Thursday, August 4, 2016

Markets waver ahead of July jobs data

Dow down 2, advancers over decliners 5-4 & NAZ added 6.  The MLP index fell 5+ to the 311s & the REIT index was off 1+ to the 368s.  Junk bond funds crawled higher & Treasuries inched higher with the yield on the 10 year Treasury at 1.5%.  Oil jumped up 1 to the 41s & gold was a little higher.

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Ford is recalling 830K vehicles in North America to replace side-door latches that could unlatch while driving.  The automaker said it had identified one reported accident & one reported injury that may be related to the defect.  The recall includes 2013-15 Ford C-MAX & Escape, 2012-15 Ford Focus, 2015 Ford Mustang & Lincoln MKC, & 2014-16 Ford Transit Connect vehicles.  The recall was focused primarily on some warm weather US states & in Mexico.  The total cost associated with the recall is about $270M & will be incurred mainly by the company's North American unit.  The recall includes 766K vehicles in the US & territories & 61K in Mexico.  Ford had recalled some Ford Fiesta & Fusion & Lincoln MKZ models in North America in Apr last year due to a similar door latch malfunction.  The stock was down pennies.  If you would like to learn more about Ford, click on this link:

Ford Recalls 830K Vehicles to Replace Side-Door Latches

Ford (F)

Twenty-First Century Fox reported a slightly better-than-expected quarterly profit, helped by higher ad revenue in its cable division.  FOXA has been benefiting from the most sensational presidential election campaign.  Fox News (NWSA) is the most-watched channel in basic cable television this year, with an average of 2.2M prime-time viewers, according to Nielsen data thru Jun.  FOXA stock fell 1.45.  If you would like to learn more about FOXA, click on this link:

21st Century Fox Revenue Bolstered By Strong Ad Sales

Twenty-First Century Fox (FOXA)

Amerco reported its Q1 fiscal 2017 earnings,posting a 4.4% increase in revenue from the year-ago period, but EPS fell more than 14% due to increased costs in the U-Haul segment.

Amerco's key quarterly numbers

Metric Fiscal Q1 2017 Fiscal Q1 2016 Growth (YOY)
Revenue $923.4M $884.8M 4.4%
Net income $147.2M $171.3M (14.1%)
EPS $7.51 $8.74 (14.1%)

Revenue in the U-Haul segment, which accounted for about 91.6% of total revenue, rose 3.8% from the year-ago period to $845.8M & revenue in the insurance segment (comprised of one property-casualty & one life-insurance company) increased 10.9%.  DIY-moving equipment rental revenue grew 2.7% from the year-ago period to $646.3M.  Self-storage revenue increased 18.4% to $67.7M, accounting for 7.3% of total revenue.  Room count increased to 287 at the end of the qtr compared to 237 at the end of the year-ago period.  Average occupancy rate based on room count declined to 77.4% from 82.5% in the year-ago period, the 3rd consecutive qtr of year-over-year declines in the occupancy rate.  Operating income in the U-Haul segment declined 11.4% to $248.5M & revenue grew 3.8%, so the declining operating income was driven by increased costs.  CEO Joe Shoen highlighted the positive, saying, "Our moving and storage business remains strong. People are still moving. We are seeing the strong truck chassis cost increases put through by Ford and General Motors reflected in our bottom line."  The good news is that the storage business continues to grow much faster than the moving business.  The stock sank 36 (9%) to 359.  If you would like to learn more about UHAL, click on this link:

Amerco Q1 Revenue Climbed, but Earnings Went Into Reverse on Increased Costs

Amerco (UHAL)

Very little going on in the stock market.  Traders are waiting for the jobs numbers tomorrow.   While global economies are stumbling around, popular stock averages continue to be near record high levels.  This is a major disconnect persists & it can not continue.

Dow Jones Industrials


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