Dow sank 477, decliners over advancers about 4-1 & NAZ was off 391. The MLP index slid to the 208s & the REIT index was steady in the 487s. Junk bond funds edged lower & Treasuries saw aggressive buying which reduced the yields. Oil went up 1+ to the 99s & gold bounced back 9 to 1905.
AMJ (Alerian MLP index tracking fund)
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Orders at US factories for long-lasting goods rebounded in Mar
after the first decline in a year, as manufacturers confronted a
worsening supply-chain crisis that continued to weigh on business
investment. Bookings for all durable goods – products that are
intended to last at least 3 years – rose 0.8% last month, the
Commerce Dept reported. The forecast called for a 1% increase. It followed an upwardly revised 1.7%
decline in Feb. Passenger
planes & autos – volatile measurements that tend to swing sharply
month to month – jumped 2.4% in Mar. A more precise measure of demand
that excludes transportation & military hardware, known as core
orders, rose 1% in Mar, rebounding strongly from the previous month. The figures suggest that business investment is strong & that
factories are producing large amounts of goods, even as they confront
snarled supply chains, a labor shortage and the highest inflation in
decades. Core orders advanced 1% in the
month. The core number strips out transportation & military equipment & gives a better sense of underlying demand in the US economy. Still, the economic outlook is becoming cloudier as a result of the
Russian war in Ukraine, an increasingly hawkish Federal Reserve &
soaring consumer prices. Several financial firms
have raised their expectations for a recession in the next 2 years as
Fed policymakers begin to aggressively tighten policy in order to curb
demand & cool red-hot inflation.
US durable goods orders inch up 0.8% in March
Pepsico (PEP). a Dividend Aristocrat, reported quarterly earnings & revenue that topped expectations, as consumers paid more for their Doritos, Quaker oatmeal & Gatorade. On the heels of its strong performance, the company raised its full-year forecast for organic revenue growth. Q1 EPS attributable to the company was $3.06, up from $1.24 a
year earlier. The food & beverage giant reported a $193M
impairment charge after taxes as it tries to discontinue or reposition
some of its juice & dairy brands in Russia. The charge dragged down
its EPS by 14¢. An additional impairment charge of
$241M after taxes related to the Russia-Ukraine conflict weighed on EPS by 17¢. “We
don’t expect the business to deliver a lot of growth this year, given
all of the challenges and the decisions we’ve made,” CFO Hugh Johnston
said. Excluding the sale of its juice business, the Russian impairment charge & other items, EPS was $1.29, topping the $1.23 expected. For the full year, PEP expects organic revenue growth of 8%, up
from its prior forecast of 6%. Johnston said the revised forecast is due
both to rising prices increased volume. The company reiterated its
forecast for full-year core earnings per share growth of 8%. The stock went up 49¢.
If you would like to learn more about PEP click on this link:
club.ino.com/trend/analysis/stock/PEP_aid=CD3289&a_bid=6ae5b6f
PepsiCo raises revenue outlook as earnings beat estimates despite higher costs
Home prices increased 19.8% in Feb year over year, according to the S&P CoreLogic Case-Shiller national home price index. That's up from the 19.1% annual increase in Jan & is the 3rd-highest reading in the index's 35-year history. The 10-city composite annual increase came in at 18.6%, up from 17.3% in the previous month. The 20-city composite was up 20.2%, rising from 18.9%. Sun Belt cities continued to see the highest gains. All 20 cities reported higher price increases in the year ending Feb 2022 versus the year ending Jan 2022. “The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” wrote Craig Lazzara, managing director at S&P DJI. “The post-Covid resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response. We may soon begin to see the impact of increasing mortgage rates on home prices.” While mortgage rates began rising slowly at the start of this year, they didn't really take off sharply higher until Mar. Given that this reading is a 3-month running average thru Feb, it doesn't show much of an impact from rates. That could be coming, though. “Today’s S&P Case Shiller Index highlights a housing market experiencing a renewed sense of urgency in February, as buyers worked through a small number of homes for sale in an effort to get ahead of surging mortgage rates. The imbalance between strong demand and insufficient supply pushed prices higher,” said George Ratiu, manager of economic research at Realtor.com. For a median-priced home financed with a 30-year loan, the monthly payment is $550 higher than a year ago, an increase of 46%
Home prices jumped nearly 20% in February, but slowdown may be coming, S&P Case-Shiller says
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