Dow surged 346 (closing at the highs with buying into the close), advancers over decliners about 2-1 & NAZ went up 51. The MLP index fell 2+ to the 269s & the REIT index was fractionally higher to the 344s. Junk bond funds crawled higher & Treasuries declined, taking the yield on the 10 year Treasury up 6 basis points to 2.97%. Oil pulled back to the 64s (a 2 month low) & gold gave back 2 to 1299.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.3044544700518409)
Stocks gain momentum in afternoon session
Key Senate Reps are pushing longshot legislation that would require Congress to sign off on Pres Trump's import tariffs, a rare attempt to stand up to the administration on a bedrock issue that once defined the GOP. Congressional Reps are mostly at odds with what they view as Trump's protectionist instincts on trade. Despite much hand-wringing, prospects for any bill to challenge him remain uncertain. Many Reps are hesitant to confront Trump in a legislative showdown that could end badly for them. Doing so could court a veto & bruise their standing with Trump voters they need in midterm elections. Senate Majority Leader Mitch McConnell indicated he was not interested in spending too much time on the effort presented behind closed doors yesterday by its chief proponent, Sen Bob Corker,, saying he preferred to focus on "getting bills passed." And the 2nd-ranking Rep, Sen. John Cornyn of Texas, said he hoped Reps concerned about the tariffs could prevail on the president to reverse course. "Not everything we do has to be legislative. Part of this job is persuasion," said Cornyn. He said lawmakers would "continue to make the case" with the pres & his staff, which he noted is divided. Trump took office promising to rip up trade deals & crack down on unfair trading practices. But that campaign slogan is at odds with Reps' longstanding preference for free markets & open trade. The idea being pursued by Corker, Sen Pat Toomey & others who have been meeting privately, & with Dems, would be narrowly crafted legislation requiring congressional approval of the tariffs Trump has imposed in the name of national security. They're targeting Trump's reliance on the 232 authority, named from Section 232 of the Trade Expansion Act of 1962, which allowed the administration to impose tariffs of 25% on imported steel & 10% on imported aluminum from Mexico, Canada & the EU, some of the top allies for the US. The senators are also hoping to halt Trump's threat to slap tariffs on auto imports, including those from Japan.
Brown-Forman (BF-B), a Dividend Aristocrat, reported yearlong net sales growth across its spirits lineup, including its flagship Jack Daniel's Tennessee Whiskey brand, but said Q4 earnings declined due to costs associated with the creation of a charitable foundation & operating expenses. The company said underlying net sales, sales excluding acquisitions, divestitures & other nonrecurring events, grew 5% in its US markets for the entire fiscal year. It reported net sales growth in a host of key overseas markets, including double-digit increases in Mexico, Germany, Russia & Brazil, along with single-digit growth in other key markets such as the UK, Australia & Poland. Foreign markets account for slightly more than ½ of company sales. For the full year, the entire Jack Daniel's lineup had underlying net sales growth of 6%. Jack Daniel's Tennessee Fire led the way with a 15% increase. The higher net sales trend included the company's key bourbon, tequila & vodka brands. "Our results demonstrated an excellent balance across both geography and portfolio, while being driven once again by the Jack Daniel's trademark and our premium American whiskey portfolio," CEO Paul Varga said. Varga added that the company has followed a strategy of "high-impact brand investments and a heightened attention to cost efficiency." The company announced recently that Varga will retire at year's end & will be succeeded as CEO by Lawson E. Whiting, who currently serves as chief operating officer. Looking ahead, BF-B predicted underlying net sales growth in its next fiscal year of 6-7%, assuming current trends continue. The company said the global economy has improved "modestly" in the past year. But it said competition in developed markets "remains intense" & mentioned concerns "over potential retaliatory tariffs on American spirits." "These factors make it difficult to accurately predict future results," the company said. Spirits makers are among US industries worried about the outbreak of a trade dispute after the US imposed tariffs on steel & aluminum imports. Meanwhile, BF-B reported EPS of 23¢, compared to 30¢ a year ago. Quarterly net sales rose 6% to $733M. The results were impacted by the previously announced creation of a $70M charitable foundation, as well as the phasing of operating expenses. Additional expenses incurred in Q4 included one-time bonuses for most employees & heavier advertising & promotional spending, it said. BF-B attributed the bonuses to the federal tax overhaul. For the full year, EPS was $1.48 compared to $1.37 in the prior year. Net sales for the just-ended year were up 8% at $3.25B. The stock dropped 3.43.
