Dow lost 49 following buying at the opening, advancers over decliners 4-3 & NAZ added 4. The MLP index was up 1+ to the 253 & the REIT index added 2+ to 370 (nearing record highs made in 2016). Junk bond funds drifted lower & Treasuries rose in price. Oil crawled higher in the 55s (more below) & gold surged 19 to 1341 near multi month highs.
AMJ (Alerian MLP Index tracking fund
Stocks gain as US-China trade talks resume
The nation's homebuilders are feeling better about the state of their industry as lower interest rates boost consumer confidence. Builder sentiment rose 4 points to 62 in Feb, according to a monthly survey from the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The survey stood at 71 in Feb of last year (anything above 50 on the index is considered positive). Sentiment fell at the end of last year, largely because mortgage rates jumped in the fall, hurting affordability. Newly built homes come at a price premium to existing homes, so higher interest rates can have an outsize effect on the new construction market. Interest rates then fell sharply at the end of the year and have remained lower so far this year. "Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment," said NAHB Chairman Randy Noel. "In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season." Of the index's 3 components, buyer traffic moved up 4 points to 48. Current sales conditions rose 3 points to 67 & sales expectations over the next 6 months increased 5 points to 68. Feb marks the 2nd month where all 3 of the indices showed gains. Sales of newly built homes have been hard to read, due to the recent gov shutdown & delays in reporting from the Census. Several sources noted a sharp decline in sales toward the end of the year, with a slight improvement in Jan. Mortgage applications to purchase newly built homes were flat in Jan compared with Jan 2018, according to the Mortgage Bankers Association. The cost to build homes continues to be a concern. "Rising costs stemming from excessive regulations, a dearth of buildable lots, a persistent labor shortage and tariffs on lumber and other key building materials continue to make it increasingly difficult to produce housing at affordable price points," noted NAHB Chief Economist Robert Dietz.
Homebuilder sentiment rises as interest rates stay in check
Walmart (WMT), a Dow stock & Dividend Aristocrat, reported earnings & revenue for the holiday qtr that topped analysts' expectations, as its e-commerce sales surged 43% thanks to more shoppers using its online grocery delivery service & spending more per trip. CEO Doug McMillon said "a favorable economic environment" has been helping WMT grow sales & take market share from rivals, including in food and toys. WMT after dismal Dec sales data released by the Commerce Dept last week put a damper on the retail industry & sparked some concern that WMTt also suffered during the holidays. But the retailer's results show shoppers continued to flock to its stores. The company also benefited from food stamps being released early because of the partial gov shutdown, giving sales a last-minute boost. "To us, the consumer looks like they're in pretty good shape," CFO Brett Biggs said. "Gas prices are down. ... We're always monitoring the consumer and are ready to act if things change, but we feel our guidance is good for the next year and our business model works well in most environments." The company said it's maintaining its sales outlook for 2019, as it raised its annual div by 2% to $2.12, up from $2.08 a share. EPS was $1.27, compared with 73¢, a year earlier. Excluding one-time items, EPS was $1.41, 8¢ ahead of expectations. Revenue climbed nearly 2% to $139B from $136B a year ago. That came in ahead of expectations of $138.7B. Sales at stores in the US operating for at least 12 month were up 4.2%, topping expected growth of 3.2%. The company said traffic at stores was up just 0.9%, compared with growth of 1.6% a year ago. The average shopper's ticket, however, grew 3.3%. A year earlier, the average ticket was up just 1%. Online sales were up 43% during Q4, matching growth during the previous qtr & for the year, it achieved e-commerce sales growth of 40%, which it had been targeting. WMT didn't change its sales outlook for fiscal 2020 from last Oct. Net sales growth is predicted to be at least 3%, hurt by deconsolidation of WMT's Brazil operations & reduced tobacco sales at Sam's Club. Walmart still expects net sales to climb about 5% internationally. The company is still calling for US same-store sales to rise 2.5-3% for the year, but fiscal 2020 operating income is expected to decline slightly. The company is targeting e-commerce sales growth of 35% for fiscal 2020, which won't be as robust as what it was able to achieve last year. The stock gained 3.59.
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 shares surge: Holiday sales crush estimates, fueled by e-commerce growth
Crude-oil futures saw mixed trade, with intl benchmark Brent crude edging lower after posting gains in each of the last 5 sessions, while the US benchmark rose amid reports of falling Saudi Arabian exports. Trade talks between the US & China were also eyed for signs of progress that could ease worries about energy demand & boost crude prices. West Texas Intermediate crude oil gained 38¢ $55.97 a barrel while Apr Brent lost 16¢ at $66.34 a barrel following gains in each of the last five sessions. Yesterday, Brent crude saw a modest rise, but there was no settlement for Nymex WTI oil as US markets were closed. Last week, WTI prices posted a 5.4% weekly gain while Brent soared 6.7% over the same period. Market participants pointed to bullish reductions led by OPEC & its allies as helping to foster recent gains in crude. Crude-oil volumes shipped from major producer Saudi Arabia fell in the first ½ of Feb to 6.2M barrels a day, down 1.3M barrels a day on the previous month. The data confirmed comments from the Kingdom's oil minister who said earlier this month that the country would further cut output. Data showed fewer shipments destined for the US, India, Thailand & South Korea.
