Dow went up 63, advancers over decliner 5-2 & NAZ slid back 6. The MLP index was 1+ higher, to the 228s, & the REIT index was about even in the 392s after yesterday's big rise. Junk bond funds were little changed & Treasuries had some buying, reducing yields (more below). Oil was up 1 to the 78s & gold gained 11 to 1890 (another multi month high).
AMJ (Alerian MLP index tracking fund)
Inflation continued to cool in Dec, the latest sign that painfully high consumer prices are finally beginning to loosen their stranglehold on the US economy. The Labor Dept said that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries & rents, fell 0.1% in Dec from the previous month. But prices climbed 6.5% on an annual basis. Those figures were both in line with forecasts, potentially giving the Federal Reserve a reason to further slow its aggressive interest rate hike campaign when policymakers meet next month. It marked the slowest annual inflation rate since Oct 2021 & the slowest monthly rate since Apr 2020, at the height of the COVID-19 lockdowns. Still, inflation remains about 3 times higher than the pre-pandemic average, underscoring the persistent financial burden placed on Ms of US households by high prices. Core prices, which strip out the more volatile measurements of food & energy, climbed 0.3% in Dec from the previous month, up from 0.2% in Nov. From the same time last year, core prices jumped 5.7%. Those figures were also in line with expectations. Scorching-hot inflation has created severe financial pressures for most US households, which are forced to pay more for everyday necessities like food & rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations. Americans saw some real reprieve last month in the form of lower energy costs, which fell 6.1% in Dec. Gas prices dropped 12.5% over the month, the biggest contributor to the overall headline decline in inflation in Dec. The cost of airline tickets & used cars also fell. Other price gains proved persistent & stubbornly high in Nov. The cost of groceries climbed 0.3%, putting the 12-month increase at 11.8%. Consumers paid more for items like eggs, cereal, rice, butter & fresh vegetables, including potatoes, lettuce & tomatoes.
Inflation eases in December, but prices remain stubbornly high
Treasury yields fell as investors digested a key inflation report that showed a small decline in price pressures. The yield on the benchmark 10-year was down by 7 basis points at 3.49% & the 2-year Treasury yield was trading 7 basis points lower at around 4.16%. Yields & prices move in opposite directions & one basis point equals 0.01%. The consumer price index fell 0.1% for the month, in line with the estimate. That equated to the largest month-over-month decrease since Apr 2020, as much of the country was in lockdown to combat Covid. That's the last CPI reading before the Fed's next meeting on Jan 31 - Feb 1, which will conclude with the central bank's latest interest rate decision. Fed officials have hinted that future policy could be affected by new inflation figures.
Treasury yields fall as CPI posts a slight decline as expected
American Airlines (AAL) hiked its revenue & profit estimates for Q4 thanks to strong demand & high fares. AAL estimates revenue rose as much as 17% over the same period in 2019,
up from a previous forecast of an 11-13% increase compared with the
period 3 years earlier, before the Covid pandemic. Revenue per seat mile likely climbed 24% above the 2019 qtr, higher than its prior forecast of 18-20%. It
expects to report adjusted EPS of $1.12-1.17, up from its previous estimate of 50-70¢. AAL is scheduled to report full results on Jan 26. American’s new CFO Devon May, who started in that role Jan 1, said that bookings are currently coming in as expected. The airline forecast a 10% increase in unit costs, excluding fuel. High costs, staffing issues & aircraft shortfalls have eaten into airline profits over the past year. “The No. 1 thing is to get aircraft utilization back to historical
levels,” May said, adding that the carrier is getting close to that in
its mainline operation, though it is more difficult on regional
partners, where pilot shortages are more acute. The stock rose 77¢.
If you would like to learn more about AAL, click on this link:
club.ino.com/trend/analysis/stock/AAL_aid=CD3289&a_bid=6ae5b6f7
American Airlines hikes quarterly revenue, profit estimates after strong Q4
Dow Jones Industrials
No comments:
Post a Comment