Dow shot up 144, advances over decliners 3-1 & NAZ gained 45. The MLP index rose 2 to the 458s & the REIT index went up 1+ to the 272s. Junk bond funds were higher & Treasuries saw selling. Oil
advanced for a 3rd day as applications for US unemployment
benefits fell for the first time in 3 weeks. Gold keeps sloshing around the mid 1200s.
AMJ (Alerian MlP Index tracking fund)
The US trade deficit. widened more than forecast in Dec as exports ended a record year on a soft note. The trade gap expanded 12% to $38.7B, according to the Commerce Dept. It compared to an estimate of that called for a $36B gap. Exports showed a broad-based decline after surging in Nov to the highest ever, while imports edged up on rising consumer demand. US sales of petroleum products to foreign customers climbed to a record in Dec, capping their best year, continuing a drive toward fuel independence as domestic production improves. At the same time, the economy will probably pickup faster than many of its counterparts, indicating imports will also climb. For all of 2013, the trade gap narrowed 11.8% to $471B, the smallest since 2009. Exports decreased 1.8% in Dec from the prior month to $191.3B, as sales of everything from industrial supplies such as chemicals to autos, consumer & capital goods retreated. The percentage decrease was the biggest in more than a year, taking overseas sales to a 3 month low. Foreign demand for petroleum product climbed to a record $13.5B in Dec. Imports rose 0.3% to $230B in Dec, reflecting increasing purchases of crude oil & consumer goods such as cell phones.
Trade Deficit Widens More Than Forecast as Exports Decrease
General Motors posted Q4 profit that missed estimates as the automaker lost money in Asia outside of China, faced higher taxes & restructured in Europe. EPS was 67¢, trailing the 87¢ estimate & compares with 48¢ in the prior year. While GM had a record year in North America & continued profits in China, it fell short of estimates because of a higher tax rate & restructuring expenses, mostly in Germany, said CFO Chuck Stevens. “Our view is that sell-side consensus didn’t comprehend that restructuring,” he said. “The final announcement associated with that wasn’t done until early December and due to that we needed to book some of the restructuring costs, primarily related to the severance portions of that program.” Intl Operations, which include China, reported that adjusted EBIT fell to $208M from $676M in the prior year. Excluding China, the unit, which included Middle East operations, lost $200M compared with about $300M in profit a year earlier. The unit’s Q4 loss excluding China widened from about $125M in Q3. Revenue rose to $40.5B from $39.3B a year earlier, missing the $40.9B estimate. North America adjusted earnings before interest & taxes rose to $1.88B from $1.14B. The estimates called for $1.9B. Full-year EPS fell to $5.35B from $6.19B in 2012. “Launches of some of the best vehicles in our history combined with significant improvements in our core business led to a solid year,” Mary Barra, who became CEO this year, said. The qtr set the stage for the Barra era & underscored the challenges she faces in operating the automaker. The company expects modest profit gains in 2014 as improvements in operating performance in North America are offset by restructuring costs overseas. The stock inched up pennies.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM Drops as Profit Misses Estimates on Asian Losses, Europe Restructuring
Coca-Cola, a Dow stock, will buy a 10% stake in Green Moutain Coffee Roasters for about $1.25B & work with the maker of Keurig coffee brewers to introduce a system for producing single-serve cold drinks. KO is buying the 16.7M newly issued shares for about $74.98 apiece. The move fits into KO’s preferred strategy of taking equity stakes in promising new brands & technologies, such as Zico coconut water & Honest Tea, & helping incubate them. “This is not a zero-sum game, it just provides more opportunity for our brands,” KO CEO Muhtar Kent said. KO has the option to raise its stake to as much as 16% during the first 36 months. The companies are working together on the Keurig Cold single-cup beverage brewer that will be sold in GMCR fiscal 2015. GMCR will make & sell KO branded pods to go with the machine. “This is what consumers told us they wanted,” GGMCR CEO Brian Kelley said. GRCM surged $25 to the 113s & KO went up 53¢.
If you would like to learn more about GRCM, click on this link:
club.ino.com/trend/analysis/stock/GRCM?a_aid=CD3289&a_bid=6ae5b6f7
If you would like to learn more about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7
Coca-Cola to Acquire 10% Stake in Green Mountain Coffee for $1.25 Billion
Stocks finally found buyers who felt the markets were oversold. Even with this gain, Dow is down 1K YTD, not a good year. Stocks were not meant to go straight up as they have been doing for 5 years & they were not meant to go straight down as they did this year. Some earnings looked better today & bargain hunters want to keep Dow about the 10% decline mark (under 15K) which would signal a bear market. The questrion becomes, does this rally have legs? I have my doubts.
