Tuesday, May 5, 2015

Markets decline on worries about GDP growth

Dow dropped 142, decliners over advancers a very big 4-1 & NAZ sank 77.  The MLP index was fractionally higher in the 451s & the REIT index plunged 6+ to the 315s.  Junk bond funds were mixed & Treasuries retreated.  Oil closed above 60, a sense of relief for the bulls, & gold inched higher, but remains under 1200.

AMJ (Alerian MLP Index tracking fund)

3 Stocks You Should Own Right Now - Click Here!

CLM15.NYM....Crude Oil Jun 15....60.38 Up ...1.45 (2.5%)

Live 24 hours gold chart [Kitco Inc.]

Kellogg reported better-than-expected quarterly profit & sales as demand rose in Latin America.  The said sales in Latin America rose 6% to $295M in Q1.  The company's sales rose across product lines in Asia Pacific & in its Pringles business in Europe, but a strong dollar more than offset the benefit of this rise.  The dollar has surged about 20% against a basket of major currencies in the past year, making sales denominated in other currencies less valuable in dollar terms.  Kellogg gets about 1/3 of its revenue from outside North America.  Sales in the US morning foods business, which includes cereal, fell almost 3% to $776M.  The business has reported a rise in sales only once in the last 8 qtrs.  EPS nearly halved to 64¢, mainly due to higher expenses related to its cost-cutting program & its pension plans.  Excluding items, EPS was 98¢ & net sales fell 5% to $3.56B.  Analysts expected EPS of 91¢ on revenue of $3.55B.  The stock sank 96¢.  If you would like to learn more about Kellogg, click on this link:

Kellogg Profit Beats as Latin America Sales Rise

Kellogg (K)

Walt Disney, a Dow stock, quarterly revenue beat expectations, helped by increased spending by visitors at its theme parks & strength in the company's TV networks business.  Results were also boosted by a surge in sales of toys & merchandise related to blockbuster animated film "Frozen".  While the studio business failed to keep pace with last year's "Frozen"-fueled growth, "The Avengers: Age of Ultron" is expected to boost revenue in the current qtr.  The sequel opened last weekend with $191M in ticket sales in the US & Canada, the 2nd-biggest opening of all time.  Revenue at theme parks rose 6% to $3.76B, pushing up the unit's operating income 24% as ticket prices & hotel room rates increased & visitors spent more on food, drinks and merchandise.  Total revenue rose 7% to $12.46B, topping the estimate of $12.25B.  EPS of $1.23 also beat the of $1.11 estimate.  The media networks business, which includes sports powerhouse ESPN, the Disney channels & ABC, reported a 13% rise in revenue to $5.81B, helped by higher ad sales & affiliate fees.  Higher programing & production costs at ESPN, however, pushed the unit's operating income down 2%.  Revenue at the studio business dropped 6% to $1.69B, while sales at the consumer products division rose 10%.  The stock lost 22¢.  If you would like to learn more about DIS, click on this link:

Disney Jumps as Fiscal 2Q Results Beat Views

Walt Disney (DIS)

HCP, the highest yielding Dividend Aristocrat, reported a key measure of profitability in its Q1 & results topped expectations.  The REIT said it had funds from operations (FFO) of 79¢ per share, topping the estimate of 78¢.  FFO is a closely watched measure in the REIT industry.  It takes net income & adds back items such as depreciation & amortization.  This money is used to pay divs.  However, the company said it had a loss of 52¢ per share.  The health care real estate investment trust posted revenue of $611M in the period.  HCP now expects full-year FFO per share of $3.09-$3.15.  The stock was off 1.20.  If you would like to learn more about HCP, click on this link:

HCP reports 1Q results

HCP, Inc. (HCP)

Unsettle conditions, political & economic, got thru to the market today.  All is not going well even though the popular stock averages are essentially at record levels.  Dow is back under 18K & NAZ dropped below 5K.  Dow reached this level in early Dec.  This is shaping up as a glum month for stocks.

Dow Jones Industrials


No comments: