Friday, March 18, 2016

Markets advance for a fifth consecutive week

Dow went up 117 (near the highs), advancers over decliners 3-2 & NAZ gained 20.  The MLP index lost pocket change to the 274s & the REIT index was off 1 to the 225s.  Junk bond funds climbed higher & Treasuries also had a good advance.  Oil was hit with profit taking (see below) & gold also pulled back after its recent run.

AMJ (Alerian MLP Index tracking fund)

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CLJ16.NYM....Crude Oil Apr 16....39.69 Down ...0.51  (1.3%)

Live 24 hours gold chart [Kitco Inc.]

Oil fell from a 3-month high as the $ climbed, curbing investor appetite for commodities.  Futures retreated  & losses accelerated after Baker Hughes data showed that the number of US oil rigs climbed for the first time this year.

West Texas Intermediate oil capped a 5th weekly gain, the longest run since May, amid speculation stronger demand & shrinking US shale oil production will ease a global glut.  Rigs targeting oil in US fields rose by 1 to 387 this week.  The prior week’s number was the lowest since Dec 2009.  US production dropped 10K barrels a day to 9.07M last week.  Stockpiles at Cushing, Oklahoma increased 545K barrels to a record while nationwide supplies remain at the highest level in more than 8 decades.

Oil Declines From Three-Month High as Dollar, Rig Count Increase

Since Apple, a Dow stock, introduced the first iPhone in 2007, mobile handsets have only gotten bigger.  CEO Tim Cook will buck that trend on Mon when he presents a smaller iPhone, seeking to entice holdouts to upgrade to a new smartphone even if they don’t want a larger device.  The ambitions for the new phone may be commensurate to its diminutive size.  Unlike previous new iterations of the device, the 4" iPhone won't be packed full of technological innovations.  Instead, it’s meant to woo those still clinging to the more than 2-year-old 5S or 5C, the last models with the more compact screen.  The company is rolling out the new phone 2 months after saying quarterly sales were likely to decline for the first time in more than a decade, highlighting concern that iPhone growth has reached its limits.  AAPL sold more than 231M iPhones in 2015, with sales dipping between Apr & Sep, as has been the case in previous years.

Cook will wield a new iPad the event as well, details about which are scant. The tablet has endured its own revenue drop as users have been happy to retain older models as their phones perform more of the same functions.  The stock slid back pennies.  If you would like to learn more about AAPL, click on this link:

Apple Prepares to Unveil Smaller iPhone With Narrower Ambitions

Apple (AAPL)

Tiffany reported fiscal Q4 earnings of $163M.  The had EPS of $1.28 & EPS, adjusted for asset impairment costs & non-recurring costs, came to $1.46.  The results exceeded expectations.  The estimate was for EPS of $1.40.  The luxury jeweler posted revenue of $1.21B, which met forecasts.  For the year, the company reported EPS of $3.59 & revenue was $4.1B.  The stock went up 2.06.  If you would like to learn more about TIF, click on this link:

Tiffany Beats 4Q Profit Forecasts

Tiffany (TIF)

Stocks had another good week with the Dow gaining 400 & closing at the high.  But this aggravates the overbought condition with earnings season just a few weeks away.  And many forecasts have been lowered for Q1. 

Dow Jones Industrials


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