Dow Jones Industrials
AMJ (Alerian MlP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.05% | |
U.S. 2-year |
0.32% | |
U.S. 10-year |
2.69% |
| CLH14.NYM | ...Crude Oil Mar 14 | ...98.41 |  ...1.03 | (1.1%) |
| GCG14.CMX | ...Gold Feb 14 | ...1,255.00 | ...2.30 | (0.2%) |
The US trade deficit. widened more than forecast in Dec as exports ended a record year on a soft note. The trade gap expanded 12% to $38.7B, according to the Commerce Dept. It compared to an estimate of that called for a $36B gap. Exports showed a broad-based decline after surging in Nov to the highest ever, while imports edged up on rising consumer demand. US sales of petroleum products to foreign customers climbed to a record in Dec, capping their best year, continuing a drive toward fuel independence as domestic production improves. At the same time, the economy will probably pickup faster than many of its counterparts, indicating imports will also climb. For all of 2013, the trade gap narrowed 11.8% to $471B, the smallest since 2009. Exports decreased 1.8% in Dec from the prior month to $191.3B, as sales of everything from industrial supplies such as chemicals to autos, consumer & capital goods retreated. The percentage decrease was the biggest in more than a year, taking overseas sales to a 3 month low. Foreign demand for petroleum product climbed to a record $13.5B in Dec. Imports rose 0.3% to $230B in Dec, reflecting increasing purchases of crude oil & consumer goods such as cell phones.
Trade Deficit Widens More Than Forecast as Exports Decrease
General Motors posted Q4 profit that missed estimates as the automaker lost money in Asia outside of China, faced higher taxes & restructured in Europe. EPS was 67¢, trailing the 87¢ estimate & compares with 48¢ in the prior year. While GM had a record year in North America & continued profits in China, it fell short of estimates because of a higher tax rate & restructuring expenses, mostly in Germany, said CFO Chuck Stevens. “Our view is that sell-side consensus didn’t comprehend that restructuring,” he said. “The final announcement associated with that wasn’t done until early December and due to that we needed to book some of the restructuring costs, primarily related to the severance portions of that program.” Intl Operations, which include China, reported that adjusted EBIT fell to $208M from $676M in the prior year. Excluding China, the unit, which included Middle East operations, lost $200M compared with about $300M in profit a year earlier. The unit’s Q4 loss excluding China widened from about $125M in Q3. Revenue rose to $40.5B from $39.3B a year earlier, missing the $40.9B estimate. North America adjusted earnings before interest & taxes rose to $1.88B from $1.14B. The estimates called for $1.9B. Full-year EPS fell to $5.35B from $6.19B in 2012. “Launches of some of the best vehicles in our history combined with significant improvements in our core business led to a solid year,” Mary Barra, who became CEO this year, said. The qtr set the stage for the Barra era & underscored the challenges she faces in operating the automaker. The company expects modest profit gains in 2014 as improvements in operating performance in North America are offset by restructuring costs overseas. The stock inched up pennies.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM Drops as Profit Misses Estimates on Asian Losses, Europe Restructuring
General Motors (GM)
Coca-Cola, a Dow stock, will buy a 10% stake in Green Moutain Coffee Roasters for about $1.25B & work with the maker of Keurig coffee brewers to introduce a system for producing single-serve cold drinks. KO is buying the 16.7M newly issued shares for about $74.98 apiece. The move fits into KO’s preferred strategy of taking equity stakes in promising new brands & technologies, such as Zico coconut water & Honest Tea, & helping incubate them. “This is not a zero-sum game, it just provides more opportunity for our brands,” KO CEO Muhtar Kent said. KO has the option to raise its stake to as much as 16% during the first 36 months. The companies are working together on the Keurig Cold single-cup beverage brewer that will be sold in GMCR fiscal 2015. GMCR will make & sell KO branded pods to go with the machine. “This is what consumers told us they wanted,” GGMCR CEO Brian Kelley said. GRCM surged $25 to the 113s & KO went up 53¢.
If you would like to learn more about GRCM, click on this link:
club.ino.com/trend/analysis/stock/GRCM?a_aid=CD3289&a_bid=6ae5b6f7
If you would like to learn more about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7
Coca-Cola to Acquire 10% Stake in Green Mountain Coffee for $1.25 Billion
Coca-Cola (KO)
Green Mountain Coffee Roasters (GMCR)
Stocks finally found buyers who felt the markets were oversold. Even with this gain, Dow is down 1K YTD, not a good year. Stocks were not meant to go straight up as they have been doing for 5 years & they were not meant to go straight down as they did this year. Some earnings looked better today & bargain hunters want to keep Dow about the 10% decline mark (under 15K) which would signal a bear market. The questrion becomes, does this rally have legs? I have my doubts.
Dow Jones Industrials
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