Monday, November 11, 2013

Markets fluctuate on a semi holiday

Dow crawled up 16, advancers slighltly ahead of decliners & NAZ fell 6.  The MLP index slipped 1+ to 448 & the REIT index rose 1+ to 271.  Junk bond funds were mixed while Treasuries are on holiday.  Oil climbed higher on the failure of Iran talks & gold did little.

AMJ (Alerian MLP Index tracking fund)

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CLZ13.NYM....Crude Oil Dec 13...94.73 Up ...0.13 (0.1%)

GCX13.CMX...Gold Nov 13......1,281.00 Down ...3.50  (0.3%)

4 days of talks in Geneva on Iran's nuclear program fell short of a deal.  While the negotiations are scheduled to resume on Nov 20, the closed-door discussions left unresolved questions about Iran’s willingness to suspend or dismantle its nuclear-enrichment activities & the wisdom of any move by the US & allies to ease economic sanctions on the Islamic Republic.  These talks move oil prices.

Inconclusive Iran Nuclear Talks Lead to Another Try: Q&A

China's broadest measure of new credit trailed estimates in Oct, suggesting authorities are trying to keep shadow-finance risks in check as leaders map out a blueprint to sustain growth.  Aggregate financing was 856.4B yuan ($141B), the People’s Bank of China said.  New local-currency loans of 506B yuan compared with the 580B yuan estimate.  The broadest measure of money supply, rose 14.3% from a year earlier.  Slower credit would constrain growth while limiting risks of a financial crisis as China seeks a way to replace the debt-fueled investment & construction that have sustained expansion since the global financial crisis in 2008.  President Xi Jinping & top Communist leaders tomorrow conclude a 4 day gathering to set the direction of economic reforms.   The below-forecast loans & credit compare with reports last week showing industrial production accelerated last month, exports rose more than estimated & inflation stayed beneath the gov target.  Money supply rose 14.2% in Sep from a year earlier & was projected to advance 14.2% in Oct.  There are signals that authorities want to limit debt.  The central bank said in a report last week that the economy “may see a decline in leverage” over a relatively long period.  Premier Li Keqiang said in remarks published last week that “there’s a lot of money in the ‘pool’ & issuing more money may lead to inflation,” citing the nation’s outstanding M2 money supply of more than 100T yuan ($16T) as of Mar, about double GDP.

China New-Credit Drop Shows Shadow-Finance Curbs as Leaders Meet

Pepsico, a Dividend Aristocrat, said it will invest 330B rupees ($5.2B) with its partners in India by 2020 as it increases its manufacturing capacity & adds new products.  The company & its partners will ramp up investment in delivery infrastructure in the world’s 2nd most populous nation with a focus on rural areas, it said in a statement today.  “India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo,” CEO Indra Noovi said.  “We believe we’ve only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners.”  The company is vying for a bigger chunk of developing countries’ business as growth rates in Asia, the Middle East & Africa are 4-5 those in the US & Europe.  It generated about half its $65.5B in revenue last year from outside the US.  India is one of the company’s biggest markets globally & the investments will also allow it to expand the range of food & drinks it sells in the South Asian nation.  The stock slid 15¢.

PepsiCo to Invest More Than $5 Billion in India by 2020 With Partners

Pepsico (PEP)

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There's very little going on today with many traders taking a long weekend.  Dow remains around its record highs but earnings reports from retailers this week may bring out selling.

Dow Jones Industrials

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