Dow sank 164, declines over advancers 2-1 & NAZ went down 30. The ML:P index climbed 1+ to the 461s & the REIT index was up fractionally to the 273s. Junk bond funds slipped back & Treasuries rose. Oil was hit with profit taking & gold advanced.
AMJ (Alerian MLP Index tracking fund)
Consumer confidence in the US declined in Jan from a month earlier, indicating spending may cool following the biggest gain in 3 years at the end of 2013. The Thomson Reuters/University of Michigan final index of sentiment dropped to 81.2 this month from 82.5 in Dec. The estimate called for a decline to 81 after a preliminary Jan reading of 80.4. Less optimism, partly a reflection of declining stock prices this month, may signal households will temper their spending, which climbed in Q4 at the fastest pace since 2010. The survey’s current conditions index, which measures Americans’ view of their personal finances, decreased to 96.8 in Jan from 98.6 a month earlier. The preliminary reading was 95.2. The index of expectations 6 months from now fell to 71.2 from 72.1 last month & the preliminary gauge of the outlook showed a decline to 70.9.
Michigan Consumer Sentiment Index Decreased in January
The popular stock averages lost yesterday's gains & then some. Dow has fallen nearly 1K in Jan, not a good way to begin the new year. Emerging markets, starting with China, all of a sudden have a bunch of problems. While the predictions for GDP growth in the US are good, not all is well as seen in today's reports. Additionally, dysfunctional DC is snapping back inaction & it could create more headaches for the economic recovery. Overbought stocks need a retreat to get rid of those who are not serous investors..
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.02% | |
U.S. 2-year |
0.33% | |
U.S. 10-year |
2.66% |
| CLH14.NYM | ...Crude Oil Mar 14 | ...97.49 |  ....0.74 | (0.8%) |
| GCG14.CMX | ...Gold Feb 14 | ......1,250.20 | ...8.00 | (0.6%) |
Consumer confidence in the US declined in Jan from a month earlier, indicating spending may cool following the biggest gain in 3 years at the end of 2013. The Thomson Reuters/University of Michigan final index of sentiment dropped to 81.2 this month from 82.5 in Dec. The estimate called for a decline to 81 after a preliminary Jan reading of 80.4. Less optimism, partly a reflection of declining stock prices this month, may signal households will temper their spending, which climbed in Q4 at the fastest pace since 2010. The survey’s current conditions index, which measures Americans’ view of their personal finances, decreased to 96.8 in Jan from 98.6 a month earlier. The preliminary reading was 95.2. The index of expectations 6 months from now fell to 71.2 from 72.1 last month & the preliminary gauge of the outlook showed a decline to 70.9.
Michigan Consumer Sentiment Index Decreased in January
Photo: Bloomberg
Wal-Mart, a Dow stock & Dividend Aristocrat, said that its
fiscal Q4 & full-year adjusted EPS from continuing
operations may come in at or slightly below the low end of its prior
forecasts. The latest
comments reflects accounting for some
Brazil-related charges & other items. CFO Charles
Holley said that these additional items were not
anticipated when it previously provided its forecasts. WMT also revised its Q4 guidance for a key sales
metric. It now expects sales, excluding fuel, at Walmart & Sam's
Club locations in the US open at least a year to be slightly below its
prior forecasts. The chain previously expected the key sales figure
would be relatively flat at its namesake locations in the US & that
it would be between flat & 2% lower at Sam's Club. Holley
said that the sales were hurt by 8 winter storms that resulted in
some store closings & added that Sam's Club was hurt by weather
throughout the qtr. The performance was also hindered by a
bigger-than-expected impact from the federal gov reduction in
Supplemental Nutrition Assistance Program benefits (food stamps) that went into effect
on Nov 1. Last week, WMT announced that it was
eliminating 2300 workers at its Sam's Club division. The layoffs mark the largest since 2010 when the Sam's Club unit laid off
10K workers as it moved to outsource food demonstrations at its
stores. The company previously projected Q4 adjusted EPS from continuing operations of $1.60-$1.70.
The 2014 guidance was for $5.11-$5.21 & analysts predict EPS of $1.65 & full-year EPS of $5.16. The stock slumped 81¢.
Wal-Mart Stores (WMT)
Chevron, a Dow stock & Dividend Aristocrat, said 2014 production will
rise less than 1% as Q4-2013 tumbled 32% amid slumping prices. Crude & natural gas output will average the equivalent of
2.61M barrels a day this year, a 0.5% increase
from 2013, the company said. For Q4, EPS was $2.57, down from $3.70 a year earlier. Costs have ballooned at the $54B
Gorgon liquefied natural gas development in Australia, which is
almost 75% complete, as the company looks to deep fields
in Kazakhstan & the Golf of Mexico to add supplies. “Global crude oil prices & refining margins were
generally lower in 2013 than 2012,” CEO John Watson said. “These
conditions, as well as lower gains on asset sales and higher
expenses, resulted in lower earnings.” EPS results matched the estimate. Sales fell 7.3% to $56.2M. Q4 production fell 3.4%
to 2.58M barrels of oil equivalent a day, from 2.67M a year earlier. Earnings
from oil & gas sales dropped 29% to $4.85B. Watson has said he plans to spend $39.8B this year
on gas-export facilities, offshore crude platforms &
exploratory drilling as part of a plan to increase global
production 20% by the end of 2017. The stock fell 4.25 (but has been increasing the div 11% annually for a decade).
Chevron (CVX)
The popular stock averages lost yesterday's gains & then some. Dow has fallen nearly 1K in Jan, not a good way to begin the new year. Emerging markets, starting with China, all of a sudden have a bunch of problems. While the predictions for GDP growth in the US are good, not all is well as seen in today's reports. Additionally, dysfunctional DC is snapping back inaction & it could create more headaches for the economic recovery. Overbought stocks need a retreat to get rid of those who are not serous investors..
Dow Jones Industrials
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