Friday, October 10, 2014

More selling in markets led by in tech stocks and MLPs

Dow inched up 12, decliners over advancers almost 3-1 & NAZ sank a very big 53. The MLP index tumbled a whopper 13+ to the 481s (down 58 from its recent peak) & the REIT index climbed 1+ to 299.  Junk bond funds fell & Treasuries rallied as stocks decline.  Oil tumbled further into a bear market amid signs of a global glut & gold also sold off.

AMJ (Alerian MLP Index tracking fund)

CLX14.NYM...Crude Oil Nov 14...85.20 Down ...0.57  (0.7%)

GCV14.CMX...Gold Oct 14......1,222.70 Down ...1.90  (0.2%)

3 Stocks You Should Own Right Now - Click Here!

Ukrainian forces repelled another attack by pro-Russian separatists on Donetsk Airport in eastern Ukraine early today as fighting undermines a month-old truce.  The attack was one of 35 rebel assaults on gov positions in the past 24 hours, the military press center in Kiev said.  Separatists said they control most of the airport.  3 civilians were killed & 5 injured, a military spokesman said.  7 soldiers were wounded in fighting overnight.  While the truce, sealed Sep 5, has reduced the bloodshed in Ukraine’s easternmost regions, it’s been marred by daily violence.  There have been at least 331 deaths since the deal was agreed, the UN estimates.  The rebels claim they’re ready to resume peace talks once Russia & the Organization for Security & Cooperation in Europe agree on the terms.  Russia has sent 40 buses with fighters & 30 military vehicles into Ukraine in the past 2 days, according to the Ukraine gov.  Christine Lagarde, managing director of the IMF, said yesterday that more intl financing will be needed to prop up Ukraine’s war-battered economy, but that not all should come from the IMF.  Lagarde said other lenders will need to participate, without providing details.  The IMF has already approved a $17B bailout loan to help Ukraine stay afloat.

Ukraine Repels Attack on Donetsk Airport as Truce Wobbles

General Motors, which counts China as its largest market, had the fastest monthly growth in 7 months in Sep as it stays on track to beat the industry’s average growth in the country.  The carmaker’s deliveries in the world’s largest auto market rose 15% to 320K units.  Sales gained 12% in the first 9 months to 2.58M vehicles.  GM plans to grow faster than the industry while maintaining profit margins in China, CFO Chuck Stevens told investors earlier this month.  Vehicle sales this year are expected to exceed last year’s sales of 3.16M, Matt Tsien, the carmaker’s China chief, said.  GM has accelerated the introduction of new products & is raising production capacity to become the top foreign automaker in China.  The company is introducing more than 60 new or refreshed models, by the end of 2018, with 11 SUVs additions as part of the lineup over the next 5 years.  Buick deliveries rose 18% last month from a year earlier, while Chevrolet sales climbed 19%.  Cadillac, GM’s premium marque, posted a 51% surge.  Sales of the Wuling brand, about half of GM’s China total, gained 4%.  GM stock fell 65¢.  If you would like to learn more about GM, click on this link:

GM China Sales Rise at Fastest Pace in Seven Months on Chevrolet

General Motors (GM)

Symantec Corp.
Photo:   Bloomberg

Symantec is splitting into 2 companies, a move that reverses a decade-old expansion effort by the biggest maker of security software.  SYMC said that its cyber-security & data-storage divisions would become separate publicly traded companies.  The company said it needed to be nimbler & more focused.  “It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation,” CEO Michael Brown, who was promoted to the role last month, said.  “Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value.”  The stock fell 68¢.  If you would like to learn more about SYMC, click on this link:

Symantec to Split Into Storage, Security Companies

Symantec (SYMC)

Stocks are having another brutal day even though the Dow is handing in there.  Dow is helped by 1%+ gains at Wal-Mart (WMT), Coca-Cola (KO), Procter & Gamble (PG) & Merck (MRK).  The first 3 happen to be Dividend Aristocrats & MRK is a former member of the group.  Political chaos around the world & faltering economies are causing investors to sell.  NAZ is down 140 this week while Dow is down a more mild 120.  Expect more selling in the PM.  Nov is shaping up as one ugly month.  Maybe that's deserved because the market is vastly overbought..

Dow Jones Industrials


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