Monday, June 8, 2015

Markets retreat as Greek debt talks drag on

Dow lost 25, decliners over advancers 3-2 & NAZ fell 16.  The MLP index was fractionally lower in the 421s, remaining near its yearly lows, & the REIT index rose a fraction in the 311s (also near its recent lows).  Junk bond funds edged higher & Treasuries advanced.  Oil was lower & gold inched higher.

AMJ (Alerian MLP Index tracking fund)

CLN15.NYM....Crude Oil Jul 15...58.55 Down ...0.58  (1.0%)

GCM15.CMX...Gold Jun 15.....1,170.60 Up ...2.80 (0.2%)

3 Stocks You Should Own Right Now - Click Here!

German Chancellor Angela Merkel demanded urgent action from the Greek gov to cement its position as a member of the single currency.  She said that fellow G-7 leaders meeting in southern Germany, shared her goal of keeping Greece in the currency bloc & also backed her insistence that Prime Minister Tsipras must deliver an economic program that can satisfy the country’s creditors.  “There isn’t much time left, that’s the problem,” Merkel said at a press conference today.  “Every day counts now.”  Greece & its creditors are wrangling over the measures required to unlock as much as €7.2B ($8B) of aid from its bailout program & avert a chain reaction that could see the nation pushed out of the euro.  A solution to the negotiations should be reached before Sun but further high-level meetings will only happen if there is a chance of a deal, a French gov official said.  “A faster resolution is in Greece’s interest,” French pres Hollande said after the meeting.  “If we want to move forward, it would be necessary to have technical talks, in the hours and the days to come, so that the proposals that aren’t working for the Greeks are replaced by alternative proposals.”  With talks between the Greek gov & creditors resuming on Mon, the G-7 leaders are leaning on Tsipras to do a deal & avert the risk of wider economic reverberations.  Pres Obama put concerns over the deadlock onto the summit agenda while Canadian Prime Minister Harper emphasized the importance reaching a settlement.  “All of us who were at the table want Greece to stay in the euro area,” Merkel said after hosting the summit of G-7 leaders also attended by IMF chief Lagarde & European Commission head Jean-Claude Juncker.  “Let there be no doubt about what we always say -- that making an effort of your own and receiving solidarity is the right combination and two sides of the same coin.”

Merkel Demands Action From Greece

Apple, a Dow stock, is assembling a high-speed network & upgrading how it builds data centers, a push to be more competitive in cloud services.  Up to now, AAPL has relied mostly on traditional network providers & technology suppliers to support consumer services such as iTunes for music & movies, iCloud for storing photos & other content & the Siri voice-activated assistant.  It will stick with most of its existing vendors, & is mainly seeking to bolster its current infrastructure.  AAPL is planning to introduce a streaming-music service at its developer conference today, with TV possibly following later in the year.  It will need more efficient, faster infrastructure to ensure glitch-free delivery, according to leakers.  The push to build a stronger cloud infrastructure combines two initiatives: Building out a faster network & upgrading data centers.  Investments will run into the $B.  AAPL may have put $1B into data centers last year, pegged as the 7nth-largest cloud infrastructure spender in 2014.  The stock slid back pennies.  If you would like to learn about AAPL, click on this link:

Apple to Build High-Speed Network for Fast Content Delivery

Apple (AAPL)

McDonald’s, a Dow stock & Dividend Aristocrat, is pursuing a comeback under new CEO Steve Easterbrook, reported May sales that narrowly topped projections after growth in Europe helped make up for a lingering slump in the US.  Global same-store sales fell 0.3% & analysts predicted a 0.9% drop.  Europe was a bright spot for a company struggling with sluggish demand in both Asia & its home country.  European comparable sales rose 2.3%.  Analysts had projected a 0.6% gain.  Easterbrook, who took over in Mar, has vowed to transform the world’s largest restaurant chain into a “modern, progressive burger company.”  He announced a turnaround plan last month that includes reorganizing management, cutting costs & returning cash to shareholders.  It announced that it would stop providing monthly sales data.  The company will give its Jun numbers, along with its quarterly earning report in July, but that will be it.  Most other companies in the fast-food & retail industries already stopped making monthly sales numbers public.  US sales fell 2.2%, worse than the 1.7% decline estimated.  The drop was 3.2% in the region that includes Asia-Pacific, the Middle East % Africa.  Analysts predicted a 3.8% decrease.  Easterbrook has said that turning around the US business is a “burning priority.”  He’s focusing on convenience & value after years of losing ground to fast-casual chains.  The strategy includes testing a slimmed-down menu for drive-thru customers.  The stock went up 24¢.  If you would like to learn about AAPL, click on this link:

McDonald’s Sales Top Estimates After Europe Outperforms U.S.

McDonald's (MCD)

Stocks are stumbling around, looking for direction & the bulls are not getting help from Greece.  The debt mess is getting grimmer by the day.  The euro leaders have learned that Greece is not serious about making reforms & are facing a painful decision about extending the loan.  Meanwhile the US data is fulls of ups & downs.  Dow has fallen to down 10 YTD.

Dow Jones Industrials

No comments: