Monday, November 2, 2015

Higher markets on earnings

Dow gained 100, advancers over decliners better than 2-1 & NAZ jumped up 37.  The MLP  index rose 3 to the 333s & the REIT index added 1+ to the 324s.  Junk bond funds were higher & Treasuries pulled back.  Oil slid back in the 46s & gold also sold off.

AMJ (Alerian MLP Index tracking fund)

CLZ15.NYM...Crude Oil Dec 15...46.08 Down ...0.51  (1.1%)

GCX15.CMX...Gold Nov 15....1,134.20 Down ...7.30  (0.6%)

Euro-area countries must commit to a formal restructuring of Greece’s debt before the IMF will lend new money to the country, according to a leaker.  Pledges to review Greece’s debt servicing won’t be enough unless they’re accompanied by specific terms for paring back the borrowing burden, David Lipton, the IMF first deputy managing director, said.  Greece received an €86B bailout in Aug from the 19-nation currency bloc, which now wants the IMF to provide further support.  “We want a debt operation agreed between Greece and its creditors,” Lipton said.  “For us to go forward, we want more than a general assurance that the matter will be handled, with enough specific details on how it will be handled to assure the fund that Greece’s debt service will be on a sustainable path.”  Greek Prime Minister Alexis Tsipras has requested a new IMF program, which would replace a dormant one that’s on track to expire in Mar.  Any new IMF program would have to be approved by an executive board representing the fund’s 188 member nations.  The amount of new IMF funding hasn’t been decided.  Germany & other creditor nations say the IMF, which lends to countries with balance-of-payments troubles, should play a financial & technical role in shoring up Greece’s economy & restoring the nation’s access to financial markets.  As a result, fund participation is a central goal in the euro area’s bid to make Greece’s 3rd bailout its last.

IMF Pushes Europe for Formal Restructuring Accord on Greek Debt

Visa, a Dow stock, plans to buy its European counterpart Visa Europe for up to €21.2B ($23.4B) in cash & stock, a deal that would bring its global operations under one roof.  The announcement came as Visa reported results for Sep qtr that were mostly in line with estimates, while payments volume increased 12% on a currency adjusted basis.  Visa, which recently boosted its div, also unveiled a new $5B share buyback program.  The company will pay €11.5B ($12.68B) in upfront cash, in addition to €5B ($5.51B) in preferred stock convertible into common shares.  The deal includes up to €EUR4.7B ($5.18B) in payments, payable following later years.  Visa & Visa Europe had operated under the same umbrella company called Visa International Service Association.  That changed in 2007 when the US operations began moving from a bank-owned cooperative to a publicly traded company.  At the end of Sep, there were about 500B Visa cards issued across Europe with Visa Europe responsible for €1½T ($1.65T) in payment volumes.  Visa Europe processes about 18B transactions annually, which will add to the roughly 71B in transactions the last year.  Separately, EPS was 62¢, up from 43¢ a year earlier.  Revenue increased 11% to $3.57B.  Analysts projected 63¢ on $3.57B.  Payments volume rose 12% to $1.3T on a currency adjusted basis.  The stock slipped back 2.33.  If you would like to learn more about Visa,click on this link:

Visa to Acquire Visa Europe for up to $23.4B

Visa (V)

Clorox, a Dividend Aristocrat,  reported better-than-expected fiscal Q1 results, buoyed by price increases & volume growth.  The company stood by its previously issued downbeat outlook for the fiscal year, however, of flat to 1% sales growth in the face of currency headwinds & EPS of $4.68-4.83.  The company has seen sales climb in recent qtrs despite competition.  In the latest period, results benefited from price increases & higher volumes, which were partially offset by currency headwinds.  Volume for Q1 climbed 3%.  Sales in the cleaning segment, its largest, climbed 6%.  Volume growth of 5% in the segment was driven mostly by gains across a number of Home Care brands, including Clorox disinfecting wipes, behind increased merchandising support for the back-to-school season.  The household segment posted a sales increase of 5%, with 1% volume climb.  The intl segment, however, had sales decline 8% on foreign-exchange volatility.  Overall, the company EPS was $1.31, up sharply from 68¢ a year earlier while revenue climbed 2.8% to $1.39B.  Analysts forecast EPS of $1.18 on revenue of $1.38B.  The stock went up 3.78.  If you would like to learn more about CLX,click on this link:

Clorox Posts Better-Than-Expected Results

Clorox (CLX)

Stocks are higher for no special reason.  Maybe traders were oversold on Fri & felt it was time to buy back.  Or it could be the start of a year end rally.  Earnings continue to come in uneven & economic data varies, giving changing results.

Dow Jones Industrials

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