Dow shot up 190 (a shade under 26K presently), advancers over decliners almost 2-1 & NAZ gained 53. The MLP index climbed 3 to the 303s. Junk bond funds were mixed & Treasuries crawled higher. Oil slipped back pennies in the 64s & gold was even at 1334.
AMJ (Alerian MLP Index tracking fund)
Stocks jumped to records with the Dow crossing 26K & S&P 500 Index surpassing 2800, both for the first time on talk about possible significant investor payouts from the bank's windfall stemming from a major tax cut. All major US equity gauges opened higher. The $ strengthened after its lowest close in 3 years, rising alongside Treasuries as Congress tries to avert a gov shutdown Fri. The € came under pressure as prospects for a German coalition gov were dealt an early blow & on reports the ECB will maintain a bond-buying pledge when it meets next week. That helped spur both core & periphery debt. The Stoxx Europe 600 climbed, tracking an advance in the MSCI Asia Pacific Index after Hong Kong stocks hit a record.
UnitedHealth Group (UNH), a Dow stock, more than doubled its net profit in Q4, driven by a one-time tax gain due to US tax code overhaul. The tax benefit also helped the company raise its 2018 full-year adjusted EPS forecast to $12.30-$12.60. UNH had in Nov forecast 2018 adjusted EPS to $10.55-$10.85 on a revenue of $223-225B. The company, which sells employer-based insurance as well as Medicare & Medicaid, said net EPS attributable to shareholders rose to $3.65 in Q4 from $1.74 a year earlier. The quarterly EPS included a one-time tax benefit of $1.21 per share. Excluding items, EPS was $2.59 & total revenue rose 9.5% to $52.06B. The stock jumped up 5+ to the 253s.
If you would like to learn more about UNH, click on this link:
club.ino.com/trend/analysis/stock/UNH?a_aid=CD3289&a_bid=6ae5b6f7
General Motors (GM) will take a $7B write-down in 2017 tied to the US tax overhaul, but expects strong sales in North America & China to sustain its profit thru 2018. The automaker reaffirmed its 2017 expectations for EPS of $6-6.50 & said it expects similar results in 2018. The company also cited cost cutting & growth in other units, including GM Financial, as factors in maintaining profit. Like others that have announced a hit from the new tax law, GM expects the changes will be favorable to the company & the industry as a whole. GM enters into 2018 with lowered costs & ongoing strength in US pickup truck sales. In 2017, GM sold its Opel/Vauxhall & GM Financial European units & cut business in parts of Africa & India. Overall, US auto sales fell 2% industrywide in 2017, according to Autodata, ending an unprecedented 7-year expansion. Still, 2017 marked the 4th-best sales year in US history, after 2000, 2015 & 2016. GM stock rose 1.07.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
The Dow first topped 25K on Jan 4 & has the potential to hold 26K today. Much of this phase of the rally is due to the new tax bill which will help raise corp profits & that should bring higher divs. Additionally, raises & bonuses for workers have already been & are being announced. The bulls are ecstatic & it's difficult not to share their optimism, although gold (the traditional alternative investment) continues strong close, to multi-year highs.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 64.13 | -0.17 | -0.3% |
| GC=F | Gold | 1,333.20 | -1.70 | -0.1% |
Stocks jumped to records with the Dow crossing 26K & S&P 500 Index surpassing 2800, both for the first time on talk about possible significant investor payouts from the bank's windfall stemming from a major tax cut. All major US equity gauges opened higher. The $ strengthened after its lowest close in 3 years, rising alongside Treasuries as Congress tries to avert a gov shutdown Fri. The € came under pressure as prospects for a German coalition gov were dealt an early blow & on reports the ECB will maintain a bond-buying pledge when it meets next week. That helped spur both core & periphery debt. The Stoxx Europe 600 climbed, tracking an advance in the MSCI Asia Pacific Index after Hong Kong stocks hit a record.
Stocks Race to Records as Big Banks Show Strength: Markets Wrap
UnitedHealth Group (UNH), a Dow stock, more than doubled its net profit in Q4, driven by a one-time tax gain due to US tax code overhaul. The tax benefit also helped the company raise its 2018 full-year adjusted EPS forecast to $12.30-$12.60. UNH had in Nov forecast 2018 adjusted EPS to $10.55-$10.85 on a revenue of $223-225B. The company, which sells employer-based insurance as well as Medicare & Medicaid, said net EPS attributable to shareholders rose to $3.65 in Q4 from $1.74 a year earlier. The quarterly EPS included a one-time tax benefit of $1.21 per share. Excluding items, EPS was $2.59 & total revenue rose 9.5% to $52.06B. The stock jumped up 5+ to the 253s.
If you would like to learn more about UNH, click on this link:
club.ino.com/trend/analysis/stock/UNH?a_aid=CD3289&a_bid=6ae5b6f7
Insurer UnitedHealth's quarterly profit more than doubles
General Motors (GM) will take a $7B write-down in 2017 tied to the US tax overhaul, but expects strong sales in North America & China to sustain its profit thru 2018. The automaker reaffirmed its 2017 expectations for EPS of $6-6.50 & said it expects similar results in 2018. The company also cited cost cutting & growth in other units, including GM Financial, as factors in maintaining profit. Like others that have announced a hit from the new tax law, GM expects the changes will be favorable to the company & the industry as a whole. GM enters into 2018 with lowered costs & ongoing strength in US pickup truck sales. In 2017, GM sold its Opel/Vauxhall & GM Financial European units & cut business in parts of Africa & India. Overall, US auto sales fell 2% industrywide in 2017, according to Autodata, ending an unprecedented 7-year expansion. Still, 2017 marked the 4th-best sales year in US history, after 2000, 2015 & 2016. GM stock rose 1.07.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
General Motors sees sustained profits through 2018
The Dow first topped 25K on Jan 4 & has the potential to hold 26K today. Much of this phase of the rally is due to the new tax bill which will help raise corp profits & that should bring higher divs. Additionally, raises & bonuses for workers have already been & are being announced. The bulls are ecstatic & it's difficult not to share their optimism, although gold (the traditional alternative investment) continues strong close, to multi-year highs.
Dow Jones Industrials
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