Dow dropped 295, decliners over advancers 4-1 & NAZ sank 103. The MLP index was off 5+ to the 245s & the REIT index lost 3+ to 310. Junk bond funds drifted lower while Treasuries were being purchased. Oil is back below 30 & gold was barely higher.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.589259758100706)
Exxon Mobil, Dow stock & Dividend Aristocrat, is cutting its drilling budget to a 10-year low & halting share buybacks after last year’s belt-tightening failed to shield the world's biggest oil explorer from crashing energy markets. On the heels of its smallest annual profit since 2002, XOM is curbing its spending on rig leases, floating oil platforms, gas terminals & other projects by 25% this year to $23.2B. That represents the leanest spending plan since 2007, according to CEO Rex Tillerson. Share buybacks have been suspended. Capital outlays that peaked at $42.5B in 2013 have been reduced 45B. Full-year net income fell by more than ½ to $16.2B in 2015, the lowest since 2002. Q4 EPS fell to 67¢ from $1.56 a year earlier, XOM is the only super-major oil company so far to report better-than-expected Q4 results amid the worst energy market downturn in a generation. XOM plans to commence output at 6 major projects this year that it operates or owns stakes in. Last year, the company shrank spending on drilling, floating platforms & gas-export terminals by 20% to $31B. A $538M Q4 loss in the company's US oil & gas business was cushioned by a near doubling in profit from its refineries. Output from wells jumped 4.8% worldwide even as the company cut gas production throughout the Americas & Europe. The stock fell 1.70. If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7
Apple, Dow stock, will unveil a smaller-screen iPhone, a new iPad Air & new Apple Watch bands at a product event on Mar 15. While the company has historically kept new iPhone introductions to its flagship hardware event in Sep, the iPhone 5se would be a low-budget phone, possibly selling for $450. Its 4" screen would essentially replace the similarly-sized iPhone 5s, but with more up-to-date innards, such as an A9 chip. The company will also unveil the iPad Air 3 & provide updates to Apple Watch. The company did not respond to this leaked report. The stock fell 1.95. If you would like to learn more about AAPL, click on this link:
club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7
The recent stock-market selloff "is not all that unexpected" nor "necessarily worrisome" as investors were naturally going to readjust the pricing of risk in the wake of the Dec interest-rate hike, said Kansas City Fed pres Esther George. "Monetary policy cannot respond to every blip in financial markets," George added in a speech. There has been no "substantial shift" in the outlook that would justify pausing further gradual rate hikes, she said. While there are risks to the economy from the energy sector, elevated inventories & the global economy, George discounted fears of a US recession, saying the economic fundamentals remain strong & core inflation measures have recently picked up. George, one of the most hawkish of the regional Fed presidents, is a voting member of the committee this year.
This was a bleak day in the market as YTD losses for the Dow worsened. Low oil prices are clearly shaking up the oil industry & that spills over to the rest of the economies in the US & around the world. The Dow has one ugly chart & no relief is in sight.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLH16.NYM | ....Crude Oil Mar 16 | ....29.94 |  ...1.68 | (5.3%) |
Exxon Mobil, Dow stock & Dividend Aristocrat, is cutting its drilling budget to a 10-year low & halting share buybacks after last year’s belt-tightening failed to shield the world's biggest oil explorer from crashing energy markets. On the heels of its smallest annual profit since 2002, XOM is curbing its spending on rig leases, floating oil platforms, gas terminals & other projects by 25% this year to $23.2B. That represents the leanest spending plan since 2007, according to CEO Rex Tillerson. Share buybacks have been suspended. Capital outlays that peaked at $42.5B in 2013 have been reduced 45B. Full-year net income fell by more than ½ to $16.2B in 2015, the lowest since 2002. Q4 EPS fell to 67¢ from $1.56 a year earlier, XOM is the only super-major oil company so far to report better-than-expected Q4 results amid the worst energy market downturn in a generation. XOM plans to commence output at 6 major projects this year that it operates or owns stakes in. Last year, the company shrank spending on drilling, floating platforms & gas-export terminals by 20% to $31B. A $538M Q4 loss in the company's US oil & gas business was cushioned by a near doubling in profit from its refineries. Output from wells jumped 4.8% worldwide even as the company cut gas production throughout the Americas & Europe. The stock fell 1.70. If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7
Exxon Slashes Drilling Budget to 10-Year Low Amid Oil Slump
Exxon Mobil (XOM)
Apple, Dow stock, will unveil a smaller-screen iPhone, a new iPad Air & new Apple Watch bands at a product event on Mar 15. While the company has historically kept new iPhone introductions to its flagship hardware event in Sep, the iPhone 5se would be a low-budget phone, possibly selling for $450. Its 4" screen would essentially replace the similarly-sized iPhone 5s, but with more up-to-date innards, such as an A9 chip. The company will also unveil the iPad Air 3 & provide updates to Apple Watch. The company did not respond to this leaked report. The stock fell 1.95. If you would like to learn more about AAPL, click on this link:
club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7
Apple To Unveil New IPhone At March 15 Event: Report
Apple (AAPL)
The recent stock-market selloff "is not all that unexpected" nor "necessarily worrisome" as investors were naturally going to readjust the pricing of risk in the wake of the Dec interest-rate hike, said Kansas City Fed pres Esther George. "Monetary policy cannot respond to every blip in financial markets," George added in a speech. There has been no "substantial shift" in the outlook that would justify pausing further gradual rate hikes, she said. While there are risks to the economy from the energy sector, elevated inventories & the global economy, George discounted fears of a US recession, saying the economic fundamentals remain strong & core inflation measures have recently picked up. George, one of the most hawkish of the regional Fed presidents, is a voting member of the committee this year.
Fed's George: Market Selloff 'not All That Unexpected' Nor 'worrisome'
This was a bleak day in the market as YTD losses for the Dow worsened. Low oil prices are clearly shaking up the oil industry & that spills over to the rest of the economies in the US & around the world. The Dow has one ugly chart & no relief is in sight.
Dow Jones Industrials
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