Dow fell 23, decliners ahead of advancers almost 2-1 & NAZ inched up 2. The MLP index dropped 6+ to the 316s & the REIT index was up pennies in the 325s. Junk bond funds drifted lower & Treasuries rose higher. Oil dipped below 44 & gold had a tiny gain (call that flat).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.1673419584825443)
Duke Energy will buy Piedmont Natural Gas for $4.9B in cash, helping expand its natural gas distribution business. DUK offered $60 in cash for each PNY share, a premium of 42% premium to the Fri close. A glut of supply from shale fields has ensured relatively stable pricing for natural gas distributors. This has prompted a number of power producers to boost their natural gas infrastructure & lower dependence on power generation as demand for electricity weakens due to increased energy efficiency. The 2 companies are also among the partners in the $5B 550-mile Atlantic Coast pipeline, which moves gas from Pennsylvania's Marcellus shale field to North Carolina & Virginia. DUK will also assume about $1.8B of PNY, debt, giving the deal an enterprise value of $6.7B. PNY stock jumped 15.60 to 57.82 while DUK stock fell 1.49. If you would like to learn more about DUK, click on this link:
club.ino.com/trend/analysis/stock/DUK?a_aid=CD3289&a_bid=6ae5b6f7
The United Auto Workers & General Motors reached a tentative agreement on undisclosed terms for a new 4-year labor contract, averting a threatened strike. The proposed deal will now go to a council of several hundred UAW leaders from GM's US plants meeting Wed, who are expected to approve it. The contract then goes to a ratification vote of the 52K workers UAW at GM. "We believe that this agreement will present stable long-term significant wage gains and job security commitments to UAW members now and in the future," said UAW pres Dennis Williams. "We look forward to presenting the details of these gains to local union leaders and the membership." One of GM's key goals in the talks was to make sure that the agreement would not saddle it with high fixed costs that could overburden the company if the cyclical automotive industry takes a downturn. The industry sits at the top of that business cycle now, as US auto sales are seen hitting 17.3M vehicles this year, well up from the 10.4M vehicles sold in 2009 in the depths of recession when GM went thru a gov-sponsored bankruptcy & bailout. The stock fell 28¢. 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
Stocks sloshed around while traders were waiting for Janet to speak. But they will have to wait until Wed. MLPs had an excellent recovery into the first week of Oct. However the last 2 weeks have been all downhill with the MLP index losing a very large 25. The index is now down 240 from its record highs last year. Junk bond funds also did well early in the month with little follow thru in the last 2 weeks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLZ15.NYM | ....Crude Oil Dec 15 | ....43.95 |  ...0.65 | (1.5%) |
Duke Energy will buy Piedmont Natural Gas for $4.9B in cash, helping expand its natural gas distribution business. DUK offered $60 in cash for each PNY share, a premium of 42% premium to the Fri close. A glut of supply from shale fields has ensured relatively stable pricing for natural gas distributors. This has prompted a number of power producers to boost their natural gas infrastructure & lower dependence on power generation as demand for electricity weakens due to increased energy efficiency. The 2 companies are also among the partners in the $5B 550-mile Atlantic Coast pipeline, which moves gas from Pennsylvania's Marcellus shale field to North Carolina & Virginia. DUK will also assume about $1.8B of PNY, debt, giving the deal an enterprise value of $6.7B. PNY stock jumped 15.60 to 57.82 while DUK stock fell 1.49. If you would like to learn more about DUK, click on this link:
club.ino.com/trend/analysis/stock/DUK?a_aid=CD3289&a_bid=6ae5b6f7
Duke Energy to Buy Piedmont Natural Gas for $4.9B
Duke Energy (DUK)
The United Auto Workers & General Motors reached a tentative agreement on undisclosed terms for a new 4-year labor contract, averting a threatened strike. The proposed deal will now go to a council of several hundred UAW leaders from GM's US plants meeting Wed, who are expected to approve it. The contract then goes to a ratification vote of the 52K workers UAW at GM. "We believe that this agreement will present stable long-term significant wage gains and job security commitments to UAW members now and in the future," said UAW pres Dennis Williams. "We look forward to presenting the details of these gains to local union leaders and the membership." One of GM's key goals in the talks was to make sure that the agreement would not saddle it with high fixed costs that could overburden the company if the cyclical automotive industry takes a downturn. The industry sits at the top of that business cycle now, as US auto sales are seen hitting 17.3M vehicles this year, well up from the 10.4M vehicles sold in 2009 in the depths of recession when GM went thru a gov-sponsored bankruptcy & bailout. The stock fell 28¢. 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 Reaches Tentative Labor Agreement
Saudi Arabian Airlines is looking
at placing an order for Airbus Group SE’s A380 superjumbo & could
also purchase more Boeing, a Dow stock, 777 wide-body planes or the re-engined &
enlarged 777X, CEO Abdul Mohsen Jonaid said. The state-owned carrier wants to replace 4 Boeing
747s & must decide whether to retire aging 777-200s or redeploy them
on flights tied to the Hajj pilgrimage, according to Jonaid, who said
some orders could come as early as next month’s Dubai air show. Saudia (as the airline is known) also wants more single-aisle jets, with
Airbus’s A320, either the current version or upgraded Neo, & Boeing
737 Max in the running. It aims to swell the overall fleet
to 200 planes by 2020 from 119 now in order to add flights at the new
Jeddah airport, which opens in 2017, & is also examining the case for
establishing discount operations. “The
low-cost-carrier model is something we’re studying,” Jonaid said at an
industry conference in Dubai. A startup
would compete with independent Saudi carrier Flynas , which has been
offering no-frills flights since 2007. BA stock was flat. 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
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Saudi Airlines Considering A380 Superjumbo Order as 747s Near Retirement
Boeing (BA)
Stocks sloshed around while traders were waiting for Janet to speak. But they will have to wait until Wed. MLPs had an excellent recovery into the first week of Oct. However the last 2 weeks have been all downhill with the MLP index losing a very large 25. The index is now down 240 from its record highs last year. Junk bond funds also did well early in the month with little follow thru in the last 2 weeks.
Dow Jones Industrials
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