Dow went up a meager 33, advancers over decliners 3-2 & NAZ surged 144. The MLP index rebounded 4+ to the 269s & the REIT index added 1+ to the 348s. Junk bond funds advanced & Treasuries were a little higher. Oil gained 1+ to the 53s & gold rose 4 to 1273.
AMJ (Alerian MLP Index tracking fund)
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![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.7371522891777584)
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Consumer sentiment climbed in Oct to the highest level since the start of 2004 as households grew upbeat about the outlook for the economy, a Univ of Mich survey showed. The sentiment index rose to 100.7 (matching est.) from 95.1 in Sep.; preliminary reading for Oct was 101.1. Current conditions gauge, which measures Americans’ perceptions of their finances, advanced to 116.5 from 111.7; the strongest since 2000. Expectations measure rose to 90.5, the highest since Jan. 2015, from 84.4. Gains in incomes, higher property values & stocks at a record kept sentiment about personal finances near an all-time high. More than ½ of all respondents said they anticipated the good times would persist in the coming year & expected the economic expansion would endure over the next 5. Improved finances were reported by 53% of all consumers this month, the biggest share since early 2000. Even more compelling was the fact that the recent gain was spread across age & income groups. The pickup in confidence was accompanied by an increase in spending plans. Buying conditions for household durables were the most favorable since 2006 & largely due to gains among low- & middle-income consumers. The economy, which expanded at a faster-than-forecast 3% pace in Q3, continues to recover from recent hurricanes with rebuilding efforts providing a boost after the initial hit. Jobless claims have fallen below their pre-storm levels & new-home sales unexpectedly rose in Sep due to increased activity in the South. The sustained strength of consumer sentiment could be challenged if Pres Trump & congressional Reps fail to pass a tax cut. “The Great Recession has caused a fundamental change in assessments of economic risks, with consumers now giving greater preference to economic stability relative to economic growth,” Richard Curtin, director of the consumer survey, said. “This is the essential reason why consumers have voiced such positive economic assessments of such a modest pace of economic growth.” Consumers saw probability of future stock gains as highest in more than a decade. Annual income gain of 2.1% was expected by consumers, up from 1.7% last month; most of the gain due to people with incomes in the bottom 1/3.
U.S. Consumer Sentiment Rises to Highest Level Since Early 2004
Trump's top economist is doubling down on claims that corp tax cuts would spark economic growth & boost incomes. Kevin Hassett, chairman of the White House Council of Economic Advisers,.says the plan to slash the corp tax rate from 35% to 20% could increase the size of the US economy by $700B-1.2T over a decade. Hassett also says academic research suggests the lower rates could slash the US trade gap in ½, since companies would have less of an incentive to book their profits overseas. The new report affirms earlier White House analysis that the lower rates would cause average household incomes to eventually rise $4K a year, a claim that drew criticism from many economists.
Chevron (CVX), Dow stock & Dividend Aristocrat, reported Q3 net income of $1.95B & EPS of $1.03. The results exceeded expectations, but CVX does not adjust its reported results based on one-time events such as asset sales. The estimate was for EPS of 99¢. The oil company posted revenue of $36.2B in the period, also topping forecasts of $33.7B. The stock dropped 4.94.
If you would learn to learn more about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD3289&a_bid=6ae5b6f7
Lower sales for multiple medicines & a whopping charge for a big cancer drug collaboration drove Merck (MRK), a Dow stock, to a Q3 loss of $56M, but it still beat the muted expectations. The company noted that a Jun cyberattack that shut down some factories temporarily cost it $310M due to lost sales & recovery expenses, & it expects a similar impact this qtr. MEK still raised its financial outlook for the year, but its shares fell. The company reported a loss of 2¢, after EPS was 78¢ in 2016. Adjusted for non-recurring costs, EPS amounted to $1.11, 8¢ better than expected. The latest results included a one-time charge of $2.35B for a new partnership with Britain's AstraZeneca to market their existing cancer drugs & develop new ones. Its key medicine portfolio revolves around Keytruda, an immuno-oncology drug approved for treating lung, skin & other cancers that works by enabling the immune system to better spot & kill cancer cells. Merck will now help sell AstraZeneca's Lynparza, a drug approved for treating ovarian & fallopian tube cancer that works differently & should improve results when combined with Keytruda. The companies will test those drugs & AstraZeneca's experimental drug selumetinib against various cancer types, & MRK plans to boost research spending in the field next year. Revenue was $10.33B, down 2%. MRK expects full-year EPS of $1.78-1.84 including one-time items, up from its prior forecast of $1.60-1.72 per share & expects revenue of $40-40.5B, up from $39.4-40.4B. The stock dropped 3.75.
