Dow sank 152, decliners over advancers about 2-1 & NAZ went up 2. The MLP index
& the REIT index slid back 1 to the 351s, Junk bond funds declined & Treasuries were purchased again. Oil climbed higher in the 66s & gold added 3 to 1213.
AMJ (Alerian MLP Index tracking fund)
Stocks lower on Brexit concerns
Walmart (WMT), a Dow stock & Dividend Aristocrat, reported mixed Q3 results, with earnings that topped expectations & revenue that fell short due to currency headwinds. Earnings were fueled by strong e-commerce sales, as the company continues to gobble up online brands like apparel and home goods, while also scaling its grococratery business. The retailer raised its forecast for earnings & same-store sales in the US for the full year, expecting a strong holiday season. “We have momentum in the business as we execute our plan and benefit from a favorable economic environment in the U.S.,” CEO Doug McMillon said. WMT reported EPS of 58¢, the same as last year. Excluding one-time items, EPS was $1.08, 7¢ ahead of expectations. Revenue climbed 1.4% to $124.9B from $123.2B a year ago, falling short of expectations for $125.6B. Excluding impacts from currency, revenue was $126.1B. Sales at stores in the US open for at least 12 months were up 3.4%, better than growth of 3.1% expected. Traffic at stores was up 1.2% during the qtr, with the average ticket up 2.2%. CFO Brett Biggs said grocery helped fuel those results, as the company now has a grocery pick-up option at roughly 2100 stores across the UA & grocery delivery at about 600 locations. Online sales were up 43% during Q3 & the company is still on track to meet its goal of 40% e-commerce sales growth for the full year. A year ago, digital sales climbed 50%, as the company just started to lap its acquisition of Jet.com. Especially ahead of the holidays this year, WMT has been focused on expanding its merchandise assortment online. One way it’s doing this is by acquiring digital brands, including most recently plus-sized fashion retailer Eloquii & intimates company Bare Necessities. The head of the US e-commerce business, Marc Lore, recently said WMT could one day own more than 40 of these e-commerce retailers. WMT is expected to take 4% of US e-commerce sales (roughly $20.9B). Looking to the full year, WMT now expects same-store sales in the U.S. to rise “at least” 3%, compared with a previous outlook of “about” 3%. It says adjusted EPS will be $4.75-4.85, up from a prior range of $4.65-4.80. Intl sales fell 2.6% during Q3 to $28.8B , partly due to the company selling a majority of its Brazilian business to private-equity firm Advent Intl. WMT said same-store sales were positive in 9 out of 10 markets where it operates overseas. The stock dropped 2.53. If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart posts mixed quarter but raises forecast, expecting strong holiday
US retail sales rebound sharply in October
US import prices increase more than expected in October
Stocks are back to stumbling around. WMT earnings were so-so & a lack of progress in Brexit is unsettling. More meddling in the economy by the new congress is another drag on investor sentiment. The Dow is under 25K again which will be a negative signal if it closes at that level.
Dow Jones Industrials
& the REIT index slid back 1 to the 351s, Junk bond funds declined & Treasuries were purchased again. Oil climbed higher in the 66s & gold added 3 to 1213.
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 56.70 | +0.45 | +0.8% |
| GC=F | Gold | 1,212.90 | +2.80 | +0.2% |
Stocks fell, as traders digested Brexit concerns, the latest economic data & earnings. The
economic data released today was mixed, with the Philly Fed
manufacturing index falling much more than expected to 12.9 in Nov
from 22.2. The forecast called for a reading of 20. Oct retail sales
were stronger than expected, while jobless claims edged higher but
hovered near historic lows. The headlines out
of the UK continue to dampen investors' risk appetite. The latest
development was the resignation of UK's Brexit minister & Theresa May faces the prospect of a no-confidence vote, which
could trigger an election. It was another wild ride for equities on yesterday as the Dow clawed back from a loss of
about 350 points, finishing the session down 205. Apple
(AAPL) shares, nearing a bear market, fell nearly 3%, dragging the
NAZ down 64 (about 1%). As for the
broader S&P dipped,
after Rep. Maxine Waters said she would likely end Pres Trump's rollback of regulations for financial institutions as she
prepares to become Chair of the House Financial Services Committee
following the midterm election swing which left.
