Client Login

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Slide at the Open as Exxon, Whole Foods Fall on Results

  • U.S. stocks slumped in a broad decline on Thursday.
  • Weak U.S. data contributed to the bearish tone as jobless claims rose more than expected in the latest week, and the Chicago Purchasing Managers Index (PMI) unexpectedly fell in July to its lowest since June 2013.
  • The CBOE Volatility index (VIX) rose 8.3 % to 14.44, well under its historical average of 20.
  • Portugal’s Banco Espirito Santo slumped almost 40 % to an all-time low as its hopes of raising capital without state aid suffered a major blow after massive losses.
  • Exxon reported worldwide oil and natural gas production declined to the lowest level in almost five years.
  • Whole Foods dropped 5.8 % after lowering its 2014 revenue forecast.
  • Kraft declined 3.3 %.
  • Yum! Brands slid 6.3 %. The owner of Pizza Hut and KFC said it cut ties with meat supplier OSI Group globally after previously saying it would stop using it China, Australia and the U.S.
  • Global equities fell amid weaker-than-projected earnings from Europe and Asia. Samsung’s results pushed technology stocks lower.
  • Argentina missed a deadline yesterday to pay $539 million in interest after two full days of negotiations in New York failed to produce an accord with creditors from its last default in 2001.

Exxon Falls after Reporting Lowest Output in Five Years

  • The company’s oil and gas output decreased 5.7 % to the equivalent of 3.84 million barrels a day.
  • Exxon had been expected to post output equivalent to 3.96 million barrels, based on six analysts’ estimates.
  • Crude output dropped from Exxon wells in Europe and Asia while gas production faltered in every region in which the company does business, except Africa and the South Pacific.
  • Net income climbed 28 % to $8.78 billion from $6.86 billion a year earlier.

MasterCard profit rises 10 % as card usage grows

  • The company’s net income rose to $931 million from $848 million a year earlier.
  • Revenue rose 13.4 % to $2.38 billion.
  • MasterCard’s worldwide purchase volume increased 12.5 % in local currency terms to $821 billion.

Samsung Electronics downbeat on third quarter prospects as profits slide

  • For April-June, Samsung said operating profit fell 24.6 % annually to 7.2 trillion won ($7.03 billion), matching its guidance. It was the third straight quarter of profit decline.
  • Profit for the mobile division fell to 4.42 trillion won from 6.28 trillion won a year ago, also the lowest in two years.
  • Samsung’s second-quarter global smartphone market share slipped to 25.2 % from 32.3 % a year ago, underscoring its troubles.

Weak demand for video services weighs on Time Warner Cable

  • Time Warner Cable reported a lower-than-expected quarterly profit.
  • The second-largest U.S. cable operator lost more video subscribers in the quarter compared with the previous quarter.
  • It lost 152,000 net residential video customers in the quarter.
  • Demand for its broadband services, however, remained strong. The company added 67,000 residential high-speed data subscribers.
  • Net income rose to $499 million from $481 million a year earlier.
  • Revenue rose 3.2 % to $5.73 billion.

Soccer World Cup helps DirecTV net more subscribers

  • The No.1 U.S. satellite TV provider, reported quarterly revenue above analysts’ estimates as the soccer World Cup helped it add subscribers in Latin America and prices increased in the United States.
  • The company added 543,000 subscribers in Latin America, its largest growth area. It had added 165,000 a year earlier in the market.
  • Average revenue per user in the United States rose by 4.6 % to $103.26.
  • U.S. net subscriber disconnections fell to 34,000 from 84,000.
  • Net income rose to $806 million from $660 million a year earlier.
  • Revenue increased to $8.11 billion from $7.70 billion.

ConocoPhillips second-quarter profit slightly higher; output rises

  • The largest U.S. independent oil and gas company reported a quarterly profit that just beat Wall Street expectations, helped by an increase in oil and gas production.
  • The Houston company’s oil and natural gas output from continuing operations was 1.56 million barrels oil equivalent per day (boed) in the quarter, up from 1.51 million boed a year earlier.
  • Income totaled $2.08 billion, compared with $2.05 billion in the year-ago period.

Diageo Sees Emerging-Market Rebound as 2014 Growth Slows

  • The world’s biggest distiller expects improvement in emerging-market performance after lackluster sales in regions such as Asia weighed on revenue growth.
  • Organic sales rose 0.4 % in the last 12 months.

L-3 Communications fires four for misconduct in aerospace unit

  • L-3 Communications said it fired four employees as part of an ongoing internal review that revealed overstatement of net sales and deferred cost overruns in the company’s aerospace business.
  • L-3 reported preliminary sales of $3.02 billion for the second quarter.
  • The company also cut its 2014 operating margin forecast for the aerospace systems business to 9.0-9.2 % from 10.6-10.8 %.

Target Chooses Former Pepsi Executive Cornell as Next CEO

  • Cornell, the first Target CEO chosen from outside the company, takes over a retailer struggling to right itself after a data breach in the holiday shopping season hurt its standing with customers while a bungled expansion in Canada has led to falling profit.
  • Target’s profit has fallen for six straight quarters, also hurt by weaker demand from American consumers who have remained cautious about spending during the economy’s shaky recovery.

