Dow fell 23, advancers over decliners 5-4 & NAZ pulled back 7. The MLP index dropped 3 to the 443s & the REIT index was off 1+ to the 329s. Junk bond funds were mixed & Treasuries declined. Oil inched higher in the 57s & gold also gained.
AMJ (Alerian MLP Index tracking fund)
The Conference Board’s index of consumer confidence unexpectedly decreased to 95.2 in Apr from 101.4 a month earlier. The forecast called for the gauge to climb to 102.2 after a previously reported 101.3 a month earlier. Estimates ranged from 99.5-105. The index averaged 96.9 during the last expansion & 53.7 during the 18-month recession that ended Jun 2009.
China’s central bank is considering expanding a new lending tool in an effort to bolster demand for local-gov bonds, as policy makers seek to develop a municipal debt market & avoid a credit crunch. The People’s Bank of China (PBOC) is discussing letting banks tap its Pledged Supplementary Lending program to buy local-authority debt along with other favored purposes, according to leakers. The PBOC last year channeled 1T yuan ($161B) thru the PSL facility to China Development Bank for redevelopment of shantytowns. The PBOC has stepped up support for China’s slowing economy, adding monetary easing to targeted moves that add liquidity while avoiding the kind of lending binge unleashed in 2008 & 2009. The PSL move would offer support for a Finance Ministry initiative to expand the market for municipal bonds & bring transparency to borrowing by provinces & cities, much of which was done off public balance sheets. The PSL was used last year for extending credit to China Development Bank, the nation’s biggest policy lender, for low-cost housing. While the PBOC didn’t specify the term of that loan, local media reported it as 3 years. The interest rate was about 1 percentage point below the market rate.
Pfizer, a Dow stock, reported Q1 profit that exceeded estimates, boosted by better-than-projected sales of its Prevnar
vaccines. EPS of 51¢ topped the projection of 50¢ & sales of
$10.9B, compared with projections of $10.8B. Prevnar sales of $1.3B topped the estimate of $1.08B. A US advisory panel recommended in Aug that Prevnar 13 be used for people 65 & older to help
prevent infections including pneumonia & meningitis, helping lift
revenue. But the biggest US drugmaker by sales cut its 2015 forecast as the
dollar’s strength cuts into revenue outside the US. EPS will hit
$1.95-$2.05, compared
with an earlier forecast of $2-$2.10. Analysts had projected $2.07. The company also reduced its sales forecast to a range of $44B$46B, compared with the $45.9B
estimate. Q1 revenue for the new cancer therapy Ibrance,
a drug that’s on track to be its first blockbuster after a series
of patent expirations that have pressured sales. Ibrance generated $38M in sales, compared with the $22M projected.
Ibrance can be a $3.39B drug by 2018, according to estimates. Ibrance was approved for use in advanced breast
cancer in Feb, 2 months ahead of schedule. PFE said earlier
this month that a study looking at the use of Ibrance in patients with
recurrent breast cancer was stopped early because of the drug’s
effectiveness. That data has been submitted for presentation at the
American Society of Clinical Oncology this year. Sales of Lyrica, Lipitor & Viagra also beat estimates. Xalkori,
for lung cancer, & Enbrel & Xeljanz, both for arthritis, fell short
of projections. The stock lost 20¢. If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Stocks are meandering, looking for direction. Earnings are not decisive, the Greek debt situation lingers on & consumer data in the US does not inspire confidence among stock buyers. The FOMC is meeting. Everybody awaits their announcement along with GDP data for Q1. Apple (AAPL), a Dow stock, earnings did little for the stock. It's down 2 today.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLM15.NYM | ...Crude Oil Jun 15 | ...57.14 |  ...0.15 | (0.3%) |
| GCJ15.CMX | .....Gold Apr 15 | ....1,205.30 | ...2.00 | (0.2%) |
The Conference Board’s index of consumer confidence unexpectedly decreased to 95.2 in Apr from 101.4 a month earlier. The forecast called for the gauge to climb to 102.2 after a previously reported 101.3 a month earlier. Estimates ranged from 99.5-105. The index averaged 96.9 during the last expansion & 53.7 during the 18-month recession that ended Jun 2009.
U.S. Consumer Confidence Index Unexpectedly Dropped in April
China’s central bank is considering expanding a new lending tool in an effort to bolster demand for local-gov bonds, as policy makers seek to develop a municipal debt market & avoid a credit crunch. The People’s Bank of China (PBOC) is discussing letting banks tap its Pledged Supplementary Lending program to buy local-authority debt along with other favored purposes, according to leakers. The PBOC last year channeled 1T yuan ($161B) thru the PSL facility to China Development Bank for redevelopment of shantytowns. The PBOC has stepped up support for China’s slowing economy, adding monetary easing to targeted moves that add liquidity while avoiding the kind of lending binge unleashed in 2008 & 2009. The PSL move would offer support for a Finance Ministry initiative to expand the market for municipal bonds & bring transparency to borrowing by provinces & cities, much of which was done off public balance sheets. The PSL was used last year for extending credit to China Development Bank, the nation’s biggest policy lender, for low-cost housing. While the PBOC didn’t specify the term of that loan, local media reported it as 3 years. The interest rate was about 1 percentage point below the market rate.
China Said to Consider PBOC Lending Tool to Help Local Debt
Pfizer Profit Tops Estimates as Prevnar Vaccine Sales Rise
Pfizer (PFE)
Stocks are meandering, looking for direction. Earnings are not decisive, the Greek debt situation lingers on & consumer data in the US does not inspire confidence among stock buyers. The FOMC is meeting. Everybody awaits their announcement along with GDP data for Q1. Apple (AAPL), a Dow stock, earnings did little for the stock. It's down 2 today.
Dow Jones Industrials
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