Tuesday, January 26, 2016

Higher markets on improved earnings

Dow climbed 234, advancers over decliners almost 5-1 & NAZ advanced 30.  The MLP index rose 4 to 240 & the REIT index added 4+ to the 311s.  Junk bond funds went up along with stocks & Treasuries traded higher.  Oil rose (still under 31) & gold had a good gain.

AMJ (Alerian MLP Index tracking fund)

CLH16.NYM...Crude Oil Mar 16...30.77 Up ...0.43 (1.4%)

GCF16.CMX...Gold Jan 16.......1,115.40 Up ...9.20 (0.8%)

3 Stocks You Should Own Right Now - Click Here!

Consumers confidence rose in Jan compared with a month earlier, the Conference Board said.  The reading signals that Americans are so far brushing off gyrations in the financial markets.  The index of consumer confidence rose to 98.1 this month from a revised 96.3 in Dec.  Measures of consumers' outlook on current conditions were unchanged, while their view on future conditions improved.  "For now, consumers do not foresee the volatility in financial markets as having a negative impact on the economy," said Lynn Franco, director of economic indicators at The Conference Board.  Measures of consumers' feelings are being closely watched for signs that a slide in financial markets is rattling shoppers.  With turmoil throughout the global economy, consumers will be relied upon to drive US growth early this year.

Consumer Confidence Edges Up in January

3M, a Dow stock & Dividend Aristocrat, reported a better-than-expected quarterly profit & backed its 2016 forecast as it cut jobs to keep costs low.  The company reaffirmed it 2016 financial forecast of a 1-3% sales growth, excluding the impact of currency changes, & EPS of $8.10-$8.45.  The company, which cut about 1.5K jobs in Q4, took a pre-tax restructuring charge of $114M.  MMM had previously estimated the job cuts to save $130M on a pretax basis in 2016.  EPS attributable to the company fell to $1.66, from $1.81 a year ago.  Net sales fell 5.5% to $7.3B in Q4.  Excluding restructuring charges, EPS was $1.80.  Analysts had expected EPS of $1.63 on revenue of $7.21B.  The stock jumped up 6.14.  If you would like to learn more about MMM, click on this link:

Lower costs help 3M profit top estimates

3M Company (MMM)

Procter & Gamble, another Dow stock & Dividend Aristocrat, reported a 35% jump in its Q2 profit, helped by cost savings as the company streamlines its business to focus on more profitable brands.  PG has been shrinking its portfolio to focus on core, high-growth brands such as Gillette shaving products, Pampers diapers & Tide detergent.  Cost of selling goods fell 11.5% to $8.46B, while selling, general & administrative costs fell 14% to $4.60B.  EPS attributable to the company rose to $1.12, up from 82¢ a year earlier.  Excluding items, EPS was $1.04, beating the estimate of 98¢.  Sales fell 8.5% to $16.92B, slightly below the estimate of $16.94B.  The company will spend $15-$16B in div payments, share exchanges & share repurchases this fiscal year, including more than $7B of divs.  The stock rose 2.39.  If you would like to learn more about JNJ, click on this link:

Procter & Gamble's 2Q Earnings Top Expectations

Procter & Gamble (PG)

In this oversold markets, stocks are having a good day.  Those earnings figures are not all that great, when cost cuts provide much of the favorable variance.  Oil is also up, helping encourage buying in stocks, but serious troubles in this market are far from over.  Too much supply for mediocre global demand is taking its toll.  Dow is still down a massive 1.3K this month.

Dow Jones Industrials


No comments: