Dow rose 43, decliners over advancers 2-1 & NAZ sank 48. The MLP index fell 2+ to the 323s & the REIT index lost 1+ to the 297s. Junk bond funds saw more selling & Treasuries crawled higher. Oil had limited buying & gold rebounded from an 8-month low on signs of increased demand for bars &
jewelry in India, the world’s 2nd-largest consumer.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.5630127590376087)
Mario Draghi is about to give the euro-area economy a jump-start & he’s asking currency bloc’s leaders to make sure they’re in gear. Over the next 6 weeks, the ECB will be rolling out measures that could begin to restore the central bank’s balance sheet to the levels it had at the height of the sovereign debt crisis. At a Sep 12-13 meeting, he told them his efforts would have limited impact if they didn’t make their economies ready to absorb it. With the TLTRO liquidity scheme that starts on Thurs, an asset-purchase plan targeted at easing access to credit next month, & the potentially cathartic end to a year-long bank health review coming before Nov, Draghi’s ECB is increasing the intensity of its economic support. Political leaders are beginning to follow suit. “The new measures together with the TLTROs will have a sizable impact on our balance sheet, which is expected to move toward the size it used to have at the beginning of 2012,” Draghi said. “No matter what the monetary and even fiscal stimulus has been decided, we won’t see much growth coming from these measures only if there are no serious structural reforms.” Draghi arrived in Milan with political will for those reforms at risk. While there are some stirrings of fiscal stimulus that could boost growth, such as a €300B ($389B) plan floated by incoming EU Commission President Juncker, govs are dragging their feet on measures to make the economy more efficient. Last week France & Italy were both scolded by the EU for their lack of progress. In response, finance ministers said they will “take stock” of the need to reduce the tax burden on labor when discussing member states’ draft budgets in Nov. In the meantime, markets are waiting to see the size of the first allotment of the 4-year TLTRO program, as well as further details of the asset purchase scheme announced on Sep 4. Draghi said then that the ECB would buy asset-backed securities & covered bonds. Still, the ECB pres may yet fall short of his aim of returning the balance sheet to 2012 levels, which would imply extra stimulus of up to €1T. While Draghi says the plan to purchase asset-backed securities will further help unlock lending to the real economy & boost inflation, he’s facing stiff opposition from the region’s largest economy, Germany. Bundesbank President Weidman, a critic of previous ECB policy, said the plan transfers private-sector risks to the taxpayer.
Draghi Prods Euro Area to Ready Ground for Economic Boos
Coca-Cola's, a Dow stock & Dividend Aristocrat, newest social-media campaign reaches back to a time when even MySpace didn’t exist. Surge, a citrus-flavored Mountain Dew knockoff that was discontinued by KO 12 years ago, has reappeared in limited supply. The only place to get it is Amazon.com. Billed as the company’s first ever e-commerce reintroduction, the news was announced by the Facebook Fan site "Suerge Movement," whose 128K members lobbied for its return & paid for a billboard in Atlanta. Coke gave the drink a Twitter account, too, so loyalists can “follow the brand’s journey.” “Surge is back,” the Facebook page’s organizers said, urging readers to buy & spread the word. “The Movement does not end here!” At the website listserv.com, Surge is listed as #7 on a Top 10 list of discontinued sodas, beating out Hubba Bubba Soda. Surge, a sweet & caffeinated green pop, will be sold in 12-packs of 16-ounce cans printed with the original graphics for $14. KO said it may expand the drink to other retailers & add to the campaign, depending on how consumers react. “This will be a great learning experience for us and a refreshing opportunity for fans,” Wendy Clark, the pres of North America Sparkling & Strategic Marketing, said. The stock went up pennies. 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=6ae5b6f
AMJ (Alerian MLP Index tracking fund)
| CLV14.NYM | ....Crude Oil Oct 14 | ....92.67 |  ...0.40 | (0.4%) |
Mario Draghi is about to give the euro-area economy a jump-start & he’s asking currency bloc’s leaders to make sure they’re in gear. Over the next 6 weeks, the ECB will be rolling out measures that could begin to restore the central bank’s balance sheet to the levels it had at the height of the sovereign debt crisis. At a Sep 12-13 meeting, he told them his efforts would have limited impact if they didn’t make their economies ready to absorb it. With the TLTRO liquidity scheme that starts on Thurs, an asset-purchase plan targeted at easing access to credit next month, & the potentially cathartic end to a year-long bank health review coming before Nov, Draghi’s ECB is increasing the intensity of its economic support. Political leaders are beginning to follow suit. “The new measures together with the TLTROs will have a sizable impact on our balance sheet, which is expected to move toward the size it used to have at the beginning of 2012,” Draghi said. “No matter what the monetary and even fiscal stimulus has been decided, we won’t see much growth coming from these measures only if there are no serious structural reforms.” Draghi arrived in Milan with political will for those reforms at risk. While there are some stirrings of fiscal stimulus that could boost growth, such as a €300B ($389B) plan floated by incoming EU Commission President Juncker, govs are dragging their feet on measures to make the economy more efficient. Last week France & Italy were both scolded by the EU for their lack of progress. In response, finance ministers said they will “take stock” of the need to reduce the tax burden on labor when discussing member states’ draft budgets in Nov. In the meantime, markets are waiting to see the size of the first allotment of the 4-year TLTRO program, as well as further details of the asset purchase scheme announced on Sep 4. Draghi said then that the ECB would buy asset-backed securities & covered bonds. Still, the ECB pres may yet fall short of his aim of returning the balance sheet to 2012 levels, which would imply extra stimulus of up to €1T. While Draghi says the plan to purchase asset-backed securities will further help unlock lending to the real economy & boost inflation, he’s facing stiff opposition from the region’s largest economy, Germany. Bundesbank President Weidman, a critic of previous ECB policy, said the plan transfers private-sector risks to the taxpayer.
