Dow went up 83, advancers over decliners 3-2 & NAZ was off 19. The MLP index fell 2+ to the 188s & the REIT index crawled up 1+ to 410. Junk bond funds were bid higher & Treasuries saw more buying, reducing yields (more below). Oil dropped a big 7+ to the 96s & gold slid 3 to 1728.
AMJ (Alerian MLP index tracking fund)
Small business confidence dropped again in Jun as fears over white-hot inflation persisted,
with the most business owners since 1980 reporting that rising prices
were their single most important problem, according to a new survey. The National Federation of Independent
Businesses (NFIB), an association of small business owners, said
its Small Business Optimism Index fell to 89.5 last month, the 6th
straight month of readings below the 48-year average of 98. The
outlook is increasingly dark for many small businesses, with the
percentage of owners expecting better business conditions over the next 6 months falling to the lowest level recorded in the 48-year-old
survey. Expectations for better business conditions have deteriorated
consecutively over the past 6 months. The biggest problem is inflation: 34% of small business owners
reported that rising prices are their single most important problem in
operating their business, the highest reading since 1980. "As inflation continues to dominate business decisions, small business
owners’ expectations for better business conditions have reached a new
low," NFIB chief economist Bill Dunkelberg said. "On top
of the immediate challenges facing small business owners including
inflation and worker shortages, the outlook for economic policy is not
encouraging either as policy talks have shifted to tax increases and
more regulations."
Small biz sentiment plunges to 48-year low as inflation fears mount
PepsiCo (PEP), a Dividend Aristocrat, raised its revenue outlook for the year, as inflation pushed up
prices & people paid more for its Doritos chips & Gatorade drinks. Expecting
costs to rise even higher in H2, the global
food & drink giant said it plans to keep shrinking product sizes &
deploying other ways to manage rising expenses. “We
are facing inflation like everyone else, and we think that is going to
persist for a while, but we are taking enough pricing to be able to
manage the inflation, and our focus is really much more on how do we
drive costs out of the business,” CFO Hugh Johnston said. Excluding items, EPS was $1.03, down from $1.70 a year earlier & net sales rose 5%
to $20.2B. Organic revenue, which strips out the impact of
acquisitions & divestitures, climbed 13%. For 2022, PEP expects organic revenue growth of 10%, up from
its prior forecast of 8%. This marks the 2nd consecutive qtr that
the company hiked its revenue forecast without updating its earnings
guidance. PEP still expects core constant currency EPS
growth of 8%. The company expects that the North
American business will be resilient & most of its intl
markets will be strong, despite macroeconomic & geopolitical
volatility. The stock went up 68¢.
If you would like to learn more about PEP, click on this link:
club.ino.com/trend/analysis/stock/PEP?a_aid=CD3289&a_bid=6ae5b6f7
PepsiCo raises revenue forecast as it deploys price hikes, smaller sizes to fight rising costs
Treasury yields ticked downward as traders prepared for key inflation figures & earnings from major banks due out later this week. The 2-year dropped more than 8 basis points to trade at 2.985% but remained above the 10-year Treasury, which dropped 9 basis points to 2.9%. The yield on the 30-year Treasury bond traded 8 basis points lower at 3.098%. Yields move inversely to prices & a basis point is equal to 0.01%. Markets are awaiting key inflation data this week. Jun's consumer price index, scheduled for release tomorrow, is forecast to show headline inflation rising above May's 8.6% level. Pres Biden is beginning his Middle East trip, which will include a visit to Saudi Arabia & meetings with OPEC leaders in an effort to push for higher oil production to ease prices. Gold hit its lowest level since late Sep as the $ reached a 2-decade high, trading at $1732 per ounce today.
Treasury yields fall as markets prepare for release of key inflation data
Dow Jones Industrials
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