Dow fell 92, advancers were slightly ahead of decliners & NAZ lost 20. The MLP index went up 2+ to over 330 & the REIT index fell 2+ to the 323s. Junk bond funds crawled higher & Treasuries rose. Oil went up to the 46s while gold fell back.
AMJ (Allerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.956963656156657)
Chevron, a Dow stock & Dividend Aristocrat, said it will cut 6-7K jobs & pare its capital spending by 25% next year, as profit tumbled in Q3. Still, results fell less than expected. As of year-end 2014, CVX had about 65K employees. The company expects capital spending of $25-28B in 2016, down 25% from this year's budget & it expects to cut spending further in 2017 & 2018, to around $20-24B. For the qtr, EPS fell to 1.09, down from 2.95 a year earlier. Revenue fell 37% to $34.3B. Analysts expected 76¢ in EPS on $29.7B in revenue. A 15% reduction in capital spending to $7.97B helped prop up earnings in the period. Foreign currency effects also added $394M, up from $366M a year earlier. The company eked out a $59M profit in its exploration & production segment, down from a profit of $4.65B a year earlier. The US segment swung to a loss of $603M from a profit of $929M a year earlier. Its average price for a barrel of crude oil & natural gas liquids was $42, down from $87 a year ago. The average price for natural gas was $1.96 per thousand cubic feet, down from $3.46 in the prior-year. Refining, marketing & chemical operations (downstream) earnings jumped 59% to $2.21B. Higher margins on refined products helped drive growth. CVX has profits that are better insulated than most oil producers because it also makes money from refining the fuel into gasoline & diesel. The lower-cost crude has helped its refinery businesses improve profit margins. The stock rose 99¢. If you would like to learn more about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD3289&a_bid=6ae5b6f7
CVS Health reported better-than-expected quarterly net revenue, helped by strong demand for its pharmacy benefit management services & its acquisition of Omnicare. Pharmacy same-store sales grew 4.6% in Q3. The company processed 229M claims in its pharmacy benefits business, an increase of 9.3%. The business was boosted by more specialty pharmacy claims. CVS expanded its specialty pharmacy business, which provides drugs for expensive chronic conditions, with its $10B acquisition of Omnicare in Aug. Omnicare also supplies prescription medicines to nursing & other healthcare facilities. EPS rose to 1.11 from 81¢ last year. Excluding items, EPS was 1.28. Net revenue rose 10.3% to $38.6B. Analysts on expected EPS of 1.29 on revenue of 37.89B. The stock sank 5.02. 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
Weyerhaeuser EPS fell to 35¢, from a year-earlier EPS of 2.15. Q3 of 2014 included post-tax gains of $975M from discontinued operations & special items, primarily related to the divestiture of Weyerhaeuser Real Estate. In the latest qtr, sales fell nearly 5% to $1.8B from $1.92B a year earlier. Analysts expected EPS of 27¢ on sales of $1.833B. WY also raised its quarterly div 7% to 31¢ & said it had completed a $700M share repurchase plan. The company also authorized a new $500M share repurchase program. Net sales for the timberlands segment were $326M, down $10M from the preceding qtr. The company expects comparable earnings in Q4 from the segment. WY expects lower earnings from its cellulose fibers segment in Q4 & also expects lower average pulp sales realizations, increased scheduled maintenance & seasonally higher fiber costs. It also expects significantly lower earnings from its wood products segment in the fourth Q4. The stock went up 17¢. If you would like to learn more about WY, click on this link:
club.ino.com/trend/analysis/stock/WY?a_aid=CD3289&a_bid=6ae5b6f7
Stocks bobbed around with little being decided. The bulls are talking up a year-end rally which is far from clear given inconsistent economic data. Oct was the best month for stocks in 4 years, not to mention one of the best in history. Dow needs to go up another 160 to break into the black YTD & that may be difficult to achieve.
