Dow was up 56, advancers over decliners about 5-4 & NAZ gained 105. The MLP index slid back 1+ to the 296s & the REIT index stayed in the 404s after recent strength. Junk bond funds were mixed & Treasuries had buying which lowered yields. Oil edged higher in the high 79s & gold bounced back 12 to 2407.
Dow Jones Industrials
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, raised its annual organic sales & profit forecasts, signaling consumers are willing to spend more for the beverage giant's higher-priced sodas, energy drinks & juices mainly in intl markets. KO has been foraying into newer regions in Asia & Europe to keep its revenue growth intact & launching reformulated versions of its drinks such as Coke Spiced & Georgia Coffee in markets that are quickly turning price-sensitive. The average selling price rose 9% in the 2nd qtr while unit case volumes increased 2%. However, KO saw volumes in the North America region fall by 1% as consumers continue to be cautious with their spending. The company's average selling price rose 9% in the 2nd qtr while unit case volumes increased 2%. However, volumes in the North America region fall by 1% as consumers continue to be cautious with their spending. KO forecast fiscal 2024 organic sales to grow 9-10%, compared with its previous expectation of an 8-9% rise. The
company expects fiscal 2024 adjusted profit to increase 5-6%, compared with its previous forecast of a 4-5% rise. 2nd-qtr net revenue rose 2.9% to $12.3B beating estimates of $11.7B. On an adjusted basis, the EPS was 84¢ compared with estimates of 81¢. The stock rose 44¢.
Coca-Cola raises annual sales, profit forecasts on steady demand
The cost of buying a new house just hit another all-time high, according to a new report. National Association of Realtors (NAR) data shows the median existing US home sale price jumped to $427K in Jun, a 4.1% increase from the same time last year. That marks the highest level on record & is the 2nd straight month that prices topped a new high. As prices marched higher, sales of previously owned homes tumbled 5.4% to an annual rate of 3.9M units. In a potentially good sign for buyers, however, there was an uptick in inventory last month. At the end of Jun, there were about 1.3M homes for sale, up 3.1% from the previous month & 23.4% from the same time 1 year ago. "We’re seeing a slow shift from a seller’s market to a buyer’s market," said Lawrence Yun, NAR chief economist. "Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis." Homes sold on average in about 22 days last month, down from the 24 days recorded in May but marks an increase from the 18 days in Jun 2023. Before the COVID-19 pandemic, homes typically sat on the market for about a month before being sold. At the current pace of sales, it would take roughly 4.1 months to exhaust the inventory of existing homes, the highest level since May 2020. Experts view a pace of 6-7 months as a healthy level. "Even as the median home price reached a new record high, further large accelerations are unlikely," Yun said. "Supply and demand dynamics are nearing a balanced market condition." There are a number of driving forces behind the affordability crisis. Years of underbuilding fueled a shortage of homes in the country, a problem that was later exacerbated by the rapid rise in mortgage rates & expensive construction materials. Higher mortgage rates over the past 3 years have also created a "golden handcuff" effect in the housing market. Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell, limiting supply further & leaving few options for eager would-be buyers.
Earnings is beginning with sluggish reports. Today's market is stumbling, not a good signal for earnings season.
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