Dow went up another 78, advancers over decliners 5-4 & NAZ recovered 36 after yesterday's loss. The MLP index climbed fractionally to the 238s & the REIT index was up 2+ to the 284s. Junk bond funds slid lower & Treasuries had limited buying which reduced yields (more below). Oil was up about 1 to the 76s & gold slid back 9 to 1961.
AMJ (Alerian MLP Index tracking fund)
Treasury yields were flat as investors weighed what could be on the horizon for interest rates ahead of the Federal Reserve's meeting next week. The yield on the 10-year Treasury was down 4 basis points to 3.813% & the 2-year Treasury yield was trading less than 1 basis points lower at 4.835%. Yields & prices have an inverted relationship & 1 basis point equals 0.01%. The Fed is due to meet on Jul 25-26 to discuss monetary policy & markets are widely expecting the central bank to announce an interest rate hike when its meeting concludes. After next week, the Fed is scheduled to have 3 further meetings in 2023 & officials have indicated that there is still a wide range of options for monetary policy developments, including additional rate hikes. The outcome of the meeting will likely be heavily influenced by economic data, including the latest consumer inflation print, which came in lower than expected at 3% on an annual basis last week. That was still ahead of the Fed's 2% target range.
Treasury yields are flat as investors consider monetary policy outlook
American Airlines (AAL) raised its annual forecast for adjusted profit thanks to increasing demand for domestic& intl travel. The
airline now said it expects adjusted EPS of $3.00-3.75
for 2023 compared with its prior outlook of $2.50-3.50. The carrier reported a record quarterly revenue of $14.1B, a 4.7% increase from the prior year. AAL & its regional partners operated nearly 500K flights
throughout the 2nd qtr, with an average load factor of
approximately 86%. "Our operation is performing at historically strong levels, and we have
worked to refresh our fleet and build a comprehensive global network,
all of which helped to produce record revenues in the second quarter,"
CEO Robert Isom said. "We will build on
this momentum the rest of the year and continue to prioritize
reliability, profitability, accountability and strengthening our balance
sheet." The stock was off a penny.
If you would like to learn more about AAL, click on this link:
club.ino.com/trend/analysis/stock/AAL_aid=CD3289&a_bid=6aeoso5b6f7
American Airlines boosts profit outlook on record travel
The Office of the Attorney General of Texas
(OAG) reached a settlement deal with Walmart (WMT), a Dow stock & Dividend Aristocrat, for $168M over the
major retailer's "negligent practices" that helped feed the nation's
opioid crisis. The agreement resolves claims made by the state against WMT,
accusing the chain of exacerbating the opioid crisis in Texas &
across the US thru actions like opioid marketing, selling &
dispensing, which are what sparked the lawsuit. Political subdivisions such as local & county govs involved
with the Texas Opioids Multidistrict Litigation can take advantage of
the benefits & remediation funds owed by signing on to the settlement.
Those subdivisions that have not signed on are encouraged to by
visiting the OAG's website before the deadline of Jul 31. Joining the settlement will allow these cities & counties to get
opioid abatement funding from the Texas Opioid Council, the release
notes, in the form of direct payments & grant money. Since pursuing litigation against the pharmaceutical industry for its role in the opioid epidemic, the OAG has been able to secure over $2.91B from companies. The opioid crisis costs Texas $20B annually, according to a report from the Texas Hospital Association. The stock rose 1.09.
If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT_aid=CD3289&a_bid=6aeoso5b6f7
Texas attorney general's office, Walmart reach $168M settlement deal over retailer's role in opioid crisis
Investors are glad to see higher prices in the stock market, but the rally has been very long & is tired. NAZ had a difficult day yesterday & the advance decline ratio today is not impressive. There could be selling in the PM.Dow Jones Industrials
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