Dow went up 12, advancers over decliners about 5-4 & NAZ soared 99 on strong earnings. The MLP index jumped up 5 to 270 & the REIT index rose 1+ to 349s. Junk bond funds crawled higher & Treasuries were purchased after recent selling. Oil gained 1+ & gold added 6 to 1291.
AMJ (Alerian MLP Index tracking fund)
The US economy unexpectedly maintained a brisk pace of growth in Q3 as an increase in inventory investment & a smaller trade deficit offset a hurricane-related slowdown in consumer spending & a decline in construction. GDP increased at a 3.0% annual rate in Q3 after expanding at a 3.1% pace in Q2, the Commerce Dept said. While it was impossible to estimate the overall impact of hurricanes Harvey & Irma on Q3 GDP, preliminary estimates showed that the back-to-back storms had caused losses of $121B in privately owned fixed assets & $10.4B in gov-owned fixed assets. Harvey & Irma struck parts of Texas & Florida in late Aug & early Sep. Hurricane Maria, which destroyed infrastructure in Puerto Rico & the Virgin Islands, had no impact on Q3 GDP growth as the islands are not included in the US national accounts.
Buoyed by higher oil prices, Exxon Mobil, Dow stock & Dividend Aristocrat, reported that Q3 profit jumped 50% from a year ago to nearly $4B. The oil giant also sharply increased spending on exploration, reversing a trend from H1. Lower capital spending had raised concern about future production of oil & gas, since projects in the energy business can take years before there is meaningful production. Profit was dinged by Hurricane Harvey, which briefly shut down refineries along the Texas Gulf Coast, but the results still beat forecasts from Wall Street analysts. "A 50 percent increase in earnings through solid business performance and higher commodity prices is a step forward in our plan to grow profitability," said Darren Woods, who became CEO around the start of the year. Woods said that for a 4th straight qtr the company generated enough cash from operations & selling assets to cover dividends & investment in the business. Earnings were $3.97B, compared with $2.65B a year earlier. EPS was 93¢, despite a hit of 4¢ from the hurricane in late Aug. Even with the setback from Harvey, the results still beat the estimate of 89¢. Revenue rose 13% to $66.17B, above the forecast of $63.5B. Capital spending, which had fallen when oil prices were at their nadir, soared 43% from a year earlier to nearly $6B. The stock rose 40¢.
The tech stocks on NAZ are flying high on earnings reports by the biggies. However that strength did not reach reach the broader market, measured by market breath, or even the Dow. Advances by stocks is good, but becomes suspicious when that optimism does not reach many stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Stocks climbed & the $ rallied after the economy saw its strongest back-to-back growth in 3 years, while congress moved closer to tax cuts & speculation mounted that a hawkish candidate may become the next Federal Reserve chair. The S&P 500 jumped as GDP growth came in at 3%, even after multiple hurricanes ravaged the southeast. Technology shares rallied following stellar profit were reported by major companies. Positive earnings surprises from companies boosted confidence, though miners underperformed as the $'s run to a 3-month high hit industrial-metal prices. As stocks gained, the € headed for its worst week since Nov. The £ dropped as concerns about the Brexit process lingered.
U.S. Stocks Higher on Sustained Economic Growth:
Markets Wrap
The US economy unexpectedly maintained a brisk pace of growth in Q3 as an increase in inventory investment & a smaller trade deficit offset a hurricane-related slowdown in consumer spending & a decline in construction. GDP increased at a 3.0% annual rate in Q3 after expanding at a 3.1% pace in Q2, the Commerce Dept said. While it was impossible to estimate the overall impact of hurricanes Harvey & Irma on Q3 GDP, preliminary estimates showed that the back-to-back storms had caused losses of $121B in privately owned fixed assets & $10.4B in gov-owned fixed assets. Harvey & Irma struck parts of Texas & Florida in late Aug & early Sep. Hurricane Maria, which destroyed infrastructure in Puerto Rico & the Virgin Islands, had no impact on Q3 GDP growth as the islands are not included in the US national accounts.
Buoyed by higher oil prices, Exxon Mobil, Dow stock & Dividend Aristocrat, reported that Q3 profit jumped 50% from a year ago to nearly $4B. The oil giant also sharply increased spending on exploration, reversing a trend from H1. Lower capital spending had raised concern about future production of oil & gas, since projects in the energy business can take years before there is meaningful production. Profit was dinged by Hurricane Harvey, which briefly shut down refineries along the Texas Gulf Coast, but the results still beat forecasts from Wall Street analysts. "A 50 percent increase in earnings through solid business performance and higher commodity prices is a step forward in our plan to grow profitability," said Darren Woods, who became CEO around the start of the year. Woods said that for a 4th straight qtr the company generated enough cash from operations & selling assets to cover dividends & investment in the business. Earnings were $3.97B, compared with $2.65B a year earlier. EPS was 93¢, despite a hit of 4¢ from the hurricane in late Aug. Even with the setback from Harvey, the results still beat the estimate of 89¢. Revenue rose 13% to $66.17B, above the forecast of $63.5B. Capital spending, which had fallen when oil prices were at their nadir, soared 43% from a year earlier to nearly $6B. The stock rose 40¢.
If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7Exxon's 3Q profit jumps 50 percent, beating forecasts
The tech stocks on NAZ are flying high on earnings reports by the biggies. However that strength did not reach reach the broader market, measured by market breath, or even the Dow. Advances by stocks is good, but becomes suspicious when that optimism does not reach many stocks.
Dow Jones Industrials
No comments:
Post a Comment