Dow dropped 112, decliners over advancers 2-1 & NAZ backed off 54. The MLP index was fractionally higher to the 271s & the REIT index did little in the 351s. Junk bond funds drifted lower & Treasuries went higher. Oil was up pennies in the 46s & gold advanced 8 to 1291.
Dow Jones Industrials
A strengthening labor market remains an engine for US growth as the number of Americans filing for unemployment benefits dropped to the lowest since Feb, Labor Dept data showed. Initial jobless claims decreased 12K to 232K (est. 240K) & continuing claims fell by 3K to 1.953M. The 4-week average of initial claims, a less-volatile measure than the weekly figure, inched down to 240½K from 241k in prior week. The gov latest tally of filings, taken during the survey week for the monthly employment report, differs little from the average for the last several months & bodes well for Aug hiring figures. The claims data are close to the 227K reported in late Feb, which was the lowest since the early 1970s. Business managers, posting jobs at a record-breaking pace, have been less inclined to dismiss workers a& more focused on picking up staff amid a dwindling pool of unemployed. A healthy job market, despite still-subdued wage gains, is helping to keep up consumer spending & broader US growth. The unemployment rate among people eligible for benefits stayed unchanged at 1.4%.
A slump in motor vehicle production pushed down US factory output unexpectedly in Jul, Federal Reserve data showed. Factory output dropped 0.1% (est. 0.2% gain) after 0.2% gain. Total industrial production, which also includes mines & utilities, increased 0.2% (est. 0.3% rise) after a 0.4% rise. Manufacturing output minus motor vehicles rose 0.2%, reflecting a pickup in non-durable goods production. Automobile production fell 3.6% in Jul, the 4th decline in the last 5 months. That reflected a slowdown in sales that were a bright spot for the economy in recent years. While factory production excluding automobiles increased, the data showed some other areas of softness. Output of business equipment & construction materials dropped for the 2nd time in 3 months. While manufacturing is projected to continue to grow, an acceleration in the near term would require bigger gains in household demand, business investment & stronger global sales. The monthly data, which are volatile & often get revised, contrast with other recent reports. While the Institute for Supply Management factory index eased in Jul from the 2nd-highest level since 2011, it showed steady growth in production, orders & employment. The latest Empire State Manufacturing survey for Aug also posted a strong gain.
Americans are going into Walmart (WMT), a Dow stock & Dividend Aristocrat, stores & they're spending money on its website, pushing the performance of the retailer beyond expectations during Q2. Revenue climbed to $123.3B, from $120.8B & online sales surged 60%. The results beat the $122.7B forecast. There are signs that traditional retailers are gaining traction online in the face of intense competition online competitors. Its effort to revitalize traffic in stores continues to gain ground. Sales at US stores open at least a year increased 1.8%, the 12th straight qtr of growth. Traffic rose 1.3%. But sales at its intl division fell 1%. EPS was 96¢, a year earlier it was $1.21. Stripping out certain items, EPS was $1.08, a penny better than what was expected. The retailer anticipates 2018 adjusted EPS of $4.30-4.40. It predicts Q3 EPS of 90-98¢. Analysts polled predict full-year EPS of $4.36 & Q3 EPS of 97¢. The stock fell 1.58. If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Stocks retreated as retailers continue to be out of favor. The DC goings on are giving excitement to those who like gossip. Economic data is mixed & other stories in the US & overseas are the usual ones. Dow remains only about 300 below its record highs.
Dow Jones Industrials
Dow Jones Industrials
A strengthening labor market remains an engine for US growth as the number of Americans filing for unemployment benefits dropped to the lowest since Feb, Labor Dept data showed. Initial jobless claims decreased 12K to 232K (est. 240K) & continuing claims fell by 3K to 1.953M. The 4-week average of initial claims, a less-volatile measure than the weekly figure, inched down to 240½K from 241k in prior week. The gov latest tally of filings, taken during the survey week for the monthly employment report, differs little from the average for the last several months & bodes well for Aug hiring figures. The claims data are close to the 227K reported in late Feb, which was the lowest since the early 1970s. Business managers, posting jobs at a record-breaking pace, have been less inclined to dismiss workers a& more focused on picking up staff amid a dwindling pool of unemployed. A healthy job market, despite still-subdued wage gains, is helping to keep up consumer spending & broader US growth. The unemployment rate among people eligible for benefits stayed unchanged at 1.4%.
U.S. Jobless Claims Decrease to Lowest Level Since February
A slump in motor vehicle production pushed down US factory output unexpectedly in Jul, Federal Reserve data showed. Factory output dropped 0.1% (est. 0.2% gain) after 0.2% gain. Total industrial production, which also includes mines & utilities, increased 0.2% (est. 0.3% rise) after a 0.4% rise. Manufacturing output minus motor vehicles rose 0.2%, reflecting a pickup in non-durable goods production. Automobile production fell 3.6% in Jul, the 4th decline in the last 5 months. That reflected a slowdown in sales that were a bright spot for the economy in recent years. While factory production excluding automobiles increased, the data showed some other areas of softness. Output of business equipment & construction materials dropped for the 2nd time in 3 months. While manufacturing is projected to continue to grow, an acceleration in the near term would require bigger gains in household demand, business investment & stronger global sales. The monthly data, which are volatile & often get revised, contrast with other recent reports. While the Institute for Supply Management factory index eased in Jul from the 2nd-highest level since 2011, it showed steady growth in production, orders & employment. The latest Empire State Manufacturing survey for Aug also posted a strong gain.
Factory Output in U.S. Declines on Weaker Auto Production
Americans are going into Walmart (WMT), a Dow stock & Dividend Aristocrat, stores & they're spending money on its website, pushing the performance of the retailer beyond expectations during Q2. Revenue climbed to $123.3B, from $120.8B & online sales surged 60%. The results beat the $122.7B forecast. There are signs that traditional retailers are gaining traction online in the face of intense competition online competitors. Its effort to revitalize traffic in stores continues to gain ground. Sales at US stores open at least a year increased 1.8%, the 12th straight qtr of growth. Traffic rose 1.3%. But sales at its intl division fell 1%. EPS was 96¢, a year earlier it was $1.21. Stripping out certain items, EPS was $1.08, a penny better than what was expected. The retailer anticipates 2018 adjusted EPS of $4.30-4.40. It predicts Q3 EPS of 90-98¢. Analysts polled predict full-year EPS of $4.36 & Q3 EPS of 97¢. The stock fell 1.58. If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Online sales, solid store traffic gives Walmart 2Q boost
Stocks retreated as retailers continue to be out of favor. The DC goings on are giving excitement to those who like gossip. Economic data is mixed & other stories in the US & overseas are the usual ones. Dow remains only about 300 below its record highs.
Dow Jones Industrials
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