Monday, January 26, 2015

Markets fluctuate after Greek election

Dow lost 4, advancers over decliners 3-2 & NAX went up 2.  The MLP index lost 1+ to just over 350 & the REIT index was up fractionally in the 353s.  Junk bond funds did litte & Treasuries retreated.  Oil & gold eased lower.

AMJ (Alerian MLP Index tracking fund)

CLK15.NYM...Crude Oil May 15...47.30 Down ...0.01  (0.0%)

GCF15.CMX...Gold Jan 15........1,290.60 Down ...2.00  (0.2%)

3 Stocks You Should Own Right Now - Click Here!

German  business confidence rose for a 3rd month as falling energy costs & anticipation of more ECB stimulus helped lift optimism about an economic recovery.  The Ifo institute’s business climate index advanced to 106.7 in Jan from 105.5 in Dec.  The estimate was for an increase to 106.5.  Germany should benefit from plunging oil prices that free up more disposable income in a country where unemployment is already at a record low.  In addition, exporters stand to gain from a slide in the € that’s bound to extend after the ECB announced massive monetary stimulus for the single-currency area last week.  A gauge of expectations rose to 102 from 101.3, while the assessment of current conditions improved to 111.7 from 109.8.  The Bundesbank said in its monthly bulletin last week that the German economy “seems to have overcome the weak phase of early last year faster than many expected.”  The Federal Statistics Office predicts the economy grew a quarter of a percent in Q4 after effectively stagnating in the middle of 2014.  Purchasing managers’ indexes last week showed growth picking up momentum.  Even so, the German central bank said it must reduce its inflation forecasts “significantly” because of the drop in oil prices. 

German Business Confidence Rises as Stimulus Effects Build

DH Horton fiscal Q1 earnings beat estimates as sales jumped.  EPS rose to 39¢ compared with 36¢ a year earlier.  The estimate was 35¢.  Results included $6M in inventory & land option charges.  DHI was one of the first builders to focus on boosting its sales count over increasing profit margins, offering incentives such as price cuts, free appliances & reduced closing costs.  Orders in Q1 rose 35% in volume to 7370 homes & 40% in value to $2.1B.  “Our weekly sales pace has accelerated in January, and we are well-positioned to capture demand in the spring selling season with our solid balance sheet and robust community count, finished lot supply and inventory of homes available for sale,” CEO Donald R. Horton said.  Builders broke ground on single-family homes at an annual pace of 728K last month, the most in 7 years while remaining more than 30% below the average since 1995, according to Commerce Dept data.  Homebuilding revenue rose to $2.3B from $1.6B a year earlier.  DHI sells houses ranging from entry-level Express models to its costlier line of Emerald homes & does business in 27 states.  The stock went up 1.44.  If you would like to learn more about DHI, click on this link:

D.R. Horton Profit Beats Estimates as Sales, Orders Jumped

D.R. Horton (DHI)

AT&T , a Dow stock & Dividend Aristocrat, agreed to buy NII Holdings's Mexican wireless assets for $1.875B in its 3rd deal to expand south of the border.  The acquisition includes companies that operate under the name Nextel Mexico, spectrum licenses, network assets, retail stores & about 3M customers.  The purchase price doesn’t include an unspecified amount of debt from NII, which filed for bankruptcy in Sep.  Nextel Mexico’s high-paying monthly subscribers will help AT&T accelerate a plan to offer its first cross-border service in the US & Mexico.  AT&T’s pending takeover of DirecTV, which has operations in Mexico, marked the company’s first push outside the US. in more than a decade as growth slows at home.  The company has since added to that expansion with the $2.5B acquisition of Grupo Iusacell in Mexico, which closed earlier this month.  Nextel Mexico’s network covers about 76M.  AT&T said it plans to combine Nextel Mexico with Iusacell, which will help improve service for people living outside major metropolitan areas.  The deal is expected to close in the middle of this year.  The stock slid back 15¢.  If you would like to learn more about AT&T, click on this link:
AT&T Agrees to Purchase NII’s Mexico Business to Acquire 3 Million Users

AT&T (T)

Traders are unclear about the outcome of the election in Greece amid speculation that the anti-austerity Syriza party will be contained. The Syriza party leader has pledged to renegotiate the nation’s intl bailout, but won only 149 out of a 300 seats in Parliament.  Oil is in limbo with the change of rulers in Saudi Arabia & the chaos in its neighbor, Yemen.  Meanwhile more earnings will becoming this week.

Dow Jones Industrials

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