Dow shot up 320, advancers over decliners 4-1 & NAZ retreated 15 after yesterday's big advance. The MLP index cliombed 4+ to 132 & the REIT index rose 3+ to the 345s. Junk bond funds were bid higher & Treasuries crawled up a tad. Oil went up 1+ to the 42 & gold jumped 22 to 1840, nearing its record made in 2011.
AMJ (Alerian MLP Index tracking fund)
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, profit plunged 32% amid a sharp drop in restaurant & bar sales during lockdowns aimed at slowing the spread of COVID-19. The beverage maker had adjusted EPS of 42¢, as revenue declined 28% from a year ago to $7.15B. The forecast was expecting adjusted EPS of 40¢ on revenue of $7.18B. “We believe the second quarter will prove to be the most challenging of the year,” CEO James Quincy said. The volume of concentrate sales, cases of syrup that are carbonated & dispensed thru soft-drink fountains, fell 16% year-over-year as sales to bars & restaurants, which make up about ½ of revenue, were hit especially hard. The company has seen improvement since its Q1 results, however, with the decline narrowing from about 25% in Apr to just 10% in Jun as restrictions eased & businesses began reopening. Trademark Coca-Cola sales fell 7% in the qtr while Coca-Cola Zero sales were off 4%. Meanwhile, juice, dairy & plant-based beverage sales slumped 20% amid weakness outside the US while water, enhanced water & sports drink sales sank 24%. Lockdowns in Western Europe led to a 31% decline in tea & coffee sales for the company's Costa brand. The company declined to give a forecast due to uncertainty caused by COVID-19, but said it expects a 3-4% currency headwind for full-year net revenue. The stock rose 1.51.
If you would like to learn more about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7
Shares of Intl Business Machines (IBM), a Dow stock, rose after the company reported quarterly earnings that topped expectations. IBM's shift to its high-margin cloud computing business is paying off as companies made the digital shift due to the coronavirus pandemic. Revenue from the cloud business increased 30% to $6.3B. The company reported EPS of $1.52. EPS, adjusted for costs related to mergers & acquisitions & non-recurring costs, was $2.18. The results exceeded expectations for EPS of $2.14. Revenue for the technology & consulting company fell 5.4% to $18.1B in the period, but still exceeded forecasts of $17.7B. The stock went up 2.08.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
Lockheed Martin (LMT) raised its full-year sales & profit guidance as the Pentagon accelerated defense contract awards & pledged to cover the industry's increased costs during the coronavirus pandemic. The world's biggest defense company by sales boosted its order backlog above $150B & overcame supply chain disruptions to report forecast-beating quarterly profits as it continued to ship F-35 combat jets, Sikorsky helicopters & missile defense systems. Defense contractors continued to operate relatively unscathed thru the stay-at-home orders due to the pandemic after being deemed essential businesses, with the Pentagon pledging to cover additional costs estimated to top $10M. LMT is estimated to have incurred $2.5B in additional pandemic-related costs, & said it assumed these would be recovered as it forecast EPS this year to rise to $23.75-24.05, compared with its previous forecast of $23.65-23.95. The company added $1B to the top end of its forecast for 2020 sales, which are now expected to be $63.5-65B & boosted its closely watched free cash flow guidance. The Pentagon has accelerated some big contract awards to defense contractors, which have in turn flowed liquidity thru their supply chain to keep component makers afloat thru the pandemic. The company has also continued to hire staff. EPS climbed in the Jun qtr to $6.13, above the $5.72 estimate & sales rose to $16.2B from $14.4B. The stock gained 7.06 (2%).
If you would like to learn more about LMT, click on this link:
club.ino.com/trend/analysis/stock/LMT?a_aid=CD3289&a_bid=6ae5b6f7
Earnings from some of the biggest companies were well received. Also, expectations for another stimulus package of around $1B are high. However demand by nervous investors for safe haven gold continues to be strong. These are exciting times in the stock market.