Stocks lower on Brexit concerns
Walmart (WMT), a Dow stock & Dividend Aristocrat, reported mixed Q3 results, with earnings that topped expectations & revenue that fell short due to currency headwinds. Earnings were fueled by strong e-commerce sales, as the company continues to gobble up online brands like apparel and home goods, while also scaling its grococratery business. The retailer raised its forecast for earnings & same-store sales in the US for the full year, expecting a strong holiday season. “We have momentum in the business as we execute our plan and benefit from a favorable economic environment in the U.S.,” CEO Doug McMillon said. WMT reported EPS of 58¢, the same as last year. Excluding one-time items, EPS was $1.08, 7¢ ahead of expectations. Revenue climbed 1.4% to $124.9B from $123.2B a year ago, falling short of expectations for $125.6B. Excluding impacts from currency, revenue was $126.1B. Sales at stores in the US open for at least 12 months were up 3.4%, better than growth of 3.1% expected. Traffic at stores was up 1.2% during the qtr, with the average ticket up 2.2%. CFO Brett Biggs said grocery helped fuel those results, as the company now has a grocery pick-up option at roughly 2100 stores across the UA & grocery delivery at about 600 locations. Online sales were up 43% during Q3 & the company is still on track to meet its goal of 40% e-commerce sales growth for the full year. A year ago, digital sales climbed 50%, as the company just started to lap its acquisition of Jet.com. Especially ahead of the holidays this year, WMT has been focused on expanding its merchandise assortment online. One way it’s doing this is by acquiring digital brands, including most recently plus-sized fashion retailer Eloquii & intimates company Bare Necessities. The head of the US e-commerce business, Marc Lore, recently said WMT could one day own more than 40 of these e-commerce retailers. WMT is expected to take 4% of US e-commerce sales (roughly $20.9B). Looking to the full year, WMT now expects same-store sales in the U.S. to rise “at least” 3%, compared with a previous outlook of “about” 3%. It says adjusted EPS will be $4.75-4.85, up from a prior range of $4.65-4.80. Intl sales fell 2.6% during Q3 to $28.8B , partly due to the company selling a majority of its Brazilian business to private-equity firm Advent Intl. WMT said same-store sales were positive in 9 out of 10 markets where it operates overseas. The stock dropped 2.53. If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart posts mixed quarter but raises forecast, expecting strong holiday
US retail sales rebounded sharply in Oct as
purchases of motor vehicles & building materials surged, likely driven
by rebuilding efforts in areas devastated by Hurricane Florence. The
Commerce Dept said retail sales increased 0.8%
last month also as households bought electronics & appliances. Data
for Sep was revised down to show retail sales slipping 0.1%
instead of nudging up 0.1% previously reported. The forecast called for retail sales increasing 0.5% in
Oct. Retail sales in Oct rose 4.6% from a year ago. Excluding
automobiles, gasoline, building materials & food services, retail
sales increased 0.3% last month. These core retail
sales correspond most closely with the consumer spending component of GDP. Data for Sep was revised lower to
show core retail sales rising 0.3% instead of gaining 0.5%
as previously reported. A strong labor market, characterized by a
3.7% unemployment rate, is underpinning consumer spending. The
lowest unemployment rate in nearly 49 years is boosting wages, with
annual wage growth recording its biggest increase in 9½ years in
Oct. The retail sales report suggested consumer spending retained most of
its strong momentum at the start of Q4, likely keeping
the economy on a strong growth path, despite the trade deficit expected
to deteriorate further & the housing market continuing to weaken. Consumer
spending, which accounts for more 2/3 of economic
activity, grew at its fastest pace in nearly 4 years in Q3. The economy grew at a 3.5% annualized rate in the
Jul-Sep qtr. Oct's strength in retail sales bodes
well ahead of the holiday shopping season. The Commerce Dept said
it could not isolate the impact of Hurricane Florence, which lashed
North & South Carolina in mid-Sep, on retail sales. However,
auto sales jumped 1.1% last month likely as residents in the
affected areas replaced damaged cars. Auto sales fell 0.1% in
Sep. Sales at building material stores surged 1.0%, probably boosted by rebuilding efforts in areas affected by
Florence. Sales at clothing stores gained 0.5% after
climbing 0.8% in Sep. Online & mail-order sales rose 0.4% in Oct after rising 1.3% in the prior month. Receipts
at furniture stores fell 0.3% & receipts at service stations rose
3.5%, likely reflecting higher gasoline prices. Spending
at hobby, musical instrument & book stores rose 0.5% last
month. But spending at restaurants & bars slipped 0.2% after
dropping 1.5% the prior month.
US retail sales rebound sharply in October
US import prices increased more than expected in
Oct, boosted by a surge in petroleum & food prices, but
underlying imported inflation pressures remained tame amid a strong $. The Labor Dept said import prices rose
0.5% last month after a downwardly revised 0.2% gain in
Sep. The forecast called for import prices gaining 0.1% in
Oct after a previously reported 0.5% increase in Sep. In the 12 months thru Oct, import prices advanced 3.5% after rising 3.1% in Sep. Last
month, prices for imported fuels & lubricants jumped 3.3%
after rising 0.7% in Sep. Food prices surged 2.2% in
Oct after rising 2.0% in the prior month. Excluding fuels & food, import prices fell 0.1% last month after declining by the same margin in Sep. Core import prices advanced 0.7% in the 12 months
thru Oct. The monthly drop in core import prices likely reflects
the strong $, which has gained about 8.1% this year against
the currencies of the US' main trade partners. The
report also showed export prices rose 0.4% in Oct after being
unchanged in Sep. Prices for agricultural products fell for 2nd straight month. Export prices increased 3.1% on a
year-on-year basis in Oct after rising 2.7% in Sep.
US import prices increase more than expected in October
Stocks are back to stumbling around. WMT earnings were so-so & a lack of progress in Brexit is unsettling. More meddling in the economy by the new congress is another drag on investor sentiment. The Dow is under 25K again which will be a negative signal if it closes at that level.
Dow Jones Industrials
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