Draghi Prods Euro Area to Ready Ground for Economic Boos
Coca-Cola's, a Dow stock & Dividend Aristocrat, newest social-media campaign reaches back to a time when even MySpace didn’t exist. Surge, a citrus-flavored Mountain Dew knockoff that was discontinued by KO 12 years ago, has reappeared in limited supply. The only place to get it is Amazon.com. Billed as the company’s first ever e-commerce reintroduction, the news was announced by the Facebook Fan site "Suerge Movement," whose 128K members lobbied for its return & paid for a billboard in Atlanta. Coke gave the drink a Twitter account, too, so loyalists can “follow the brand’s journey.” “Surge is back,” the Facebook page’s organizers said, urging readers to buy & spread the word. “The Movement does not end here!” At the website listserv.com, Surge is listed as #7 on a Top 10 list of discontinued sodas, beating out Hubba Bubba Soda. Surge, a sweet & caffeinated green pop, will be sold in 12-packs of 16-ounce cans printed with the original graphics for $14. KO said it may expand the drink to other retailers & add to the campaign, depending on how consumers react. “This will be a great learning experience for us and a refreshing opportunity for fans,” Wendy Clark, the pres of North America Sparkling & Strategic Marketing, said. The stock went up pennies. 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=6ae5b6f
Coca-Cola Revives Surge Soda to Tap ’90s Nostalgia Via Amazon
Coca-Cola (KO)
Microsoft, another Dow stock, agreed to acquire Mojang, the software company behind the popular game Minecraft, for $2.5B, in a bid to boost its Xbox & mobile businesses. Mojang will join its game-studio division, though the company’s founders will move on to other projects. The purchase is projected to close late this year, & will break even in FY2015. Buying Mojang would be the biggest deal struck since Satya Nadella became CEO in Feb. The purchase gives Nadella a game that is popular across consoles, computers & mobile devices made by MSFT & rivals. It also bolsters a push to woo serious gamers back to Xbox after a lackluster attempt to turn the system into an all-in-one device that serves up broader content such as movies & music. MSFT will pay for the acquisition with cash held overseas, which would have favorable tax consequences for the company which has its vast majority of cash & short-term investments outside the US. “Minecraft is more than a great game franchise –- it is an open world platform, driven by a vibrant community we care deeply about, and rich with new opportunities for that community and for Microsoft,” Nadella said. Minecraft, a game that puts users inside a vast, pixelated virtual landscape, is made for multiple platforms including game consoles, PCs & smartphones. As of Jun, 4-year-old Mojang had sold more than 54M copies of the game in all its forms. The stock lost 45¢. If you would like to learn more about MSFT, click on this link:
club.ino.com/trend/analysis/stock/MSFT?a_aid=CD3289&a_bid=6ae5b6f7
Microsoft to Acquire Minecraft Maker Mojang for $2.5 Billion
Microsoft (MSFT)
Dow rose because Pfizer (PFE), Chevron (CVX & a Dividend Aristocrat), Travelers (TRV) & Procter & Gamble (PG & a Dividend Aristocrat) were each up more than 1%. As usual when there is a disconnect, the odd group represents an unusual assortment of companies. A better description of the decline was numerous tech stocks falling more than 10% each. This was a down day. War against ISIS & more fighting in Ukraine can only ranked as unfriendly to rising markets. Flimsy manufacturing data in the AM did not help. High yield sectors have been taking it on the chin in recent session. The indices for MLPs & REITs have fallen & junk bond funds had a very bad week. The FOMC has a meeting at midweek, & there is nervousness about what the comments will be as the bond buying program winds down. Then the proposed euro bond buying program is in trouble. All that spells, "Uh-Oh."
Dow Jones Industrials
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