Dow slid 111, decliners over advancers 2-1 & NAZ added 46. The MLP index did little in the 195s & the REIT index hardly budged at 477. Junk bond funds inched higher & Treasuries were bought heavily. Oil was off 1+ to the 82s & gold was about even at 1793.
AMJ (Alerian MLP index tracking fund)
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Orders for big-ticket items fell last month for the first time since Apr as manufacturers grappled with supply chain bottlenecks. New orders for manufactured goods declined 0.4% in Sep, according to the Census Bureau. The forecast expected a decrease of 1.1%. Orders rose by a downwardly revised 1.3% in Aug & have increased in 15 of the past 17 months. Excluding transportation, orders increased 0.4%, matching expectations. Transportation equipment, which has dropped 2 of the past 3 months, drove the decline, down 2.3%. Shipments increased 0.4% & have risen 4 of the past 5 months. Machinery led the increase, as orders rose 1.7%.
Durable goods orders post first drop since April
McDonald's (MCD), a Dow stock & Dividend Aristocrat, said higher menu prices helped lift US sales, while loosening
Covid-19 restrictions overseas helped to boost its intl business. Same-store sales in the qtr
ended Sep 30 increased 10.2% compared with the same period before the
pandemic & US same-store sales were up 14.6% compared with the
equivalent 2019 period. Bigger order sizes & higher prices increased its revenue in the US, as did its new crispy chicken sandwich & celebrity-endorsed meals. Sales totaling $6.2B increased
14% from the previous year's period. Adjusting for one-time items, EPS was $2.76. Sales & earnings topped expectations. MCD said over the summer that its menu prices had increased roughly 6% in the past year. The burger chain said that it had fewer
Covid-19-related restaurant closures in major markets such as Canada,
France & Germany, helping MCD sales in those countries during
the qtr. The stock rose 4.73.
If you would like to learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
McDonald's on track to close its gender pay gap in 2022
Boeing (BA), a Dow stock, said flaws in its 787 Dreamliners would generate $1B in
abnormal costs & that it cut production to about 2 of the planes a
month as it struggles to address quality issues. Those problems led it
to suspend deliveries for most of the past year. The manufacturer wrote down $183M of that amount in Q3. Sales improved, however, thanks to higher aircraft sales & deliveries. Revenue rose to $15.3B in Q3, up 8% from $14.1B a year ago but below the
$16.3B forecast. The company reported a $132M net
loss, though it was narrower than the $466M it
lost a year earlier. On an adjusted basis, EPS lost 60¢, more than the 20¢ expected. “Our commercial
market is showing improved signs of recovery with vaccine distribution
and border protocols beginning to open,” CEO Dave Calhoun said. “As demand returns, supply chain
capacity and global trade will be key drivers of our industry and the
global economy’s recovery.” The operating cash flow improved to negative $262M compared with $4.8M a year earlier. “The company expects to continue at this rate until deliveries resume and then return to five per month over time,” BA said. The company delivered 62 737s in the qtr, the most since Q1-2019. It is producing 19 Max planes a month, up
from 16 in Jul & stuck with a forecast to ramp up output to 31 a
month in early 2022. The stock was off 2.14.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Boeing posts loss as Dreamliner flaws drive up costs, but airplane sales rise
Dreary earnings were not a great surprise for BA, but it is still sobering to see. More of the upcoming earnings reports may be less inspiring. The overbought market needs a rest.
Dow Jones Industrials
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