Wednesday, October 21, 2015

Markets drift lower on earnings

Dow slid back 2, decliners over advancers  3-2 & NAZ lost 19.  The MLP index dropped 4+ to the 333s & the REIT index went up 4+ to the 326s.  Junk bond funds were higher & Treasuries were bid up.  Oil fell to the 45s & gold was also weak.

AMJ (Alerian MLP Index tracking fund)


CLZ15.NYM....Crude Oil Dec 15...45.43 Down ...0.86  (1.9%)

GCV15.CMX...Gold Oct 15......1,173.50 Down ...4.50  (0.4%)








3 Stocks You Should Own Right Now - Click Here!



Coca-Cola, a Dow stock, reported lower-than-expected quarterly revenue as a strong dollar reduced the value of sales in markets outside North America.  Sales in Asia-Pacific fell 11% in Q3, while sales in Latin America declined 14% & sales in Europe fell 7%. The 3 markets account for a 1/3 of total revenue.  The dollar has risen about 12% against a basket of major currencies in the past year.  Sales in North America, the biggest market, rose 1%, helped by higher pricing & its expanded distribution agreement with energy drink maker Monster Beverage (MNST).  EPS fell to 33¢ from 48¢ a year earlier.  Excluding items, EPS was 51¢ & net operating revenue fell nearly 5% to $11.43B.  Analysts had expected EPS of 50¢ on revenue of $11.54B.  The stock fell 26¢.  If you would like to learn more about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7

Coca-Cola 3Q Revenue Misses on Strong Dollar\

Coca-Cola (KO)



Boeing, another Dow stock, raised its 2015 guidance as it reported Q3 earnings rose 25% on continued growth in deliveries of commercial jetliners & core earnings along with revenue beat expectations.  The company raised its 2015 EPS estimate by 25¢ to 7.95-8.15 & boosted its revenue view by $500M to $95-97B.  BA also raised its estimate for commercial airplane deliveries by 5 planes & now expects deliveries to reach 755-760 planes.  The aerospace giant has continued to benefit from strong demand for its fuel-efficient jetliners despite falling oil prices & is pursuing record production increases to quickly deliver leaps in efficiency to cost-conscious airlines.  Overall, EPS was 2.47, up from 1.86 a year earlier.  Core operating EPS, which exclude such items as pension components related to market fluctuations, rose to 2.52 from 2.14.  Revenue increased 8.7% to $25.8B.  Analysts expected EPS of 2.22 & revenue of $24.74B.  Good was not good enough & the stock dropped 1.09.  If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7

Boeing Raises 2015 Outlook as Profit Climbs 25%

Boeing (BA)



General Motors reported record quarterly earnings before charges for Q3, as strong demand for trucks in North America & improved profit margins in China overcame declining revenues.  EPS rose to 1.50, up 55% from a year ago & well ahead of the 1.18 estimate.  Including $1.5B in costs for expenses related to the settlement of a Justice Dept investigation of the automaker’s mishandled ignition switch recall, EPS for the latest qtr was 84¢, up from 81¢.  The stock rose 1.36.  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

GM’s 3Q Earnings, Revenue Top Estimates

General Motors (GM)



Stocks keep struggling, looking for buyers.  Earnings are coming so-so at best.  The strong $ is hurting the multi nationals & there is a general softness to sales.  Macro economics remain sluggish with China trying to restart its grow the engine, minimal growth in the euro zone & uneven data for the US.  But Dow is able to hold onto its gains which took it over 17K while earnings remain unimpressive.

Dow Jones Industrials

stock chart 






 

No comments: