Dow went up 40 (just below 23K), decliners over advancers 4-3 NAZ backed off pennies. The MLP index fell 1+ to the 278s & the REIT index inched up to the 355s. Junk bond funds & Treasuries crawled higher. Oil finished little changed (more below) & gold dropped 15 to 1287.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.36978249611605907)
Higher spending across the board drove Johnson & Johnson's, (JNJ), a Dow stock & Dividend Aristocrat, Q3 profit down 12%, despite a big sales jump fueled by recent acquisitions, hot new cancer drugs & strong sales of other key medicines. However, the health care giant easily topped expectations. With momentum in product sales across all 3 business segments, the company boosted its financial forecast for the 3rd time this year. JNJ's biggest ever, $30B to buy Swiss biopharmaceutical company Actelion in Jun, added $670M to the qtr's sales of Actelion's drugs for dangerously high blood pressure in the lungs. That also gave JNJ a 6th disease focus area, along with drugs for cancer, infectious diseases and immune, neurological & cardiovascular disorders. Sales of prescription medicines soared 15.4% to $9.7B , boosted by blood cancer drug Imbruvica, Darzalex for multiple myeloma, blood thinner Xarelto & immune disorder drug Stelara. Revenue from older drugs declined amid pressure for lower prices & increased competition. But JNJ said it's scrapped 2 experimental drugs it recently touted as future blockbusters. Sales of consumer health products such as Tylenol & Neutrogena skin care rose 2.9%, to $3.4B, & sales of Acuvue contact lenses & other medical devices jumped 7.1%, to $6.B. Device sales were boosted $291M by this year's acquisition of Abbott Medical Optics, which sells products for Lasik & eye cataract surgery. The company said the hurricanes that recently hit US coastal areas & Puerto Rico, where it has 6 factories, forced surgery cancellations for days, reducing revenue minimally, but haven't disrupted product supplies. However, the Puerto Rico factories are only partially running, on generators. Total sales were $19.7B, up from $17.8B in Q3-2016, exceeding forecasts for $19.28B. EPS was $1.37, down from $1.53 a year earlier. Adjusted for one-time costs, the company posted EPS of $1.90, topping forecasts for $1.80. JNJ now expects full-year earnings EPS of $7.25-7.30 on revenue of $76.1-76.5B. In Aug, it forecast full-year EPS of $7.12-7.22 & revenue of $75.8-76.1B. Analysts has been projecting full-year EPS of $7.18. The stock shot up 4.67 to go over 140. If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
Goldman Sachs' (GS), a Dow stock, Q3 profits fell 3% from a year earlier, as the trading desks the biggest investment bank were weighed down by a slow summer that also affected most of its competition. Results still beat forecasts, however. The bank had EPS of $5.02 compared with $4.88 last year. EPS rose because there are fewer shares outstanding compared with the same period a year ago. Analysts had been looking for EPS of $4.17. The trading desks, which are weighted toward bonds, currencies & commodities, struggled this qtr, as did those at its competitors. Net revenue in that business was $1.45B, down 26% from a year earlier. Markets have been abnormally quiet this year, which has hurt investment banks' trading profits since they benefit when markets are more active. Despite the struggling trading operation, the investment banking business had an especially good qtr, reporting a 17% rise in revenue. Revenue from underwriting & companies turning to GS investment bankers for advice both increased. Its on common equity, a measurement of a bank's profitability by showing how well it performs with the assets on its books, was 10.9%. Investment banks like GS aim for that measurement to be above 10%. CEO Lloyd Blankfein called the firm's overall performance so far this year "solid." Company-wide revenue was $8.33B which compared with $8.17B a year earlier. Analysts were looking for revenue of $7.53B. The stock sank 6.32 to the 236s. If you would like to learn more about GS, click on this link:
club.ino.com/trend/analysis/stock/GS?a_aid=CD3289&a_bid=6ae5b6f7
