Dow gained 75, advancers over decliners almost 2-1 & NAZ added 33. The MLP index went up 3+ to the 406s & the REIT index rose a fraction to the 315s. Junk bond funds were mixed & Treasuries traded higher. Oil had a good gain as expectations for oil sanctions against Iran should be eased slowly & gold was flat again.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.5924725578673943)
The toughest conditions ever attached to a Greek loan agreement could sail easily thru Greece’s turbulent parliament when a vote is held tomorrow, even as widespread defections from Tsipras’s governing coalition threaten his gov. That’s because Greece’s main opposition political parties, conservative New Democracy, centrist To Potami & Socialist Pasok, have united in supporting the sweeping reform agenda that is a prerequisite to keeping the country in the euro. “The measures included in the agreement are the measures which have been approved by the Greek parliament,” Tsipras said, referring to a long list of actions needed to secure a new 3-year bailout of €86B ($95B). The gov submitted a bill today that ratifies the agreement & calls for additional annual revenues & savings of €4.5B from new taxes & social security reforms. Tsipras had already won the parliament’s nod to negotiate a deal in return for austerity measures before he left for Brussels. The gov proposal secured an overwhelming 251 votes in Greece’s 300-seat chamber Sat, even without the backing more than a dozen lawmakers from Tsipras’s Coalition of the Radical Left (Syriza) party. Greece must hold a similar vote by tomorrow to enact first set of reforms as a sign of rebuilding trust after 6 months of often acrimonious talks. While more members of Tsipras’s Syriza party are threatening to defect, a look at the numbers shows that Greece may escape this time the cliffhanger of past bailout votes. The coalition gov commands 149 seats in parliament held by Syriza lawmakers & another 13 seats held by members of right-wing Independent Greeks, the junior coalition partner. Their combined 12-seat majority evaporated Sat, when 17 lawmakers from Syriza refused to back Tsipras’s proposals to creditors & may be eroded further if another 15 Syriza lawmakers vote against the package tomorrow. Still, unless a full scale mutiny against Tsipras unfolds within Syriza, any further defections could be more than offset by the combined 106 votes of the 3 opposition parties that fully support the measures, ensuring a majority of over 200 votes or 2/3 of the chamber. A simple majority of 151 votes is required to pass. What may prove much harder is for a weakened Syriza-led gov to implement the very austerity it came to power to abolish.
Wells Fargo posted profit that matched estimates as higher interest rates crimped revenue from mortgage banking. Q2 EPS was $1.03 versus $1.01 a year earlier. Net interest margin climbed to 2.97% from 2.95%. Rising rates have eroded its dominance in the mortgage market & curtailed refinancings, traditionally an area of strength because of the bank’s industry-leading servicing portfolio. The company made 13% of US home loans in Q1, down from 28% 3 years ago. Revenue from mortgage banking fell 1% to $1.71B from a year earlier, while originations rose to $62B from $47B. The pipeline of pending loan applications fell to $38B at the end of Jun from $44B in Mar. Expectations for a healthy mortgage business had prompted analysts to increase their profit estimates. Net interest income increased 4% from a year earlier to $11.3B. The company released $350M of loan-loss reserves, above the estimates by analysts. Community banking fell 2.2% to $3.36B from a year earlier &.revenue for the unit rose less than 1% to $12.7B. Earnings from wholesale banking advanced 3% to $2.01B, as revenue increased 2% to $6.08B. Profit from wealth management climbed 11% to $602M on a 5.3% gain in revenue to $3.74B. The stock rose 51¢. If you would like to learn more about WFC, click on this link:
club.ino.com/trend/analysis/stock/WFC?a_aid=CD3289&a_bid=6ae5b6f7
The traders were happy with the numbers from the banks. I wasn't with the usual mixture of this & that. The Iran deal, which still has be approved in DC, would lead to increased oil shipments from Iran, but that probably will not happen until next year. Oil did well today which helped energy stocks & MLPs. Janet is giving testimony. but that rarely provides new information about what the Fed will be doing. Dow is in the black & back over 18K (where is has been for months). The retails sales data was very disappointing & should haunt the markets for the rest of this week .
