Dow fell 142, decliners ahead of advancers 2-1 & NAZ dropped 21. The MLP index was off 2 to the 455s & the REIT index fell fractionally to the 286s. Junk bond funds did little while Treasuries rose. Oil was aboiut even & gold slipped a tad.
AMJ (Alerian MLP Index tracking fund)
Photo: Yahoo
US consumer sentiment rose in Jul to the highest level in 6 years as Americans felt better about the current economic climate, though they expected to see a slower rate of growth in the year ahead. The Thomson Reuters/University of Michigan's final reading on consumer sentiment climbed to 85.1 from 84.1 in Jun, topping expectations for 84. It was the highest level since Jul 2007 & was also an improvement from the initial reading for Jul of 83.9. "This high level of confidence points toward a continued expansion of consumer spending in the year ahead," survey director Richard Curtin said. Still, there were a number of cross-currents among consumers' attitudes amid expectations interest rates will rise. Future prospects for the economy were judged slightly less favorably, while lower income households were more optimistic than higher income earners. The survey's barometer of current economic conditions also hit the highest level in 6 years, jumping to 98.6 from 93.8. But the gauge of consumer expectations was less robust, slipping to 76.5 from 77.8. Increasing expectations that interest rates will rise have prompted consumers to pick up the pace of their purchases. The index of buying conditions for durable goods rose to 149 from 143, while 68% of consumers expected rates to rise in the coming year, up from 55% in Jun (the highest proportion to expect interest rate hikes since Aug 2006). The one-year inflation expectation rose to 3.1% from 3%, though the survey's 5-10-year inflation outlook fell to 2.8% after holding at 2.9% for 3 months.
Greece won the release of a €2.5B ($3.3B) loan installment to tide it through the coming weeks, as European govs put off debate over Greek debt relief until after Germany's election in Sep. Euro govs approved the payment today, according to the European Commission spokesman, after Greece yesterday took steps to pare public-sector payrolls, meeting the last of 22 conditions set by creditors. “As a result, with the proviso that the national approval procedures are completed, which we expect to happen on Monday, the disbursement can take place of €2.5B from the EFSF & €1.5B of income generated to national central banks from the securities markets program,” the spokesman said. Then Greece is scheduled to receive an additional €500Ms from the European Financial Stability Facility & to recoup the same amount from profits made by euro-area central banks on Greek bonds in their portfolios. These payments, set for Oct, are contingent upon Greece’s fulfillment of additional requirements. Greece is also scheduled to receive €1.8B from the IMF.
Greece Wins 2.5 Billion-Euro Aid Loan, Buying Time in Crisis
Photo: Bloomberg
Starbucks CEO Howard Schultz's push into food is starting to pay off, driving traffic into US stores & lifting sales & profit. It has introduced a range of menu items, including salad bowls with such flavors as zesty chicken & black bean. Earlier this week, the company announced a partnership with Danone to develop & sell Greek yogurt in cafes & in supermarkets. It also is adding La Boulange baked goods in US locations. EPS rose to 55¢ from 43¢ a year earlier. Analysts projected 53¢. “Foods have been phenomenal for us,” CFO Troy Alstead said. Refreshers energy drinks & macchiato espresso coffees also helped US sales during the qtr, he said. Revenue advanced 13% to $3.74B & analysts estimate it will increases 12% to $14.8B in fiscal 2013. Sales at stores open at least 13 months gained 9% in the Americas, topping the 6.1% estimates. It raised prices for some of its drinks at US company-operated cafes last month. In some areas, it was the first price increase in as long as 2 years. SBUX increased its forecast for fiscal 2013 EPS excluding certain items to as much as $2.23 from a previous estimate of as much as $2.18 (matching the analysts projection). EPS in Q4 will be as much as 60¢, which includes a 3¢ gain from the sale of its equity in some operations in Argentina & Chile, ahead of the 57¢ estimate. The stock jumped 5.02 to a new record.
