Tuesday, November 19, 2013

Markets slide lower before Bernanke speaks

Dow slipped 8, decliners ahead of advancers 2-1 & NAZ sank 17.  The MLP index lost a very big 6 to the 446s (continuing its sideways trading since late Mar) & the REIT index was off 2 to 269.  Junk bond funds were weak & Treasuries sold off.  There was bargain hunting for oil in the PM & gold rose as the dollar’s drop boosted demand for an alternative asset.

AMJ (Alerian MLP Index tracking fund)

stock chart

Treasur yields:

U.S. 3-month


U.S. 2-year


U.S. 10-year


CLZ13.NYM...Crude Oil Dec 13....93.41 Up ...0.38 (0.4%)

Live 24 hours gold chart [Kitco Inc.]

General Electric's, a Dow stock, real estate unit said it agreed to acquire commercial-property debt valued at £1.4B ($2.3B) from Deutsche Postbank to expand its refinancing & new-loan business.  The loans are mainly to UK borrowers & are performing, GE Capital Real Estate said today.  Many of the loans have near-term expirations that will give GE access to new customers.  “This transaction supports GE’s plans to grow our core commercial real estate lending business globally,” Mark Begor, CEO of the unit, said.  The Capital’s real estate unit, among the biggest commercial-property investors globally before the financial crisis, shifted its focus back to lending in 2010.  The unit has assets of $40B.  GE stock fell pocket change.

GE Unit to Buy Commercial Loans Valued at $2.3 Billion

General Electric (GE)

stock chart

JPMorgan Chase, another Dow stock, & the Dept of Justice are near final agreement on a record $13B settlement over problem mortgage securities, & could announce the deal next week.  The nation's largest bank late last week agreed to take responsibility for problems with mortgage securities marketed by Washington Mutual, the failed bank acquired in 2008 during the financial crisis.  The FDIC had taken control of Washington Mutual & later sold the assets to JPM.  The tentative deal also calls for $4B in relief for homeowners, including $1.5B in principle write-downs on mortgages & $300M in other relief.  That part of the pending agreement would resolve civil investigations by the offices of the NY Attorney General & California Attorney General.  Also covered by the tentative deal is the $4B payment announced last month by the Federal Housing Finance Agency to resolve allegations that the bank violated securities laws in connection with $33.8B in mortgages sold to Fannie Mae & Freddie Mac.  The tentative agreement would set a financial record for a Dept of Justice settlement with a single company.  The deal follows $Bs in other settlements reached by JPM in recent months, including a tentative $4.5B settlement announced Fri with 21 major institutional investors over mortgage-backed securities sold to them before the financial crisis.  JPM went up 41¢.

JPMorgan, Justice Department near $13B settlement

J P Morgan Chase (JPM)

stock chart

Campbell fell the most in almost 5 years after saying its annual profit will be less than it previously estimated as soup & beverage sales slow.  Campbell soup sales in the US have dragged in recent months, where it competes with private-labels after colder temps last year bolstered results.  Sales in the US soup division fell 6% during fiscal Q1 as retailers reduced inventory amid a weaker consumer environment.  Adjusted profit in the year ending in Jul will increase by as much as 4% & as high as $2.58 a share, down from a prior forecast for growth of as much as 5%.  Analysts estimated $2.59.  Fiscal Q1 EPS was 66¢, trailing the 86¢ estimate.  Revenue fell 1.8% to $2.17B versus the $2.29B estimate.  US soup sales declined in part because retailers held orders until the Q2 because of the late Thanksgiving holiday.  Condensed soup sales fell 7% while ready-to-serve varieties declined 11%.  Beverage sales in the U.S. fell 8% led by V8 V-Fusion juice drinks.  New soups planned for introduction in Jul & Aug in preparation for the winter season will instead be introduced between now & Apr to try to get consumers interested well in advance.  The varieties include new Chunky & Hispanic-inspired cooking soups.  CPB slumped 2.61.

Campbell Falls After Trimming Annual Profit Forecast as Sales of Soup Slow

Campbell Soup (CPB)

stock chart

Dow stayed close to breakeven after setting a new record yesterday.  But it has soared 1.2K from its lows 6 weeks ago & is up almost 3K YTD.  All is due to Big Ben throwing money at the market.  However even free money can't get the economy to make significant gains.  Next week is the big holiday which will be followed 2 weeks later another DC deadline to fix the budget again.  With so much attention on the Obamacare mess, very little is being done to fund the federal budget for the rest of the fiscal year.  These are scary times & the bulls are not worried.  At least not yet!

Dow Jones Industrials

stock chart

I’m a huge fan of INO, & from what I have seen so far, their service Marketclub!  This isn’t a stripped down version, everything in MarketClub is available to you.  I don’t want to give everything away, but you’ll have unlimited access to my favorite three tools: Trade Triangles, Smart Scan & Alerts!  The best part is that the MarketClub customer support team will be providing UNLIMITED support!  You can call or email for an instant response to any question, comment or concern.

Here’s that link:


I’d recommend you jump on this now.

No comments: