Dow dropped 69 closing near the low, decliners over advancers 3-2 & NAZ fell 17. The MLP index dropped another massive 4+ to the 496s (the record high was 526 one month ago) & the REIT index was fractionally lower to 302. Junk bond funds slid lower after yesterday's big sell-off & Treasuries climbed after data showing the US added fewer jobs than
forecast. Oil capped
its biggest weekly decline in 7 months on concern that
demand will fall as refineries slow operations. Gold rose the most in a week
after U.S. employers added fewer workers than forecast last
month, increasing pressure on the Federal Reserve to maintain
lower interest rates.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.7980089803085024)
Pres Obama told Russian pres Putin today that he has “deep concerns” about Russia’s continued support of separatists in Ukraine, as the US pledged $8M in aid to the gov in Kiev. Obama told Putin he wants a diplomatic resolution & the 2 leaders said they would keep the lines of communication open. The Kremlin’s statement on the conversation said that Putin told Obama the sanctions that were imposed on Russia by the US are causing “serious damage” to the 2 countries’ relationship. The pair spoke in a call initiated by Obama 3 days after the US & EU announced additional sanctions against Russian banks as the allies try to pressure Putin by targeting Russia's economy. The last time the White House reported a call between Obama & Putin was Jul 17, during which Obama got news of the Malaysia Airlines plane that was shot down over Ukraine. Putin told Obama today that the sanctions, most recently targeting energy, banking & shipping companies, have hurt bilateral cooperation & intl stability, according ton the Kremlin’s website. The US says Putin hasn’t moved to rein in pro-Russian separatists in eastern Ukraine, instead has continued to arm them & build up its own forces near the border.
Obama Talks With Putin as U.S. Pledges More Ukraine Aid
Photo: Bloomberg
Manufacturing expanded in Jul at the fastest pace in more than 3 years, showing US factories will help power the economy after Q2 rebound. The Institute for Supply Management index increased to 57.1, the highest since Apr 2011, from 55.3 a month earlier. Readings above 50 indicate growth. The forecast was 56. Orders & production expanded last month at the fastest pace of the year as factories responded to increased purchases of automobiles & business equipment. The gauge of new orders climbed to 63.4 last month after 58.9 in Jun. An index of production rose to 61.2 from 60 the prior month. The group’s factory employment measure jumped to 58.2, the highest since Jun 2011, from 52.8, while the index of orders waiting to be filled increased to 49.5 from 48. The report also showed gauges of factory inventories contracted in Jul & customer stockpiles shrank at a faster pace from a month earlier.
American Factories Expand at Fastest Pace in Three Years
Procter & Gamble, a Dow stock & Dividend Aristocrat, plans to sell, discontinue or otherwise eliminate as many as 100 brands in the next 2 years to cut costs & focus on its most important product lines. The 70-80 brands that will remain have accounted for 90% of sales & more than 95% of its profit in the last 3 years, CEO A.G. Lafley said. Lafley has said he was reevaluating the company’s portfolio of brands & had already started to narrow P&G’s focus since returning as CEO last year. So far his most notable move was agreeing to sell most of the pet-food operations, including Iams & Eukanuba, for $2.9B earlier this year. The company’s top brands include Tide detergents, Pampers diapers, Crest toothpaste & Gillette razors. “This will be a much smaller and less complicated company of brands that will be easier to operate,” Lafley said. The strategy will lead to a “significant rationalization” of product items & a more “significant pruning” of unproductive selling units, he said. “We will sell a billion dollar-plus brand if it is no longer strategic,” Lafley said. “We are not selling flies on the tail of a dog.” The remaining brands will be organized into a dozen business units in the 4 sectors. Most of the brands P&G is keeping are leaders in their industries or categories: 23 have sales of $1-$10B, & most of the remainder have sales of $100-$500M, he said. Fiscal Q4 EPS excluding items such as restructuring expenses was 95¢, topping the 91¢ estimate. Sales declined 1% to $20.2B, below the $20.5B projection. Organic sales, which exclude the effects of acquisitions, divestitures & foreign-exchange rate fluctuations, rose 4% in fabric & home care as well as in baby & feminine care. Sales on that basis were little changed in beauty products. For the current year, the company forecast profit growth in the “mid-single” digits in percentage terms. Organic sales will grow in the “low-to-mid single” digits, it said. The stock with a lackluster record, jumped 2.33 today. If you would like to learn more about PG, click on this link:
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
P&G Plans to Eliminate 100 Brands to Focus on Top Performers
