Dow dropped 47 (above the lows), decliners over advancers 5-4 & NAZ was off 9. The MLP index sank another 5+ to the 366s & the REIT index lost 1+ to the 318s. Junk bond funds rose & Treasuries also sold off. Oversold oil finally had a recovery day & gold drifted lower.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.31812539872887824)
Allstate's quarterly profit missed the estimate by a wide margin as the company paid out more in claims. CEO Thomas Wilson said the company's operating income was lower due to increased frequency & severity of auto accidents. "More people have started driving and as more people drive and drive further, they have more accidents. We see this as a continuation of a trend that started last fall," Wilson said. Claims & claims-related expenses linked to property-liability insurance rose 8.7% to $5.59B in Q2. EPS fell 47% to 79¢. On an operating basis, ALL reported EPS of 63¢, below the estimate of 97¢. Its underlying, or adjusted, combined ratio was 87.7%, compared with 83% a year earlier. A combined ratio is the percentage of premium revenue an insurer has to pay out in claims. A ratio below 100% means an insurer earns more in premiums than it pays out in claims. Revenue from property-liability premiums rose about 4.4% to $7.88B. The company reported a 14.9% fall in catastrophe losses. The stock tumbled 7.04 (10%). If you would like to learn more about ALL, click on this link:
club.ino.com/trend/analysis/stock/ALL?a_aid=CD3289&a_bid=6ae5b6f7
CVS Health's profit beat estimates for the 4th straight qtr, boosted by higher pharmacy claims & strong sales in its business that provides medication & services for serious diseases such as multiple sclerosis & cancer. Revenue from the pharmacy services business rose about 12%. The business, which includes the specialty pharmacy segment, accounts for 2/3 of company revenue. The number of pharmacy claims processed rose 8.7%, helped by growth in Medicaid customers. Same-store sales rose 0.5%. Analysts had expected a 0.3% rise. Pharmacy same-store sales rose 4.1%, higher than the estimate of 2.9%. Same-store prescription count rose 4.8%. CVS raised the lower end of its 2015 adjusted EPS forecast range to $5.11 & cut the higher end to $5.18. The company had earlier forecast adjusted EPS of $5.08-$5.19. EPS was $1.12 & net revenue rose 7.4% to $37.17B. Excluding items, EPS was $1.22, ahead of the estimate for $1.20 on revenue of $37.18. The stock tumbled 2.86 (10%). If you would like to learn more about CVS, click on this link:
club.ino.com/trend/analysis/stock/CVS?a_aid=CD3289&a_bid=6ae5b6f7
The decline in AAPL stock, now in the Dow, is getting a lot of attention. Technical barriers are falling, such as going below the moving average line, & its large market cap influences buying for all stocks. Earnings are wishy-washy at best & more are coming from retailers. The intl scene is not pretty as the Dow closes in on its lows for 2015. The stock market remains on defense & Aug could be a very tough month.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLV15.NYM | ....Crude Oil Oct 15 | ....46.09 |  ...0.53 | (1.2%) |
Allstate's quarterly profit missed the estimate by a wide margin as the company paid out more in claims. CEO Thomas Wilson said the company's operating income was lower due to increased frequency & severity of auto accidents. "More people have started driving and as more people drive and drive further, they have more accidents. We see this as a continuation of a trend that started last fall," Wilson said. Claims & claims-related expenses linked to property-liability insurance rose 8.7% to $5.59B in Q2. EPS fell 47% to 79¢. On an operating basis, ALL reported EPS of 63¢, below the estimate of 97¢. Its underlying, or adjusted, combined ratio was 87.7%, compared with 83% a year earlier. A combined ratio is the percentage of premium revenue an insurer has to pay out in claims. A ratio below 100% means an insurer earns more in premiums than it pays out in claims. Revenue from property-liability premiums rose about 4.4% to $7.88B. The company reported a 14.9% fall in catastrophe losses. The stock tumbled 7.04 (10%). If you would like to learn more about ALL, click on this link:
club.ino.com/trend/analysis/stock/ALL?a_aid=CD3289&a_bid=6ae5b6f7
Allstate Profit Falls 47% as Claims Rise
Allstate (ALL)
CVS Health's profit beat estimates for the 4th straight qtr, boosted by higher pharmacy claims & strong sales in its business that provides medication & services for serious diseases such as multiple sclerosis & cancer. Revenue from the pharmacy services business rose about 12%. The business, which includes the specialty pharmacy segment, accounts for 2/3 of company revenue. The number of pharmacy claims processed rose 8.7%, helped by growth in Medicaid customers. Same-store sales rose 0.5%. Analysts had expected a 0.3% rise. Pharmacy same-store sales rose 4.1%, higher than the estimate of 2.9%. Same-store prescription count rose 4.8%. CVS raised the lower end of its 2015 adjusted EPS forecast range to $5.11 & cut the higher end to $5.18. The company had earlier forecast adjusted EPS of $5.08-$5.19. EPS was $1.12 & net revenue rose 7.4% to $37.17B. Excluding items, EPS was $1.22, ahead of the estimate for $1.20 on revenue of $37.18. The stock tumbled 2.86 (10%). If you would like to learn more about CVS, click on this link:
club.ino.com/trend/analysis/stock/CVS?a_aid=CD3289&a_bid=6ae5b6f7
CVS Health Quarterly Sales Rise 7.4%
CVS Health (CVS)
Apple was added to the Dow Jones Industrial Average at a bad time. AAPL, the world’s
largest company by market value, replaced AT&T (T) after the close
of trading on Mar 18. The stock peaked on Apr 28, or about 6 weeks after going into the
Dow. Yesterday, the stock dropped to its lowest price since Jan & retreated below its 200-day moving average, a gauge of price trends, for
the first time since Sep 2013. From its debut thru yesterday, the stock cut the value of the
Dow by 67 points, accounting for 14% of the
DJI loss during that period. The decline in AAPL stock price contrasted with a gain at AT&T which climbed as much as 7.7% after
dropping out of the Dow average. Today, AAPL fell 3.80 (3%). If you would like to learn more about AAPL, click on this link:
club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7Apple Replacing AT&T in Dow Industrials Causes Average to Suffer
Apple (AAPL)
The decline in AAPL stock, now in the Dow, is getting a lot of attention. Technical barriers are falling, such as going below the moving average line, & its large market cap influences buying for all stocks. Earnings are wishy-washy at best & more are coming from retailers. The intl scene is not pretty as the Dow closes in on its lows for 2015. The stock market remains on defense & Aug could be a very tough month.
Dow Jones Industrials
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