Thursday, January 8, 2015

Markets leap ahead on optimism about the economy

Dow shot up 301, advancers over decliners almost 4-1 & NAZ gained 82.  The MLP index rebounded 6+ to the 466s & the REIT index slipped a fraction to 340.  Junk bond funds were higher & Treasuries retreated as stocks rose.  Oil was steady as analysts say the global glut will last & gold had a small gain.

AMJ (Alerian MLP Index tracking fund)

CLG15.NYM...Crude Oil Feb 15...48.67 Up .....0.02 (0.0%)

GCF15.CMX...Gold Jan 15.......1,215.70 Up ...5.10 (0.4%)

3 Stocks You Should Own Right Now - Click Here!

Fewer Americans filed for unemployment benefits last week as labor-market tightening compelled employers to hold on to seasonal hires.  Jobless claims decreased 4K to 294K, according to the Labor Dept.  The forecast called for a decline to 290K.  Employers finding it harder to fill vacancies are probably holding on to workers hired during the holidays as the economy expands & consumers spending picks up.  The need to keep staff may mean companies will soon need to also boost wages.  The 4-week average of claims, a less-volatile measure than the weekly figure, was flattish from the prior week.  The number continuing to receive jobless benefits climbed 101K to 2.45M.  The unemployment rate among people eligible for benefits held at 1.8%.

Jobless Claims Drop as U.S. Employers Keep Holiday Workers

Procter & Gamble, a Dow stock & Dividend Aristocrat, shares have risen as investors anticipate revisions in earnings estimates that will exceed those for the broader market.  The stock climbed 15% since Jul, while the S&P 500 Index has gained 2.8%.  The P/E is increasing from a 12-year low as PG trades above $90.  The consumer-products maker is attracting investors who bet corp changes will reignite profits after several qtrs of reduced forecasts.  The market share for several US units has stabilized since summer and is starting to improve & it also made a big change in emerging markets with a strategy to improve margins within existing businesses rather than enter new ones. PG has announced it will sell about 90 noncore businesses that account for as much as 10% of sales, for $8-9B.  A.G. Lafley was reappinted CEO in 2013 & he is divesting businesses with lower margins or growth forecasts.  On a calendar year basis, the forward-looking analysts’ estimates is for an increase of 5.1% in 2015.  The stock rose 71¢.  If you would like to learn more about PG, click on this link:

Procter & Gamble Is Atypical Defensive Stock on Restructure Bet

Procter & Gamble (PG)

The Japanese affiliate of McDonalds's, another Dow stock & Dividend Aristocrat, affiliate reported past incidents in which customers complained there were pieces of metal & plastic in food, a day after the chain said a human tooth was discovered in its fries.  A customer in Kyoto found a piece of metal in a pancake in Nov, & the company sent the metal to a 3rd party for analysis.  A customer in Okinawa also reported finding a piece of plastic in a muffin in Sep, MCD said.  The company investigated both incidents without determining where the objects came from.  MCD Japan said yesterday it had investigated inconclusively the case of the tooth found in its french fries & was also looking into plastics discovered in chicken nuggets.  The company had switched sources of chicken nuggets to 3 Thailand factories after a food supplier scandal in China hit its restaurants in both countries last Jul.  The stock rose 71¢.  If you would like to learn more about MCD, click on this link: 

McDonald’s Japan Reports More Past Incidents of Objects in Food

McDonald's (MCD)

After a difficult  start, the stock have returned.  Bets are the the US economy will do well & at the same time Janet will keep interest rates low, maybe forever.  However oil remains in the dumps & risk takers continue to avoid MLPs.  This is the 5th trading day of the year & some count this as completing the first week which may show a gain, a plus for those who keep tabs.

Dow Jones Industrials

No comments: