Dow rose 52, advancers over decliners 2-1 & NAZ gained 53. The MLP index was steady in the 256s & the REIT index recovered 2 to 370. Junk bond funds crawled higher & Treasuries were being purchased. Oil remained in demand, climbed to the 66s, & gold dropped 6 to 1270.
AMJ (Alerian MLP Index tracking fund)
Sales of new US single-family homes jumped to a near 1½-year high in Mar, boosted by lower mortgage rates & house prices. The Commerce Dept said new home sales increased 4.5% to a seasonally adjusted annual rate of 692K units last month, the highest level since Nov 2017. It was the 3rd straight monthly increase in new home sales. The Feb sales pace was revised down to 662K units from the previously reported 667K units. The forecast for new home sales, which account for about 11.7% of housing market sales, was for a decrease of 2.5% to a pace of 650K units in Mar. New home sales are drawn from permits & tend to be volatile on a month-to-month basis. They increased 3.0% from a year ago & the median new house price dropped 9.7% to $302K in Mar from a year ago, the lowest level in 2 years. New home sales have not been severely impacted by the supply problems that have plagued the market for previously owned homes. A report yesterday showed home resales tumbled in Mar, weighed down by a persistent shortage of lower-priced houses. Despite the broader housing market’s struggles with supply, the fundamentals for housing are improving. The 30-year fixed mortgage rate has dropped by about 80 basis points since Nov, according to data from mortgage finance agency Freddie Mac. That followed a recent decision by the Federal Reserve to suspend its 3-year monetary policy tightening campaign. In addition, house price inflation has slowed & wage growth has picked up. Still, land & labor shortages are constraining builders' ability to break more ground on lower- priced housing projects. Investment in homebuilding contracted 0.3% in 2018, the biggest drop since 2010. New home sales in the South, which accounts for the bulk of transactions, increased 3.6% in Mar to their highest level since 2007. Sales in the Midwest soared 17.6%, while those in the West surged 6.7%. But sales in the Northeast tumbled 22.2%. There were 344K new homes on the market last month, down 0.3% from Feb. At the Mar sales pace it would take 6.0 months to clear the supply of houses on the market, down from 6.3 months in Feb. About 62% of the houses sold last month were either under construction or yet to be built.
US new home sales rise to near 1½-year high
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, beat estimates for quarterly earnings & revenue after consumers bought more of its water, sports drinks & its namesake Zero Sugar beverages. “We’re encouraged by our first quarter results as our disciplined growth strategies continue to deliver strong underlying performance,” CEO James Quincey said. The beverage giant reported fiscal Q1 EPS of 39¢ up from 32¢ a year earlier. From continuing operations, EPS was 48¢, topping the 46¢ expected. Net sales rose 5% to $8.02B, beating expectations of $7.88B. The company attributed 2% of the sales growth to timing related to building up bottler inventory to hedge Brexit uncertainty. Unit case volume — the number of unit cases of Coke beverages sold to customers, which helps measure growth without the impact of price & currency changes — grew 2%, helped by key markets in Asia & Europe. Asia returned to higher single-digit growth after a Q4 that saw unit case volume increase by only 2%. “With the first quarter, the fourth quarter looks like more of a blip,” Quincey said, attributing the better numbers to a renewed appetite for its juices in India & its single-serve waters in China. Sparkling soft drinks unit case volume grew by 1%. The Coca-Cola brand continues to perform well globally, thanks to Coca-Cola Zero Sugar's double-digit growth for its 6th consecutive qtr. In Feb, the brand launched its first new flavor in more than a decade: Orange Vanilla. “Constant innovation is crucial for sustained growth,” Quincey said. This year the company will introduce Coca-Cola Coffee to more than 25 markets around the world after successful tests in Asia. The drink will be pitched as a way to help consumers get through the “afternoon slump,” according to Quincey. The company reiterated its full-year outlook, forecasting that EPS could fall or rise by 1% & organic revenue growth of 4%. The stock rose 1.05.
If you would like to learn more about KO, click o n this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f
Coca-Cola shares jump 3% after earnings beat, as shift from sugary drinks boosts sales
The first earnings rpeorts were looking good, although the best best are reported early. HOG was hit with selling, down 44¢. Many more reports from prominent companies are coming this week. The Dow is only 250 below its record, something the bulls like to see! Risk is back in vogue which accounts for selling in gold.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 66.17 | +0.62 | +1.0% |
| GC=F | Gold | 1,271.40 | -6.20 | -0.5% |
Pres Trump vowed to reciprocate against “unfair”
EU tariffs that are hitting Harley-Davidson (HOG) after the
company posted Q1profits that dropped 27%. The
motorcycle company blamed its slumped profits on falling US
sales & European import tariffs. However, HOG topped
expectations by more than 30¢, sending its shares higher. “So unfair to the U.S.,” Trump wrote in a tweet. “We will Reciprocate!” It marked a turn in opinion for the pres, who last year called for a boycott of HOG after the company announced plans to move production of its motorcycles
bound for the EU to its overseas facilities in order to dodge an EU
tariff (which the bloc had implemented in response to Trump's tax on
steel & aluminum). At the time, the new duties on motorcycles imported to the EU increased
to 31% from 5% & HOG said the tariffs would add roughly
$2200 to the cost of the average bike built in the US & exported to
the EU.