If you would learn to learn more about MRK, click on this link:
club.ino.com/trend/analysis/stock/MRK?a_aid=CD3289&a_bid=6ae5b6f7
Amazon (AMZN), the sexiest stock around, soared a staggering 128 to 1100, giving a big boost to the NAZ & making stockholders happy. NAZ had a memorable day, but the Dow had only a modest gain, short of another record. The lack of market breadth continues & worries me. In the meantime, enjoy these gains.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
?Consumer sentiment climbed in Oct to the highest level since the start of 2004 as households grew upbeat about the outlook for the economy, a Univ of Mich survey showed. The sentiment index rose to 100.7 (matching est.) from 95.1 in Sep.; preliminary reading for Oct was 101.1. Current conditions gauge, which measures Americans’ perceptions of their finances, advanced to 116.5 from 111.7; the strongest since 2000. Expectations measure rose to 90.5, the highest since Jan. 2015, from 84.4. Gains in incomes, higher property values & stocks at a record kept sentiment about personal finances near an all-time high. More than ½ of all respondents said they anticipated the good times would persist in the coming year & expected the economic expansion would endure over the next 5. Improved finances were reported by 53% of all consumers this month, the biggest share since early 2000. Even more compelling was the fact that the recent gain was spread across age & income groups. The pickup in confidence was accompanied by an increase in spending plans. Buying conditions for household durables were the most favorable since 2006 & largely due to gains among low- & middle-income consumers. The economy, which expanded at a faster-than-forecast 3% pace in Q3, continues to recover from recent hurricanes with rebuilding efforts providing a boost after the initial hit. Jobless claims have fallen below their pre-storm levels & new-home sales unexpectedly rose in Sep due to increased activity in the South. The sustained strength of consumer sentiment could be challenged if Pres Trump & congressional Reps fail to pass a tax cut. “The Great Recession has caused a fundamental change in assessments of economic risks, with consumers now giving greater preference to economic stability relative to economic growth,” Richard Curtin, director of the consumer survey, said. “This is the essential reason why consumers have voiced such positive economic assessments of such a modest pace of economic growth.” Consumers saw probability of future stock gains as highest in more than a decade. Annual income gain of 2.1% was expected by consumers, up from 1.7% last month; most of the gain due to people with incomes in the bottom 1/3.
U.S. Consumer Sentiment Rises to Highest Level Since Early 2004
Trump's top economist is doubling down on claims that corp tax cuts would spark economic growth & boost incomes. Kevin Hassett, chairman of the White House Council of Economic Advisers,.says the plan to slash the corp tax rate from 35% to 20% could increase the size of the US economy by $700B-1.2T over a decade. Hassett also says academic research suggests the lower rates could slash the US trade gap in ½, since companies would have less of an incentive to book their profits overseas. The new report affirms earlier White House analysis that the lower rates would cause average household incomes to eventually rise $4K a year, a claim that drew criticism from many economists.
White House says tax cuts could add $1.2T to US economy
Chevron (CVX), Dow stock & Dividend Aristocrat, reported Q3 net income of $1.95B & EPS of $1.03. The results exceeded expectations, but CVX does not adjust its reported results based on one-time events such as asset sales. The estimate was for EPS of 99¢. The oil company posted revenue of $36.2B in the period, also topping forecasts of $33.7B. The stock dropped 4.94.
If you would learn to learn more about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD3289&a_bid=6ae5b6f7
Chevron beats Street 3Q forecasts
Lower sales for multiple medicines & a whopping charge for a big cancer drug collaboration drove Merck (MRK), a Dow stock, to a Q3 loss of $56M, but it still beat the muted expectations. The company noted that a Jun cyberattack that shut down some factories temporarily cost it $310M due to lost sales & recovery expenses, & it expects a similar impact this qtr. MEK still raised its financial outlook for the year, but its shares fell. The company reported a loss of 2¢, after EPS was 78¢ in 2016. Adjusted for non-recurring costs, EPS amounted to $1.11, 8¢ better than expected. The latest results included a one-time charge of $2.35B for a new partnership with Britain's AstraZeneca to market their existing cancer drugs & develop new ones. Its key medicine portfolio revolves around Keytruda, an immuno-oncology drug approved for treating lung, skin & other cancers that works by enabling the immune system to better spot & kill cancer cells. Merck will now help sell AstraZeneca's Lynparza, a drug approved for treating ovarian & fallopian tube cancer that works differently & should improve results when combined with Keytruda. The companies will test those drugs & AstraZeneca's experimental drug selumetinib against various cancer types, & MRK plans to boost research spending in the field next year. Revenue was $10.33B, down 2%. MRK expects full-year EPS of $1.78-1.84 including one-time items, up from its prior forecast of $1.60-1.72 per share & expects revenue of $40-40.5B, up from $39.4-40.4B. The stock dropped 3.75.
If you would learn to learn more about MRK, click on this link:
club.ino.com/trend/analysis/stock/MRK?a_aid=CD3289&a_bid=6ae5b6f7
Merck swings to 3Q loss on big charge but raises forecast
Amazon (AMZN), the sexiest stock around, soared a staggering 128 to 1100, giving a big boost to the NAZ & making stockholders happy. NAZ had a memorable day, but the Dow had only a modest gain, short of another record. The lack of market breadth continues & worries me. In the meantime, enjoy these gains.
Dow Jones Industrials
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