Dow sank 290, decliners over advancers about 3-1 & NAZ declined 167. The MLP index lost 3+ to the 167s & the REIT index gained 3+ to 424. Junk bond funds inched higher & Treasuries rose in price. Oil dropped 1+ to the 61s & gold went up 5 to 1775 while stocks were being sold.
AMJ (Alerian MLP index tracking fund)
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Procter & Gamble (PG), a Dow stock & Dividend Aristocrat, this fall will start charging more for household staples & biggest consumer-products. The company cited rising costs for raw materials, such as resin & pulp, & higher expenses to transport goods. Organic sales grew 4% in the qtr, with the
biggest gains in the & fabric & home-care units. The results mark its slowest overall organic sales increase
since 2018, following a year in which the Covid-19 pandemic created high
demand for products such as cleaning supplies, paper towels & toilet
paper. "It's a different situation, as everywhere in the world
countries are in very different places as far as coming out of the
pandemic," operating chief Jon Moeller said. "There is
very strong consumption across the board." While sales are cooling
for some products, he said, demand is recovering for others,
such as beauty products & supplies sold directly to businesses that
are reopening after widespread shutdowns. Net sales rose 5% to $18.1B, above the consensus
forecast of $18B. Volume was flat
for the first time in years, while price & mix both increased 2%. EPS was $1.26, up from $1.12 a year earlier. The company maintained its forecast of organic sales growth of 5-6% for the fiscal year that ends Jun 30. The stock went up 1.28.
If you would like to learn more about PG, click on this link:
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
Procter & Gamble will raise prices in September
Johnson & Johnson (JNJ), a Dow stock & Dividend Aristocrat, reported $100M in Q1 sales of its Covid-19 vaccine
that’s on hold in the US while federal health regulators investigate a
rare blood-clotting issue. The company also reported earnings & revenue that
beat expectations. Adjusted EPS: $2.59 was vs $2.34 expected & revenue was $22.3B vs $21.9B expected. The pharmaceutical business, which developed the single-shot Covid
vaccine, generated $12.2B in revenue, a 9.6% year-over-year
increase. The results were driven by sales of the company’s multiple
myeloma drug Darzalex & Stelara, a treatment for Crohn's disease. The consumer unit, which makes products such as Neutrogena face
wash & Listerine, generated $3.5B in revenue, down 2.3% from a
year earlier. Execs said the decline is due to an
“unfavorable comparison” to last year when people were stockpiling on
over-the counter- products due to the virus. Its medical device
unit generated $6.6B, a 7.9% increase, as the pandemic recovery
improves. The unit was hit hard last year as the pandemic forced
hospitals to postpone elective surgeries & Americans stayed home. CFO Joseph Wolk said that its 3
business segments are “healthier” than they were entering the pandemic
last year. The company raised its earnings & revenue guidance
for the year. JNJ now expects full-year EPS of $9.42-9.57, compared with its previous forecast of $9.40-9.60.
It expects revenue of $90.6-91.6B, compared
with its prior forecast of $90.5-91.7B. The stock rose 4.08.
If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
Johnson & Johnson reports $100 million in quarterly sales from Covid vaccine
International Business Machines (IBM), another Dow stock, shares rallied as the tech giant not only topped estimates & broke a streak of declining revenue levels but forecast a return to
pre-COVID-19 growth levels. CFO James Kavanaugh said “going forward we
are very confident in getting back in second quarter to our pre-pandemic
levels of growth.” “By the way, our backlog run-out in the next 90 days already shows that,” Kavanaugh added. He said, “the average of analyst revenue estimates for
the second quarter look reasonable.” The forecast called for
revenue of $18.3B for Q2 (a gain of 0.8%). IBM said it expects ” to grow revenue for
the full-year 2021 based on mid-April 2021 foreign exchange rates.” The forecast expects full-year revenue of $74.1B (a gain of 0.6% )
from 2020. “Last quarter, also talked about how the events of the last year have increased the
needs for our clients to accelerate their digital transformations,” said
CEO Arvind Krishna. “This is
continuing and the overall spend environment is improving, while there
are some clear differences by geography and industry.” The
company reported Q1 EPS of $1.06 a
share, compared with $1.31 in the year-ago
period. Adjusted EPS, which exclude stock-based compensation
expenses & other items, was $1.77, compared with $1.84 in the year-ago period. Revenue rose to $17.7B from $17.6B in the year-ago qtr, snapping a 4-qtr streak of sales declines. Analysts had estimated $1.69 & a decline in revenue to $17.3B. The stock gained 5.83.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
IBM surprises with revenue gain, see growth returning to pre-COVID-19 levels
Stocks are in trouble when higher earnings can't get no respect. That's the case today. The chart below shows the Dow has had an astounding 2300 advance since the start of Mar. Maybe it's time for a rest along with profit taking.
Dow Jones Industrials
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