Dow gained 49 but decliners were ahead of advancers 3-2 & NAZ was up 8. The Financial Index slipped 1 to the 232s, call that profit taking. The MLP index index finally fell, down 1+ to the 424s, & the REIT index was off a fraction in the 278s from its multi year high. Junk bond funds were mixed & Treasuries rose. Oil traded near a 4-month high as
the House of Representatives neared a vote to temporarily
suspend the country’s borrowing limit. Gold pulled back.
AMJ (Alerian MLP index tracking fund)
China's economic risks have shifted back to growing too quickly as new regional-gov officials try to boost development, a former central bank adviser said. “The new problem is how to prevent overheating,” which would stoke inflation and asset bubbles while pushing the government to enact controls, Fan Gang, a People’s Bank of China academic adviser from 2006 to 2010, said in Davos, Switzerland. “That kind of complication has come back again.” These comments mark a resurfacing of concerns that had receded last year as growth, inflation & the housing market cooled. The world’s 2nd-largest economy may expand 8-8.5% this year, Fan said, following the weakest pace since 1999. He said he hopes the rate stays below 9%, withstanding “ambitious” plans by local govs. “I really hope China can this year achieve a little bit above 8 percent” growth and lay a foundation for 8 percent expansion in the next couple of years, said Fan, director of the National Economic Research Institute of the China Reform Foundation. “The momentum is really there again” with talk of urbanization and infrastructure construction.
China Overheating Risk Resurfaces, Ex-PBOC Adviser Says
Photo: Bloomberg
McDonald's, a Dow stock & Dividend Aristocrat, profit edged up in Q4, after the world's biggest hamburger chain moved to bolster slumping sales by focusing on value. However the company warned that a key sales figure is expected to fall this month. EPS was $1.38, ahead of $1.33 in the year ago period. Revenue rose to $6.95B from $6.82B. Results topped expectations for EPS of $1.33 on revenue of $6.9B. CEO Don Thmpson boosted advertising of dollar menu items, such as McDouble burgers & McChicken sandwiches, to draw Americans as consumer confidence falls. Sales at US stores open at least 13 months rose 0.3%, better than the 0.5% projected drop. Quarterly comparable-store sales rose 0.1% globally, compared with an estimate for a decline of 0.3%. “For the near-term we expect top and bottom-line growth to remain pressured, with January’s global comparable sales expected to be negative,” Thompson said. The stock slipped 12¢ on the news.
McDonald’s Fourth-Quarter Profit Rises as Dollar Menu Drives U.S. Sales
McDonald's (MCD)
United Technologies, another Dow stock, reported a 26% decline in profit, reflecting large restructuring charges at the end of 2012 that saw the company close its largest-ever acquisition & sell several small units. Q4 EPS from continuing operations came to $1.04, down from $1.42 in the prior year. The results included 25¢ of restructuring charges & other one-time items. Revenue, rose 14.4% to $16.4B from $14.4B a year earlier. The company did not change its 2013 profit forecast for EPS of $5.85-$6.15. Last year the company closed a $16.5B takeover of aircraft components maker Goodrich & sold or are selling units that make products including wind turbines, fuel cells & industrial pumps. The stock rose 51¢.
Stocks are meandering again, they're entitled. Dow is up a 655 this year, hardly chump change. While it's continuing to fly, the broad market is resting. The early earnings reports are short of unusual, but good enough to bring out buyers. Federal budget cuts are programmed to begin Mar 1 unless Congress acts & kicks that can down the road AGAIN. Stocks are rising with an attitude of, "What, me worry!!" I don't know how long that enthusiasm can last with budget battles in DC.
Dow Jones Industrials
AMJ (Alerian MLP index tracking fund)
Treasury yields:
U.S. 3-month |
0.079% | |
U.S. 2-year |
0.240% | |
U.S. 10-year |
1.823% |
| CLH13.NYM | ...Crude Oil Mar 13 | ...96.48 | ... 0.20 | (0.2%) |
| GCF13.CMX | ...Gold Jan 13 | .......1,691.00 ... | 1.80 | (0.1%) |
China's economic risks have shifted back to growing too quickly as new regional-gov officials try to boost development, a former central bank adviser said. “The new problem is how to prevent overheating,” which would stoke inflation and asset bubbles while pushing the government to enact controls, Fan Gang, a People’s Bank of China academic adviser from 2006 to 2010, said in Davos, Switzerland. “That kind of complication has come back again.” These comments mark a resurfacing of concerns that had receded last year as growth, inflation & the housing market cooled. The world’s 2nd-largest economy may expand 8-8.5% this year, Fan said, following the weakest pace since 1999. He said he hopes the rate stays below 9%, withstanding “ambitious” plans by local govs. “I really hope China can this year achieve a little bit above 8 percent” growth and lay a foundation for 8 percent expansion in the next couple of years, said Fan, director of the National Economic Research Institute of the China Reform Foundation. “The momentum is really there again” with talk of urbanization and infrastructure construction.
China Overheating Risk Resurfaces, Ex-PBOC Adviser Says
Photo: Bloomberg
McDonald's, a Dow stock & Dividend Aristocrat, profit edged up in Q4, after the world's biggest hamburger chain moved to bolster slumping sales by focusing on value. However the company warned that a key sales figure is expected to fall this month. EPS was $1.38, ahead of $1.33 in the year ago period. Revenue rose to $6.95B from $6.82B. Results topped expectations for EPS of $1.33 on revenue of $6.9B. CEO Don Thmpson boosted advertising of dollar menu items, such as McDouble burgers & McChicken sandwiches, to draw Americans as consumer confidence falls. Sales at US stores open at least 13 months rose 0.3%, better than the 0.5% projected drop. Quarterly comparable-store sales rose 0.1% globally, compared with an estimate for a decline of 0.3%. “For the near-term we expect top and bottom-line growth to remain pressured, with January’s global comparable sales expected to be negative,” Thompson said. The stock slipped 12¢ on the news.
McDonald’s Fourth-Quarter Profit Rises as Dollar Menu Drives U.S. Sales
McDonald's (MCD)
United Technologies, another Dow stock, reported a 26% decline in profit, reflecting large restructuring charges at the end of 2012 that saw the company close its largest-ever acquisition & sell several small units. Q4 EPS from continuing operations came to $1.04, down from $1.42 in the prior year. The results included 25¢ of restructuring charges & other one-time items. Revenue, rose 14.4% to $16.4B from $14.4B a year earlier. The company did not change its 2013 profit forecast for EPS of $5.85-$6.15. Last year the company closed a $16.5B takeover of aircraft components maker Goodrich & sold or are selling units that make products including wind turbines, fuel cells & industrial pumps. The stock rose 51¢.
Stocks are meandering again, they're entitled. Dow is up a 655 this year, hardly chump change. While it's continuing to fly, the broad market is resting. The early earnings reports are short of unusual, but good enough to bring out buyers. Federal budget cuts are programmed to begin Mar 1 unless Congress acts & kicks that can down the road AGAIN. Stocks are rising with an attitude of, "What, me worry!!" I don't know how long that enthusiasm can last with budget battles in DC.
Dow Jones Industrials
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