Yelp turns profitable as small businesses drive growth

  • The company reported a net income of $2.7 million in the second quarter, compared with a loss of $878,000 a year earlier.
  • Revenue rose 61.4 % to $88.8 million.
  • Monthly unique visitors rose 27% to 138 million.

Snapchat Facebook Snub Looks Smart as Alibaba Mulls Stake

  • A year after rebuffing a $3 billion takeover proposal from Mark Zuckerberg, Snapchat is in talks to raise money from Alibaba.
  • The valuation being considered is about $10 billion.
  • More than 700 million disappearing “snaps” are sent per day.

Tinder May Reach $75 million a Year in Earnings, IAC Says

  • IAC, which runs dating sites such as Match.com and OKCupid within its Match Group business, is trying to keep its edge in online dating.

Bank of America Said to Near Mortgage Deal after Raising Offer

  • Bank of America is nearing a settlement with the U.S. Justice Department after raising its proposed offer to resolve probes into its sale of mortgage-backed bonds in the run-up to the financial crisis.
  • Potential terms have ranged from $13 billion to $17 billion.
  • The company, under CEO Brian T. Moynihan, has booked more than $55 billion in expenses tied to home loans, mostly linked to the disastrous 2008 takeover of subprime lender Countrywide Financial.
  • In a separate matter, the bank was also ordered today to pay $1.3 billion in penalties for defective mortgage loans that Countrywide sold to Fannie Mae and Freddie Mac before the crisis.

Boeing to make longest 787-10 Dreamliner exclusively in South Carolina

  • Boeing said it will build its biggest Dreamliner, the 787-10, exclusively at its South Carolina plant in North Charleston, a move that marked the continuing evolution of Boeing’s production strategy for its flagship jet.
  • The newest and longest of three 787 models, the 787-10 also is eagerly awaited by airlines seeking its increased seating.
  • Final assembly of the 787-10 is due to begin in 2017.
  • The plane will carry 323 passengers, 33 % more than the 787-8 and 15 % more than 787-9, with significantly lower fuel consumption than current-generation jets of similar size.
  • The North Charleston line will continue to produce 787-8 and 787-9s, Boeing said.
  • The site also will increase production to five a month in 2016 from three a month currently.
  • Boeing plans to ramp up 787 production from 10 a month currently to 12 a month in 2016 and 14 a month by 2020.

boing

US ECONOMY & POLITICS

U.S. jobless claims up, wage growth starting to push higher

  • Initial claims for state unemployment benefits increased 23,000 to a seasonally adjusted 302,000 for the week.
  • The four-week average of claims, considered a better gauge of labor market trends as it irons out week-to-week volatility, fell 3,500 to 297,250, the lowest level since April 2006.
  • Wages and salaries, which account for 70 % of employment costs, increased 0.6 % in the second quarter.
  • That was the largest gain since the third quarter of 2008 and followed a 0.3 % rise in the first quarter.
  • Wages and salaries were up 1.8 % in the 12 months through June.

Fed Sees Labor-Market Slack Even After Unemployment Rate Dropped

  • Yellen believes the nation’s 6.1 % unemployment rate overstates the health of the jobs market, but she warned earlier this month that a rate hike could come “sooner and be more rapid than currently envisioned” if labor markets continued to improve more quickly than anticipated.
  • The Fed Chair Janet Yellen has emphasized as reasons for maintaining more than five years of near-zero rates.
  • The FOMC repeated it’s likely to reduce bond buying in “further measured steps” and to keep interest rates low for a “considerable time” after ending purchases.
  • Policy makers continued to trim the asset purchases that have pumped up the Fed’s balance sheet to a record $4.41 trillion.
  • They tapered monthly bond buying to $25 billion in their sixth consecutive $10-billion cut, staying on pace to end the purchase program in October.

 

EUROPE & WORLD

S&P cuts Argentina’s credit rating further as talks drag on

  • Standard & Poor’s on Wednesday cut its credit rating on Argentina’s foreign-currency sovereign debt to “selective default” even as talks between officials from Latin America’s No. 3 economy and a group of holdout creditors continued in New York.
  • S&P said that in its opinion, Argentina has now failed to make a $539 million payment due on its discount bonds due in 2033.
  • The payment, originally due on June 30, was subject to a 30-day grace period, which expires at the end of Wednesday.

Sony Rides PS4 Sales, Web-Slinger to Surprise Profit

  • Sony posted a surprise first-quarter profit.
  • The company posted net income of 26.8 billion yen ($261 million) in the quarter.
  • The game unit posted profit of 4.3 billion yen, reversing a loss of 16.4 billion yen a year earlier.
  • The movie division posted a profit of 7.8 billion yen, more than double results from a year earlier.
  • Sony’s mobile products unit posted a loss of 2.7 billion yen, compared with a profit of 12.6 billion yen a year earlier.
  • Sony accounted for 3.2 % of global smartphone shipments in the March quarter.

Siemens Beats Estimates as Revamp Starts to Pay Off

  • Income from continuing operations rose 36 % to 1.4 billion euros ($1.9 billion).
  • Sales declined 3.7 % to 17.9 billion euros.
  • Profit at Siemens’s industry sector jumped 51 % to 548 million euros, while falling 5.8 % at the energy sector to 405 million euros and dropping 13 % in health-care.
  • The infrastructure and cities sector reported a 350 million-euro profit after a 23 million-euro loss a year earlier.

Sanofi Raises Profit Forecast on Diabetes, Orphan Drugs

  • France’s biggest drug-maker’s sales in the quarter increased 0.9 % to 8.08 billion euros.
  • Second-quarter profit climbed to 1.54 billion euros ($2.06 billion) from 1.48 billion euros a year earlier.

VW Profit Beats Estimates on Higher Earnings at Audi

  • Europe’s largest automaker, reported second-quarter profit that beat analysts’ forecasts as growth at the Audi luxury division helped offset a decline at its namesake brand.
  • Earnings before interest and taxes slipped 3.1 % to 3.33 billion euros ($4.46 billion).
  • Robust sales growth in China and rising demand for Audi vehicles are keeping VW on track to exceed 10 million annual deliveries worldwide for the first time in 2014, four years earlier than initially anticipated.

 

TODAY in HISTORY

  • Columbus arrived at the island of Trinidad (1498)
  • The Marquis de Lafayette became a major-general in the American Continental Army (1777)
  • The first U.S. patent was issued to Samuel Hopkins of Vermont for a process of making fertilizer (1790)
  • Mount Godwin-Austen (K2), the world’s second-highest peak, was climbed for the first time, by an Italian team led by Ardito Desio (1954)
  • The U.S. space probe Ranger 7 transmitted pictures of the Moon’s surface (1964)

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

Stocks Pare Gains at the Open; Treasuries Drop, Metals Rise After GDP

  • Consumer spending and business investment helped the U.S. economy rebound more than forecast in the second quarter.
  • GDP rose at a 4 % annualized rate after shrinking 2.1 % from January through March.
  • Twitter soared 22 % after results topped forecasts and the company boosted its annual sales forecast.
  • Amgen rallied 5.4 % after saying it will cut jobs and close plants.
  • Standard & Poor’s 500 Index profits have increased 11 % so far, the most since 2011.
  • The U.S. equity benchmark has gained 7.1 % in 2014, extending last year’s 30 % rally, the biggest since 1997.

Twitter Tops Quarterly Estimates for Sales, User Growth

  • The microblogging company’s active membership in the quarter reached 271 million, with year-over-year growth at 24 %, compared with 25 % in the prior period.
  • That exceeded analysts’ projections of 267 million monthly active users for the quarter.
  • Sales more than doubled to $312.2 million, exceeding the $282.8 million average estimate.
  • Twitter’s net loss widened to $144.6 million, or 24 cents a share, from $42 million a year earlier. Excluding some items, the company reported a 2 cent profit, compared with the 1 cent loss estimated by analysts.
  • People viewed their Twitter timelines more often, with 173 billion views, up from 157 billion in the prior quarter.
  • Mobile advertising was 81 % of total ad revenue in the second quarter.
  • For the current quarter, Twitter said revenue will be $330 million to $340 million, exceeding analysts’ average estimate of $323.1 million.
  • The company raised its full-year sales forecast to $1.31 billion to $1.33 billion, up from an April projection of $1.2 billion to $1.25 billion.

DreamWorks Animation Falls on Loss; SEC Probes Write-down

  • The independent cartoon-movie studio posted a second-quarter loss and said securities regulators are investigating a write-down. The shares fell the most in five months.
  • The U.S. SEC is looking into how the company wrote down its “Turbo” inventory, without being more specific.
  • The company also posted a larger-than-projected quarterly loss and sales that fell short of analysts’ forecasts.
  • Sales tumbled 43 % from a year earlier to $122.3 million, missing forecasts of $139.4 million.
  • The studio’s current theatrical film, “How to Train Your Dragon 2,” has generated $424.6 million in worldwide box office sales, a sum that’s shared with theaters and the company’s distributor, 21st Century Fox.

Software to Power F-35 Running as Much as 14 Months Late

  • The projected delay to September 2017 concerns the final version needed to provide full combat capability for Air Force.
  • Software is crucial to delivering on the promised capabilities of the F-35, operating its advanced navigation, communications and targeting systems. Each plane will have more than 8 million lines of code once deployed.
  • Cost estimates for the $398.6 billion F-35 program have climbed 71 % in inflation-adjusted dollars since the Pentagon signed its initial contract with Lockheed in 2001.

Airbus Says Some A380s on Order May Not Be Delivered

  • Customers that have ordered superjumbos yet remain undecided about actually taking them.
  • While the A380 can hold more than 800 passengers, and was originally marketed as a plane that could comfortably accommodate 555 in three classes.
  • The A380 has one very faithful customer in Emirates, the Gulf carrier that has ordered a total of 140 planes.

American Tower to Acquire Global Tower in $3.3 Billion Deal

  • The biggest operator of cellular towers in the U.S. agreed to acquire the parent company of rival Global Tower Partners for about $3.3 billion.
  • The deal brings American Tower about 5,400 U.S. towers and the management rights to more than 9,000 additional sites. Including debt, the purchase price is about $4.8 billion.

