Dow dropped 96, decliners over advancers 5-4 & NAZ went up 2. The MLP index lost 1+ to the 313s & the REIT index was fractionally lower to 343. Junk bond funds were little changed & Treasuries were flattish. Oil crawled higher (still above 50) & gold hardly budged.
AMJ (Alerian MLP Index tracking fund)
L=F
China stocks traded sideways but managed to end the session slightly up, as strength in infrastructure shares offset concerns rooted in continuing yuan weakness. The blue-chip CSI300 index rose 0.3% to 3327 while the Shanghai Composite Index gained 0.2% to 3091. For the week, CSI300 was up 0.7% while SSEC gained 0.9%. Infrastructure-related stocks rose sharply, after China issued rules for management of gov funds used in private-public partnership (PPP) projects, many of which are for infrastructure work. The sector was also helped by improving ties between China & Philippines, which bodes well for Beijing's strategy to win construction work in other countries. That helped offset drags from the real estate sector, as well as negative impact from a weakening yuan. The yuan slipped against the $ to a fresh 6-year low, as strong $ purchases by companies continued piling pressure on the Chinese currency.
General Electric, a Dow stock, reported a 6.7% rise in quarterly profit, helped by strength in its power & renewable energy businesses. But slow economic growth, particularly in the oil & gas business, continued to weigh on revenue, prompting GE to lower its revenue growth target & narrow the range of its profit forecast for the year. Organic revenue, which excludes growth from acquisitions, rose 1%, below GE's forecast of 2-4% for the full year. Analysts had been looking for stronger revenue growth after a weak H1. But oil & gas revenue fell 25% in the qtr. GE trimmed its full-year revenue forecast to flat to 2% growth. EPS from continuing operations rose to 23¢ from 19¢. Total revenue grew 4.4% to $29.27B. GE's adjusted EPS jumped 10% to 32¢, beating the 30¢ estimate. GE also narrowed its 2016 profit forecast to $1.48-1.52, compared with the $1.45-1.55 it forecast at the end Q2. Analysts had been targeting H2 growth of about 15% in GE's power business, GE's largest division. In Q3, power revenue grew only 7%. The stock fell 61¢. If you would like to learn more about GE,click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3289&a_bid=6ae5b6f7
GE Profit Up But Revenue Forecast Trimmed
McDonald's, a Dow stock & Dividend Aristocrat, turnaround gained momentum in the latest qtr as sales growth at established restaurants beat estimates. Same-restaurant sales in its US rose a better-than-expected 1.3%, helped by demand for its all-day breakfast, the "McPick 2 for $2" promotion & the introduction of Chicken McNuggets without artificial preservatives. Analysts polled had expected a gain of 1.2%. CEO Steve Easterbrook, has introduced all-day breakfasts, simplified sprawling menus & improved service to turn around its business amid intense competition Global sales at restaurants open at least 13 months rose 3.5%, handily beating the 1.5% gain expected. The world's fast-food chain reported EPS of $1.50, compared with $1.40 a year earlier. The company had 87M fewer shares outstanding, compared with the year-earlier period. Excluding items, the company EPS was $1.62, beating the estimate of $1.48. Total revenue fell almost 3% to $6.42B, down for the 9th straight qtr, but beat the estimate of $6.28B. The stock shot up $2.68. If you would like to learn more about MCD,click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
Earnings reports are not bringing out buyers. The strong $ is not helping, but more importantly, sales growth is drab. The chart below shows that the early reports are not being well received.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
L=F
Light Sweet Crude Oil Futures,D
| 50.44 | -0.19 | -0.4% |
Gold Dec 16
| 1,267.30 | -0.20 | -0.0% |
China stocks traded sideways but managed to end the session slightly up, as strength in infrastructure shares offset concerns rooted in continuing yuan weakness. The blue-chip CSI300 index rose 0.3% to 3327 while the Shanghai Composite Index gained 0.2% to 3091. For the week, CSI300 was up 0.7% while SSEC gained 0.9%. Infrastructure-related stocks rose sharply, after China issued rules for management of gov funds used in private-public partnership (PPP) projects, many of which are for infrastructure work. The sector was also helped by improving ties between China & Philippines, which bodes well for Beijing's strategy to win construction work in other countries. That helped offset drags from the real estate sector, as well as negative impact from a weakening yuan. The yuan slipped against the $ to a fresh 6-year low, as strong $ purchases by companies continued piling pressure on the Chinese currency.
China Shares Edge Up Both for the Day and Week
General Electric, a Dow stock, reported a 6.7% rise in quarterly profit, helped by strength in its power & renewable energy businesses. But slow economic growth, particularly in the oil & gas business, continued to weigh on revenue, prompting GE to lower its revenue growth target & narrow the range of its profit forecast for the year. Organic revenue, which excludes growth from acquisitions, rose 1%, below GE's forecast of 2-4% for the full year. Analysts had been looking for stronger revenue growth after a weak H1. But oil & gas revenue fell 25% in the qtr. GE trimmed its full-year revenue forecast to flat to 2% growth. EPS from continuing operations rose to 23¢ from 19¢. Total revenue grew 4.4% to $29.27B. GE's adjusted EPS jumped 10% to 32¢, beating the 30¢ estimate. GE also narrowed its 2016 profit forecast to $1.48-1.52, compared with the $1.45-1.55 it forecast at the end Q2. Analysts had been targeting H2 growth of about 15% in GE's power business, GE's largest division. In Q3, power revenue grew only 7%. The stock fell 61¢. If you would like to learn more about GE,click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3289&a_bid=6ae5b6f7
GE Profit Up But Revenue Forecast Trimmed
General Electric (GE)
McDonald's, a Dow stock & Dividend Aristocrat, turnaround gained momentum in the latest qtr as sales growth at established restaurants beat estimates. Same-restaurant sales in its US rose a better-than-expected 1.3%, helped by demand for its all-day breakfast, the "McPick 2 for $2" promotion & the introduction of Chicken McNuggets without artificial preservatives. Analysts polled had expected a gain of 1.2%. CEO Steve Easterbrook, has introduced all-day breakfasts, simplified sprawling menus & improved service to turn around its business amid intense competition Global sales at restaurants open at least 13 months rose 3.5%, handily beating the 1.5% gain expected. The world's fast-food chain reported EPS of $1.50, compared with $1.40 a year earlier. The company had 87M fewer shares outstanding, compared with the year-earlier period. Excluding items, the company EPS was $1.62, beating the estimate of $1.48. Total revenue fell almost 3% to $6.42B, down for the 9th straight qtr, but beat the estimate of $6.28B. The stock shot up $2.68. If you would like to learn more about MCD,click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
McDonald's 3Q Earnings Beat Expectations
McDonald's (MCD)
Earnings reports are not bringing out buyers. The strong $ is not helping, but more importantly, sales growth is drab. The chart below shows that the early reports are not being well received.
Dow Jones Industrials
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