Buyers were active after the markets opened today, but that enthusiasm did not last. Safe haven investments are in demand. Treasuries rose & gold had a big advance to the price prices since Apr. Trade talks China are continuing, but a lot more work is needed.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund
| CL=F | Crude Oil | 55.83 | +0.24 | +0.4% |
| GC=F | Gold | 1,338.00 | +15.90 | +1.2% |
Stocks turned higher as US markets returned to trading after the Pres Day holiday. The next round of trade talks between the US & China got underway in attempt to reach a deal before the Mar 1 deadline. Also on the minds of traders is the White House possibly imposing double-digit tariffs on imports of vehicles & auto parts to the US. In Europe, London's FTSE was down 0.5%, Germany's DAX was slightly & France's CAC slipped 0.2%. In
Asian market trading, China's Shanghai Composite ended flat,
Hong Kong's Hang Seng slipped 0.4% & Japan’s Nikkei inched up
to a 2-month high adding penbies.
Stocks gain as US-China trade talks resume
The nation's homebuilders are feeling better about the state of their industry as lower interest rates boost consumer confidence. Builder sentiment rose 4 points to 62 in Feb, according to a monthly survey from the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The survey stood at 71 in Feb of last year (anything above 50 on the index is considered positive). Sentiment fell at the end of last year, largely because mortgage rates jumped in the fall, hurting affordability. Newly built homes come at a price premium to existing homes, so higher interest rates can have an outsize effect on the new construction market. Interest rates then fell sharply at the end of the year and have remained lower so far this year. "Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment," said NAHB Chairman Randy Noel. "In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season." Of the index's 3 components, buyer traffic moved up 4 points to 48. Current sales conditions rose 3 points to 67 & sales expectations over the next 6 months increased 5 points to 68. Feb marks the 2nd month where all 3 of the indices showed gains. Sales of newly built homes have been hard to read, due to the recent gov shutdown & delays in reporting from the Census. Several sources noted a sharp decline in sales toward the end of the year, with a slight improvement in Jan. Mortgage applications to purchase newly built homes were flat in Jan compared with Jan 2018, according to the Mortgage Bankers Association. The cost to build homes continues to be a concern. "Rising costs stemming from excessive regulations, a dearth of buildable lots, a persistent labor shortage and tariffs on lumber and other key building materials continue to make it increasingly difficult to produce housing at affordable price points," noted NAHB Chief Economist Robert Dietz.
Homebuilder sentiment rises as interest rates stay in check
Walmart (WMT), a Dow stock & Dividend Aristocrat, reported earnings & revenue for the holiday qtr that topped analysts' expectations, as its e-commerce sales surged 43% thanks to more shoppers using its online grocery delivery service & spending more per trip. CEO Doug McMillon said "a favorable economic environment" has been helping WMT grow sales & take market share from rivals, including in food and toys. WMT after dismal Dec sales data released by the Commerce Dept last week put a damper on the retail industry & sparked some concern that WMTt also suffered during the holidays. But the retailer's results show shoppers continued to flock to its stores. The company also benefited from food stamps being released early because of the partial gov shutdown, giving sales a last-minute boost. "To us, the consumer looks like they're in pretty good shape," CFO Brett Biggs said. "Gas prices are down. ... We're always monitoring the consumer and are ready to act if things change, but we feel our guidance is good for the next year and our business model works well in most environments." The company said it's maintaining its sales outlook for 2019, as it raised its annual div by 2% to $2.12, up from $2.08 a share. EPS was $1.27, compared with 73¢, a year earlier. Excluding one-time items, EPS was $1.41, 8¢ ahead of expectations. Revenue climbed nearly 2% to $139B from $136B a year ago. That came in ahead of expectations of $138.7B. Sales at stores in the US operating for at least 12 month were up 4.2%, topping expected growth of 3.2%. The company said traffic at stores was up just 0.9%, compared with growth of 1.6% a year ago. The average shopper's ticket, however, grew 3.3%. A year earlier, the average ticket was up just 1%. Online sales were up 43% during Q4, matching growth during the previous qtr & for the year, it achieved e-commerce sales growth of 40%, which it had been targeting. WMT didn't change its sales outlook for fiscal 2020 from last Oct. Net sales growth is predicted to be at least 3%, hurt by deconsolidation of WMT's Brazil operations & reduced tobacco sales at Sam's Club. Walmart still expects net sales to climb about 5% internationally. The company is still calling for US same-store sales to rise 2.5-3% for the year, but fiscal 2020 operating income is expected to decline slightly. The company is targeting e-commerce sales growth of 35% for fiscal 2020, which won't be as robust as what it was able to achieve last year. The stock gained 3.59.
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 shares surge: Holiday sales crush estimates, fueled by e-commerce growth
Crude-oil futures saw mixed trade, with intl benchmark Brent crude edging lower after posting gains in each of the last 5 sessions, while the US benchmark rose amid reports of falling Saudi Arabian exports. Trade talks between the US & China were also eyed for signs of progress that could ease worries about energy demand & boost crude prices. West Texas Intermediate crude oil gained 38¢ $55.97 a barrel while Apr Brent lost 16¢ at $66.34 a barrel following gains in each of the last five sessions. Yesterday, Brent crude saw a modest rise, but there was no settlement for Nymex WTI oil as US markets were closed. Last week, WTI prices posted a 5.4% weekly gain while Brent soared 6.7% over the same period. Market participants pointed to bullish reductions led by OPEC & its allies as helping to foster recent gains in crude. Crude-oil volumes shipped from major producer Saudi Arabia fell in the first ½ of Feb to 6.2M barrels a day, down 1.3M barrels a day on the previous month. The data confirmed comments from the Kingdom's oil minister who said earlier this month that the country would further cut output. Data showed fewer shipments destined for the US, India, Thailand & South Korea.
U.S. oil climbs as supplies tighten; Brent oil edges lower after 5-session rise
Buyers were active after the markets opened today, but that enthusiasm did not last. Safe haven investments are in demand. Treasuries rose & gold had a big advance to the price prices since Apr. Trade talks China are continuing, but a lot more work is needed.
Dow Jones Industrials
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