Amgen Says It Will Cut More Than 2,400 Jobs Worldwide

  • The world’s biggest biotechnology company by sales reported second-quarter earnings that beat analysts’ estimates and raised its profit estimate for the year.
  • Net income rose 23 % to $1.55 billion from $1.26 billion a year earlier.
  • Revenue increased 11 % to $5.18 billion.
  • The higher-than-expected earnings were driven by sales of Enbrel, the company’s top drug for arthritis, which increased 7 % to $1.24 billion, beating analysts’ projections of $1.14 billion.
  • The company also raised its 2014 earnings forecast.

Sprint first-quarter revs top estimate as network upgrade progresses

  • Revenue fell to $8.8 billion from $8.9 billion a year earlier, but beat the average analyst estimate of $8.7 billion.
  • The company lost 181,000 contract subscribers, fewer than the average estimate of 293,000.

Amazon to invest $2 billion more in India as e-commerce race heats up

  • Amazon said it will invest a further $2 billion in India just a day after the country’s largest e-tailer Flipkart attracted $1 billion of fresh funds, raising the stakes in a nascent but fast-growing e-commerce sector.
  • Amazon and Flipkart are joined in India’s $13 billion e-commerce sector by marketplace Snapdeal, fashion e-tailer Jabong, and U.S. auctioneer eBay.
  • Amazon makes its money in India by charging third-party suppliers to use its website to sell 17 million different products including books, electronics and clothing.
  • Indian e-commerce is expanding at a compound annual growth rate of 34 %.

 

US ECONOMY & POLITICS

Economy in U.S. Grows More than Forecast

  • GDP rose at a 4 % annualized rate, the most since the third quarter of 2013, after shrinking 2.1 % from January through March.
  • The first-quarter reading was revised up from a previously reported 2.9 % drop.
  • 2.5 increase in household consumption, which accounts for almost 70 % of the economy, exceeded the 1.9 % median forecast of economists. Purchases added 1.7 percentage points to growth.
  • Purchases of durable goods, including autos, furniture and appliances and recreational vehicles, jumped at a 14 % annualized rate, the most since the third quarter of 2009.
  • Corporate spending increased at a 5.9 % annualized rate after being little changed in the first quarter, contributing 0.9 percentage point to growth.
  • Inventory accumulation also picked up, adding 1.7 percentage points to GDP growth. Stockpiles were rebuilt at a $93.4 billion annualized pace after a $35.2 billion annualized gain in the first quarter.
  • Excluding inventories and trade, so-called final sales to domestic purchasers climbed at a 2.8 % rate, the biggest increase since the third quarter of 2011.
  • Growth got a boost from the biggest gain in state and local government expenditures in five years. A widening trade gap subtracted 0.6 percentage point from growth.

ADP Says Companies in U.S. Boosted Payrolls by 218,000

  • Companies added 218,000 workers in July, exceeding the average for the year and showing improving demand is bolstering the U.S. job market.
  • Companies employing 500 or more workers added 41,000 jobs.
  • Medium-sized businesses, with 50 to 499 employees, took on 92,000 workers and small companies increased payrolls by 84,000.
  • A Labor Department report in two days is projected to show private payrolls climbed by 230,000 workers last month.
  • Gains in consumer purchases and business investment helped the economy rebound more than forecast in the second quarter.

 

EUROPE & WORLD

Bayer Earnings Rise as New Drugs Offset Stronger Euro

  • Earnings climbed 1 % to 2.22 billion euros ($2.95 billion).
  • Bayer, one of the last remaining drug and chemical conglomerates, is leaning on its health unit for growth.
  • Second-quarter health-care revenue increased 0.9 % to 4.85 billion euros.

Barclays Rises Most since May on Return to Profit

  • Barclays’s second-quarter net income was 161 million pounds ($273 million) compared with a loss of 168 million pounds a year ago.
  • The bank cut about 5,000 jobs this year, with half of them at the investment bank.
  • At the investment bank, income dropped 18 % to 4.26 billion pounds, driven by a 22 % drop in markets revenue as fewer clients traded in cash equities, rates and currencies.

Euro touches eight-month low, European shares fall

  • The euro fell to $1.3395, its lowest since November 2013.
  • The ECB cut all its interest rates in June and promised up to 1 trillion euros in cheap long-term loans to banks from September.

 

TODAY in HISTORY

  • The first legislative assembly in English North America convened in Jamestown, Va (1619)
  • The U.S. city of Baltimore was founded (1729)
  • The tenth modern Olympic Games opened in Los Angeles (1932)
  • The phrase “In God We Trust” was adopted as the U.S. national motto (1956)
  • President Lyndon Johnson signed the Medicare Bill into law (1965)
  • Lisa Leslie became the first woman to dunk in a professional basketball game (2002)
  • 620 million people were without power in India, the worst power outage in world history (2012)

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Gain at the Open on Higher Earnings; Phone Shares Soar

  • U.S. stocks rose for the fifth time in six days as corporate profits beat estimates.
  • Windstream surged 21 % after announcing plans to spin off certain assets into a publicly traded real estate investment trust.
  • United Parcel Service slipped 3.1 % after cutting its full-year forecast.
  • About 78 % of those that have posted results this season have beaten analysts’ estimates for profit, while 65 % exceeded sales projections.
  • Profits probably rose 8.2 % in the second quarter, while sales gained 3.5 %.
  • The Fed will reduce its monthly purchases for the sixth time to $25 billion from $35 billion after a two-day policy meeting starting today.
  • Consumer confidence index rose to 90.9 the highest since October 2007.
  • Residential real-estate prices rose in the 12 months ended May at the slowest pace in more than a year as a lull in the U.S. housing market limits appreciation.
  • The U.S. and the European Union may move as soon as today to impose tougher sanctions on Russia.
  • Phone companies in the S&P 500 jumped 4.2 % as a group.