Trump threatens to 'reciprocate' EU tariffs after Harley's profits plummet
Sales of new US single-family homes jumped to a near 1½-year high in Mar, boosted by lower mortgage rates & house prices. The Commerce Dept said new home sales increased 4.5% to a seasonally adjusted annual rate of 692K units last month, the highest level since Nov 2017. It was the 3rd straight monthly increase in new home sales. The Feb sales pace was revised down to 662K units from the previously reported 667K units. The forecast for new home sales, which account for about 11.7% of housing market sales, was for a decrease of 2.5% to a pace of 650K units in Mar. New home sales are drawn from permits & tend to be volatile on a month-to-month basis. They increased 3.0% from a year ago & the median new house price dropped 9.7% to $302K in Mar from a year ago, the lowest level in 2 years. New home sales have not been severely impacted by the supply problems that have plagued the market for previously owned homes. A report yesterday showed home resales tumbled in Mar, weighed down by a persistent shortage of lower-priced houses. Despite the broader housing market’s struggles with supply, the fundamentals for housing are improving. The 30-year fixed mortgage rate has dropped by about 80 basis points since Nov, according to data from mortgage finance agency Freddie Mac. That followed a recent decision by the Federal Reserve to suspend its 3-year monetary policy tightening campaign. In addition, house price inflation has slowed & wage growth has picked up. Still, land & labor shortages are constraining builders' ability to break more ground on lower- priced housing projects. Investment in homebuilding contracted 0.3% in 2018, the biggest drop since 2010. New home sales in the South, which accounts for the bulk of transactions, increased 3.6% in Mar to their highest level since 2007. Sales in the Midwest soared 17.6%, while those in the West surged 6.7%. But sales in the Northeast tumbled 22.2%. There were 344K new homes on the market last month, down 0.3% from Feb. At the Mar sales pace it would take 6.0 months to clear the supply of houses on the market, down from 6.3 months in Feb. About 62% of the houses sold last month were either under construction or yet to be built.
US new home sales rise to near 1½-year high
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, beat estimates for quarterly earnings & revenue after consumers bought more of its water, sports drinks & its namesake Zero Sugar beverages. “We’re encouraged by our first quarter results as our disciplined growth strategies continue to deliver strong underlying performance,” CEO James Quincey said. The beverage giant reported fiscal Q1 EPS of 39¢ up from 32¢ a year earlier. From continuing operations, EPS was 48¢, topping the 46¢ expected. Net sales rose 5% to $8.02B, beating expectations of $7.88B. The company attributed 2% of the sales growth to timing related to building up bottler inventory to hedge Brexit uncertainty. Unit case volume — the number of unit cases of Coke beverages sold to customers, which helps measure growth without the impact of price & currency changes — grew 2%, helped by key markets in Asia & Europe. Asia returned to higher single-digit growth after a Q4 that saw unit case volume increase by only 2%. “With the first quarter, the fourth quarter looks like more of a blip,” Quincey said, attributing the better numbers to a renewed appetite for its juices in India & its single-serve waters in China. Sparkling soft drinks unit case volume grew by 1%. The Coca-Cola brand continues to perform well globally, thanks to Coca-Cola Zero Sugar's double-digit growth for its 6th consecutive qtr. In Feb, the brand launched its first new flavor in more than a decade: Orange Vanilla. “Constant innovation is crucial for sustained growth,” Quincey said. This year the company will introduce Coca-Cola Coffee to more than 25 markets around the world after successful tests in Asia. The drink will be pitched as a way to help consumers get through the “afternoon slump,” according to Quincey. The company reiterated its full-year outlook, forecasting that EPS could fall or rise by 1% & organic revenue growth of 4%. The stock rose 1.05.
If you would like to learn more about KO, click o n this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f
Coca-Cola shares jump 3% after earnings beat, as shift from sugary drinks boosts sales
The first earnings rpeorts were looking good, although the best best are reported early. HOG was hit with selling, down 44¢. Many more reports from prominent companies are coming this week. The Dow is only 250 below its record, something the bulls like to see! Risk is back in vogue which accounts for selling in gold.
Dow Jones Industrials
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