Dow Jones Industrials
u
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 42.40 | +1.59 | +3.9 |
| GC=F | Gold | 1,843.20 | +25.80 | +1.4% |
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, profit plunged 32% amid a sharp drop in restaurant & bar sales during lockdowns aimed at slowing the spread of COVID-19. The beverage maker had adjusted EPS of 42¢, as revenue declined 28% from a year ago to $7.15B. The forecast was expecting adjusted EPS of 40¢ on revenue of $7.18B. “We believe the second quarter will prove to be the most challenging of the year,” CEO James Quincy said. The volume of concentrate sales, cases of syrup that are carbonated & dispensed thru soft-drink fountains, fell 16% year-over-year as sales to bars & restaurants, which make up about ½ of revenue, were hit especially hard. The company has seen improvement since its Q1 results, however, with the decline narrowing from about 25% in Apr to just 10% in Jun as restrictions eased & businesses began reopening. Trademark Coca-Cola sales fell 7% in the qtr while Coca-Cola Zero sales were off 4%. Meanwhile, juice, dairy & plant-based beverage sales slumped 20% amid weakness outside the US while water, enhanced water & sports drink sales sank 24%. Lockdowns in Western Europe led to a 31% decline in tea & coffee sales for the company's Costa brand. The company declined to give a forecast due to uncertainty caused by COVID-19, but said it expects a 3-4% currency headwind for full-year net revenue. The stock rose 1.51.
If you would like to learn more about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7
Coca-Cola revenue dries up as shutdowns sink restaurant sales
Shares of Intl Business Machines (IBM), a Dow stock, rose after the company reported quarterly earnings that topped expectations. IBM's shift to its high-margin cloud computing business is paying off as companies made the digital shift due to the coronavirus pandemic. Revenue from the cloud business increased 30% to $6.3B. The company reported EPS of $1.52. EPS, adjusted for costs related to mergers & acquisitions & non-recurring costs, was $2.18. The results exceeded expectations for EPS of $2.14. Revenue for the technology & consulting company fell 5.4% to $18.1B in the period, but still exceeded forecasts of $17.7B. The stock went up 2.08.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
IBM shares rise as coronavirus sends business to the cloud
Lockheed Martin (LMT) raised its full-year sales & profit guidance as the Pentagon accelerated defense contract awards & pledged to cover the industry's increased costs during the coronavirus pandemic. The world's biggest defense company by sales boosted its order backlog above $150B & overcame supply chain disruptions to report forecast-beating quarterly profits as it continued to ship F-35 combat jets, Sikorsky helicopters & missile defense systems. Defense contractors continued to operate relatively unscathed thru the stay-at-home orders due to the pandemic after being deemed essential businesses, with the Pentagon pledging to cover additional costs estimated to top $10M. LMT is estimated to have incurred $2.5B in additional pandemic-related costs, & said it assumed these would be recovered as it forecast EPS this year to rise to $23.75-24.05, compared with its previous forecast of $23.65-23.95. The company added $1B to the top end of its forecast for 2020 sales, which are now expected to be $63.5-65B & boosted its closely watched free cash flow guidance. The Pentagon has accelerated some big contract awards to defense contractors, which have in turn flowed liquidity thru their supply chain to keep component makers afloat thru the pandemic. The company has also continued to hire staff. EPS climbed in the Jun qtr to $6.13, above the $5.72 estimate & sales rose to $16.2B from $14.4B. The stock gained 7.06 (2%).
If you would like to learn more about LMT, click on this link:
club.ino.com/trend/analysis/stock/LMT?a_aid=CD3289&a_bid=6ae5b6f7
Lockheed Martin boosts sales forecast as Pentagon amps up contract awards
Earnings from some of the biggest companies were well received. Also, expectations for another stimulus package of around $1B are high. However demand by nervous investors for safe haven gold continues to be strong. These are exciting times in the stock market.
Dow Jones Industrials
u
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