Corning Misses Profit Estimates on Low Prices for LCD Screens

  • Core net sales rose 28 % to $2.58 billion. Analysts had estimated $2.53 billion.
  • Corning said the LCD glass price declines are moderating in the third quarter and expected to return to 2013 levels.
  • The volume of glass sold rose more than the company anticipated because of retail TV sales in Europe and South America.

UPS Cuts Profit Outlook on Costs for Holiday Shipments

  • The company now forecasts earnings per share to be $4.90 to $5. That’s lower than the outlook it gave in April of $5.05 to $5.30 a share.
  • UPS has also been battling a shift to cheaper two-day and deferred shipping for more than a year. Executives today said the movement is hurting profit margins.
  • In the second quarter, domestic daily package volume rose 7.4 %, led by gains in ground and deferred shipments.
  • Revenue per package declined, as customers increasingly sent items via its more economical SurePost service which relies on the post office for the last mile of delivery.
  • UPS cited growth in U.S. e-commerce shipments and international export business for helping to boost global package shipments by 7.2 %.
  • Revenue across all of its business segments rose 5.6 % to $14.3 billion from $13.5 billion a year earlier.
  • Total operating expenses rose 15 % to $13.5 billion as the company bought additional capacity at a premium from local service partners in Europe to address growth in shipments.

Pfizer Beats Estimates on Income as Drug Sales Decline

  • Revenue declined 2 % to $12.8 billion, with the erectile dysfunction pill Viagra recording a 28 % drop outside the U.S.
  • Revenue for the quarter also beat analyst estimates of $12.5 billion as for the company’s biggest products grew, partially offsetting its other losses.
  • The pain pill Lyrica, Pfizer’s top seller last year, had revenue of $1.32 billion, up 16 % from a year earlier.
  • Prevnar, a vaccine for pneumococcal diseases, grew 13 % to $969 million.
  • Pfizer now projects full-year sales of $48.7 billion to $50.7 billion, a $500 million decrease.

Bristol-Myers Tops Earnings Estimates on Drug Sales

  • Net income for the quarter fell 37 % to $333 million from $536 million a year earlier.
  • Company revenue slipped 4 % to $3.90 billion, but topped Wall Street expectations of $3.85 billion.
  • Bristol-Myers also stuck to its prior full-year earnings view of $1.70 to $1.80 per share.

Merck’s Second-Quarter Profit Beats Estimates on Cost Cuts

  • Net income more than doubled to $2 billion from $906 million a year earlier.
  • The drugmaker cut research and development costs by 21 % to $1.7 billion, and reduced marketing and administrative expenses by 5 % to $3 billion.
  • Merck also raised the bottom end of its 2014 adjusted earnings forecast.
  • Global revenue slipped 1 % to $10.93 billion, but exceeded expectations of $10.6 billion.

Reynolds American profit rises 6.7% on higher pricing

  • Net income rose to $492 million from $461 million a year earlier.
  • Net sales fell 0.7 % to $2.16 billion.

Apple updates MacBook Pro laptops, cuts price of older model

  • Apple said it updated its MacBook Pro line of laptops with a high-resolution Retina display, faster processors and higher memory for a starting price of $1,299.
  • The world’s largest technology company also lowered the price of its older 13-inch MacBook Pro by $100 to $1,099.

Panasonic to initially invest $200-300 million in Tesla battery plant

  • The Japanese company, which already supplies batteries for the electric vehicle maker, will ultimately invest about $1 billion in the planned $5 billion battery “Gigafactory“, the person said.
  • Tesla is looking at three sites in the United States to build the Gigafactory plants which by 2020 would be able to make more lithium-ion batteries in a year than were produced worldwide in 2013.

 

US ECONOMY & POLITICS

U.S. seasonally adjusted home prices fall in May: S&P/Case-Shiller

  • The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.3 % in May on a seasonally adjusted basis.
  • Economists forecast a gain of 0.2 %.
  • Non-seasonally adjusted prices rose 1.1 % in the 20 cities.
  • Prices in the 20 cities rose 9.3 % year over year, the slowest year-over-year gain since February 2013 and shy of expectations for a 10 % climb.

