Dow plunged 312 closing near the lows, decliners over advancers more than 8-1 & NAZ tumbled an enormous 142. The MLP index plunged a whopping 17 to the 296s (a 5 year low) & the REIT index sank 5+ to the 298s. Junk bond funds had losses of around 2% (big for them) & Treasuries soared as stock were sold. Oil had a big drop into the 44s & gold pulled back.
AMJ (Alerian MLP Index tracking fund)
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Apple, a Dow stock, sold a record 13M iPhones during the debut weekend of its latest handsets, as enthusiasts rushed to stores to be the first with the new devices. The results were in line with expectations & boosted by sales in China, a critical region for its business. The company sold 10M iPhones during the debut of the iPhone 6 & 6 Plus last year, even though China wasn’t part of the initial release. An ability to build such demand for its marquee product every year is unique in global business. Lines stretched from stores around the globe, with some fans spending a week or more waiting to be the first with the handset. The average selling price for an iPhone last qtr was $660 (not including carrier subsidies), which would translate to about $8.5B in revenue over the past 72 hours for AAPL. While the opening weekend sales figures are closely watched, a better indication of how the new handsets are selling won’t come until Jan, when the company reports results for the holiday qtr. Last year, AAPL sold 74.5M iPhones during that period, generating $51.2B in revenue. Sales completed by Sat will be included in Q4 for fiscal 2015, while sales completed on Sun will be included in Q1 for fiscal 2016. The new iPhones will be available in more than 40 additional countries beginning Oct 9 -- including Italy, Mexico, Russia, Spain & Taiwan -- & available in more than 130 countries by year end. The stock fell 2.27. If you would like to learn more about AAPL, click on this link:
club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7
Alcoa will break itself up by separating manufacturing operations from a legacy smelting & refining business that’s struggling to overcome booming production from China. The transaction will create an as-yet-unnamed company comprising the AA downstream production assets, including those that make components for the auto & aerospace industries. The name Alcoa will be retained by the upstream business, which mines bauxite, refines alumina & smelts aluminum. The split marks the culmination of a strategy pursued by CEO Klaus Kleinfeld since taking the reins at the 126-year-old company in 2008. He has relentlessly emphasized the company’s focus on value-added aluminum products while rationalizing a commodity-aluminum business that was once the world’s largest by volume. “We’ve worked very hard on changing the setup of both of these businesses,” he said. “All of this has led to a structure of both firms to really be competitive and be able to run on their own.” On completion of the split, Kleinfeld will continue to lead the new downstream company & will also serve as chairman of the upstream company “for the critical initial phase, ensuring a smooth and effective transition.” The tax-free transaction is expected to be completed in H2-2016, giving AA shareholders all shares of both companies. The stock rose 52¢. If you would like to learn more about AA, click on this link:
club.ino.com/trend/analysis/stock/AA?a_aid=CD3289&a_bid=6ae5b6f7
Whole Foods Market plans to eliminate 1500 jobs to reduce costs & fight back against rivals that are undercutting its prices. The positions, representing about 1.6% of the workforce, will be eliminated over the next 8 weeks, with many coming thru attrition, the grocery-store chain said. The company is working to keep expenses low so it can offer its organic and natural products at lower prices & beat back an onslaught from mainstream grocers that now carry similar offerings. In Jul it reported Q3 profit & sales that trailed estimates as the new competition restrained growth. Co-Chief Executive Officer Walter Robb called the job cuts a "very difficult decision," & the company said it is paying the workers in full during the next 8 weeks. WFM, which has about 420 locations, has seen its growth slow as traditional supermarkets carry more natural & organic fare. The company is responding by opening a less-expensive, tech-focused grocery chain called 365 by Whole Foods Market. The first location is set to open next year in Los Angeles. The stock lost 35¢. If you would like to learn more about WFM, click on this link:
club.ino.com/trend/analysis/stock/WFM?a_aid=CD3289&a_bid=6ae5b6f7
There were all kinds of negative stories & the stock market sold off sharply. That's not a good sign with earnings season beginning next week (which already has more than its share of doubts). Glencore, a major mining company traded in the UK, plunged more than 30% on sudden doubts about its future. Profits in China fell last month. Refugees flood into Europe. The VW disaster will bring more supervision for US automakers. And Biotechs keep sinking on worries about price controls. As if that weren't enough, lingering worries continue about the rate hike. As recently as Jul 20, Dow was above 18K. Now, on the edge, it's struggling to hold above 16K. This is one ugly market!