Harley-Davidson (HOG) reported a better-than-expected quarterly profit & maintained its full-year shipments forecast, despite prolonged weak demand in its home market. US retail motorcycle sales, or sales by dealers to customers, fell 8.1% in Q3, & total global retail sales dipped 6.9%. Still, the company said it expects to ship 241K-246K motorcycles this year, down 6 -8% from a year earlier. EPS was 40¢ in Q3, down from 64¢ a year earlier. Revenue from motorcycles & related products fell to $962M from $1.09B. Analysts had expected EPS of 39¢ & revenue of $953.3M. The stock rose 95¢ to the 47s. If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
Oil prices gave up earlier gains & turned negative as expectations of high US production & exports offset concerns that fighting between Iraqi & Kurdish forces could threaten the country's crude output. US crude was down 59¢ (1.1%) at $51.28 per barrel. Earlier, both contracts were up by nearly 1%. The Iraqi gov recaptured territory across northern Iraq from Kurds, widening a campaign that has shifted the balance of power in the country. The fighting in one of Iraq's main oil-producing areas helped to restore a risk premium on oil prices, though officials said that oilfields in the region were operating normally. Analysts forecast US crude inventories declined by about 4.8M barrels in the latest week. Tension between the US & Iran is also rising, increasing the global risk premium for oil. Pres Trump on Fri refused to certify Iran's compliance over a nuclear deal, leaving Congress 60 days to decide on further action against Tehran. During the previous round of sanctions against Iran, about 1M bpd of oil was cut from global markets. Elsewhere in the Middle East, US-backed militias in Syria declared victory over Islamic State in its capital Raqqa , raising flags over the last jihadist footholds after a 4-month battle. With supply cuts led by OPEC tightening the market, analysts have been raising their oil price forecasts.
Oil turns negative as US output gains offset Middle East tensions
Dow is pushing to go over 23K, but couldn't make it today. Maybe tomorrow. Earnings have been reasonably good, although at times they are only beating forecasts with year over year profit declines. Earnings reports are not likely to be conclusive. Getting those guys in DC to move forward on tax reform & other issues like the fiscal budget remains clouded. Traders will try hard to get the Dow over 23K tomorrow.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Higher spending across the board drove Johnson & Johnson's, (JNJ), a Dow stock & Dividend Aristocrat, Q3 profit down 12%, despite a big sales jump fueled by recent acquisitions, hot new cancer drugs & strong sales of other key medicines. However, the health care giant easily topped expectations. With momentum in product sales across all 3 business segments, the company boosted its financial forecast for the 3rd time this year. JNJ's biggest ever, $30B to buy Swiss biopharmaceutical company Actelion in Jun, added $670M to the qtr's sales of Actelion's drugs for dangerously high blood pressure in the lungs. That also gave JNJ a 6th disease focus area, along with drugs for cancer, infectious diseases and immune, neurological & cardiovascular disorders. Sales of prescription medicines soared 15.4% to $9.7B , boosted by blood cancer drug Imbruvica, Darzalex for multiple myeloma, blood thinner Xarelto & immune disorder drug Stelara. Revenue from older drugs declined amid pressure for lower prices & increased competition. But JNJ said it's scrapped 2 experimental drugs it recently touted as future blockbusters. Sales of consumer health products such as Tylenol & Neutrogena skin care rose 2.9%, to $3.4B, & sales of Acuvue contact lenses & other medical devices jumped 7.1%, to $6.B. Device sales were boosted $291M by this year's acquisition of Abbott Medical Optics, which sells products for Lasik & eye cataract surgery. The company said the hurricanes that recently hit US coastal areas & Puerto Rico, where it has 6 factories, forced surgery cancellations for days, reducing revenue minimally, but haven't disrupted product supplies. However, the Puerto Rico factories are only partially running, on generators. Total sales were $19.7B, up from $17.8B in Q3-2016, exceeding forecasts for $19.28B. EPS was $1.37, down from $1.53 a year earlier. Adjusted for one-time costs, the company posted EPS of $1.90, topping forecasts for $1.80. JNJ now expects full-year earnings EPS of $7.25-7.30 on revenue of $76.1-76.5B. In Aug, it forecast full-year EPS of $7.12-7.22 & revenue of $75.8-76.1B. Analysts has been projecting full-year EPS of $7.18. The stock shot up 4.67 to go over 140. If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
