Dow gained 59, advancers over decliners 3-2 & NAZ lost 10. The MLP index went up 3+ to over 440 & the REIT index rose 1+ to the 331s. Junk bond funds were mixed to higher & Treasuries had a good advance. Oil is up to the 53s & gold saw more selling.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.6827065123227894)
The IMF highlighted an increasing divergence in the growth paths of the world's major economies this year, as a pick-up in the euro zone & India is expected to be offset by diminished prospects in other key emerging markets. The IMF kept its global growth forecasts unchanged, but warned that the economic recovery remains "moderate and uneven," beset by greater uncertainty & a host of risks, including geopolitical tensions & financial volatility. In its World Economic Outlook, the institution kept its forecast for global growth this year at 3.5%. For 2016, the IMF now expects global GDP to expand 3.8%, up from the 3.7% it forecast in Jan. But the headline figures mask a growing split among major economies, in part due to the varying impacts of currency fluctuations and lower oil prices. They also reflect the IMF's growing concern about key developing countries, including Russia, Brazil & South Africa, & fears of a greater slowdown in growth in China, as it rebalances away from investment toward consumption-led growth. The IMF raised growth expectations for all the major economies in the euro zone, especially Spain, & for Japan, as both oil-importing regions benefited from the lower price for crude oil & depreciation of their currencies. The IMF cut its outlook for the US, as a 10% appreciation in the dollar over the last 6 months dragged down net exports. The IMF also warned that many of the risks it highlighted in Oct, including geopolitical tensions & disruptive shifts in financial markets, could still derail the sluggish recovery. It warned, in particular, of surprises around the first US interest rate hike in nearly nine years, expected later this year, which could prompt capital outflows from emerging markets. The IMF said oil prices should add more than 0.5 percentage point to global economic growth by next year, but warned prices could rise more quickly than expected & hurt global demand.
IMF Global Outlook Solid as Growth Diverges
Johnson & Johnson, a Dow stock & Dividend Aristocrat, cut its full-year profit forecast, saying it expected a strong dollar to keep hurting its intl business. JNJ, which reported higher-than-expected quarterly results, warned in Jan that the dollar's strength could reduce EPS by 42¢ this year. The company gets half of its revenue from abroad. JNJ lowered its full-year EPS forecast to $6.04-$6.19 from its prior outlook of $6.12-$6.27. It earned $5.97 last year. Sales of medical devices & consumer products fell sharply, hurt by rival brands & the strong dollar. The bright spot in the earnings report was US sales of pharmaceuticals, which jumped 17% on demand for new treatments for diabetes, blood cancers, prostate cancer & blood clots. Global pharmaceutical sales rose 3% to $7.7B even as the stronger dollar held them back by 7.2%. Quarterly EPS fell to $1.53, down from $1.64, a year earlier. Excluding special items such as writedowns of intangible assets, EPS was $1.56, beating the estimate of $1.54. Sales fell 4.1% to $17.37B, slightly but still topped expectations of $17.31B. The stock was down pennies. If you would like to learn more about JNJ, click on link:
http://club.ino.com/trend/?symb=AAPL&a_aid=CD3289&a_bid=6ae5b6f7
J&J Reveals 1Q Beat
Oil has been climbing out of the doghouse & energy shares responded. The big name oils rose today & MLPs have been climbing higher from their lows in the last month. But techs sold off today on worries about the strength of the economy. Early signals from the earnings reports are mixed at best & it looks like more reports will disappoint.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLK15.NYM | ....Crude Oil May 15 | ....53.33 |  ...1.42 | (2.7%) |
The IMF highlighted an increasing divergence in the growth paths of the world's major economies this year, as a pick-up in the euro zone & India is expected to be offset by diminished prospects in other key emerging markets. The IMF kept its global growth forecasts unchanged, but warned that the economic recovery remains "moderate and uneven," beset by greater uncertainty & a host of risks, including geopolitical tensions & financial volatility. In its World Economic Outlook, the institution kept its forecast for global growth this year at 3.5%. For 2016, the IMF now expects global GDP to expand 3.8%, up from the 3.7% it forecast in Jan. But the headline figures mask a growing split among major economies, in part due to the varying impacts of currency fluctuations and lower oil prices. They also reflect the IMF's growing concern about key developing countries, including Russia, Brazil & South Africa, & fears of a greater slowdown in growth in China, as it rebalances away from investment toward consumption-led growth. The IMF raised growth expectations for all the major economies in the euro zone, especially Spain, & for Japan, as both oil-importing regions benefited from the lower price for crude oil & depreciation of their currencies. The IMF cut its outlook for the US, as a 10% appreciation in the dollar over the last 6 months dragged down net exports. The IMF also warned that many of the risks it highlighted in Oct, including geopolitical tensions & disruptive shifts in financial markets, could still derail the sluggish recovery. It warned, in particular, of surprises around the first US interest rate hike in nearly nine years, expected later this year, which could prompt capital outflows from emerging markets. The IMF said oil prices should add more than 0.5 percentage point to global economic growth by next year, but warned prices could rise more quickly than expected & hurt global demand.