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLX15.NYM | ....Crude Oil Nov 15 | ....44.45 |  ...1.25 | (2.7%) |
Apple, a Dow stock, sold a record 13M iPhones during the debut weekend of its latest handsets, as enthusiasts rushed to stores to be the first with the new devices. The results were in line with expectations & boosted by sales in China, a critical region for its business. The company sold 10M iPhones during the debut of the iPhone 6 & 6 Plus last year, even though China wasn’t part of the initial release. An ability to build such demand for its marquee product every year is unique in global business. Lines stretched from stores around the globe, with some fans spending a week or more waiting to be the first with the handset. The average selling price for an iPhone last qtr was $660 (not including carrier subsidies), which would translate to about $8.5B in revenue over the past 72 hours for AAPL. While the opening weekend sales figures are closely watched, a better indication of how the new handsets are selling won’t come until Jan, when the company reports results for the holiday qtr. Last year, AAPL sold 74.5M iPhones during that period, generating $51.2B in revenue. Sales completed by Sat will be included in Q4 for fiscal 2015, while sales completed on Sun will be included in Q1 for fiscal 2016. The new iPhones will be available in more than 40 additional countries beginning Oct 9 -- including Italy, Mexico, Russia, Spain & Taiwan -- & available in more than 130 countries by year end. The stock fell 2.27. If you would like to learn more about AAPL, click on this link:
club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7
Apple Sold 13 Million iPhones in Weekend Debut
Apple (AAPL)
Alcoa will break itself up by separating manufacturing operations from a legacy smelting & refining business that’s struggling to overcome booming production from China. The transaction will create an as-yet-unnamed company comprising the AA downstream production assets, including those that make components for the auto & aerospace industries. The name Alcoa will be retained by the upstream business, which mines bauxite, refines alumina & smelts aluminum. The split marks the culmination of a strategy pursued by CEO Klaus Kleinfeld since taking the reins at the 126-year-old company in 2008. He has relentlessly emphasized the company’s focus on value-added aluminum products while rationalizing a commodity-aluminum business that was once the world’s largest by volume. “We’ve worked very hard on changing the setup of both of these businesses,” he said. “All of this has led to a structure of both firms to really be competitive and be able to run on their own.” On completion of the split, Kleinfeld will continue to lead the new downstream company & will also serve as chairman of the upstream company “for the critical initial phase, ensuring a smooth and effective transition.” The tax-free transaction is expected to be completed in H2-2016, giving AA shareholders all shares of both companies. The stock rose 52¢. If you would like to learn more about AA, click on this link:
club.ino.com/trend/analysis/stock/AA?a_aid=CD3289&a_bid=6ae5b6f7
Alcoa to Split Into Two Publicly Traded Companies
Alcoa (AA)
Whole Foods Market plans to eliminate 1500 jobs to reduce costs & fight back against rivals that are undercutting its prices. The positions, representing about 1.6% of the workforce, will be eliminated over the next 8 weeks, with many coming thru attrition, the grocery-store chain said. The company is working to keep expenses low so it can offer its organic and natural products at lower prices & beat back an onslaught from mainstream grocers that now carry similar offerings. In Jul it reported Q3 profit & sales that trailed estimates as the new competition restrained growth. Co-Chief Executive Officer Walter Robb called the job cuts a "very difficult decision," & the company said it is paying the workers in full during the next 8 weeks. WFM, which has about 420 locations, has seen its growth slow as traditional supermarkets carry more natural & organic fare. The company is responding by opening a less-expensive, tech-focused grocery chain called 365 by Whole Foods Market. The first location is set to open next year in Los Angeles. The stock lost 35¢. If you would like to learn more about WFM, click on this link:
club.ino.com/trend/analysis/stock/WFM?a_aid=CD3289&a_bid=6ae5b6f7
Whole Foods to Eliminate 1,500 Jobs
Whole Foods (WFM)
There were all kinds of negative stories & the stock market sold off sharply. That's not a good sign with earnings season beginning next week (which already has more than its share of doubts). Glencore, a major mining company traded in the UK, plunged more than 30% on sudden doubts about its future. Profits in China fell last month. Refugees flood into Europe. The VW disaster will bring more supervision for US automakers. And Biotechs keep sinking on worries about price controls. As if that weren't enough, lingering worries continue about the rate hike. As recently as Jul 20, Dow was above 18K. Now, on the edge, it's struggling to hold above 16K. This is one ugly market!
Dow Jones Industrials
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