Thursday, August 6, 2015

Lower markets on earnings

Dow dropped 73, decliners over advancers 3-2 & NAZ fell 46.  The MLP index sank 7+ to the 339s (down more than 200 from last year's record highs) & the REIT index lost 1+ to the 314s.  Junk bond funds pulled back & Treasuries gained.  Oil is sloshing around below 45 & gold inched higher from its 5+ year lows.

AMJ (Alerian MLP Index tracking fund)

CLV15.NYM....Crude Oil Oct 15...45.09 Down ...0.46  (1.0%)

GCQ15.CMX...Gold Aug 15.....1,087.50 Up ...1.80 (0.2%)

Filings for US unemployment benefits are hovering near the lowest levels in 4 decades, a sign the strong labor market will bolster US growth.  Jobless claims rose 3K to 270K, according to the Labor Dept.  The forecast called for 272K.  The 255K reading 2 weeks earlier was the lowest since 1973.  Dismissals are at historically low levels as employers hold on to more workers in response to increased demand following a slump in early 2015.  More hiring would help convince Federal Reserve policy makers that the economy can withstand an increase in the benchmark interest rate this year.  The 4-week moving average, a less volatile measure than the weekly numbers, decreased to 268K last week from 274K.  The number continuing to receive jobless benefits fell 14K to 2.26M & the unemployment rate among people eligible for benefits held at 1.7 percent.  Since early Mar, claims have remained below the 300K level that typically consistent with an improving job market.  This is the longest stretch since 1972.

Jobless Claims Hover Near Four-Decade Lows

Twenty-First Century Fox reported a 9.3% decline in quarterly adjusted revenue as advertising sales fell in its television business & a lack of major film releases weighed on the studio business.  But its adjusted profit beat expectations & the company said it would buy back $5B Class A shares over the next 12 months.   Adjusted revenue, which excluded the sale of the company's direct broadcast satellite television businesses, fell to $6.2B, below the revenue estimate of $6.4B.  Revenue in the film studio business fell by a 1/3 to $1.9B as no major titles released in the qtr.  The year-ago quarter was driven mainly by the success of "X-Men: Days of Future Past" & the animation film "Rio 2".  FOXA recorded the lowest ratings among the Big Four broadcasting networks in the 2014-2015 television season.  This was reflected in the 4.3% decline in the company's television revenue in Q4.  Revenue in its cable network programming business rose 6.6% to $3.57B, boosted by coverage of NASCAR & ICC Cricket World Cup.  Domestic advertising sales rose 4%.  Excluding items, EPS was 39¢, beating the estimate of 37¢.  The stock sank 4.04 (12%).  If you would like to learn more about FOXA, click on this link:.

21st Century Fox Revenue Misses

Twenty-First Century Fox (FOXA)

Viacom reported weaker-than-expected quarterly revenue, hurt by lower revenue from its films business as there were no major movie releases in fiscal Q3.  The company, which operates popular TV channels including MTV, Comedy Central and Nickelodeon, was also hurt by a fall in its US advertising revenue.  Revenue from the studio business, which includes Paramount Pictures, fell 44% to $479M.  The company had benefited in the year-earlier quarter from the release of its blockbuster "Transformers: Age of Extinction."  The movie slate for fiscal Q3 includes "Terminator: Genisys" & "Mission: Impossible - Rogue Nation", which are expected to drive revenue.  Advertising revenue fell 9% in its US cable & media network business.  EPS from continuing operations were $1.47 versus $1.40 last year.  Excluding items, EPS was $1.47.  Analysts had expected EPS of $1.47 on revenue of $3.22B.  But revenue fell 10.6% to $3.06B.  The stock tumbled 7.83 (15%).  If you would like to learn more about VIA, click on this link:

Viacom's quarterly revenue falls 10.6 percentReuters

Viacom (VIA)

This is another dreary day for the stock market.  Dow is already down 225 this month & the markets look weak.  Earnings continue to come in dreary.  Oil related stocks & MLPs have been especially hard hit with no relief in sight.  If oil breaks below 45, these securities will see a lot more selling.

Dow Jones Industrials

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