Johnson & Johnson tops Street 3Q forecasts, hikes forecast
Goldman Sachs' (GS), a Dow stock, Q3 profits fell 3% from a year earlier, as the trading desks the biggest investment bank were weighed down by a slow summer that also affected most of its competition. Results still beat forecasts, however. The bank had EPS of $5.02 compared with $4.88 last year. EPS rose because there are fewer shares outstanding compared with the same period a year ago. Analysts had been looking for EPS of $4.17. The trading desks, which are weighted toward bonds, currencies & commodities, struggled this qtr, as did those at its competitors. Net revenue in that business was $1.45B, down 26% from a year earlier. Markets have been abnormally quiet this year, which has hurt investment banks' trading profits since they benefit when markets are more active. Despite the struggling trading operation, the investment banking business had an especially good qtr, reporting a 17% rise in revenue. Revenue from underwriting & companies turning to GS investment bankers for advice both increased. Its on common equity, a measurement of a bank's profitability by showing how well it performs with the assets on its books, was 10.9%. Investment banks like GS aim for that measurement to be above 10%. CEO Lloyd Blankfein called the firm's overall performance so far this year "solid." Company-wide revenue was $8.33B which compared with $8.17B a year earlier. Analysts were looking for revenue of $7.53B. The stock sank 6.32 to the 236s. If you would like to learn more about GS, click on this link:
club.ino.com/trend/analysis/stock/GS?a_aid=CD3289&a_bid=6ae5b6f7
Goldman Sachs' results beat forecasts despite trading drop
Harley-Davidson (HOG) reported a better-than-expected quarterly profit & maintained its full-year shipments forecast, despite prolonged weak demand in its home market. US retail motorcycle sales, or sales by dealers to customers, fell 8.1% in Q3, & total global retail sales dipped 6.9%. Still, the company said it expects to ship 241K-246K motorcycles this year, down 6 -8% from a year earlier. EPS was 40¢ in Q3, down from 64¢ a year earlier. Revenue from motorcycles & related products fell to $962M from $1.09B. Analysts had expected EPS of 39¢ & revenue of $953.3M. The stock rose 95¢ to the 47s. If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
Harley-Davidson beats profit estimates, backs full-year forecast
Oil prices gave up earlier gains & turned negative as expectations of high US production & exports offset concerns that fighting between Iraqi & Kurdish forces could threaten the country's crude output. US crude was down 59¢ (1.1%) at $51.28 per barrel. Earlier, both contracts were up by nearly 1%. The Iraqi gov recaptured territory across northern Iraq from Kurds, widening a campaign that has shifted the balance of power in the country. The fighting in one of Iraq's main oil-producing areas helped to restore a risk premium on oil prices, though officials said that oilfields in the region were operating normally. Analysts forecast US crude inventories declined by about 4.8M barrels in the latest week. Tension between the US & Iran is also rising, increasing the global risk premium for oil. Pres Trump on Fri refused to certify Iran's compliance over a nuclear deal, leaving Congress 60 days to decide on further action against Tehran. During the previous round of sanctions against Iran, about 1M bpd of oil was cut from global markets. Elsewhere in the Middle East, US-backed militias in Syria declared victory over Islamic State in its capital Raqqa , raising flags over the last jihadist footholds after a 4-month battle. With supply cuts led by OPEC tightening the market, analysts have been raising their oil price forecasts.
Oil turns negative as US output gains offset Middle East tensions
Dow is pushing to go over 23K, but couldn't make it today. Maybe tomorrow. Earnings have been reasonably good, although at times they are only beating forecasts with year over year profit declines. Earnings reports are not likely to be conclusive. Getting those guys in DC to move forward on tax reform & other issues like the fiscal budget remains clouded. Traders will try hard to get the Dow over 23K tomorrow.
Dow Jones Industrials
No comments:
Post a Comment