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLQ15.NYM | ....Crude Oil Aug 15 | ....52.79 |  ...0.59 | (1.1%) |
The toughest conditions ever attached to a Greek loan agreement could sail easily thru Greece’s turbulent parliament when a vote is held tomorrow, even as widespread defections from Tsipras’s governing coalition threaten his gov. That’s because Greece’s main opposition political parties, conservative New Democracy, centrist To Potami & Socialist Pasok, have united in supporting the sweeping reform agenda that is a prerequisite to keeping the country in the euro. “The measures included in the agreement are the measures which have been approved by the Greek parliament,” Tsipras said, referring to a long list of actions needed to secure a new 3-year bailout of €86B ($95B). The gov submitted a bill today that ratifies the agreement & calls for additional annual revenues & savings of €4.5B from new taxes & social security reforms. Tsipras had already won the parliament’s nod to negotiate a deal in return for austerity measures before he left for Brussels. The gov proposal secured an overwhelming 251 votes in Greece’s 300-seat chamber Sat, even without the backing more than a dozen lawmakers from Tsipras’s Coalition of the Radical Left (Syriza) party. Greece must hold a similar vote by tomorrow to enact first set of reforms as a sign of rebuilding trust after 6 months of often acrimonious talks. While more members of Tsipras’s Syriza party are threatening to defect, a look at the numbers shows that Greece may escape this time the cliffhanger of past bailout votes. The coalition gov commands 149 seats in parliament held by Syriza lawmakers & another 13 seats held by members of right-wing Independent Greeks, the junior coalition partner. Their combined 12-seat majority evaporated Sat, when 17 lawmakers from Syriza refused to back Tsipras’s proposals to creditors & may be eroded further if another 15 Syriza lawmakers vote against the package tomorrow. Still, unless a full scale mutiny against Tsipras unfolds within Syriza, any further defections could be more than offset by the combined 106 votes of the 3 opposition parties that fully support the measures, ensuring a majority of over 200 votes or 2/3 of the chamber. A simple majority of 151 votes is required to pass. What may prove much harder is for a weakened Syriza-led gov to implement the very austerity it came to power to abolish.
Greek Opposition Set to Bail Out Tsipras
Wells Fargo posted profit that matched estimates as higher interest rates crimped revenue from mortgage banking. Q2 EPS was $1.03 versus $1.01 a year earlier. Net interest margin climbed to 2.97% from 2.95%. Rising rates have eroded its dominance in the mortgage market & curtailed refinancings, traditionally an area of strength because of the bank’s industry-leading servicing portfolio. The company made 13% of US home loans in Q1, down from 28% 3 years ago. Revenue from mortgage banking fell 1% to $1.71B from a year earlier, while originations rose to $62B from $47B. The pipeline of pending loan applications fell to $38B at the end of Jun from $44B in Mar. Expectations for a healthy mortgage business had prompted analysts to increase their profit estimates. Net interest income increased 4% from a year earlier to $11.3B. The company released $350M of loan-loss reserves, above the estimates by analysts. Community banking fell 2.2% to $3.36B from a year earlier &.revenue for the unit rose less than 1% to $12.7B. Earnings from wholesale banking advanced 3% to $2.01B, as revenue increased 2% to $6.08B. Profit from wealth management climbed 11% to $602M on a 5.3% gain in revenue to $3.74B. The stock rose 51¢. If you would like to learn more about WFC, click on this link:
club.ino.com/trend/analysis/stock/WFC?a_aid=CD3289&a_bid=6ae5b6f7
Wells Fargo Matches Estimates as Higher Rates Hurt Mortgages
Wells Fargo (WFC)
General Motors will invest $1.4B in its Arlington, Texas,
assembly plant to improve the facility where it makes full-size sport
utility vehicles. GM will put in a new paint shop & body shop & upgrade the
assembly area. The
Arlington crew has been working overtime to produce enough Chevrolet
Tahoe, Chevrolet Suburban, GMC Yukon & Cadillac Escalade SUVs. The investment is part of GM’s $5.4B capital budget for its
US assembly plants. Since emerging from bankruptcy in 2009, GM has put
$17.8B into its American plants. The nation’s largest automaker also has been spending abroad. A GM
joint venture in China said in Apr that it plans to spend $16B
by 2020 to expand in that market, & GM in Mar said it will put $5B into plants in Mexico. GM’s full-sized SUVs are among the most-profitable models made by the
company. With the spending announced today, it has
invested $2B at the Arlington site since 2011. The stock was up pennies. 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
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM Invests $1.4 Billion to Improve Full-Size SUV Plant in Texas
General Motors (GM)
The traders were happy with the numbers from the banks. I wasn't with the usual mixture of this & that. The Iran deal, which still has be approved in DC, would lead to increased oil shipments from Iran, but that probably will not happen until next year. Oil did well today which helped energy stocks & MLPs. Janet is giving testimony. but that rarely provides new information about what the Fed will be doing. Dow is in the black & back over 18K (where is has been for months). The retails sales data was very disappointing & should haunt the markets for the rest of this week .
Dow Jones Industrials
No comments:
Post a Comment