Dow went up 337 (near session highs), advancers over decliners better than 5-1 & NAZ gained 246. The MLP index rose 2+ to the 221s & the REIT index surged 13+ to 362s as Treasury yields dropped. Junk bond funds were strong & Treasuries had more buying, reducing yields. Oil crawled up to settle at 85 & gold was up 5 to 1659 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Despite growing concerns over softening demand & inflation,UPS (UPS) reaffirmed it was on track to meet its 2022
financial goals. Moreover, UPS will be joining its competitors in
raising shipping rates by 6.9% due to increased costs. Quarterly
revenue grew by 4.2% compared to the Q3-2021, with
consolidated revenues of $24.2B & consolidated operating profit
increased by 7.5% to $3.1B. "I want to thank UPSers
around the world for their unstoppable spirit and for continuing to
deliver outstanding service to our customers," said Carol Tomé, CEO. "The macro environment is very dynamic, but we are on track to
achieving our 2022 financial targets by executing our strategy and
controlling what we can control," Tomé added. The company adjusted
its capital expenditures to approximately $5B, down from its
previous expectation of $5.5B & div payments are
estimated to be $5.2. The supply chain solutions revenue decreased by 6.3% as a result of air & ocean freight forwarding. Revenue for the US domestic segment grew by 8.2% due to a 9.8%
increase in revenue per piece. Intl segment revenue was 1.7%
higher, alongside a revenue per piece growth of 6.4%. UPS stood
by its end-of-the-year financial target of approximately $102B
with an adjusted operating margin of 13.7% & adjusted return on
invested capital higher than 30%. The stock fell 56¢.
If you would like to learn more about UPS, click on this link:
club.ino.com/trend/analysis/stock/UPS?a_aid=CD3289&a_bid=6ae5b6f7
UPS stock rises after mixed third quarter earnings
The IMF warned that Ukraine needs at least $3 B a month in financial assistance through 2023 as the war with Russia continues but warned that number could jump to as high as $5B a month if Russia continues its destructive bombing campaign. "This is no easy task," IMF Managing Director Kristalina Georgieva told world leaders at an event on focusing on Ukrainian recovery & macro-financing needs. "As events on the ground are shifting every day," she continued, "it is very difficult to develop a set of macroeconomic projections as a basis for the budget." Georgieva said the estimates were reached after working with Ukrainian officials to address what is needed to help Ukraine recover and rebuild following the devastation caused by Russia’s invasion in Feb. The war is far from over & the IMF leader said unpredictability on the battlefront makes estimating costs that much more challenging. "In a best-case scenario, we estimate that Ukraine’s financing needs would be about $3 billion per month," she said referring to funding Kyiv will need in the initial recovery phase. "When we incorporate some additional financing for higher gas imports and some repair of critical infrastructure, we quickly reach $4 billion per month. "The recent missile attacks, which have clearly caused much more damage, not only confirms the validity of these estimates but leads us to consider $5 billion upper range," she added. Georgieva continued, that once the fighting stops the cost estimates of the second "reconstruction phase" were "truly astounding." The World Bank has estimated that some $97B in damage has already been incurred, largely in the housing & transportation sectors, though other estimates range as high at $130 billion in damages. "Beyond damage costs the Bank estimates total reconstruction needs in the order of $349 billion," she said. "These are truly staggering figures—well beyond Ukraine’s annual GDP of $200 billion in 2021, before Russia’s invasion."
IMF says Ukraine needs up to $5B a month as EU, Germany push 'new Marshall Plan'
General Motors (GM) easily beat earnings expectations during Q3, while signaling caution and confirming its full-year results
are likely to come in near the “midpoint” of its previously announced
forecast. The automaker stressed that demand
for its products remains strong despite outside economic concerns &
rising interest rates. But its profit narrowed in Q3, as
its vehicle inventory slowly rises from record lows. The big beat & narrow miss on the top line has been a trend throughout the coronavirus pandemic for the automaker, as tight supplies of vehicles have led to lower sales but higher profits on in-demand SUVs & pickup trucks. Despite
the bottom-line beat, GM did not adjust its guidance for the year as
profit margins narrowed. The company expects full-year net income of
$9.6-11.2B & adjusted earnings before
interest & taxes of $13-15B ($6.50-7.50 per share). CFO Paul Jacobson said the company expects to hit the “midpoint”
of its earnings guidance for the year. He added that the automaker is not
ignoring outside economic concerns but has not seen “any direct impact”
on its products. “We’re going to continue to be agile,” he said. “We continue to see that strong demand.” On an unadjusted basis, net income was $3.3B, up $885M
from a year earlier. Its earnings powerhouse, as it has been,
was North America with adjusted earnings of $3.9B, up from $2.1B a year earlier. Earnings also increased $60M in China
compared with Q3 of 2021, while the company's financial
arm saw its earnings drop to $911M, down $182M from a year
earlier. The stock rose 1.32.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM posts big third-quarter earnings beat but holds full-year guidance steady amid 'headwinds'
Gold futures ended higher, buoyed by weakness in the $ index & a pullback in Treasury yields. With recent weakness in bond yields & $, gold has
been able to find some relief. However, compared to the recovery we have
seen in Western stock indices, the precious metal has clearly under
performed. The key question for gold investors is whether bonds will resume their
sell-off, with 3 major central banks set to decide on monetary
policy this week & more next.
Gold for Dec delivery rose $3 to settle at $1658 an
ounce.
Gold prices end higher, scoring a boost from a retreat in the U.S. dollar and bond yields
Oil futures settled higher, with prices recovering what they lost a day earlier & then some. Oil prices, in the short term, are locked in a bit of a trading range. The markets are still being influenced by concerns about the global economy & interest rates. But when the oil market tries to ignore the $, it can't. When the $ shows strength, it pushes downward pressure on oil. Still, as the market gets into the winter season, there should be a disconnect between the $/oil relationship because oil is going to be needed. US benchmark West Texas Intermediate crude for Dec rose 74¢ ( 0.9%) to settle at $85.32 a barrel. Natural-gas futures, meanwhile, rallied for a 2nd straight session, rebounding after losing 23% last week as warmer-than-usual US weather forecasts dulled the outlook for demand. Nov natural gas rose 41¢ (8%) to settle at $5.613 per M British thermal units.
Oil prices bounce back from Monday’s losses; natural-gas futures rally
Dow Jones Industrials
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