Dow dropped 217, decliners over advancers 4-1 & NAZ was off 205. The MLP index fell 1+ to the 216s & the REIT index pulled 4 to the 448s. Junk bond funds slid back along with the stocks & Treasuries saw more selling, bringing higher yields. Oil went up 1 to the 87s & gold fell 9 to 1780.
AMJ (Alerian MLP index tracking fund)
Pres Biden reinstated the largest oil & gas lease sale in US history, essentially steamrolling the need for environmental review, by signing the Inflation Reduction Act into law. While the Inflation Reduction Act includes several green energy provisions opposed by the fossil fuel industry, the bill also orders the Dept of the Interior (DOI) to take a series of steps to boost fossil fuel production on federal lands & waters. The legislation specifically requires the DOI to reinstate Lease Sale 257, a massive offshore oil & gas sale spanning 80.8M acres across the Gulf of Mexico, within 30 days of enactment. "There should be no questions about the issuance of leases from Gulf of Mexico Lease Sale 257," National Ocean Industries Association (API) Pres Erik Milito said. "The legislation is clear and mandatory." "Congress has acted, the leases must be issued, and the lawsuit must be dismissed," he continued. In Nov, the DOI held the lease sale which generated more than $191M in bids for 308 tracts from fossil fuel companies despite criticism from several prominent Dem lawmakers & environmental groups. However, a federal court blocked the sale in Jan ruling in favor of a coalition that argued the Biden administration failed to properly analyze the climate impacts of the sale. The Biden administration opted against appealing the court's decision in Mar. The American Petroleum Institute (API), a group representing large segments of the fossil fuel industry, intervened & appealed on behalf of the companies involved in the sale. The case remains before a federal appeals panel. "While reinstating lease sale 257 is a positive step forward for American energy leadership, the legislation as a whole falls well short of addressing America’s long-term energy needs," Frank Macchiarola, API's senior VP of policy, economics & regulatory affairs, said. The API and several other industry groups penned a letter to House leadership last week urging them to reconsider the legislation. The groups took particular issue with the corp minimum tax, natural gas tax & tax on crude oil included in the bill.
Biden approves largest oil, gas lease sale in US history
Lowe's (LOW) warned of a hit to annual sales after reporting a surprise drop in quarterly comparable sales, as demand for tools & paints eased from pandemic highs due to rising inflation & office reopenings. Still, the home improvement chain
expects its 2022 EPS to be at the top-end of its
outlook of $13.10-13.60, thanks to tighter cost control &
steady demand from professional builders. During the COVID-19 lockdowns last year,
LOW benefited from people taking up home renovation projects, but a
return to pre-pandemic work routines & higher inflation have hampered
spending on such projects. "Our results in the first half were
disproportionately impacted by our 75% DIY (do-it-yourself) customer
mix," CEO Marvin Ellison said. LOW posted a surprise drop of 0.3% in Q2 comparable
sales, while the forecast expected a 2.4% increase. The company forecast full-year
total sales toward the bottom end of its range of $97-$99B & also expects comparable sales in the lower end of its prior
expectations for a 1% decline to a 1% rise. However, the company posted EPS of $4.67 in Q2, surpassing estimates of $4.58, owing to a drop in
costs. Selling, general & administrative expenses as a percentage of
sales was 16.2% for the qtr, compared with 17% last year. The stock went up 2.64.
If you would like to learn more about LOW, click on this link:
club.ino.com/trend/analysis/stock/LOW?a_aid=CD3289&a_bid=6ae5b6f7
Lowe's posts surprise drop in comp sales on slowing demand
Spending at retail stores stalled out in Jul as Americans spent less on gasoline as prices dropped & instead turned to online shopping. Retail sales, a measure of how much consumers spent on a number of everyday goods, including cars, food & gasoline, was flat at 0% in Jul, unchanged from the prior month, the Commerce Dept reported. The survey expected sales to rise 0.1%. It marked a major decline from an increase of 0.8% in Jun, which was downwardly revised from the initial report of a 1% uptick. The Jul advance is not adjusted for inflation, meaning that consumers may be spending the same but getting less bang for their buck. When taking inflation into consideration, retail sales would likely show a modest but steady decline in recent months. When excluding spending on autos & gasoline stations, sales actually increased 0.7% in Jul & internet sales surged 2.7%, boosted by Amazon Prime Day (AMZN).
Retail sales cool in July as white-hot inflation weighs on spending
The retail sales report was underwhelming & stocks were sold. Of course, the stock market is vastly overbought, so selling had to be expected. The all important 10 year Treasury yield is climbing back to 3% & the yield curve which is a signal for a coming recession remains. The outlook for the economy is less than rosy.
Dow Jones Industrials
No comments:
Post a Comment