S. 2-year |
0.26% | |
U.S. 10-year |
2.18% |
| CLN13.NYM | ...Crude Oil Jul 13 | ...98.48 |  ...0.04 | (0.0%) |
| GCN13.CMX | ...Gold Jul 13 | .....1,372.80 | ...6.10 | (0.5%) |
The gov in China said the nation’s financial system must “better” serve economic growth under a prudent monetary-policy framework as the cost of borrowing on the interbank market surged. Authorities will boost credit support for industries defined as strategic & those that are labor-intensive, the State Council said. The nation must more firmly guard against financial risks, according to the central gov website. The comments follow a jump in the 7 day repurchase rate, a gauge of interbank funding availability, to the highest level since Jun 2011. Slowing economic growth combined with a crackdown on illegal capital inflows, efforts to rein in shadow banking & a campaign to control home prices have contributed to increased borrowing costs & the central bank has refrained from using reverse-repurchase agreements to inject funds into the interbank market since Feb 7. The State Council meeting today discussed how the financial industry can support a restructuring of China's economy. Chinese leaders have sought to reduce the nation’s reliance on investment & exports for economic growth. China must push forward interest-rate liberalization, encourage corp overseas investment, boost bond issuance & support those seeking to buy their first homes, according to the statement & bank lending for projects in industries with overcapacity must be banned, the State Council said. Economic problems in China are disturbing.
China Says Financial System Must Support Economy as Rates Rise
Photo: Yahoo
FedEx Corp reported a higher-than-expected quarterly profit, but also said it was cutting more capacity between the US & Asia. In particular, the express unit, FedEx's biggest source of revenue, has suffered as more cost-conscious international customers opt to use container ships instead of costly overnight shipment by air. Intl priority shipment volumes fell 2%, while intl export revenue per package fell 2% as rates dropped. "Our profit improvement program is progressing, but we continue to see the effects of customers selecting lower-rate international services," CFO Alan B. Graf Jr. said. "FedEx Express will further decrease capacity between Asia and the United States in July." EPS was 95¢, compared with $1.73 a year earlier. Excluding costs of a business realignment program &aircraft impairment charges, the company earned $2.13 a share. Analysts were expecting $1.96. Revenue rose 3.6% to $11.4B, with FedEx Express revenue up 3% at almost $7B. Revenue for the ground segment, which has been a strong performer, was $2.8B, up 12. Average daily volume grew 10% helped by market share gains & growth in e-commerce. FDX forecast earnings growth of 7-13%, excluding special items, for its new fiscal year, assuming US GDP growth of 2.3%, world GDP growth of 2.7% & the current outlook for fuel prices. Analysts were expecting EPS of $7.31. The stock rose 3.73.
FedEx Sees 2014 Profit Gain Up to 13% Amid Cutting Costs
FedEx (FDX)
Photo: Bloomberg
General Motors, which broke ground on a new Cadillac assembly plant in China, forecast demand for luxury autos will grow at a slower pace than the total vehicle market this year. Sales of premium cars will probably increase about 4% this year, or about half the pace that GM had expected at the start of the year, Bob Socia, GM’s China head, said. It expects total industry sales to increase about 7-8% this year. Demand for luxury items have slumped since President Xi Jinping ordered officials to cut down on lavish spending & stepped up investigations into graft. Sales in China are slowing at a time when European car deliveries are tumbling to a 20-year low. GM aims to more than triple Cadillac sales by 2015 in China to 100K as it brings out a new model every year through 2016. CEO Dan Akerson has said the luxury brand is a priority in the company’s plan to invest $11B in China thrU 2016. The automaker is targeting to win 10% of China’s luxury market by 2020. The stock was up 14¢.
GM Says New V-6 Pickups Fuel Efficiency Exceed Ford’s F-Series Trucks
There is not much going on in the stock market as everybody is eagerly awaiting what Big Ben has to say. I have a feeling that bulls have been buying on the rumor & will sell on the news in the PM.
Dow Jones Industrials
General Motors (GM)
There is not much going on in the stock market as everybody is eagerly awaiting what Big Ben has to say. I have a feeling that bulls have been buying on the rumor & will sell on the news in the PM.
Dow Jones Industrials
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