Dow Jones Industrials
AMJ (Allerian MLP Index tracking fund)
| CLZ15.NYM | ....Crude Oil Dec 15 | ....46.82 |  ...0.76 | (1.7%) |
Chevron, a Dow stock & Dividend Aristocrat, said it will cut 6-7K jobs & pare its capital spending by 25% next year, as profit tumbled in Q3. Still, results fell less than expected. As of year-end 2014, CVX had about 65K employees. The company expects capital spending of $25-28B in 2016, down 25% from this year's budget & it expects to cut spending further in 2017 & 2018, to around $20-24B. For the qtr, EPS fell to 1.09, down from 2.95 a year earlier. Revenue fell 37% to $34.3B. Analysts expected 76¢ in EPS on $29.7B in revenue. A 15% reduction in capital spending to $7.97B helped prop up earnings in the period. Foreign currency effects also added $394M, up from $366M a year earlier. The company eked out a $59M profit in its exploration & production segment, down from a profit of $4.65B a year earlier. The US segment swung to a loss of $603M from a profit of $929M a year earlier. Its average price for a barrel of crude oil & natural gas liquids was $42, down from $87 a year ago. The average price for natural gas was $1.96 per thousand cubic feet, down from $3.46 in the prior-year. Refining, marketing & chemical operations (downstream) earnings jumped 59% to $2.21B. Higher margins on refined products helped drive growth. CVX has profits that are better insulated than most oil producers because it also makes money from refining the fuel into gasoline & diesel. The lower-cost crude has helped its refinery businesses improve profit margins. The stock rose 99¢. If you would like to learn more about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD3289&a_bid=6ae5b6f7
Chevron to Cut Up to 7K Jobs
Chevron (CVX)
CVS Health reported better-than-expected quarterly net revenue, helped by strong demand for its pharmacy benefit management services & its acquisition of Omnicare. Pharmacy same-store sales grew 4.6% in Q3. The company processed 229M claims in its pharmacy benefits business, an increase of 9.3%. The business was boosted by more specialty pharmacy claims. CVS expanded its specialty pharmacy business, which provides drugs for expensive chronic conditions, with its $10B acquisition of Omnicare in Aug. Omnicare also supplies prescription medicines to nursing & other healthcare facilities. EPS rose to 1.11 from 81¢ last year. Excluding items, EPS was 1.28. Net revenue rose 10.3% to $38.6B. Analysts on expected EPS of 1.29 on revenue of 37.89B. The stock sank 5.02. 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 3Q Revenue Beats Estimate
CVS Health (CVS)
Weyerhaeuser EPS fell to 35¢, from a year-earlier EPS of 2.15. Q3 of 2014 included post-tax gains of $975M from discontinued operations & special items, primarily related to the divestiture of Weyerhaeuser Real Estate. In the latest qtr, sales fell nearly 5% to $1.8B from $1.92B a year earlier. Analysts expected EPS of 27¢ on sales of $1.833B. WY also raised its quarterly div 7% to 31¢ & said it had completed a $700M share repurchase plan. The company also authorized a new $500M share repurchase program. Net sales for the timberlands segment were $326M, down $10M from the preceding qtr. The company expects comparable earnings in Q4 from the segment. WY expects lower earnings from its cellulose fibers segment in Q4 & also expects lower average pulp sales realizations, increased scheduled maintenance & seasonally higher fiber costs. It also expects significantly lower earnings from its wood products segment in the fourth Q4. The stock went up 17¢. If you would like to learn more about WY, click on this link:
club.ino.com/trend/analysis/stock/WY?a_aid=CD3289&a_bid=6ae5b6f7
Weyerhaeuser 3Q Net Income Falls
Weyerhaeuser (WY)
Stocks bobbed around with little being decided. The bulls are talking up a year-end rally which is far from clear given inconsistent economic data. Oct was the best month for stocks in 4 years, not to mention one of the best in history. Dow needs to go up another 160 to break into the black YTD & that may be difficult to achieve.
Dow Jones Industrials
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