Consumer Confidence in U.S. Jumps to Highest Since 2007

  • The Conference Board’s consumer confidence index rose to 90.9, the highest since October 2007, from a revised 86.4 in June.
  • Estimates of the 75 economists in the Bloomberg survey ranged from 82.8 to 88.5 after a previously reported 85.2 reading in June.
  • The Conference Board’s gauge of present conditions rose to 88.3, the strongest reading since March 2008, from 86.3 in June.
  • The barometer of consumer expectations for the next six months increased to 92.7, the highest since February 2011, from 86.4 a month earlier.
  • The share of Americans who said jobs were currently plentiful advanced to 15.9 % in July, the highest since May 2008, from 14.6 %.
  • More consumers than a month earlier said they expected greater employment opportunities and better business conditions in the six months ahead.
  • A gallon of unleaded gasoline at the pump fell to $3.52 yesterday, the lowest since mid-March, after a high in April of $3.70.
  • Food costs showed signs of stabilizing in June after surging in prior months as a drought in the West and a deadly hog virus pushed up prices for beef, pork and some vegetables and fruits.
  • Food prices rose 0.1 % in June after a 1.1 % surge a month earlier. They were up 2.4 % from June 2013.

 

EUROPE & WORLD

BP profit jumps but warns of Russia sanctions impact

  • BP, by far the largest foreign investor in Russia through its 19.75 % stake in Russian state oil company Rosneft, has repeatedly said it will stand by its investments in Russia.
  • Overall, second-quarter production fell 3 % to 3.1 million barrels of oil equivalent a day.

 

TODAY in HISTORY

  • President Eisenhower signed the congressional act that created the National Aeronautics and Space Administration (NASA) was authorized by Congress (1958)
  • Prince Charles, heir to the British throne, married Lady Diana Spencer (1981)

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Fall as Home Sales Drop Amid Overseas Crises

  • U.S. stocks fell as pending home sales unexpectedly declined in June.
  • Investors watched crises overseas before this week’s Federal Reserve policy decision.
  • Cummins fell 3.2 percent to lead industrial shares lower.
  • Trulia jumped 8.6 percent as Zillow agreed to purchase the company for $3.5 billion.
  • Family Dollar Storessoared 22 percent after Dollar Tree agreed to buy it.
  • Outside the U.S., international pressure mounted on Israel to end its three-week offensive in the Hamas-controlled Gaza Strip.
  • In Europe, President Vladimir Putin faces intensifying U.S. and European sanctions aimed at forcing him to help end the separatist war in neighboring Ukraine.
  • The Fed’s Open Market Committee (FOMC) will scale back its monthly asset purchases to $25 billion from $35 billion on July 30, according to economists surveyed by Bloomberg.
  • Three rounds of monetary stimulus from the Fed and better than-forecast corporate earnings have driven the S&P 500 up 192 percent from its March 2009 bottom.
  • The S&P 500 is trading at 18.1 timesearnings of its members, around the highest valuation for the gauge since 2010.
  • The S&P 500 has rallied about 7 percent this year.
  • About 78 percent of U.S. companies that have posted results this season have beaten analysts’ estimates for profit, while 66 percent exceeded sales projections.
  • Companies in the S&P 500 have reported an 11 percent gain in second-quarter earnings.
  • Should the pace continue, the gain would exceed all periods since the third quarter of 2011.

Buying on Dips Pays Most in Five Years as Stocks Rebound

  • Losing streaks in the U.S. equity market are getting shorter.
  • Declines in the benchmark gauge for American equity are lasting an average of 1.5 days in 2014, the shortest since at least 2009.
  • Rising earnings from Apple, Biogen, and Chipotle last week helped send the S&P 500 to its 27th all-time high this year. More than $15 trillion has been added to U.S. equity values as the S&P 500 almost tripled from a 12-year low in 2009.
  • The S&P 500 is about 25 percent above its peak in 2007.
  • The S&P 500 has gone without a 10 percent loss for 33 months, the third-longest stretch since 1990.

Dollar Stores Agree to $8.5 Billion Merger after Icahn Prodding

  • Dollar Tree will pay $74.50 a share in cash and stock, 23 percent above Family Dollar’s closing price at the end of last week.
  • The transaction fulfills the ambitions of two billionaire activist investors, Carl Icahn and Nelson Peltz, who had acquired major stakes in Family Dollar and pushed for a sale.
  • The deal will save Dollar Tree about $300 million annually.
  • Family Dollar shareholders will own 12.7 percent to 15.1 percent of the outstanding stock of Dollar Tree when the deal is done.

Zillow to Acquire Trulia for $3.5 Billion in Stock

  • Trulia shareholders will receive 0.444 shares of Zillow for each share of Trulia.
  • That’s equivalent to Zillow offering $70.53 a share for Trulia, or 25 percent above Trulia’s closing price of $56.35 on July 25.
  • The deal positions a unified Zillow and Trulia to capture a larger share of digital real estate ads as more people shift house hunting onto the Web and property agents deploy more marketing dollars onto the Internet.
  • Zillow and Trulia help house hunters find information on homes, generating revenue by selling advertising and charging real estate agents to place their listing prominently.
  • The companies estimate total spendingon real estate advertising in the U.S. is $12 billion a year, of which Zillow and Trulia together currently have less than 4 percent of the market.
  • Zillow’s annual revenue is expected to reach about $311 million this year, an increase of about 58 percent over last year.
  • Trulia’s revenue is expected to rise 76 percent this year to about $253 million, after more than doubling the previous year.

