Dow rocketed ahead 191, advancers over decliners 3-1 & NAZ soared 69. The MLP index added 2+ to the 446s & the REIT index gained 5+ to the 322s. Junk bond funds went up & Treasuries advanced. Oil puled back, slipping below 60, & gold crawled higher.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.7835054116669379)
Department store operator Kohl's Corp reported quarterly same-store sales that missed analyst projection, hurt by colder-than-usual weather in Feb. Same-store sales rose 1.4% in Q1, but widely missed expectation for a 2.6% rise. Analysts had expected Kohl's same-store sales to be boosted by the nationwide roll out of its loyalty program, upgraded beauty departments at its stores & more online & TV advertising. "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February," CEO Kevin Mansell said. EPS rose to 63¢, from 60¢ a year earlier & net sales rose 1.3% to $4.12B. Analysts expected EPS of 55¢ on revenue of $4.19B. The stock tumbled 9.89 (13%). If you would like to learn more about KSS, click on this link:
club.ino.com/trend/analysis/stock/KSS?a_aid=CD3289&a_bid=6ae5b6f7
General Motors will spend $1B thru 2018 to
renovate & expand its sprawling 60-year-old Tech Center campus in
Warren, Michigan, adding 2.6K jobs. The project includes construction of new design studios & a
multistory information technology building. Some existing R&D
facilities will be rebuilt & renovated & the Advanced Energy Center,
where GM works on battery technology, will get additional testing
areas. GM needs to add talent in areas from infotainment to advanced
powertrains to keep up with regulations & competitors’ offerings.
Major automakers are all adding more software & computing power to
their cars as they develop driver-assist technology that may lead to
autonomous vehicles. They also must invest in electric-drive, hybrids & other systems to reduce pollution & fuel consumption. “This is an investment in our people who work at the Tech Center
because it is positioning the company for long-term growth by enabling
new levels of innovation and collaboration into our workplace,” Mark
Reuss, GM executive VP over product development &
purchasing, said. This investment is in line with what it costs to build a factory or
develop a line of autos. But it’s not out of the realm of what carmakers
have to spend to build the product-development works & research
centers they need to compete. The stock fell 15¢. If you would like to learn more about GM, click on this link: club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
Greece will continue with efforts to privatize the country’s largest port & regional airports as it seeks ways to attract investment for other state assets, Economy Minister George Stathakis said, in a gov concession in talks with its creditors. The privatization process that is already underway for the Piraeus Port Authority, operator of Greece’s largest harbor, & for 14 regional airports will continue, Stathakis said. “We’re trying to revise some elements of these privatizations in order to improve them and I think we’ll get a sensible agreement for both.” A sale of the Piraeus Port would be a reversal on the part of Greece’s Syriza party-led gov, which had earlier pledged to block such moves. As part of ongoing negotiations to unlock aid to Europe’s most-indebted nation, Greek’s European creditors have asked for more specific policy proposals in areas including labor market deregulation, a pension-system overhaul, sales tax reform & privatization of state-held assets. Still, Stathakis said the gov doesn't plan to sell other assets at the moment. The Piraeus Port sale “is part of the bailout negotiations,” & the fact that the gov “agrees to privatize the port is a compromise to creditors,” a gov spokesman said. A venture led by Fraport AG won the right in Nov 2014 to use, operate & manage the 14 regional airports after it offered €1.2B ($1.4B) for 40 years & promised to pay an annual, guaranteed leasing fee of €22.9M. Fraport also pledged to make €330M in investments over the next 4 years. Greece is talking to Fraport & a decision should be reached “very soon.” It’s “definite” that Greece won’t proceed with selling other state assets on a list that had been agreed on by the previous gov such as water companies, the post office or Public Power Corp, Stathakis said. “We’re trying to work on a different model than privatizing to attract capital and investment such as for the country’s railways and other ports” & Greece is looking at “alternative options to 100 percent privatization.” The sale of land at Hellenikon, site of Athens’s old airport that is Europe’s largest unused tract of urban real estate, “is an issue under discussion,” Stathakis said. A venture led-by Lamda Development last year agreed to buy the property for €915M while also committing to spend €1.2B on infrastructure at the site. Greece’s is locked in talks with its creditors over the terms attached to its €240B bailout. Uncertainty over the country’s future in the euro area has triggered a liquidity squeeze, which pulled the economy back into a double-dip recession.
