Wednesday, August 10, 2016

Markets little changed amid retail earnings

Dow gained 11, advancers over decliner 5-4 & NAZ lost 6.  The MLP index fell 1+ to the 313s & the REIT index was down pennies at 370.  Junk bond funds were lower & Treasuries wee pretty much even.  Oil was higher after early losses & gold went up.

AMJ (Alerian MLP Index tracking fund)

Crude Oil Sep 16

Gold Futures,Dec-2016

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Saudi Arabia told OPEC that it pumped a record 10.67M barrels of oil a day in Jul to meet a summer surge in domestic demand, an increase that will do nothing to endear the group's leading exporter to other members seeking output limits to shore up prices.

The output beat the previous all-time production high of 10.56M barrels a day in Jun 2015.  Oil fell as much as 1.6% to $42.08 a barrel, before recovering to $42.56.

China shares dipped, with property shares falling sharply as investors took profits from 6 days of gains.  Financial shares also were under pressure after regulators reportedly launched a nationwide health-check on the banking industry, offsetting strength in resources & materials stocks.  The blue-chip CSI300 Index fell 0.4% to 3243, while the Shanghai Composite Index lost 0.2% to 3018.  The checks by China's banking regulator will cover a wide range of business areas including deposits, lending, bills & wealth management.  Separately, China's securities regulator has urged securities firms, fund houses & futures brokerages to conduct self-inspections on their wealth management businesses.

Investors Take Profits From China Stocks

Michael Kors provided a cautious forecast for earnings & sales this year, showing that luxury-goods makers are navigating a turbulent retail environment.  EPS will be $4.56-4.64, excluding some items, in the year thru Mar 2017 & total revenue will be flat, the company said. That its earlier forecast, even after it posted Q1 earnings & sales that beat projections.  CEO John Idol cited dwindling mall traffic & decreasing tourism as challenges the company is facing.  KORS, which makes luxury handbags, clothing & accessories, is trying to combat those trends by cutting inventory at ailing department stores to focus on selling full-price products.  Fiscal Q1 EPS was 88¢, excluding some items.  Analysts estimated 74¢.  Revenue rose 0.2% to $988M, beating the $953M average projection.  The stock fell 84¢. If you would like to learn more about KORS, click on this link:

Michael Kors Provides Cautious Forecast After First-Quarter Beat

Michael Kors (KORS)

There is not a lot of excitement in this quiet Aug day.  Stock averages are near record highs & oil is stabilizing in the low 40s after its recent decline from the low 50s.  That's about it & probably will not change much in the PM.

Dow Jones Industrials


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