Ryanair Boosts 2015 Goal After Quarterly Earnings Double

  • Europe’s biggest discount carrier rolls out more routes and reduces unit costs.

HBO Pushes Web Expansion as Bewkes Battles Murdoch Bid

  • Jeff Bewkes is looking to the Internet to accelerate growth at his prized TV network, HBO.
  • The $49-a-month Internet Plus trialintroduced last year with Comcast is the model for a new service, said the people. The package is aimed at the 10 million U.S. broadband customers.
  • HBO is typically marketed as part of a pay-TV package that costs $100 a month or more.
  • While it posted its best growth in 17 years in 2013, about 70 million U.S. pay-TV homes don’t subscribe HBO.
  • HBO generated $1.79 billion in operating income last year, with profit surging 16 percent from 2012 and making the network one of Time Warner’s fastest-growing units. Revenue advanced 4 percent to $4.9 billion.
  • Fox valued HBO at $20 billion in its bid.
  • Given its growth prospects, the network could be worth as much as $25.8 billion by 2016, Morgan Stanley.
  • HBO and its sister channel Cinemax added 2 million subscribers in the U.S. last year, bringing their domestic total to 43 million, the company has said. The two channels had about 127 million subscribers worldwide.

Amazon to open five new warehouses in India

  • Amazon operates two warehouses or “fulfillment centers” on the outskirts of Mumbai and Bangalore.
  • The new facilities will be opened in Delhi, Chennai, Jaipur, Ahmedabad and on the outskirts of Gurgaon.

JD.com to sell Microsoft’s Xbox One games console in China

  • JD.com, China’s second-biggest e-commerce company by market share, will accept pre-orders for Microsoft’s Xbox One games console in China.
  • The Xbox One will be the first gaming consoleto be released in mainland China since the government banned console sales in 2000.

Trendy Chipotle burritos show how pricing power belongs to the hip

  • Companies including Chipotle Mexican Grill, Apple and PepsiCo have shown they’re able to take advantage of quality, trendiness, and, in the case of Pepsi’s snack foods, market dominance, to maintain high prices or even raise them faster than the inflation rate.
  • Chipotle raised chicken-dish prices by 5 percent this year after leaving them untouched since 2011, and sales went up 29 percent last quarter.
  • Chipotle runs about 1,700 restaurants in the U.S.
  • Another pricing powerhouse, Apple, has studiously cultivated its high-end aura for years, and its iPhones and iPads continue to command a higher price tag on average than its rivals.
  • Apple has now around 37 percent with near-40 percent gross margins.

Tyson Foods to shut three factories, cut 950 jobs

  • The largest U.S. meat processor said that the closures were due to changing product needs.

US ECONOMY & POLITICS

U.S. services sector activity accelerates in July: Markit

  • Activity in the U.S. services sector held at its highest level in 4-1/2 years in July.
  • Markit’s preliminary services Purchasing Managers Index (PMI) was 61.0 in July, unchanged from June and above expectations for a reading of 59.8.
  • A reading above 50 signals expansion in economic activity.
  • The employment index fell from 56.1, the fastest rate on record, to 52.8 in July.

EUROPE & WORLD

Europe nervy as Russian assets hit by new sanctions talk

  • The euro was stuck near its lowest level since November and Russian markets tumbled for a third straight day on Monday as new European sanctionsfor Moscow chilled the already frosty relationship between the two.
  • The European Union reached an outline agreement on Friday on its first economic sanctions on Russia.
  • Russia warned the moves would hamper cooperation between the two and undermine the fight against terrorism.

Russian shares down, Rosneft underperforms after Yukos ruling

  • The Hague’s arbitration court ordered Moscow to pay $51 billion for expropriating the assets of the now-defunct oil producer Yukos, most of which were acquired by Rosneft in auctions.
  • The arbitration panel in the Netherlands said it had awarded shareholders in the GML group just under half of their $114 billion claim.
  • Russia’s Finance Ministry called the ruling “flawed”, “one-sided” and “politically biased” and said it would appeal the decision.

TODAY in HISTORY

  • King Henry VIII of England’s chief minister, Thomas Cromwell, was executed and Henry married his fifth wife, Catherine Howard (1540)
  • Perudeclared its independence from Spain (1821)
  • The 14th Amendment to the Constitution, which established the citizenship of African Americans and guaranteed due process of law, was ratified (1868)
  • Austria-Hungary declared war on Serbia, precipitating the start of World War I (1914)

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Decline at the Open as Amazon, Visa Results Miss Forecast

  • Amazon plunged 11 percent after trailing analysts’ predictions for the second successive quarter.
  • Visa sank 4.6 percent after lowering its full-year revenue forecast.
  • Data today showed orders for U.S. business equipment rose in June.
  • Investors have also been watching geopolitical tensions in the Middle East and Ukraine.

S&P 500 Earnings Top Estimates at 77% Pace Led by Ford

  • Starbucks, Ford, and American Airlines posted profits that exceeded analysts’ estimates.
  • Of S&P 500 companies that have reported so far, Facebook, Boeing, and Alcoa were among the 20 biggest positive earnings surprises.

