Dow climbed 109, advancers ahead of decliners 5-2 & NAZ gained 14. The MLP index added 4+ to go over 290 after yesterday's big gain & the REIT index fell a fraction to the 315s. Junk bond funds were mixed to lower & Treasuries pulled back. Oil is back into the 47s & gold continues weak.
AMJ (Alerian MLP Index tracking fund)
Prime Minister Tsipras expressed confidence that Greece’s creditors will grant debt relief & blamed their intractability for worsening the country’s economic plight. “The Greek people were prisoners, who after they escaped prison were immediately arrested and returned to an even smaller cell,” Tsipras said. “What’s crucial is that we got a commitment for debt relief, which will take place after the first review of the program, in November.” While the IMF expressly supports debt restructuring as part of the rescue package, European donors led by Germany have been less willing. He said the 11th-hour accord reached on Jul 12 fully covers financing needs for the next 3 years & paves the way for debt relief. Officials from Greece & its creditor institutions are meeting in Athens this week on policies that must be implemented in return for loans of €86B ($94B) The ECB, which controls the liquidity Greek banks rely on to operate, agreed today to keep the ceiling on the Emergency Liquidity Assistance facility unchanged at €90.4B ($100B). The Bank of Greece, which operates the lending facility, didn’t ask for a weekly increase. The imposition of capital controls a month ago has helped stabilize withdrawals from the banking system, even as it imposed restrictions on the functioning of the Greek economy. Curbs on cash withdrawals & transfers were introduced on Jun 28, following Tsipras’s decision to end talks with creditors & hold a referendum on their latest proposals. Banks reopened with limited services last week, after Tsipras agreed to negotiate a new loan facility attached to austerity measures. The country’s stock market remains closed. Tsipras criticized the measures his country is being asked to sign up to in return for fresh aid.
Northrop Grumman Q2 profit rose despite a sales drop, aided by a tax credit & reduced costs. The company further lifted its earnings forecast for the year, partly to a lower projected tax rate, expecting to report EPS of $9.55-$9.70 in fiscal 2015, up from an earlier guidance of $9.40-$9.60. The firm backed its revenue guidance of $23.4-$23.8B & said its outlook assumes no disruption or shutdown of gov operations resulting from a federal gov debt ceiling breach (the gov will need to next boost the ceiling later this year). NOC generates about 84% of its revenue from the US & is seeking to boost sales abroad amid lackluster military spending at home. CEO Wes Bush has said the firm's intl sales, which rose 20% last year, are set to account for 15% of revenue in 2015, with South Korea & Japan lined up to buy its high-end military drones. In the latest period, higher volume for unmanned programs drove a slight increase in aerospace systems sales. The segment accounts for over 40% of total revenue, posting $2.51B in revenue. Analysts expected $2.49B. Intl sales helped offset lower volume for some programs in the technical services business, where sales fell 1.6%. The electronic systems business, which sells space sensors & marine systems, reported a 3.5% sales decline to $1.68B, short of expectations. Revenue from information systems, meanwhile, slid a worse-than-expected 4.9% to $1.49B due mostly to declines in command-&-control programs and the impact of in-theater force reductions. In all EPS was $2.74, up from $2.37 a year earlier. The result includes a tax benefit of 20¢& benefited from a lower share count. Revenue dropped 2.4% to $5.9B. Analysts predicted EPS of $2.36 & $5.93B in revenue. Total backlog as of Jun 30 was $37M, down from $38.2B at the end of Dec. New awards in the qtr totaled $4.6. The stock jumped 10.29. If you would like to learn more about NOC, click on this link:
club.ino.com/trend/analysis/stock/NOC?a_aid=CD3289&a_bid=6ae5b6f7
Credit & debit card issuer MA quarterly profit fell 1.1%, hurt by higher expenses. The company's operating expenses rose 15.6% to $1.14B in Q2. EPS was 81¢, up from 80¢ last year, net revenue rose 0.9% to $2.39B. The stock was off pennies. If you would like to learn more about MA, click on this link:
club.ino.com/trend/analysis/stock/MA?a_aid=CD3289&a_bid=6ae5b6f7
Stocks are waiting for guidance from Janet in the PM. The shorter term Dow chart does not look pretty & if there is no specific guidance about the first rate hike in years, will probably drift lower. High yield bonds have been very weak in recent weeks on nervousness about how rate hikes will impact their market. While MLPs have had a pop in the last few days, they remain solidly in a bear market. REITs have steadied after selling off earlier this year.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLU15.NYM | ....Crude Oil Sep 15 | ...47.51 |  ...0.47 | (1.0%) |
