Dow inched up 5, advancers slighlty ahead of delciners & NAZ lost 1. The MLP index went up fraction to almost 527 (new record territory) & the REIT index slid pcoket change to 309. Junk bond funds edged higher & Treasuries saw selling, taking the yield on the 10 year bond back over 2½%. Oil was lower & gold dropped below the important 1300 support level.
AMJ (Alerian MLP Index tracking fund)
The number filing applications for unemployment benefits dropped last week to the lowest level in more than 8 years, reflecting what could be a pickup in auto making during a typically slow time of year. Jobless claims fell 19,K to 284K, the fewest since Feb 2006, according to the Labor Dept. But applications can be volatile in Jul because of auto plant shutdowns, even as state data showed nothing inconsistent with prior years. Fewer claims signal employers are reluctant to let go of staff as the talent pool shrinks & sales improve. The forecast projected 307K claims. The 4 week average, considered a less volatile measure than the weekly figure, decreased to 302K, the lowest since May 2007, from 309K in the prior week. The number continuing to receive jobless benefits declined 8K to 2.5M, the fewest since Jun 2007. The unemployment rate among people eligible for benefits held at 1.9%.
Jobless Claims in U.S. Unexpectedly Drop to Eight-Year Low
Euro-area manufacturing & services activity strengthened in a sign of confidence that further stimulus by the ECB will consolidate a fledgling economic recovery. A Purchasing Managers Index for both industries jumped to 54 in Jul from 52.8 in Jun, matching a 3-year high reached in Apr according to Matrix Economics, the 13th month the gauge has exceeded 50, the mark that signals expansion. Economists predicted an unchanged reading of 52.8. The pickup comes after policy makers introduced a negative deposit rate & targeted loans to bolster lending, growth & an inflation rate running at a qtr of the ECB’s goal. While risks to the economic outlook have increased with escalating tensions in the Middle East & Ukraine, strengthening manufacturing in China bodes well for export demand. A manufacturing index rose to 51.9 in Jul from 51.8 in Jun, while the gauge for services jumped to 54.4 from 52.8, Markit said. Euro-area manufacturers reported further growth of production, new orders & new exports, yet, performance across the 18-nation region diverges. Factory activity strengthened in Germany & contracted at the fastest pace this year in France. A measure for services signaled expansion at the fastest pace in 3 year in Europe’s largest economy, & the first month of growth since Apr in its neighboring country. Joblessness held at 11.6% in May, close to a record high. The ECB predicts the rate will drop to an average of 11% in 2016, while it sees growth accelerating to 1.8% from 1% this year. This is not strong data.
Euro Economy Shows Unexpected Strength After ECB Action
3M Q2 profit matched estimates as it works to boost sales in high-margin emerging markets. EPS rose to $1.91 from $1.71 a year earlier, matching estimates. CEO Inge Thulin has expanded the research & development budget, realigned business units & emphasized intl growth. He also said MMM would look to develop fast-growing business lines such as air & water filtration. Sales rose 6.6% in the Asia-Pacific region as MMM a there was growth across all 5 major business segments. Revenue increased 2.7% in Latin America & Canada, buoyed by gains in the health-care & electronics units. Total sales climbed 4.9% to a record $8.1B as revenue rose across all business lines & geographic regions. Analysts had estimated sales of $8.08B. In Dec, 3M raised its div 35% & unveiled a 5-year plan to spend as much as $10B on acquisitions & repurchase $22B of shares. The company said last week it would buy Sumitomo Electric’s 25% stake in a joint venture for $885M. “In addition to a strong operating performance, we are also deploying capital more aggressively to both improve the business and to enhance shareholder returns,” Thulin said. The company returned $2B to stockholders during Q2 with divs & repurchases. MMM reaffirmed its 2014 forecasts for EPS of $7.30-$7.55 & sales growth excluding acquisitions of 3-6%. The effects of foreign currency exchange are expected to reduce sales by about 1% this year. The stock rose 1.34. If you would like to learn more about MMM, click on this link:
club.ino.com/trend/analysis/stock/MMM?a_aid=CD3289a_bid=6ae5b6f7
3M Profit Matches Estimates Amid Emerging Markets Focus
Stocks aren't doing a lot today. Earnings data has been inconsistent, with a bias to the positive side. Intl tensions remain high which is limiting appetite for buying stocks. Traders are largely awaiting developments before committing money.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLU14.NYM | ...Crude Oil Sep 14 | ...103.01 |  ...0.11 | (0.1%) |
| GCN14.CMX | ...Gold Jul 14 | ........1,297.50 | ...7.00 | (0.5%) |
The number filing applications for unemployment benefits dropped last week to the lowest level in more than 8 years, reflecting what could be a pickup in auto making during a typically slow time of year. Jobless claims fell 19,K to 284K, the fewest since Feb 2006, according to the Labor Dept. But applications can be volatile in Jul because of auto plant shutdowns, even as state data showed nothing inconsistent with prior years. Fewer claims signal employers are reluctant to let go of staff as the talent pool shrinks & sales improve. The forecast projected 307K claims. The 4 week average, considered a less volatile measure than the weekly figure, decreased to 302K, the lowest since May 2007, from 309K in the prior week. The number continuing to receive jobless benefits declined 8K to 2.5M, the fewest since Jun 2007. The unemployment rate among people eligible for benefits held at 1.9%.
