Dow fell 45, advancers slightly ahead of decliners & NAZ gained 12. The MLP index was little changed om the 258s & the REIT index added 2+ to the 331s. Junk bond funds drifter lower & Treasuries inched higher. Oil was about even in the 67s & gold hardly budged at 1305.
AMJ (Alerian MLP Index tracking fund)
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Stocks waffle ahead of Fed decision
Stocks are in a hold pattern ahead of the announcement by the Fed. AAPL earnings were taken as a positive, even though it looks like the market for smartphones is becoming mature. The jobs report on Fri looks to be uneventful. And the Dow is staying close to the 25K level, finding it difficult to break away from that trend line.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
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| Crude Oil | 67.27 | +0.02 | +0.0% |
GC=F
| Gold | 1,305.80 | -1.00 | -0.1% |
Stocks opened flattish, as traders
digested the latest corp earnings & a reading on the employment
sector, while awaiting the conclusion of the Federal Reserve's 2-day
policy setting meeting. The Fed is not expected
to raise its benchmark interest rate when it emerges from its May
policy meeting. But the central bank could make changes to
its statement, setting the table for a rate hike in Jun. Also,
investors will be looking for changes in the language on inflation. Economic data released today included
the ADP jobs report, which showed the US added 204K private sector
jobs in Apr, just above expectations for 200K. The report
is a prelude to the official nonfarm payrolls report on Fri. Current
expectations are for an increase in that report of about 195K. Top
stock movers included Apple (AAPL), a Dow & NAZ stock, which was climbing after the
tech giant topped earnings expectations & announced a $100B
boost to its share buyback program. The rally came even as iPhone sales
fell slightly short of expectations. Oil futures were mixed after the commodity rallied to a multi-year high.
Stocks waffle ahead of Fed decision
Apple (AAPL) revenue jumped 16% to $61.1B in its Q2, up
from $52.9B for the same period a year earlier. Analysts had
expected revenue of $60.82B. EPS rose 30% to $2.73, ahead of projections for $2.67. IPhone unit sales of 52.2M, were slightly below the consensus estimate of 52.3M. The company
also announced a 16% increase of its quarterly div to 73¢, up from 63¢, as well as a stock buyback program
that will extend into Q3. The company was widely expected
to reward investors after repatriating most of its more than $250B in overseas cash after the passage of corp tax reform. The average sale price for iPhones rose 11% to
$728, driven by the release last year of the $999 iPhone X, a premium
version of the flagship smartphone. “Customers
chose iPhone X more than any other iPhone each week in the March
quarter, just as they did following its launch in the December quarter,”
CEO Tim Cook said. “We also grew revenue in all of
our geographic segments, with over 20% growth in Greater China and
Japan.” Several analysts had slashed
their expectations for iPhone unit sales in the 2nd & 3rd
fiscal qtr after several of the company's parts suppliers reported
weak demand or sales forecasts, particularly in China. Some
suggested the iPhone X's price point was causing "sticker shock" among
consumers. Cook
downplayed the notion of a brewing trade war between the US & China,
noting that the iPhone was "the most popular smartphone in all of
China" in Q2. "I'm a big believer that both countries can win and grow the pie," Cook said. Cook added the company is committed to protecting the data of its users, saying AAPL believes "privacy is a fundamental human
right." The CEO added that customers are "not our product." AAPL
sold 9.1M iPads & 4.08M Mac computers. The company released an updated version of the iPad aimed at
teachers & students earlier in 2018 as part of a push to capture
market share in the education space. The
company set revenue guidance for Q3 of $51.5-$53.5B. Analysts expect revenue for the
Jun qtr of $51.6B. CCFO Luca Maestri said the company has a net cash
balance of $145M. Maestri previously said the company would seek
to reduce the balance to "approximately zero" over time thru
potential mergers & acquisitions, buybacks & divs. The stock jumped up 7.10 (4%).
Apple boosts buyback, rallies on earnings beat
US private-sector employers hired 204K
workers in Apr, the smallest monthly increase since Nov, a report
by a payrolls processor showed. The
increase was more than what had been
expected. The forecast for ADP National Employment Report was for a
gain of 200K private jobs. Private payrolls in Mar were revised down to an increase of 228K
from the previously reported 241K gain. The report is jointly
developed with Moody's Analytics.
US April private-sector jobs up 204,000, smallest rise since November: ADP
Stocks are in a hold pattern ahead of the announcement by the Fed. AAPL earnings were taken as a positive, even though it looks like the market for smartphones is becoming mature. The jobs report on Fri looks to be uneventful. And the Dow is staying close to the 25K level, finding it difficult to break away from that trend line.
Dow Jones Industrials
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