If you would like to learn more about BF-B, click on this link:
club.ino.com/trend/analysis/stock/BF-B?a_aid=CD3289&a_bid=6ae5b6f7
The Dow, which has lagged recently, soared today, led by higher stocks prices for bank shares & BA stock which shot up over 11 to a new record. Tech shares rested. Nothing really new out there. Trade talks are the key story. They are stuck in the mud & higher tariffs look to be coming between the US & its trade partners. The Dow finally closed over 25K. That seemed to have accomplished little in changing its longer term motion, going nowhere fast.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Stocks rallied to session highs in the PM, with the Dow the biggest winner,
boosted by gains in the industrial & financial sectors. Industrial
names were climbing as investors shrugged off mixed reports on trade
ahead of the G7 meeting, while financials were boosted by the 10-year
Treasury yield approaching a 2-week high. The yield increased in anticipation that the Federal Reserve will hike rates when it meets next week. Both the NAZ & Russell 2000 touched all-time
highs while the Dow climbed back above 25K. Dow components Microsoft (MSFT),
Boeing (BA), Visa (V) & Nike (NKE) touched record highs while tech giant Amazon (AMZN)
also reached its highest price on record. Economic data released included the
Apr trade deficit, which fell to a 7-month low as exports set a
record. Q1 productivity was revised to a 0.4% annual pace
compared to the 0.7% originally reported. Commodities were mixed, with gold higher & oil futures lower.
Stocks gain momentum in afternoon session
US productivity grew at an annual rate of just
0.4% in Q1, even weaker than initially estimated,
while labor costs rose at a bit faster pace. The
Labor Dept said that Q1 productivity
increase was revised down from the 0.7% gain initially estimated a
month ago. Labor costs rose 2.9%, up from an initial estimate of
a 2.7% gain Q1. The rise in productivity was
only marginally better than the 0.3% increase in Q4 but below the 2.6% Q3 increase. Productivity,
a key factor determining how fast the economy can grow & how much
living standards can increase, has been anemic throughout the economic
recovery. It increased just 1.3% for all of 2017. Productivity
is the amount of output per hour of work. The small revision to Q1 reflected the fact that the economy's overall
output of goods & services as measured by GDP
was revised down slightly to a GDP growth rate of 2.2% in Q1 instead of the initial estimate of 2.3%. Finding a solution to the slowdown in productivity growth is seen as one
of the key challenges facing the country. Productivity is a key factor
determining how fast the economy can grow & how much living standards
can increase. Gains in productivity allow companies to pay their workers
more without having to boost the cost of their products, a move that
can increase inflation.
US productivity grew at weak 0.4% rate in 1Q
A top ECB official said that policymakers will begin discussions next week on
withdrawing the bank's bond-purchase stimulus, suggesting the ECB isn't
overly worried by the recent political upheaval in Italy. "Next
week, the governing council will have to assess whether progress so far
has been sufficient to warrant an unwinding of our net asset
purchases," executive board member Peter Praet said. Currently, the bank says
it will keep buying €30B ($35B) a month in bonds at
least thru Sep. Analysts think the bank will phase them out
around the end of this year. The governing
council meets Jun 14. The € rose about a ½ a penny against the $ to $1.1773, after the remarks. Stimulus
withdrawal should tend to send the € higher by introducing higher
interest returns on € holdings. Italy's new populist gov has proposed extra
spending, briefly raising market fears of a renewed eurozone debt
crisis. Markets have calmed since because it's not clear how far the new
gov of Premier Giuseppe Conte will actually go with its promises
of new gov spending. The bond purchases
are a way of pushing newly created money into the economy, a step that
should raise inflation & make credit easier to obtain. Europe's
economic recovery has slowed recently but growth remained at a
respectable 0.4% in Q1 over the qtr
before.
