Dow climbed 17, decliners ahead of advancers 3-2 & NAZ fell 15. The MLP index plunged 12+ to 493 & the REIT index lost pennies, as it remained above 320. Junk bond funds were mixed & Treasuries found buyers as stocks slid lower. Oil dropped to $77 & gold continued weak.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.8991722455552394)
Photo: Bloomberg
Alibaba, delivered on the growth since its Sep IPO. The Chinese e-commerce company posted fiscal Q2 profit that beat estimates as it increased shopping traffic & mobile spending in the home market generated more advertising. Revenue jumped 54%, more than anticipated. With 307M active buyers as of Sep, it is luring more sellers to its e-commerce sites by providing advertising tools that analyze user preferences. Chairman Jack Ma last month said the company may cooperate with Apple (AAPL) for mobile payment services as he seeks partners in Hollywood to add television & movie content. About 29% of revenue across China retail marketplaces comes from mobile, BABA said. Adjusted EPS for the Sep qtr were 2.79 yuan (US 46¢), topping the 2.74 yuan estimate. While revenue surged, profitability was hurt by costs to integrate newly acquired businesses, investments in mobile systems & marketing. The margin for adjusted earnings before interest, taxes, depreciation & amortization narrowed to 50.5% from 59.4% a year earlier. Net income fell 39% to 3.03B yuan in the 3 months ended in Sep, dragged down by a “significant” increase in share-based compensation expense & amortization of intangible assets. Revenue advanced to 16.8B yuan, compared with a 16B estimate. China has 632M internet users, more than the population of any other country except India. The stock shot up 4.27. If you would like to learn more about BABA, click on this link:
club.ino.com/trend/analysis/stock/BABA?a_aid=CD3289&a_bid=6ae5b6f7
Alibaba Delivers Growth in First Post-IPO Earnings Report
US Steel tumbled after a hedge fund manager who is betting on a decline in the share price said results from the last qtr may have marked a peak for the company. “U.S. Steel temporarily benefited from panic ordering due to a shortage of raw materials, which led to a spike in hot rolled steel prices,” David Einhorn said today. “Given the near-record spread between domestic steel prices and foreign steel prices, we believe that imports will arrive shortly, steel prices will retrace and U.S. Steel’s great third quarter will likely be the best result it reports for a long time.” Last week, it posted Q3 adjusted EPS of $2.16, the highest since Q3-2008. Q4 operating income in the company’s flat-rolled division, its biggest unit, is “expected to decrease significantly,” from $347M in Q3, the company said. The stock sank 2.57 (7%). If you would like to learn more about US Steel, click on this link:
club.ino.com/trend/analysis/stock/X?a_aid=CD3289&a_bid=6ae5b6f7
U.S. Steel Falls After Einhorn Says Results Probably Peaked
CVS Health Corp beat Q3 estimates as prescription drug sales made up for the drop in revenue suffered after it quit selling tobacco products. EPS of $1.15 beat by 2¢ the estimate. Revenue at the front of the store, where tobacco items had been sold, fell 4.5%, based on same-store sales. CVS stopped selling tobacco products & changed its name to CVS Health in Sep to focus on the medical side of its operations at its almost 8K drugstores. The company said it will cost about $2B a year in revenue. Total sales rose 9.7% to $35B, beating the $34.7B estimate. Pharmacy services revenue grew 16%, to $22.5B, driven by demand for the company’s specialty pharmacy services. CVS has lost some pharmacy benefit management customers as clients have merged or put their retirees into new insurance offerings from ObamaCare. CVS aims to get them back with new products it’s planning or selling now, CEO Larry Merlo said. The company also narrowed its forecast for 2014 adjusted EPS to $4.47-$4.50, from $4.43-$4.51. EPS fell to 81¢ from $1.02 a year earlier, after the company paid down debt ahead of schedule. ObamaCare, which may help provide health insurance coverage to some of the 42M Americans that didn’t have coverage thru 2013, can benefit CVS. The law should send increased business to the company’s 900 walk-in medical clinics & spur prescription drug sales, which may help make up for the fall-off in tobacco sales. The stock fell 65¢. If you would like to learn more about CVS, click on this link:
club.ino.com/trend/analysis/stock/CVS?a_aid=CD3289&a_bid=6ae5b6f7
CVS’s Growing Drug Business Makes Up for Quitting Tobacco
This was an unninspriing day to get anything done in the stock market. Maybe the tradsers were watching the election coverage. Even though final numbers are a few hours away, babble on TV is more exciting that what was going on in the stock market. The huge decline in oil prices since Jun is causing nervous investors to sell MLPs. They have an excellent outlook long term as the world demand for energy is growing, but the effects of lower priced oil on MLPs is unclear. New technology used to get more energy from the ground is expensive & margins are going to be reduced with lower priced oil. Uncertainty has risen in this buisness.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLZ14.NYM | ....Crude Oil Dec 14 | ....77.15 |  ...1.63 | (2.1%) |
