Dow soared 89 (off the highs), advancers over decliners 3-2 & NAZ added 17. The MLP index jumped up a very big 9+ to the 343s & the REIT index was off 2+ to the 327s. Junk bond funds edged higher & Treasuries were sold. Oil soared to the 47s while gold continued weak & slid lower.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.8456016633037458)
ECB Mario Draghi said officials will look again at their policy stance in Dec to assess whether enough support is being provided to the economy. “The degree of monetary policy accommodation will need to be re-examined at the Governing Council’s December meeting,” Draghi said. “The Governing Council is willing and able to act by using all the instruments available within its mandate if warranted in order to maintain an appropriate degree of monetary accommodation.” Renewed declines in energy prices & slowing global trade are making it harder for the ECB to meet its inflation target of just under 2%, with price gains slipping into negative territory in Sep. The ECB has yet to detail how it could adjust its existing €1.1T ($1.2T) quantitative-easing program or add other stimulus. Draghi said that while euro-area govs need to make reforms to boost growth potential, the ECB can’t force them to do so, & must meet its own mandate. “The point here is that one cannot expect the ECB to deliver the objectives that rightfully belong to other policymakers,” he said. “We will meet our price-stability mandate, as we are obliged to do in the treaty. But it is up to individual countries to build on that foundation and make their economies work better; and it is up to the euro area as a whole to strengthen the institutional architecture of our union.”
Kellogg reported a bigger-than-expected drop in quarterly net sales as demand for its snacks & cereals remained weak in the US. Sales in the US snacks business, its biggest, fell 1.5%, while sales in the US morning foods business, which includes cereals, fell 2.6%. Sales in both businesses fell for the 3rd straight qtr. EPS was 58¢ in O3, down from 62¢ a year earlier. Excluding items, EPS was 85¢ & net sales fell 8.5% to $3.33B, the 8th decline in 9 qtrs. Analysts expected EPS of 84¢ on revenue of $3.42B. The stock dropped 2.52. If you would like to learn more about Kellogg, click on this link:
club.ino.com/trend/analysis/stock/K?a_aid=CD3289&a_bid=6ae5b6f7
Archer Daniels Midland, a Dividend Aristocrat, reported steeper-than-expected drops in revenue & profit in Q3, as it was hurt by weak ethanol margins & lower North American export volumes. ADM, among the world's largest agri-businesses & a major ethanol producer, has been buffeted recently by lower ethanol-production margins & sluggish overseas demand for North American crops. The company has also faced weakness in its grain-trading business as a strong US dollar & large crops in South America crimped export demand for North American grain. In Q3, revenue in the corn-processing business fell 17% to $2.52B & revenue in the agricultural-services segment fell 6.2% to $6.6B. The oilseed-processing business posted a 12% drop in revenue to $6.75B. The wild flavors and specialty ingredients segment was a bright spot, as revenue more than doubled to $588M. Overall, EPS dropped to 41¢, down from $1.14 a year earlier. The qtr included $65M in impairment, exit & restructuring costs. Excluding those charges & other special items, EPS fell to 60¢ from 86¢ a year earlier. Revenue slid 8.6% to $16.57B. Analysts had projected EPS of 70¢ on revenue of $17.77B. The stock was off 3.13. If you would like to learn more about ADM, click on this link:
club.ino.com/trend/analysis/stock/ADM?a_aid=CD3289&a_bid=6ae5b6f7
Stocks continued on their winning ways, today led by oil. Oil has been depressed for more than a year. Traders have their eyes on going over 50 once again, an important ceiling it needs to break thru if it is to get out of its depressed state. Meanwhile earnings are nothing to write home about. Dow has broken into the black YTD, up 100. It's not clear it will be able to hold that gain for the balance of the year. There was a little selling going into the close, maybe a sign of things to come.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLZ15.NYM | ....Crude Oil Dec 15 | ....48.17 |  ...2.03 | (4.4%) |
ECB Mario Draghi said officials will look again at their policy stance in Dec to assess whether enough support is being provided to the economy. “The degree of monetary policy accommodation will need to be re-examined at the Governing Council’s December meeting,” Draghi said. “The Governing Council is willing and able to act by using all the instruments available within its mandate if warranted in order to maintain an appropriate degree of monetary accommodation.” Renewed declines in energy prices & slowing global trade are making it harder for the ECB to meet its inflation target of just under 2%, with price gains slipping into negative territory in Sep. The ECB has yet to detail how it could adjust its existing €1.1T ($1.2T) quantitative-easing program or add other stimulus. Draghi said that while euro-area govs need to make reforms to boost growth potential, the ECB can’t force them to do so, & must meet its own mandate. “The point here is that one cannot expect the ECB to deliver the objectives that rightfully belong to other policymakers,” he said. “We will meet our price-stability mandate, as we are obliged to do in the treaty. But it is up to individual countries to build on that foundation and make their economies work better; and it is up to the euro area as a whole to strengthen the institutional architecture of our union.”
Draghi Says ECB Ready to Act to Maintain Monetary Accommodation
Kellogg reported a bigger-than-expected drop in quarterly net sales as demand for its snacks & cereals remained weak in the US. Sales in the US snacks business, its biggest, fell 1.5%, while sales in the US morning foods business, which includes cereals, fell 2.6%. Sales in both businesses fell for the 3rd straight qtr. EPS was 58¢ in O3, down from 62¢ a year earlier. Excluding items, EPS was 85¢ & net sales fell 8.5% to $3.33B, the 8th decline in 9 qtrs. Analysts expected EPS of 84¢ on revenue of $3.42B. The stock dropped 2.52. If you would like to learn more about Kellogg, click on this link:
club.ino.com/trend/analysis/stock/K?a_aid=CD3289&a_bid=6ae5b6f7
Kellogg Sales Hit by Low Cereal, Snacks Demand
Kellogg (K)
Archer Daniels Midland, a Dividend Aristocrat, reported steeper-than-expected drops in revenue & profit in Q3, as it was hurt by weak ethanol margins & lower North American export volumes. ADM, among the world's largest agri-businesses & a major ethanol producer, has been buffeted recently by lower ethanol-production margins & sluggish overseas demand for North American crops. The company has also faced weakness in its grain-trading business as a strong US dollar & large crops in South America crimped export demand for North American grain. In Q3, revenue in the corn-processing business fell 17% to $2.52B & revenue in the agricultural-services segment fell 6.2% to $6.6B. The oilseed-processing business posted a 12% drop in revenue to $6.75B. The wild flavors and specialty ingredients segment was a bright spot, as revenue more than doubled to $588M. Overall, EPS dropped to 41¢, down from $1.14 a year earlier. The qtr included $65M in impairment, exit & restructuring costs. Excluding those charges & other special items, EPS fell to 60¢ from 86¢ a year earlier. Revenue slid 8.6% to $16.57B. Analysts had projected EPS of 70¢ on revenue of $17.77B. The stock was off 3.13. If you would like to learn more about ADM, click on this link:
club.ino.com/trend/analysis/stock/ADM?a_aid=CD3289&a_bid=6ae5b6f7
Archer Daniels Midland Profit, Revenue Slide
Archer-Daniels-Midland (ADM)
Stocks continued on their winning ways, today led by oil. Oil has been depressed for more than a year. Traders have their eyes on going over 50 once again, an important ceiling it needs to break thru if it is to get out of its depressed state. Meanwhile earnings are nothing to write home about. Dow has broken into the black YTD, up 100. It's not clear it will be able to hold that gain for the balance of the year. There was a little selling going into the close, maybe a sign of things to come.
Dow Jones Industrials
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