Stocks recovered much of their recent losses on scant good news. The KSS earnings report gives a better indication of how the US economy has fared & that story is not pretty. Consumer spending is bland at best & growth for GDP this year may have to struggle to reach 2%. That's a major disconnect from the message today's rally gives. Higher values make investors fell good. I know because that is how I feel. But a disconnect with economic reality will be recognized eventually. Dow & NAZ are inches from setting new record highs.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLM15.NYM | Crude Oil Jun 15 | 59.80 |  0.70 (1.2%) |
Department store operator Kohl's Corp reported quarterly same-store sales that missed analyst projection, hurt by colder-than-usual weather in Feb. Same-store sales rose 1.4% in Q1, but widely missed expectation for a 2.6% rise. Analysts had expected Kohl's same-store sales to be boosted by the nationwide roll out of its loyalty program, upgraded beauty departments at its stores & more online & TV advertising. "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February," CEO Kevin Mansell said. EPS rose to 63¢, from 60¢ a year earlier & net sales rose 1.3% to $4.12B. Analysts expected EPS of 55¢ on revenue of $4.19B. The stock tumbled 9.89 (13%). If you would like to learn more about KSS, click on this link:
club.ino.com/trend/analysis/stock/KSS?a_aid=CD3289&a_bid=6ae5b6f7
Kohl's Shares Drop on Weak Same-Store Sales
Kohl's (KSS)
GM Invests $1 Billion Adding 2,600 Salaried Jobs at Tech Center
General Motors (GM)
Greece will continue with efforts to privatize the country’s largest port & regional airports as it seeks ways to attract investment for other state assets, Economy Minister George Stathakis said, in a gov concession in talks with its creditors. The privatization process that is already underway for the Piraeus Port Authority, operator of Greece’s largest harbor, & for 14 regional airports will continue, Stathakis said. “We’re trying to revise some elements of these privatizations in order to improve them and I think we’ll get a sensible agreement for both.” A sale of the Piraeus Port would be a reversal on the part of Greece’s Syriza party-led gov, which had earlier pledged to block such moves. As part of ongoing negotiations to unlock aid to Europe’s most-indebted nation, Greek’s European creditors have asked for more specific policy proposals in areas including labor market deregulation, a pension-system overhaul, sales tax reform & privatization of state-held assets. Still, Stathakis said the gov doesn't plan to sell other assets at the moment. The Piraeus Port sale “is part of the bailout negotiations,” & the fact that the gov “agrees to privatize the port is a compromise to creditors,” a gov spokesman said. A venture led by Fraport AG won the right in Nov 2014 to use, operate & manage the 14 regional airports after it offered €1.2B ($1.4B) for 40 years & promised to pay an annual, guaranteed leasing fee of €22.9M. Fraport also pledged to make €330M in investments over the next 4 years. Greece is talking to Fraport & a decision should be reached “very soon.” It’s “definite” that Greece won’t proceed with selling other state assets on a list that had been agreed on by the previous gov such as water companies, the post office or Public Power Corp, Stathakis said. “We’re trying to work on a different model than privatizing to attract capital and investment such as for the country’s railways and other ports” & Greece is looking at “alternative options to 100 percent privatization.” The sale of land at Hellenikon, site of Athens’s old airport that is Europe’s largest unused tract of urban real estate, “is an issue under discussion,” Stathakis said. A venture led-by Lamda Development last year agreed to buy the property for €915M while also committing to spend €1.2B on infrastructure at the site. Greece’s is locked in talks with its creditors over the terms attached to its €240B bailout. Uncertainty over the country’s future in the euro area has triggered a liquidity squeeze, which pulled the economy back into a double-dip recession.
Greece to Privatize Port, Airports in Concession to Creditors
Stocks recovered much of their recent losses on scant good news. The KSS earnings report gives a better indication of how the US economy has fared & that story is not pretty. Consumer spending is bland at best & growth for GDP this year may have to struggle to reach 2%. That's a major disconnect from the message today's rally gives. Higher values make investors fell good. I know because that is how I feel. But a disconnect with economic reality will be recognized eventually. Dow & NAZ are inches from setting new record highs.
Dow Jones Industrials
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