Top ECB official: Time to discuss stimulus withdrawal
Key Senate Reps are pushing longshot legislation that would require Congress to sign off on Pres Trump's import tariffs, a rare attempt to stand up to the administration on a bedrock issue that once defined the GOP. Congressional Reps are mostly at odds with what they view as Trump's protectionist instincts on trade. Despite much hand-wringing, prospects for any bill to challenge him remain uncertain. Many Reps are hesitant to confront Trump in a legislative showdown that could end badly for them. Doing so could court a veto & bruise their standing with Trump voters they need in midterm elections. Senate Majority Leader Mitch McConnell indicated he was not interested in spending too much time on the effort presented behind closed doors yesterday by its chief proponent, Sen Bob Corker,, saying he preferred to focus on "getting bills passed." And the 2nd-ranking Rep, Sen. John Cornyn of Texas, said he hoped Reps concerned about the tariffs could prevail on the president to reverse course. "Not everything we do has to be legislative. Part of this job is persuasion," said Cornyn. He said lawmakers would "continue to make the case" with the pres & his staff, which he noted is divided. Trump took office promising to rip up trade deals & crack down on unfair trading practices. But that campaign slogan is at odds with Reps' longstanding preference for free markets & open trade. The idea being pursued by Corker, Sen Pat Toomey & others who have been meeting privately, & with Dems, would be narrowly crafted legislation requiring congressional approval of the tariffs Trump has imposed in the name of national security. They're targeting Trump's reliance on the 232 authority, named from Section 232 of the Trade Expansion Act of 1962, which allowed the administration to impose tariffs of 25% on imported steel & 10% on imported aluminum from Mexico, Canada & the EU, some of the top allies for the US. The senators are also hoping to halt Trump's threat to slap tariffs on auto imports, including those from Japan.
Key Senate Republicans seek to challenge Trump over tariffs
Brown-Forman (BF-B), a Dividend Aristocrat, reported yearlong net sales growth across its spirits lineup, including its flagship Jack Daniel's Tennessee Whiskey brand, but said Q4 earnings declined due to costs associated with the creation of a charitable foundation & operating expenses. The company said underlying net sales, sales excluding acquisitions, divestitures & other nonrecurring events, grew 5% in its US markets for the entire fiscal year. It reported net sales growth in a host of key overseas markets, including double-digit increases in Mexico, Germany, Russia & Brazil, along with single-digit growth in other key markets such as the UK, Australia & Poland. Foreign markets account for slightly more than ½ of company sales. For the full year, the entire Jack Daniel's lineup had underlying net sales growth of 6%. Jack Daniel's Tennessee Fire led the way with a 15% increase. The higher net sales trend included the company's key bourbon, tequila & vodka brands. "Our results demonstrated an excellent balance across both geography and portfolio, while being driven once again by the Jack Daniel's trademark and our premium American whiskey portfolio," CEO Paul Varga said. Varga added that the company has followed a strategy of "high-impact brand investments and a heightened attention to cost efficiency." The company announced recently that Varga will retire at year's end & will be succeeded as CEO by Lawson E. Whiting, who currently serves as chief operating officer. Looking ahead, BF-B predicted underlying net sales growth in its next fiscal year of 6-7%, assuming current trends continue. The company said the global economy has improved "modestly" in the past year. But it said competition in developed markets "remains intense" & mentioned concerns "over potential retaliatory tariffs on American spirits." "These factors make it difficult to accurately predict future results," the company said. Spirits makers are among US industries worried about the outbreak of a trade dispute after the US imposed tariffs on steel & aluminum imports. Meanwhile, BF-B reported EPS of 23¢, compared to 30¢ a year ago. Quarterly net sales rose 6% to $733M. The results were impacted by the previously announced creation of a $70M charitable foundation, as well as the phasing of operating expenses. Additional expenses incurred in Q4 included one-time bonuses for most employees & heavier advertising & promotional spending, it said. BF-B attributed the bonuses to the federal tax overhaul. For the full year, EPS was $1.48 compared to $1.37 in the prior year. Net sales for the just-ended year were up 8% at $3.25B. The stock dropped 3.43.
club.ino.com/trend/analysis/stock/BF-B?a_aid=CD3289&a_bid=6ae5b6f7
Sales rise sharply at Brown-Forman in 4Q but profit down
The Dow, which has lagged recently, soared today, led by higher stocks prices for bank shares & BA stock which shot up over 11 to a new record. Tech shares rested. Nothing really new out there. Trade talks are the key story. They are stuck in the mud & higher tariffs look to be coming between the US & its trade partners. The Dow finally closed over 25K. That seemed to have accomplished little in changing its longer term motion, going nowhere fast.
Dow Jones Industrials
No comments:
Post a Comment