IMF Global Outlook Solid as Growth Diverges
Johnson & Johnson, a Dow stock & Dividend Aristocrat, cut its full-year profit forecast, saying it expected a strong dollar to keep hurting its intl business. JNJ, which reported higher-than-expected quarterly results, warned in Jan that the dollar's strength could reduce EPS by 42¢ this year. The company gets half of its revenue from abroad. JNJ lowered its full-year EPS forecast to $6.04-$6.19 from its prior outlook of $6.12-$6.27. It earned $5.97 last year. Sales of medical devices & consumer products fell sharply, hurt by rival brands & the strong dollar. The bright spot in the earnings report was US sales of pharmaceuticals, which jumped 17% on demand for new treatments for diabetes, blood cancers, prostate cancer & blood clots. Global pharmaceutical sales rose 3% to $7.7B even as the stronger dollar held them back by 7.2%. Quarterly EPS fell to $1.53, down from $1.64, a year earlier. Excluding special items such as writedowns of intangible assets, EPS was $1.56, beating the estimate of $1.54. Sales fell 4.1% to $17.37B, slightly but still topped expectations of $17.31B. The stock was down pennies. If you would like to learn more about JNJ, click on link:
http://club.ino.com/trend/?symb=AAPL&a_aid=CD3289&a_bid=6ae5b6f7
J&J Reveals 1Q Beat
Johnson & Johnson (JNJ)
Wells Fargo said low interest
rates pushed first-quarter lending margins below 3% for the first
time since at least 1994. EPS fell to $1.04 from $1.05 a year earlier, the first year-over-year quarterly profit
decline since 2008. The average estimate was for 98¢. CEO John Stumpf is searching for more revenue
while seeking to cap expenses as he waits for the Federal Reserve to
boost interest rates, which most economists expect to occur later this
year. The bank’s efficiency ratio, a measure of how much it costs to
bring in a dollar of revenue, was 58.8%, at
the top end of management’s forecasted range. Net interest margin, the difference between what WFC makes
on lending & what it pays for funding, fell to 2.95% & has
dropped more than 1 percentage point from the end of 2010,
below the lowest estimate. Revenue rose 3.2% to $21.3B from a year earlier, on net
interest income of $11B & fee income of $10.3B. Total
deposits climbed $28B from Q4 to $1.2T at
Mar 31. “We continued to strengthen our customer relationships in the
quarter, as reflected in strong growth in deposits and primary checking
customers,” Stumpf said. CFO John Shrewsberry highlighted one area of
strength, the US mortgage market. On Feb 10, he said that volume would be similar to Q4, when it made $44B in loans “despite the fact that the
first quarter usually reflects a slower purchase market.” Mortgage banking revenue rose 2.5%
from a year earlier to $1.55B on originations of $49B, the
most since Q4-2013. An additional $44B in
mortgages were in the process of being completed when Q1 ended. Average rates for 30-year residential mortgages fell 0.20 percentage
point in Q1 to 3.79%, spurring an uptick in
refinancings. The industry originated $288B in home loans in Q1, 17% more than in Q1-2014 & 52% of those replaced existing loans, the group estimates. Expenses rose 4.7% from a year
earlier to $12.5B on higher commissions & incentive pay. Investment-banking fees rose 36% from a year earlier to $445M, while brokerage revenue advanced 6% to $2.38B. The stock slid 40¢. If you would like to learn more about WFC, click on link:
http://club.ino.com/trend/?symb=WFC&a_aid=CD3289&a_bid=6ae5b6f7
Wells Fargo Lending Margin Falls Below 3% as Profit Declines
Wells Fargo (WFC)
Oil has been climbing out of the doghouse & energy shares responded. The big name oils rose today & MLPs have been climbing higher from their lows in the last month. But techs sold off today on worries about the strength of the economy. Early signals from the earnings reports are mixed at best & it looks like more reports will disappoint.
Dow Jones Industrials
No comments:
Post a Comment