Monday, October 24, 2016

Higher markets on corp news, but oil falls on disagreements over production cuts

Dow gained 77, advancers over decliners better than 4-3 & NAZ went up 52.  The MLP index was up pennies in the 313s & the REIT index added 1+ to the 343s.  Junk bond funds were mixed & Treasuries remained weak.  Oil slid back & gold was slightly lower.

AMJ (Alerian MLP Industrials

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3 Stocks You Should Own Right Now - Click Here!

Live 24 hours gold chart [Kitco Inc.]

St. Louis Federal Reserve pres James Bullard said that a single US interest rate rise would be all that was necessary for the time being, repeating comments he had made recently.  Bullard was speaking on the US economy & monetary policy before a conference co-sponsored by the Association for University Business & Economic Research.

Fed's Bullard Says One Rate Increase Is All That's Needed for Now

VF Corp. fell after the apparel, footwear & accessories company slashed its annual guidance.  Q3 EPS was $1.19 up from $1.07 per share.  The estimate was for $1.15.  Revenue fell to $3.49B, down from $3.53B last year & below the estimate of $3.63B.  Jeanswear revenue, which includes the Wrangler & Lee brands, was down 6%, while outdoor & action sports, including the Vans & Timberland brands, was up 2%.  The quarterly div was raised 14% to 42¢.  VFC expects 2016 revenue to increase 2% to about $12.2B compared with the previous estimate of 3- 4% growth.  EPS are expected to rise 3% to $3.13 compared with previous guidance of a 5% rise to $3.20.  The stock dropped 1.60.  If you would like to learn more about VFC, click on this link:                                                                             

VF Corp. Shares Fall After Guidance Slashed

V.F. Corporation (VFC)

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Restaurant Brands International reported a rise in Q3 at its Burger King & Tim Horton stores, but the growth was much lower than a year ago.  The company also reported better-than-expected adjusted EPS.  Burger King sales rose 1.7% at established stores around the world.  In the same period a year ago, the hamburger chain reported a 6.2% increase in sales.  QSR said Burger King sales were hurt by "softness" at its US & Canada locations.  The weakness was partly due to cheaper groceries, which are keeping Americans at home & cooking rather than going out to eat, said CFO Joshua Kobza.  At doughnut chain Tim Horton, sales rose 2% at established stores around the world, compared to 5.3% growth a year ago.  CEO Daniel Schwartz said sales were helped by new menu items, such as grilled bagels & a Greek-inspired wrap for lunch.  Overall EPS was 36¢, in Q3.  It reported adjusted EPS of 43¢, beating the 41¢ expected.  The company posted revenue of $1.08B, below the $1.39B expected.  The stock sank 2.33.  If you would like to learn more about QSR, click on this link:

Burger King owner beats expectations, but sees US 'softness'

Restaurant Brands (QSR)

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The buyout news gave stocks a big boost, but not as much as might be expected.  The chart below shows that the Dow is where it was 3 months ago.  That's called churning.  Others call it going nowhere.  The record highs recorded earlier look like a distant memory & earnings can not be counted on for much help this qtr..

Dow Jones Industrials

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1 comment:

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