Major economic data that was basically favorable did not draw buying in the stock market. For time being intl messes are getting a lot of attention. On the US economic front, this is the important back to school season for retailers. They will be reporting earnings shortly & should give guidance about on this selling season. Dow tumbled a very big 600 this week, is the red YTD & looks like it will continue on defense.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLU14.NYM | ....Crude Oil Sep 14 | ....97.88 |  ...0.29 | (0.3%) |
Pres Obama told Russian pres Putin today that he has “deep concerns” about Russia’s continued support of separatists in Ukraine, as the US pledged $8M in aid to the gov in Kiev. Obama told Putin he wants a diplomatic resolution & the 2 leaders said they would keep the lines of communication open. The Kremlin’s statement on the conversation said that Putin told Obama the sanctions that were imposed on Russia by the US are causing “serious damage” to the 2 countries’ relationship. The pair spoke in a call initiated by Obama 3 days after the US & EU announced additional sanctions against Russian banks as the allies try to pressure Putin by targeting Russia's economy. The last time the White House reported a call between Obama & Putin was Jul 17, during which Obama got news of the Malaysia Airlines plane that was shot down over Ukraine. Putin told Obama today that the sanctions, most recently targeting energy, banking & shipping companies, have hurt bilateral cooperation & intl stability, according ton the Kremlin’s website. The US says Putin hasn’t moved to rein in pro-Russian separatists in eastern Ukraine, instead has continued to arm them & build up its own forces near the border.
Obama Talks With Putin as U.S. Pledges More Ukraine Aid
Manufacturing expanded in Jul at the fastest pace in more than 3 years, showing US factories will help power the economy after Q2 rebound. The Institute for Supply Management index increased to 57.1, the highest since Apr 2011, from 55.3 a month earlier. Readings above 50 indicate growth. The forecast was 56. Orders & production expanded last month at the fastest pace of the year as factories responded to increased purchases of automobiles & business equipment. The gauge of new orders climbed to 63.4 last month after 58.9 in Jun. An index of production rose to 61.2 from 60 the prior month. The group’s factory employment measure jumped to 58.2, the highest since Jun 2011, from 52.8, while the index of orders waiting to be filled increased to 49.5 from 48. The report also showed gauges of factory inventories contracted in Jul & customer stockpiles shrank at a faster pace from a month earlier.
American Factories Expand at Fastest Pace in Three Years
Procter & Gamble, a Dow stock & Dividend Aristocrat, plans to sell, discontinue or otherwise eliminate as many as 100 brands in the next 2 years to cut costs & focus on its most important product lines. The 70-80 brands that will remain have accounted for 90% of sales & more than 95% of its profit in the last 3 years, CEO A.G. Lafley said. Lafley has said he was reevaluating the company’s portfolio of brands & had already started to narrow P&G’s focus since returning as CEO last year. So far his most notable move was agreeing to sell most of the pet-food operations, including Iams & Eukanuba, for $2.9B earlier this year. The company’s top brands include Tide detergents, Pampers diapers, Crest toothpaste & Gillette razors. “This will be a much smaller and less complicated company of brands that will be easier to operate,” Lafley said. The strategy will lead to a “significant rationalization” of product items & a more “significant pruning” of unproductive selling units, he said. “We will sell a billion dollar-plus brand if it is no longer strategic,” Lafley said. “We are not selling flies on the tail of a dog.” The remaining brands will be organized into a dozen business units in the 4 sectors. Most of the brands P&G is keeping are leaders in their industries or categories: 23 have sales of $1-$10B, & most of the remainder have sales of $100-$500M, he said. Fiscal Q4 EPS excluding items such as restructuring expenses was 95¢, topping the 91¢ estimate. Sales declined 1% to $20.2B, below the $20.5B projection. Organic sales, which exclude the effects of acquisitions, divestitures & foreign-exchange rate fluctuations, rose 4% in fabric & home care as well as in baby & feminine care. Sales on that basis were little changed in beauty products. For the current year, the company forecast profit growth in the “mid-single” digits in percentage terms. Organic sales will grow in the “low-to-mid single” digits, it said. The stock with a lackluster record, jumped 2.33 today. If you would like to learn more about PG, click on this link:
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
P&G Plans to Eliminate 100 Brands to Focus on Top Performers
Procter & Gamble (PG)
Major economic data that was basically favorable did not draw buying in the stock market. For time being intl messes are getting a lot of attention. On the US economic front, this is the important back to school season for retailers. They will be reporting earnings shortly & should give guidance about on this selling season. Dow tumbled a very big 600 this week, is the red YTD & looks like it will continue on defense.
Dow Jones Industrials
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 3 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.
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