Dow slipped 1, decliners barely ahead of advancers & NAZ had an impressive rise of 17. Buying in the PM reduced the loss for the MLP index to 1+ to 452 & the REIT index was fractionally lower in the 284s. Junk bond funds slid lower & Treasuries were little changed. Oil dropped to 103 & gold was flattish.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
This is the best guess of what to look for when the FOMC releases a statement tomorrow. Unlike last month, the policy-making panel will not release economic forecasts, & Big Ben will not be briefing the press afterwards. (1) Possible clarification in the statement on the likely path of the bond buying, currently $85B a month. Bernanke said on Jun 19 that the central bank may begin reducing the pace of purchases “later this year” & may end the program about the middle of 2014, assuming the economy performs as forecast. By the time the program ends, unemployment should be around 7%, Bernanke said (versus 7.6% presently). (2) An emphasis from the FOMC that it expects to pursue accommodative policy for the foreseeable future, even after the committee concludes its so-called quantitative easing program. The FOMC has kept its benchmark interest rate near zero since Dec 2008. Consider this baked into the market.
Fed Decision-Day Guide From QE Tapering Guidance to Dissents
Photo: Bloomberg
Pfizer's, a Dow stock, 2 new brand-drug units will operate on a separate basis, reporting independent profits & losses, under the leaders that CEO Ian Read elevated to head them. The businesses, along with an established products line that could be split from the company after 2017, will report separate results that will show how each line of drugs, & the leaders managing them, are performing. “I wanted to focus great executive talent on both of those segments of the business,” Read said. The units, led by Geno Germano & Amy Schulman, have different needs & strategies, Read said. PFE is in the middle of a transition that may see it broken up into a brand-medicine company, “innovative core,” & a generics business. Such a split almost certainly wouldn’t happen until at least 2017, in part because PFE needs 3 years of audited financial statements, as well as time to get the businesses running smoothly on a separate basis. “Our current thinking is that this is about getting all three of these businesses to hum internally,” CFO Frank D’Amelio said & added that it would be difficult to split the company before 2017 if Pfizer decides to take that ultimate step. Earlier Q2 EPS excluding one-time items of 56¢ was reported, a penny above the analyst forecast. EPS rose more than fourfold from a year earlier to $1.98, helped by the spinoff of the company’s animal-health unit & a patent settlement. The stock went up 13¢.
Pfizer Beats Estimates as Company Prepares for Split
Photo: Bloomberg
Home prices rose in May by the most in more than 7 years as the recovery in US residential real estate gained momentum. The S&P/Case-Shiller index of property values climbed 12.2% from May 2012, the biggest 12-month gain since Mar 2006, after advancing 12.1% a month earlier. The median projection called for a 12.4% advance. Historically low borrowing costs, short supply & improving job market are boosting demand for residential property & driving prices up. The climb in home values is also bolstering household finances, which may spur consumer spending, the largest part of the US economy. The S&P/Case-Shiller index is based on a 3-month average, which means the May data were influenced by transactions in Mar & Apr. The Apr reading for the year-to-year gain was unrevised. Home prices adjusted for seasonal variations rose 1% in May from the prior month, compared with a 1.7% in Apr.
Home Prices in U.S. Rose in Year to May by Most Since 2006
Traders were taking it easy ahead of the big announcement tomorrow by the FOMC. Dow has been pretty much treading water during the last 2 weeks. After a stellar advance this year, it's barely above where it was at the end of May. Mediocre GDP growth along with the expectation of rising interest rates has been a damper on even the strongest bulls. Tomorrow could be a very big day in the markets, followed by the Jul jobs report on Fri.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLU13.NYM | ...Crude Oil Sep 13 | ...102.87 |  ...1.68 | (1.6%) |
Treasury yields:
U.S. 3-month |
0.03% | |
U.S. 2-year |
0.31% | |
U.S. 10-year |
2.60% |
This is the best guess of what to look for when the FOMC releases a statement tomorrow. Unlike last month, the policy-making panel will not release economic forecasts, & Big Ben will not be briefing the press afterwards. (1) Possible clarification in the statement on the likely path of the bond buying, currently $85B a month. Bernanke said on Jun 19 that the central bank may begin reducing the pace of purchases “later this year” & may end the program about the middle of 2014, assuming the economy performs as forecast. By the time the program ends, unemployment should be around 7%, Bernanke said (versus 7.6% presently). (2) An emphasis from the FOMC that it expects to pursue accommodative policy for the foreseeable future, even after the committee concludes its so-called quantitative easing program. The FOMC has kept its benchmark interest rate near zero since Dec 2008. Consider this baked into the market.
Fed Decision-Day Guide From QE Tapering Guidance to Dissents
Photo: Bloomberg
Pfizer's, a Dow stock, 2 new brand-drug units will operate on a separate basis, reporting independent profits & losses, under the leaders that CEO Ian Read elevated to head them. The businesses, along with an established products line that could be split from the company after 2017, will report separate results that will show how each line of drugs, & the leaders managing them, are performing. “I wanted to focus great executive talent on both of those segments of the business,” Read said. The units, led by Geno Germano & Amy Schulman, have different needs & strategies, Read said. PFE is in the middle of a transition that may see it broken up into a brand-medicine company, “innovative core,” & a generics business. Such a split almost certainly wouldn’t happen until at least 2017, in part because PFE needs 3 years of audited financial statements, as well as time to get the businesses running smoothly on a separate basis. “Our current thinking is that this is about getting all three of these businesses to hum internally,” CFO Frank D’Amelio said & added that it would be difficult to split the company before 2017 if Pfizer decides to take that ultimate step. Earlier Q2 EPS excluding one-time items of 56¢ was reported, a penny above the analyst forecast. EPS rose more than fourfold from a year earlier to $1.98, helped by the spinoff of the company’s animal-health unit & a patent settlement. The stock went up 13¢.
Pfizer Beats Estimates as Company Prepares for Split
Pfizer (PFE)
Photo: Bloomberg
Home prices rose in May by the most in more than 7 years as the recovery in US residential real estate gained momentum. The S&P/Case-Shiller index of property values climbed 12.2% from May 2012, the biggest 12-month gain since Mar 2006, after advancing 12.1% a month earlier. The median projection called for a 12.4% advance. Historically low borrowing costs, short supply & improving job market are boosting demand for residential property & driving prices up. The climb in home values is also bolstering household finances, which may spur consumer spending, the largest part of the US economy. The S&P/Case-Shiller index is based on a 3-month average, which means the May data were influenced by transactions in Mar & Apr. The Apr reading for the year-to-year gain was unrevised. Home prices adjusted for seasonal variations rose 1% in May from the prior month, compared with a 1.7% in Apr.
Home Prices in U.S. Rose in Year to May by Most Since 2006
Traders were taking it easy ahead of the big announcement tomorrow by the FOMC. Dow has been pretty much treading water during the last 2 weeks. After a stellar advance this year, it's barely above where it was at the end of May. Mediocre GDP growth along with the expectation of rising interest rates has been a damper on even the strongest bulls. Tomorrow could be a very big day in the markets, followed by the Jul jobs report on Fri.
Dow Jones Industrials
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