| GCN15.CMX | ...Gold Jul 15 | ........1,096.40 | ...0.10 | (0.0%) |
Prime Minister Tsipras expressed confidence that Greece’s creditors will grant debt relief & blamed their intractability for worsening the country’s economic plight. “The Greek people were prisoners, who after they escaped prison were immediately arrested and returned to an even smaller cell,” Tsipras said. “What’s crucial is that we got a commitment for debt relief, which will take place after the first review of the program, in November.” While the IMF expressly supports debt restructuring as part of the rescue package, European donors led by Germany have been less willing. He said the 11th-hour accord reached on Jul 12 fully covers financing needs for the next 3 years & paves the way for debt relief. Officials from Greece & its creditor institutions are meeting in Athens this week on policies that must be implemented in return for loans of €86B ($94B) The ECB, which controls the liquidity Greek banks rely on to operate, agreed today to keep the ceiling on the Emergency Liquidity Assistance facility unchanged at €90.4B ($100B). The Bank of Greece, which operates the lending facility, didn’t ask for a weekly increase. The imposition of capital controls a month ago has helped stabilize withdrawals from the banking system, even as it imposed restrictions on the functioning of the Greek economy. Curbs on cash withdrawals & transfers were introduced on Jun 28, following Tsipras’s decision to end talks with creditors & hold a referendum on their latest proposals. Banks reopened with limited services last week, after Tsipras agreed to negotiate a new loan facility attached to austerity measures. The country’s stock market remains closed. Tsipras criticized the measures his country is being asked to sign up to in return for fresh aid.
Tsipras Says Greece Won ‘Crucial’ Commitment for Debt Relief
Northrop Grumman Q2 profit rose despite a sales drop, aided by a tax credit & reduced costs. The company further lifted its earnings forecast for the year, partly to a lower projected tax rate, expecting to report EPS of $9.55-$9.70 in fiscal 2015, up from an earlier guidance of $9.40-$9.60. The firm backed its revenue guidance of $23.4-$23.8B & said its outlook assumes no disruption or shutdown of gov operations resulting from a federal gov debt ceiling breach (the gov will need to next boost the ceiling later this year). NOC generates about 84% of its revenue from the US & is seeking to boost sales abroad amid lackluster military spending at home. CEO Wes Bush has said the firm's intl sales, which rose 20% last year, are set to account for 15% of revenue in 2015, with South Korea & Japan lined up to buy its high-end military drones. In the latest period, higher volume for unmanned programs drove a slight increase in aerospace systems sales. The segment accounts for over 40% of total revenue, posting $2.51B in revenue. Analysts expected $2.49B. Intl sales helped offset lower volume for some programs in the technical services business, where sales fell 1.6%. The electronic systems business, which sells space sensors & marine systems, reported a 3.5% sales decline to $1.68B, short of expectations. Revenue from information systems, meanwhile, slid a worse-than-expected 4.9% to $1.49B due mostly to declines in command-&-control programs and the impact of in-theater force reductions. In all EPS was $2.74, up from $2.37 a year earlier. The result includes a tax benefit of 20¢& benefited from a lower share count. Revenue dropped 2.4% to $5.9B. Analysts predicted EPS of $2.36 & $5.93B in revenue. Total backlog as of Jun 30 was $37M, down from $38.2B at the end of Dec. New awards in the qtr totaled $4.6. The stock jumped 10.29. If you would like to learn more about NOC, click on this link:
club.ino.com/trend/analysis/stock/NOC?a_aid=CD3289&a_bid=6ae5b6f7
Northrop Grumman Ups Guidance After Earnings Beat
Northrop Grumman (NOC)
Credit & debit card issuer MA quarterly profit fell 1.1%, hurt by higher expenses. The company's operating expenses rose 15.6% to $1.14B in Q2. EPS was 81¢, up from 80¢ last year, net revenue rose 0.9% to $2.39B. The stock was off pennies. If you would like to learn more about MA, click on this link:
club.ino.com/trend/analysis/stock/MA?a_aid=CD3289&a_bid=6ae5b6f7
MasterCard Quarterly Profit Falls, Costs Rise
Mastercard (MA)
Stocks are waiting for guidance from Janet in the PM. The shorter term Dow chart does not look pretty & if there is no specific guidance about the first rate hike in years, will probably drift lower. High yield bonds have been very weak in recent weeks on nervousness about how rate hikes will impact their market. While MLPs have had a pop in the last few days, they remain solidly in a bear market. REITs have steadied after selling off earlier this year.
Dow Jones Industrials
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