Dow rose 52, advancers over decliners 5-2 & NAZ added 37. The MLP index slipped a fraction to the 451s (continuing the downward slide this year) & the REIT index climbed 1+ to 270. Junk bond funds were mixed to lower & Treasuries were weak. Oil advanced as US retail sales rose more than forecast & on
estimates that crude inventories dropped for a 7th week. Gold pulled back again.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
Retail sales rose more than forecast in Dec as consumers snapped up holiday gifts amid year-end discounting, giving the US economy a lift at the end of 2013. This is the first report, more data is coming.
House & Senate lawmakers agreed to a bipartisan compromise to fund the gov thru Sep 30, unveiling the measure days before financing for federal agencies is scheduled to lapse. The $1.01T measure would fund Obamacare & individual agencies, plus add separate war financing. Rep efforts to derail some regulatory initiatives were left out of the measure to ensure passage & avoid a repeat of the gov shutdown in Oct. “Not everyone will like everything in this bill, but in this divided government a critical bill such as this simply cannot reflect the wants of only one party,” the lawmakers said in a statement. “We believe this is a good, workable measure.” Negotiators had agreed on the $1.1T base spending in Dec as part of a 2 year, bipartisan budget agreement. Funding runs out tomorrow, so they also plan to pass a separate 3-day bill at current funding levels to push the deadline to Jan 18, give lawmakers enough time to enact the comprehensive legislation without risking a gov shutdown. The House plans to vote on the stopgap measure today.
Congress Unveils $1.1 Trillion Plan to Fund Government
JPMorgan, a Dow stock, quarterly profit fell 7.3% on $2.6B. Settlements tied to Madoff's scheme & rising legal costs ended the firm’s 3-year streak of record annual earnings. Q4 EPS fell to $1.30 from $1.39 a year earlier. Results excluding the Madoff settlement & other one-time items were $1.40 a share. Analysts estimated $1.37. CEO Jamie Dimon is whittling down the list of legal woes that include allegations it misled buyers of mortgage bonds, rigged markets & turned a blind eye to suspicious activity by customers. The Madoff agreement, reduced Q4 profit by $850M, capped a year in which the company spent more than $23B on legal settlements. Revenue dropped 1.1% to $24.1B while expenses declined 3.1% to $15.6B. Full-year profit fell 16% to $17.9B. Earnings at the corp & investment bank tumbled 57% to $858M, hurt by a $1.5B charge from changing the valuation of some over-the-counter derivatives to incorporate funding costs. Revenue at the unit fell 21% from a year earlier to $6B. Net income from consumer & community banking climbed 19% to $2.37B as provisions for credit losses fell & expenses declined. Revenue was $11.3B, down 8% from a year earlier. JPM, which has said it’s severing ties with foreign banks & individuals to tighten anti-money laundering controls, said last week it’s weighing options including a sale of its prepaid-card business. The bank was the 4th biggest prepaid-card issuer in 2012, with $9.8B of volume. The stock rose 51¢ on the good, but muddy, news.
JPMorgan Fourth-Quarter Profit Declines 7.3% on Cost of Madoff Settlements
JPM earnings were well received, even though a lot of one time items made for a blurry picture. As has become common in earnings reports, sales declined & that's not good. Dow is down 250 in Jan. If it remains under water, that would be the last major signal (after down on he first day & in the first week) for a down year
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.04% | |
U.S. 2-year |
0.36% | |
U.S. 10-year |
2.85% |
| CLG14.NYM | ...Crude Oil Feb 14 | ...92.68 |  ...0.88 | (1.0%) |
| GCF14.CMX | ...Gold Jan 14 | ...1,246.70 | ...4.20 | (0.3%) |
Retail sales rose more than forecast in Dec as consumers snapped up holiday gifts amid year-end discounting, giving the US economy a lift at the end of 2013. This is the first report, more data is coming.
House & Senate lawmakers agreed to a bipartisan compromise to fund the gov thru Sep 30, unveiling the measure days before financing for federal agencies is scheduled to lapse. The $1.01T measure would fund Obamacare & individual agencies, plus add separate war financing. Rep efforts to derail some regulatory initiatives were left out of the measure to ensure passage & avoid a repeat of the gov shutdown in Oct. “Not everyone will like everything in this bill, but in this divided government a critical bill such as this simply cannot reflect the wants of only one party,” the lawmakers said in a statement. “We believe this is a good, workable measure.” Negotiators had agreed on the $1.1T base spending in Dec as part of a 2 year, bipartisan budget agreement. Funding runs out tomorrow, so they also plan to pass a separate 3-day bill at current funding levels to push the deadline to Jan 18, give lawmakers enough time to enact the comprehensive legislation without risking a gov shutdown. The House plans to vote on the stopgap measure today.
Congress Unveils $1.1 Trillion Plan to Fund Government
JPMorgan, a Dow stock, quarterly profit fell 7.3% on $2.6B. Settlements tied to Madoff's scheme & rising legal costs ended the firm’s 3-year streak of record annual earnings. Q4 EPS fell to $1.30 from $1.39 a year earlier. Results excluding the Madoff settlement & other one-time items were $1.40 a share. Analysts estimated $1.37. CEO Jamie Dimon is whittling down the list of legal woes that include allegations it misled buyers of mortgage bonds, rigged markets & turned a blind eye to suspicious activity by customers. The Madoff agreement, reduced Q4 profit by $850M, capped a year in which the company spent more than $23B on legal settlements. Revenue dropped 1.1% to $24.1B while expenses declined 3.1% to $15.6B. Full-year profit fell 16% to $17.9B. Earnings at the corp & investment bank tumbled 57% to $858M, hurt by a $1.5B charge from changing the valuation of some over-the-counter derivatives to incorporate funding costs. Revenue at the unit fell 21% from a year earlier to $6B. Net income from consumer & community banking climbed 19% to $2.37B as provisions for credit losses fell & expenses declined. Revenue was $11.3B, down 8% from a year earlier. JPM, which has said it’s severing ties with foreign banks & individuals to tighten anti-money laundering controls, said last week it’s weighing options including a sale of its prepaid-card business. The bank was the 4th biggest prepaid-card issuer in 2012, with $9.8B of volume. The stock rose 51¢ on the good, but muddy, news.
JPMorgan Fourth-Quarter Profit Declines 7.3% on Cost of Madoff Settlements
J P Morgan Chase (JPM)
JPM earnings were well received, even though a lot of one time items made for a blurry picture. As has become common in earnings reports, sales declined & that's not good. Dow is down 250 in Jan. If it remains under water, that would be the last major signal (after down on he first day & in the first week) for a down year
Dow Jones Industrials
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