Dow surged 188, advancers over decliners a relatively meager 5-4 & NAZ gained 14. The MLP index dropped 2+ to 267 with one ugly chart & the REIT index lost 1 to the 351s. Junk bond funds rose & Treasuries were sold. Oil was up pennies to 52 & gold fell 4 to 1276 while stocks rallied.
AMJ (Alerian MLP Index tracking fund)
Solid earnings reports from US blue chips sparked optimism, lifting American equities, the $ & Treasury yields. The S&P 500 & Dow Jones started the day up after strong earnings reports. Benchmark Treasury yields punched through the key 2.4%. Elsewhere, a lack of conviction was on display, with investors eyeing a slew of catalysts stretching from an impending ECB meeting and the crisis in Catalonia to the prospects for tax reform & the next Federal Reserve leader. Gold fell as industrial metals advanced. The strong results from some of America’s biggest companies fueled speculation that growth is picking up even as Pres Trump's economic policies remain largely unfulfilled. That lifted a tone of caution over the the timing of an announcement on the next Fed leader & the chances that tax cuts get enacted this year.
McDonald's, a Dow stock & Dividend aristocrat, is finally getting customers back into restaurants, a key milestone for a company that suffered years of declines. The restaurant chain posted another increase in US diners last qtr, the 2nd-straight period that the measurement was positive. Same-store sales, another closely watched benchmark, also topped estimates. The results suggest that CEO Steve Easterbrook is making progress with his turnaround plan, which he launched after taking the helm in 2015 amid a prolonged sales slump. Same-store sales gained 4.1% in Q3, compared with an estimate of 3.4%. Globally, the measure gained 6%, which also topped estimates. EPS amounted to $1.76, in line with projections. Revenue also matched predictions, coming in at $5.75B. The stock advanced 2.81.
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
Caterpillar, another Dow stock, keeps raising the bar on sales & earnings expectations, & then keeps topping them. The company projected 2017 sales of $44B, marking a 3rd-straight increase in annual revenue projections. It also raised its earnings forecast. CAT said that Q3 sales were $11.4B, higher than estimated & above the level a year earlier.In a sign that economic growth is taking root across all regions, CAT reported increased demand in every place it does business. The manufacturer is benefiting from increased capital investments by mining customers, rising sales of construction equipment in China & strength in on-shore oil and gas industries in North America. Estimates for earnings rose 22% the past 3 months, by far the most in the Dow, amid signs of improving demand in mining & rising sales of construction equipment in China. CEO Jim Umpleby, who took over in Jan, has the company on track for its first annual sales gain since 2012. The stock shot up 7.57.
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Caterpillar Bulls Vindicated as CEO Posts Third Sales Beat
While stocks are flying high, gains are not widespread. Markets breadth is weak indicating that the enthusiasm may not have legs for the stock market. The Q3 GDP report is due this week & that may be only so-so because of the storms that hit the US. Then there is dysfunctional DC which has a lot of stuff on its agenda, starting with new taxes, & only 33 days left to get everything done in 2017. In the meantime, enjoy the gains.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 52.14 | +0.24 | +0.5% |
| GC=F | Gold | 1,277.60 | -3.30 | -0.3% |
Solid earnings reports from US blue chips sparked optimism, lifting American equities, the $ & Treasury yields. The S&P 500 & Dow Jones started the day up after strong earnings reports. Benchmark Treasury yields punched through the key 2.4%. Elsewhere, a lack of conviction was on display, with investors eyeing a slew of catalysts stretching from an impending ECB meeting and the crisis in Catalonia to the prospects for tax reform & the next Federal Reserve leader. Gold fell as industrial metals advanced. The strong results from some of America’s biggest companies fueled speculation that growth is picking up even as Pres Trump's economic policies remain largely unfulfilled. That lifted a tone of caution over the the timing of an announcement on the next Fed leader & the chances that tax cuts get enacted this year.
U.S. Stocks Rise on Blue-Chip Earnings; Euro Gains: Markets Wrap
McDonald's, a Dow stock & Dividend aristocrat, is finally getting customers back into restaurants, a key milestone for a company that suffered years of declines. The restaurant chain posted another increase in US diners last qtr, the 2nd-straight period that the measurement was positive. Same-store sales, another closely watched benchmark, also topped estimates. The results suggest that CEO Steve Easterbrook is making progress with his turnaround plan, which he launched after taking the helm in 2015 amid a prolonged sales slump. Same-store sales gained 4.1% in Q3, compared with an estimate of 3.4%. Globally, the measure gained 6%, which also topped estimates. EPS amounted to $1.76, in line with projections. Revenue also matched predictions, coming in at $5.75B. The stock advanced 2.81.
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 Traffic Grows Again, Solidifying CEO's Turnaround
Caterpillar, another Dow stock, keeps raising the bar on sales & earnings expectations, & then keeps topping them. The company projected 2017 sales of $44B, marking a 3rd-straight increase in annual revenue projections. It also raised its earnings forecast. CAT said that Q3 sales were $11.4B, higher than estimated & above the level a year earlier.In a sign that economic growth is taking root across all regions, CAT reported increased demand in every place it does business. The manufacturer is benefiting from increased capital investments by mining customers, rising sales of construction equipment in China & strength in on-shore oil and gas industries in North America. Estimates for earnings rose 22% the past 3 months, by far the most in the Dow, amid signs of improving demand in mining & rising sales of construction equipment in China. CEO Jim Umpleby, who took over in Jan, has the company on track for its first annual sales gain since 2012. The stock shot up 7.57.
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Caterpillar Bulls Vindicated as CEO Posts Third Sales Beat
While stocks are flying high, gains are not widespread. Markets breadth is weak indicating that the enthusiasm may not have legs for the stock market. The Q3 GDP report is due this week & that may be only so-so because of the storms that hit the US. Then there is dysfunctional DC which has a lot of stuff on its agenda, starting with new taxes, & only 33 days left to get everything done in 2017. In the meantime, enjoy the gains.
Dow Jones Industrials
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