Alibaba, delivered on the growth since its Sep IPO. The Chinese e-commerce company posted fiscal Q2 profit that beat estimates as it increased shopping traffic & mobile spending in the home market generated more advertising. Revenue jumped 54%, more than anticipated. With 307M active buyers as of Sep, it is luring more sellers to its e-commerce sites by providing advertising tools that analyze user preferences. Chairman Jack Ma last month said the company may cooperate with Apple (AAPL) for mobile payment services as he seeks partners in Hollywood to add television & movie content. About 29% of revenue across China retail marketplaces comes from mobile, BABA said. Adjusted EPS for the Sep qtr were 2.79 yuan (US 46¢), topping the 2.74 yuan estimate. While revenue surged, profitability was hurt by costs to integrate newly acquired businesses, investments in mobile systems & marketing. The margin for adjusted earnings before interest, taxes, depreciation & amortization narrowed to 50.5% from 59.4% a year earlier. Net income fell 39% to 3.03B yuan in the 3 months ended in Sep, dragged down by a “significant” increase in share-based compensation expense & amortization of intangible assets. Revenue advanced to 16.8B yuan, compared with a 16B estimate. China has 632M internet users, more than the population of any other country except India. The stock shot up 4.27. If you would like to learn more about BABA, click on this link:
club.ino.com/trend/analysis/stock/BABA?a_aid=CD3289&a_bid=6ae5b6f7
Alibaba Delivers Growth in First Post-IPO Earnings Report
Alibaba Group (BABA)
US Steel tumbled after a hedge fund manager who is betting on a decline in the share price said results from the last qtr may have marked a peak for the company. “U.S. Steel temporarily benefited from panic ordering due to a shortage of raw materials, which led to a spike in hot rolled steel prices,” David Einhorn said today. “Given the near-record spread between domestic steel prices and foreign steel prices, we believe that imports will arrive shortly, steel prices will retrace and U.S. Steel’s great third quarter will likely be the best result it reports for a long time.” Last week, it posted Q3 adjusted EPS of $2.16, the highest since Q3-2008. Q4 operating income in the company’s flat-rolled division, its biggest unit, is “expected to decrease significantly,” from $347M in Q3, the company said. The stock sank 2.57 (7%). If you would like to learn more about US Steel, click on this link:
club.ino.com/trend/analysis/stock/X?a_aid=CD3289&a_bid=6ae5b6f7
U.S. Steel Falls After Einhorn Says Results Probably Peaked
United States Steel (X)
CVS Health Corp beat Q3 estimates as prescription drug sales made up for the drop in revenue suffered after it quit selling tobacco products. EPS of $1.15 beat by 2¢ the estimate. Revenue at the front of the store, where tobacco items had been sold, fell 4.5%, based on same-store sales. CVS stopped selling tobacco products & changed its name to CVS Health in Sep to focus on the medical side of its operations at its almost 8K drugstores. The company said it will cost about $2B a year in revenue. Total sales rose 9.7% to $35B, beating the $34.7B estimate. Pharmacy services revenue grew 16%, to $22.5B, driven by demand for the company’s specialty pharmacy services. CVS has lost some pharmacy benefit management customers as clients have merged or put their retirees into new insurance offerings from ObamaCare. CVS aims to get them back with new products it’s planning or selling now, CEO Larry Merlo said. The company also narrowed its forecast for 2014 adjusted EPS to $4.47-$4.50, from $4.43-$4.51. EPS fell to 81¢ from $1.02 a year earlier, after the company paid down debt ahead of schedule. ObamaCare, which may help provide health insurance coverage to some of the 42M Americans that didn’t have coverage thru 2013, can benefit CVS. The law should send increased business to the company’s 900 walk-in medical clinics & spur prescription drug sales, which may help make up for the fall-off in tobacco sales. The stock fell 65¢. If you would like to learn more about CVS, click on this link:
club.ino.com/trend/analysis/stock/CVS?a_aid=CD3289&a_bid=6ae5b6f7
CVS’s Growing Drug Business Makes Up for Quitting Tobacco
CVS Health (CVS)
This was an unninspriing day to get anything done in the stock market. Maybe the tradsers were watching the election coverage. Even though final numbers are a few hours away, babble on TV is more exciting that what was going on in the stock market. The huge decline in oil prices since Jun is causing nervous investors to sell MLPs. They have an excellent outlook long term as the world demand for energy is growing, but the effects of lower priced oil on MLPs is unclear. New technology used to get more energy from the ground is expensive & margins are going to be reduced with lower priced oil. Uncertainty has risen in this buisness.
Dow Jones Industrials
No comments:
Post a Comment