Stocks are pausing for a day of rest. Long traders are cashing in profits so they can enjoy the weekend. Dow is back where it was 2 weeks ago, indicating earnings have not been inspiring. Now it's time for straggler companies to report. Then more attention will be paid to DC with the gov fiscal year winding down which will bring budget battles & debate about raising the debt limit for the Treasury.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.02% | |
U.S. 2-year |
0.32% | |
U.S. 10-year |
2.57% |
| CLU13.NYM | ...Crude Oil Sep 13 | ...104.97 |  ...0.52 | (0.5%) |
| GCN13.CMX | ...Gold Jul 13 | .........1,325.10 | ...3.90 | (0.3%) |
Photo: Yahoo
US consumer sentiment rose in Jul to the highest level in 6 years as Americans felt better about the current economic climate, though they expected to see a slower rate of growth in the year ahead. The Thomson Reuters/University of Michigan's final reading on consumer sentiment climbed to 85.1 from 84.1 in Jun, topping expectations for 84. It was the highest level since Jul 2007 & was also an improvement from the initial reading for Jul of 83.9. "This high level of confidence points toward a continued expansion of consumer spending in the year ahead," survey director Richard Curtin said. Still, there were a number of cross-currents among consumers' attitudes amid expectations interest rates will rise. Future prospects for the economy were judged slightly less favorably, while lower income households were more optimistic than higher income earners. The survey's barometer of current economic conditions also hit the highest level in 6 years, jumping to 98.6 from 93.8. But the gauge of consumer expectations was less robust, slipping to 76.5 from 77.8. Increasing expectations that interest rates will rise have prompted consumers to pick up the pace of their purchases. The index of buying conditions for durable goods rose to 149 from 143, while 68% of consumers expected rates to rise in the coming year, up from 55% in Jun (the highest proportion to expect interest rate hikes since Aug 2006). The one-year inflation expectation rose to 3.1% from 3%, though the survey's 5-10-year inflation outlook fell to 2.8% after holding at 2.9% for 3 months.
Greece won the release of a €2.5B ($3.3B) loan installment to tide it through the coming weeks, as European govs put off debate over Greek debt relief until after Germany's election in Sep. Euro govs approved the payment today, according to the European Commission spokesman, after Greece yesterday took steps to pare public-sector payrolls, meeting the last of 22 conditions set by creditors. “As a result, with the proviso that the national approval procedures are completed, which we expect to happen on Monday, the disbursement can take place of €2.5B from the EFSF & €1.5B of income generated to national central banks from the securities markets program,” the spokesman said. Then Greece is scheduled to receive an additional €500Ms from the European Financial Stability Facility & to recoup the same amount from profits made by euro-area central banks on Greek bonds in their portfolios. These payments, set for Oct, are contingent upon Greece’s fulfillment of additional requirements. Greece is also scheduled to receive €1.8B from the IMF.
Greece Wins 2.5 Billion-Euro Aid Loan, Buying Time in Crisis
Photo: Bloomberg
Starbucks CEO Howard Schultz's push into food is starting to pay off, driving traffic into US stores & lifting sales & profit. It has introduced a range of menu items, including salad bowls with such flavors as zesty chicken & black bean. Earlier this week, the company announced a partnership with Danone to develop & sell Greek yogurt in cafes & in supermarkets. It also is adding La Boulange baked goods in US locations. EPS rose to 55¢ from 43¢ a year earlier. Analysts projected 53¢. “Foods have been phenomenal for us,” CFO Troy Alstead said. Refreshers energy drinks & macchiato espresso coffees also helped US sales during the qtr, he said. Revenue advanced 13% to $3.74B & analysts estimate it will increases 12% to $14.8B in fiscal 2013. Sales at stores open at least 13 months gained 9% in the Americas, topping the 6.1% estimates. It raised prices for some of its drinks at US company-operated cafes last month. In some areas, it was the first price increase in as long as 2 years. SBUX increased its forecast for fiscal 2013 EPS excluding certain items to as much as $2.23 from a previous estimate of as much as $2.18 (matching the analysts projection). EPS in Q4 will be as much as 60¢, which includes a 3¢ gain from the sale of its equity in some operations in Argentina & Chile, ahead of the 57¢ estimate. The stock jumped 5.02 to a new record.
Starbucks (SBUX)
Stocks are pausing for a day of rest. Long traders are cashing in profits so they can enjoy the weekend. Dow is back where it was 2 weeks ago, indicating earnings have not been inspiring. Now it's time for straggler companies to report. Then more attention will be paid to DC with the gov fiscal year winding down which will bring budget battles & debate about raising the debt limit for the Treasury.
Dow Jones Industrials
No comments:
Post a Comment