Dow slid 15, decliners ahead of advancers 5-4 & NAZ was off 3. The MLP index lost 5+ to the 462s & the REIT index was fractionally higher in the 289s. Junk bond funds slipped about 1% & Treasuries were largely unchanged. Oil & gold climbed higher.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
U.S. homebuilders are feeling more optimistic about their home sales prospects than they have in more than 7 years, a trend that suggests home construction will accelerate in coming months. The National Association of Home Builders/Wells Fargo builder sentiment index jumped to 57 this month from 51 in Jun. A reading above 50 indicates more builders view sales conditions as good, rather than poor. The index hasn't been that high since Jan 2006, well before the housing market crashed. Measures of customer traffic, current sales conditions & builders' outlook for single-family home sales over the next 6 months vaulted to their highest levels in at least 7 years. Steady job growth, low mortgage rates, rising home prices & tight supplies of homes for sale have supported a recovery in housing this year.
Homebuilder Confidence in U.S. Increases More Than Forecast
Photo: Yahoo
Industrial Production in U.S. Rises by Most in Four Months
Photo: Yahoo
Coca-Cola, a Dow stock & Dividend Aristocrat, profit dipped in Q2 as it sold less soda in the North American market. Global volume rose just 1%, helped by sales in countries including Vietnam & Indonesia. But in North America, it fell 1%, including a 4% drop in sodas. The company blamed the performance on bad weather & challenging economic conditions. KO has increasingly been relying on emerging markets for growth, given the expanding middle-class populations in such regions. As Americans cut back on soda, the company has also been pushing drinks such as Dasani, Powerade & SmartWater. Overall volume for uncarbonated drinks rose 5% in North America in Q2. KO is also working on coming up with a soda formula that uses a natural, low-calorie sweetener. Volume for Europe also declined 4% for the period while the region encompassing Africa, the Middle East & Russia saw a 9% increase in volume. The Asia region rose 2%, with volume in China even from a year ago. EPS was 59¢, down from 61¢ a year earlier. Excluding one-time items, EPS was 63¢, in line with expectations. Revenue fell to $12.75B, short of the $12.95B expected. The stock was off 77¢
Coca-Cola Profit Declines as European Sales Volumes Fall
After reaching another record higher yesterday, Dow is taking time to pause & reflect. Earnings are coming in basically OK but continue to reflect soggy economies around the world. Bank earnings have been fairly good. However they failed to inspire strong buying in the markets. MLPs had a nasty spill today, but they're entitled following recent gains which took the index to essentially a new record high. Initial signals are that earnings are coming in about as expected.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.03% | |
U.S. 2-year |
0.32% | |
U.S. 10-year |
2.53% |
| CLQ13.NYM | ...Crude Oil Aug 13 | ...106.36 |  ...0.04 (0.0%) |
| GCN13.CMX | ...Gold Jul 13 | .........1,288.50 | ....4.70 | (0.4%) |
Photo: Bloomberg
U.S. homebuilders are feeling more optimistic about their home sales prospects than they have in more than 7 years, a trend that suggests home construction will accelerate in coming months. The National Association of Home Builders/Wells Fargo builder sentiment index jumped to 57 this month from 51 in Jun. A reading above 50 indicates more builders view sales conditions as good, rather than poor. The index hasn't been that high since Jan 2006, well before the housing market crashed. Measures of customer traffic, current sales conditions & builders' outlook for single-family home sales over the next 6 months vaulted to their highest levels in at least 7 years. Steady job growth, low mortgage rates, rising home prices & tight supplies of homes for sale have supported a recovery in housing this year.
Homebuilder Confidence in U.S. Increases More Than Forecast
Photo: Yahoo
US factories cranked out more business equipment, home electronics & autos in Jun, boosting manufacturing output for the 2nd straight
month, suggesting factories may be starting to recover from a
slow start this year. The Federal Reserve said that manufacturing production rose
0.3% in Jun from May, following a 0.2% gain the
previous month. Still, the 2 consecutive gains barely offset
production declines in Mar & Apr. Overall industrial production, which includes factories, mines &
utilities, also rose 0.3% in Jun. Mining output increased 0.8%, while utility output slid 0.1%. Manufacturing is the most critical component of industrial
production. Manufacturers have struggled this year, providing little support to
the economy. Their output is up just 1.8% over the past 12
months & factories have cut jobs in each of the past 4 months,
shedding 24K workers since Feb. A key reason for the weakness is
slower global growth has cut demand for US exports. Europe is still in
a recession & China's economy grew in Q2 at the
slowest pace in more than 2 decades.
Industrial Production in U.S. Rises by Most in Four Months
Photo: Yahoo
Coca-Cola, a Dow stock & Dividend Aristocrat, profit dipped in Q2 as it sold less soda in the North American market. Global volume rose just 1%, helped by sales in countries including Vietnam & Indonesia. But in North America, it fell 1%, including a 4% drop in sodas. The company blamed the performance on bad weather & challenging economic conditions. KO has increasingly been relying on emerging markets for growth, given the expanding middle-class populations in such regions. As Americans cut back on soda, the company has also been pushing drinks such as Dasani, Powerade & SmartWater. Overall volume for uncarbonated drinks rose 5% in North America in Q2. KO is also working on coming up with a soda formula that uses a natural, low-calorie sweetener. Volume for Europe also declined 4% for the period while the region encompassing Africa, the Middle East & Russia saw a 9% increase in volume. The Asia region rose 2%, with volume in China even from a year ago. EPS was 59¢, down from 61¢ a year earlier. Excluding one-time items, EPS was 63¢, in line with expectations. Revenue fell to $12.75B, short of the $12.95B expected. The stock was off 77¢
Coca-Cola Profit Declines as European Sales Volumes Fall
Coca-Cola (KO)
After reaching another record higher yesterday, Dow is taking time to pause & reflect. Earnings are coming in basically OK but continue to reflect soggy economies around the world. Bank earnings have been fairly good. However they failed to inspire strong buying in the markets. MLPs had a nasty spill today, but they're entitled following recent gains which took the index to essentially a new record high. Initial signals are that earnings are coming in about as expected.
Dow Jones Industrials
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