Jobless Claims in U.S. Unexpectedly Drop to Eight-Year Low
Euro-area manufacturing & services activity strengthened in a sign of confidence that further stimulus by the ECB will consolidate a fledgling economic recovery. A Purchasing Managers Index for both industries jumped to 54 in Jul from 52.8 in Jun, matching a 3-year high reached in Apr according to Matrix Economics, the 13th month the gauge has exceeded 50, the mark that signals expansion. Economists predicted an unchanged reading of 52.8. The pickup comes after policy makers introduced a negative deposit rate & targeted loans to bolster lending, growth & an inflation rate running at a qtr of the ECB’s goal. While risks to the economic outlook have increased with escalating tensions in the Middle East & Ukraine, strengthening manufacturing in China bodes well for export demand. A manufacturing index rose to 51.9 in Jul from 51.8 in Jun, while the gauge for services jumped to 54.4 from 52.8, Markit said. Euro-area manufacturers reported further growth of production, new orders & new exports, yet, performance across the 18-nation region diverges. Factory activity strengthened in Germany & contracted at the fastest pace this year in France. A measure for services signaled expansion at the fastest pace in 3 year in Europe’s largest economy, & the first month of growth since Apr in its neighboring country. Joblessness held at 11.6% in May, close to a record high. The ECB predicts the rate will drop to an average of 11% in 2016, while it sees growth accelerating to 1.8% from 1% this year. This is not strong data.
Euro Economy Shows Unexpected Strength After ECB Action
3M Q2 profit matched estimates as it works to boost sales in high-margin emerging markets. EPS rose to $1.91 from $1.71 a year earlier, matching estimates. CEO Inge Thulin has expanded the research & development budget, realigned business units & emphasized intl growth. He also said MMM would look to develop fast-growing business lines such as air & water filtration. Sales rose 6.6% in the Asia-Pacific region as MMM a there was growth across all 5 major business segments. Revenue increased 2.7% in Latin America & Canada, buoyed by gains in the health-care & electronics units. Total sales climbed 4.9% to a record $8.1B as revenue rose across all business lines & geographic regions. Analysts had estimated sales of $8.08B. In Dec, 3M raised its div 35% & unveiled a 5-year plan to spend as much as $10B on acquisitions & repurchase $22B of shares. The company said last week it would buy Sumitomo Electric’s 25% stake in a joint venture for $885M. “In addition to a strong operating performance, we are also deploying capital more aggressively to both improve the business and to enhance shareholder returns,” Thulin said. The company returned $2B to stockholders during Q2 with divs & repurchases. MMM reaffirmed its 2014 forecasts for EPS of $7.30-$7.55 & sales growth excluding acquisitions of 3-6%. The effects of foreign currency exchange are expected to reduce sales by about 1% this year. The stock rose 1.34. If you would like to learn more about MMM, click on this link:
club.ino.com/trend/analysis/stock/MMM?a_aid=CD3289a_bid=6ae5b6f7
3M Profit Matches Estimates Amid Emerging Markets Focus
3M Company (MMM)
Stocks aren't doing a lot today. Earnings data has been inconsistent, with a bias to the positive side. Intl tensions remain high which is limiting appetite for buying stocks. Traders are largely awaiting developments before committing money.
Dow Jones Industrials
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