Dow rose 52, decliners over advancers 5-4 & NAZ was off 77. The MLP index fell 1+ to the 178s & the REIT index was off 1+ to the 461s. Junk bond funds were mixed & Treasuries saw more buying. Oil dropped 1+ to the high 69s & gold declined 7 to 1814.
AMJ (Alerian MLP index tracking fund)
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Time is running out for Congress to raise, or suspend, the debt ceiling before the US gov runs out of money to pay its bills. Lawmakers missed a Sat deadline to extend former Pres Trump's 2-year suspension of the nation's borrowing limit, which was automatically reinstated at the beginning of Aug & hit $22T in 2019, the legal limit on the total amount of debt that the federal gov can borrow on behalf of the public, according to the Committee for a Responsible Federal Budget< (CRFB). Once the suspension lifted, the new limit was reinstated around $28.5T, a figure that includes debt held by the public & the gov. On Mon, the Treasury Dept began deploying "extraordinary measures" to ensure the gov can continue to pay its obligations for the time being. But if the debt ceiling is not raised or suspended, the US gov can no longer issue debt & will soon run out of cash on hand. "The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors, including the challenges of forecasting the payments and receipts of the U.S. government months into the future, exacerbated by the heightened uncertainty in payments and receipts related to the economic impact of the pandemic," Treasury Secretary Janet Yellen wrote in a recent letter to Congress. The nonpartisan Congressional Budget Office (CBO) estimated at the end of Jul that the gov would probably run out of money to pay its bills sometime in the fall, likely Oct or Nov. The new debt ceiling, which will include the new spending approved by Congress over the course of the past 2 years, will likely be around $28T, the CBO said. It's unclear how or when lawmakers plan to raise or suspend the debt limit.
McConnell says GOP won’t agree to debt ceiling hike: What happens next
Simon Property (SPG) saw sales at its shopping malls & outlet centers bounce back to
pre-pandemic levels in its latest fiscal qtr, as Americans shopped
for clothes, shoes & other items. CEO
David Simon said that retail sales at its properties in
Jun were comparable to Jun 2019 levels & up 80% from a year
earlier. Parts of the US saw sales higher than 2019 levels,
he added. The
biggest US mall owner is hoping the improving trends coax businesses
to sign new leases. The company has been looking to fill spaces that
were vacated by brands that either went bankrupt or had to cull stores. For
the 3-month period ended Jun 30, the occupancy rate
was 91.8%, down from 92.9% a year ago & from 94.4% 2 years earlier. “We
continue to see demand for space across our portfolio, from healthy
local, regional and national tenants, entrepreneurs, restaurateurs and
mixed-use demand ... it’s increasing day by day,” he said. “We
still have a hole to dig out of because of the bankruptcies that we had
to confront during the pandemic,” he added. “But I’m very pleased with
the activity.” The stock rose 2.28.
If you would like to learn more about SPG, click on this link:
club.ino.com/trend/analysis/stock/SPG?a_aid=CD3289&a_bid=6ae5b6f7
Mall owner Simon Property says sales at its centers returned to pre-pandemic levels in June
Clorox (CLX), a Dividend Aristocrat, fiscal Q4 sales plunged due to consumer demand shifting away from products like disinfectants & wipes. The company reported a 9% sales decrease & a 68% decrease in
diluted net EPS for Q4. Quarterly net sales were $1.8B, down from $1.98B a
year ago & diluted EPS fell to 78¢
compared to $2.41 a year-ago. The
Health &Wellness segment, which includes cleaning, professional
products, minerals & supplements, posted a 17% sales decrease. "Sales decreased in two of three businesses, primarily
reflecting lower shipments of cleaning and disinfecting products in both
the retail and professional channels as consumer demand decelerated,"
the company said. "Segment sales results were
also impacted by negative product mix from the normalization of supply." For the full 2021 fiscal year, CLX delivered sales growth of 9%
driven primarily by higher shipments due to COVID-19 across all
reportable segments. Total net sales for the year
came in at $7.34B, compared to $6.72B for fiscal 2020. Diluted EPS came in at $5.58
compared to $7.36 a year-ago. Excluding noncash items, adjusted EPS
was $7.25 for a 2% decrease. Net cash provided by operations
fell 17% to $1.3B compared to $1.5 B
in fiscal year 2020. "Fiscal year 2021 was an
extraordinary year for Clorox, with the pandemic putting us through the
test of volatility, including rapid changes in consumer demand and
inflationary pressure, which is reflected in our fourth quarter
results," CEO Linda Rendle said. Looking ahead at fiscal 2022, CLX forecasts a sales decrease of
2-6% during fiscal H1. Sales are expected to
normalize toward the lower end of the company's sales growth target of
3-5% in H2. The company expects consumer
demand to be the largest headwind impacting sales in fiscal year 2022. The company also expects diluted EPS of $5.05-5.35 & adjusted EPS oF between $5.40-5.70. The stock sank a very big 20+ (11%).
If you would like to learn more about CLX, click on this link:
club.ino.com/trend/analysis/stock/CLX?a_aid=CD3289&a_bid=6ae5b6f7
Clorox stock hit as demand for wipes, disinfectants wanes
Congress is on a 5 week holiday so nothing will get done on raising the debt ceiling for awhile. Nobody cares because few understand the problem. However that is one very dark cloud which must be dealt with, & soon. Earnings keep coming, but theses tend to be the weaker ones.
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