Dow slid back 23, decliners over advancers 5-4 & NAZ dropped 64. The MLP index fell 1+ to the 251s & the REIT index inched higher in the 374s. Junk bond funds fluctuated & Treasuries were pruchased by investors. Oil rose in the 63s & gold added 2 to 1283.
AMJ (Alerian MLP Index tracking fund)
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM's 1Q earnings drop on slower global sales
Home shoppers signed 3.8% more contracts to buy existing homes in Mar compared with Feb, according to the National Association of Realtors' (NAR) Pending Home Sales Index. That was higher than expected. Sales were 1.2% lower compared with Mar 2018, the 15th straight month of annual declines. Buyers had added incentive in Mar, as mortgage rates plummeted to the lowest level in over a year. The average rate on the popular 30-year fixed mortgage topped 5% at the start of last Nov, but then began falling & took a sharp dip in Mar to around 4%. That gave buyers additional purchasing power, as well as more confidence in the overall market, where prices have been overheating. “We are seeing a positive sentiment from consumers about home buying, as mortgage applications have been steadily increasing and mortgage rates are extremely favorable,” wrote Lawrence Yun, chief economist for the NAR. Yun also noted that pending sales have been exceptionally fluid over the past several months but predicted that numbers will begin to climb “more consistently.” Mortgage applications to purchase a home, however, have weakened over the past several weeks, as mortgage rates are now about a quarter of a percentage point higher than they were in Mar. Home price gains have been shrinking since last summer, but only after affordability had fallen to the worst level in over a decade. Prices rose 4% nationally in Feb, down from Jan's 4.2% annual gain. “Despite some affordability issues in the West, the numbers indicate that there is a reason for optimism. Inventory has increased, too. These are great conditions for the region,” added Yun. The supply of homes for sale continues to increase, according to the NAR, but that increase may be more about homes sitting on the market longer, rather than a big jump in new listings. The shrinking price gains could help, but only if rates stay low.
Pending home sales jumped 3.8% in March, thanks to a big dip in mortgage rates
Consumer confidence bounced back in Apr & suggested the economy is likely to keep growing solidly thru the summer, a survey shows. The consumer confidence index rose to 129.2 from 124.2, according to the Conference Board. Consumers feel pretty good about how the economy is doing right now & they see good times continuing over the next 6 months. The present situation index rose to 168.3 from 163. The board’s survey of future expectations moved up to 103 from 98.3. Both are close to the highest levels in a decade. Consumer confidence surged to an 18-year peak in Oct & Americans are still optimistic about the economy, if a bit less than they were last fall. There's good reason to believe confidence will remain high. Stock prices have retouched record highs, interest rates & inflation are low & wages are rising at the fastest pace in almost a decade. That should be enough to help the current 10-year-old economic expansion break the all-time record this summer.
The NAZ retreat was led by led Alphabet (GOOG). Its shares plunged more than 100 on a disapapointing report (worst day in 10 years). In the ordinary industrrials, GM did not have a good qtr. The Fed started its big meeting & its statement tomorrow will get a lot of attention. At least consumer confidence is did well.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 63.93 | +0.43 | +0.7% |
| GC=F | Gold | 1,286.00 | +4.50 | +0.4% |
Slower North American sales & a flat intl business at General Motors (GM) underscored lower profits & revenue in Q1, sending shares lower. The company is in the midst of shifting its operations away from passenger
cars towards electric & autonomous vehicles, as well as trucks &
sports utility vehicles, one that is expected to lead to as many as 14K job cuts. As
part of that transformation, GM said it planned to double the
number of employees in its self-driving division in 2019, which
cost the company $169M in Q1. Overall,
revenue in the qtr dropped 3.4% to $35B, less than predicted. Meanwhile, adjusted EPS was $1.41, higher than estimates. A portion of the profits came from GM's stake in Lyft (LYFT), which went public earlier this year. The results "were in line with expectations," according to CEO Mary Barra. "My
confidence in the year ahead remains strong, driven by our all-new
full-size truck launch and our ongoing business transformation," she
said. Profits in the US,
Mexico & Canada were down 15% to $1.9B, while net income
outside the region declined 84% to $31M. The
bulk of the North American sales came from trucks, up 20%
year-over-year & the bottom-line was bolstered by a $5800 increase
in the average transaction price. GM is rolling out its 2020 Chevrolet Silverado HD & GMC Sierra HD trucks in H2. In
Asia, sales fell 14%. GM plans to introduce 20 new vehicles in
China this year, as sales in the world's most lucrative auto market
continue to stall. The stock fell 89¢.
If you would like to learn more about GM, click on this link:club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM's 1Q earnings drop on slower global sales
Home shoppers signed 3.8% more contracts to buy existing homes in Mar compared with Feb, according to the National Association of Realtors' (NAR) Pending Home Sales Index. That was higher than expected. Sales were 1.2% lower compared with Mar 2018, the 15th straight month of annual declines. Buyers had added incentive in Mar, as mortgage rates plummeted to the lowest level in over a year. The average rate on the popular 30-year fixed mortgage topped 5% at the start of last Nov, but then began falling & took a sharp dip in Mar to around 4%. That gave buyers additional purchasing power, as well as more confidence in the overall market, where prices have been overheating. “We are seeing a positive sentiment from consumers about home buying, as mortgage applications have been steadily increasing and mortgage rates are extremely favorable,” wrote Lawrence Yun, chief economist for the NAR. Yun also noted that pending sales have been exceptionally fluid over the past several months but predicted that numbers will begin to climb “more consistently.” Mortgage applications to purchase a home, however, have weakened over the past several weeks, as mortgage rates are now about a quarter of a percentage point higher than they were in Mar. Home price gains have been shrinking since last summer, but only after affordability had fallen to the worst level in over a decade. Prices rose 4% nationally in Feb, down from Jan's 4.2% annual gain. “Despite some affordability issues in the West, the numbers indicate that there is a reason for optimism. Inventory has increased, too. These are great conditions for the region,” added Yun. The supply of homes for sale continues to increase, according to the NAR, but that increase may be more about homes sitting on the market longer, rather than a big jump in new listings. The shrinking price gains could help, but only if rates stay low.
Pending home sales jumped 3.8% in March, thanks to a big dip in mortgage rates
Consumer confidence bounced back in Apr & suggested the economy is likely to keep growing solidly thru the summer, a survey shows. The consumer confidence index rose to 129.2 from 124.2, according to the Conference Board. Consumers feel pretty good about how the economy is doing right now & they see good times continuing over the next 6 months. The present situation index rose to 168.3 from 163. The board’s survey of future expectations moved up to 103 from 98.3. Both are close to the highest levels in a decade. Consumer confidence surged to an 18-year peak in Oct & Americans are still optimistic about the economy, if a bit less than they were last fall. There's good reason to believe confidence will remain high. Stock prices have retouched record highs, interest rates & inflation are low & wages are rising at the fastest pace in almost a decade. That should be enough to help the current 10-year-old economic expansion break the all-time record this summer.
Consumer confidence snaps back in April and points to steadily growing economy
The NAZ retreat was led by led Alphabet (GOOG). Its shares plunged more than 100 on a disapapointing report (worst day in 10 years). In the ordinary industrrials, GM did not have a good qtr. The Fed started its big meeting & its statement tomorrow will get a lot of attention. At least consumer confidence is did well.
Dow Jones Industrials
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