Dow was off 9, advancers barely ahead of decliners & NAZ dropped 82. The MLP index was even in the 225s & the REIT index fell 3+ to the 366s. Junk bond funds edged higher & Treasuries were being purchased which lowered yields (more below). Oil went up to the 78s & gold added 4 to 1994.
AMJ (Alerian MLP Index tracking fund)
Coca-Cola (KO), a Dow stock & Dividend Aristoctat, reported quarterly earnings & revenue that topped expectations, fueled by price hikes & higher demand for its drinks. Q1 rose to 72¢ (64¢ expected), up from 64¢ a year earlier. Excluding restructuring charges, certain tax matters & other items, EPS was 68¢. Net sales rose
5% to $11B vs $10.8B expected. Organic revenue, which strips out the impact of
acquisitions & divestitures, climbed 12% in the qtr, driven
largely by higher prices on its drinks. Like many companies, KO has been hiking prices to mitigate the impact of inflation. Most of
the price increases were implemented last year,
although execs said the company raised prices further across
operating segments during the first 3 months of the year. Unit case volume, which excludes the impact of pricing &
currency changes, grew 3% in the qtr. Volume in North America was
flat, while in Europe, the Middle East & Africa it fell 3%. But demand
was strong in Latin America & the Asia-Pacific region. The company reiterated its prior forecast for 2023. It is projecting comparable revenue growth of 3-5% & comparable EPS growth of 4-5% for 2023. The stock was up 20¢.
If you would like to learn more about KO, click on this link:
club.ino.com/trend/analysis/stock/KO_aid=CD3289&a_bid=6aeoso5b6f7
Coca-Cola earnings beat estimates, fueled by price hikes, higher demand
Treasury yields declined as investors assessed the state of the US economy & weighed the Federal Reserve’s upcoming interest rate decision. The yield on the 10-year Treasury was down by 4 basis points to 3.538% & the 2-year Treasury was last trading at 4.154% after falling by more than 3 basis points. Yields & prices have an inverted relationship & one basis point is equivalent to 0.01%. Investors are considering what could be next for the US economy after economic data published last week was mixed. Thurs's Philadelphia Fed manufacturing index reading for Apr showed that business activity in the region continued to contract by significantly more than previously anticipated. On Fri, flash PMI data for Apr came in above expectations in both the services & manufacturing sectors.
Treasury yields fall as investors take stock of U.S. economic outlook
Near the Gulf Coast just east of Texas' oil-rich Permian Basin,
nearly 2000 ExxonMobil (XOM), a Dow stock & Dividend Aristocrat, contractors are making sure the company's latest
project, which includes 26 miles of piping, 35 miles of electrical
wiring & 875 tons of steel, is pumping oil at full capacity. After launching America's largest oil refinery expansion
in over a decade, senior VP of global
operations detailed how the company's Beaumont complex is not only
fueling US energy supply but also the economy. "When you put it
all together and you look at this particular location, what I love about
it, it allows us to buy what I consider to be very much needed,
affordable energy, and in a very reliable supply to fuel the economy
that we have here in Texas, the U.S. and, I say, across the globe,"
Janet Matsushita said. After beginning construction in 2019, the Beaumont refinery startup broke ground just over one month ago& added 250K barrels per day to its oil output, increasing its
total processing capacity to more than 630K barrels daily. To put
things into perspective, this equates to a sizable 4M gallons per
day, providing enough fuel to power 61K long-haul trucks in a single
day. The
project's reported hefty $2B price tag was no match for XOM,
who completed the expansion on time & on budget, earning the facility 2 consecutive Gold Energy Star acknowledgments from the Environmental
Protection Agency (EPA), according to Matsushita. "It is actually the equivalent of building a brand-new refinery. It is a
big expansion, it is not a minor expansion," she added. "When
we built this project, we actually leveraged some of the best energy
technology available so that when we operate this new project itself, it
is one of the most energy-efficient versus industry standard." The stock rose 1.82.
If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM_aid=CD3289&a_bid=6aeoso5b6f7
ExxonMobil unleashing 'much needed' affordable energy with industry’s biggest refinery expansion in 10 years
This will be another big week for earnings, but investors are not buying stocks heavily in anticipation of good reports. Tech companies have already been laying off a lot of workers.
Dow Jones Industrials
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