Amazon Loss Widens as Bezos Pours Money into New Services

  • The world’s largest online retailer had a second-quarter loss of $126 million, wider than analysts’ $66.7 million average estimate and a $7 million loss a year earlier.
  • Sales climbed 23 percent to $19.3 billion, while operating expenses increased 24 percent to $19.4 billion.
  • CEO Bezos’s strategy since Amazon’s inception has been to invest heavily to expand and earn customer loyalty.
  • Amazon began posting quarterly losses in 2012 after being consistently profitable for almost a decade.
  • Amazon had earned only $274 million for all of 2013 on sales of $74.5 billion.
  • Looking ahead, Amazon projected sales of $19.7 billion to $21.5 billion for the current quarter. Operating losses are projected to be $810 million to $410 million.
  • Bezos is spending to take Amazon further away from its roots as an online seller of books.
  • The company is increasingly competing with large technology companies such as Apple, Google, Microsoft, and Samsung.
  • Piper Jaffaray’s analyst Gene Munster thinks fundamentals on Amazon’s long term margins are still intact.

Starbucks Profit Beats Estimates after Food Menu Boost Sales

  • The world’s biggest coffee-shop chain reported a 23 percent gain in quarterly profit after selling more food in the U.S., topping analysts’ estimates.
  • Net income climbed to $512.6 million from $417.8 million a year earlier.
  • Revenue jumped 11 percent to $4.15 billion in the period, which also surpassing estimates.
  • The company raised its forecast for fiscal 2014 profit.
  • Revenue will grow at least 10 percent in fiscal 2015, with earnings per share climbing as much as 20 percent, Starbucks said.
  • In May, Starbucks began selling grilled cheese, beef brisket baguettes and grilled-chicken sandwiches in 178 of its cafes. The chain plans to introduce new lunch fare nationwide in fiscal 2015.

Visa Lowers Revenue Estimates as Profit Beats Estimates

  • The world’s largest payments network said net income rose 11 percent to $1.36 billion from $1.23 billion a year earlier. That topped analysts’ estimates.
  • Total operating revenue rose 5.1 percent to $3.16 billion.
  • Revenue for the fiscal year ending Sept. 30 will climb 9 percent to 10 percent from a year earlier, according to the statement. That’s down from an April forecast of 10 percent to 11 percent.
  • Card spending rose 11 percent to $1.2 trillion.

Lear easily beats Wall St earnings expectations

  • Maker of auto seats and electrical power systems beat Wall Street’s earnings expectations for the second quarter and increased its full-year outlook.
  • Net income rose to $148.5 million from $137.3 million a year earlier.
  • Lear said revenue for the quarter was $4.59 billion, which exceeded expectations of $4.44 billion.
  • The company said it expected sales for the year to range from $17.6 billion to $17.9 billion. It had previously forecast $17.2 billion to $17.7 billion.

Lower printer sales hurt Xerox’s revenue

  • Net income fell to $266 million for the quarter from $271 million a year earlier.
  • Revenue fell to $5.29 billion from $5.39 billion a year earlier.

Facebook goes express to mega-cap status – now valued more than AT&T, Coke

  • Now the company’s $190 billion market value makes it bigger than such bellwethers as Coca-Colaand AT&T.
  • It’s not a member of the Dow industrials, but if it were, it would be larger than two-thirds of that index’s 30 members.
  • Apple, the S&P 500′s most valuable company, needed nearly three decades before its market value finally rose to more than $190 billion, surpassing that level in late December 2009.
  • Google’s move was swifter. The company went public in August 2004, and posted a closing market value of more than $190 billion for the first time in October 2007.

US ECONOMY & POLITICS

U.S. durable goods orders rebound, core capital goods rise

  • Durable goods orders increased 0.7 percent as demand increased from transportation to machinery and computers and electronic products.
  • Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rebounded 1.4 percent after declining 1.2 percent the prior month.

California Water Prices Soar for Farmers as Drought Grows

  • After three years of record-low rainfall, 82 percent of the state is experiencing extreme drought.
  • Farmers in California’s Central Valley, the world’s most productive agricultural region, are paying as much as 10 times more for water than they did before the state’s record drought cut supply.
  • Costs have soared to $1,100 per acre-foot from about $140 a year ago in the Fresno-based Westlands Water District, which represents 700 farms.
  • Agriculture consumes about 80 percent of all delivered water in the most-populous U.S. state.
  • California’s 80,500 farms and ranches supply everything from milk, beef and flowers to some of the nation’s largest fruit and vegetable crops, including almonds, avocados and strawberries.

EUROPE & WORLD

IMF Cuts 2014 Global Forecast After Slowdowns in China, U.S.

  • The world economy will advance 3.4 percent in 2014, the IMF said, less than its 3.6 percent prediction in April and stronger than last year’s 3.2 percent.
  • Next year growth will be 4 percent, compared with an April forecast for 3.9 percent, the fund said.
  • Growth in emerging markets is projected to be 4.6 percent this year, compared with an April forecast for 4.9 percent, the IMF said.
  • China’s economy is seen growing 7.4 percent this year, less than the 7.5 percent forecast in April.
  • Next year, growth in China will slow further, to 7.1 percent.
  • In Japan, the economy’s projected 1.6 percent advance this year may be followed by 1.1 percent from in 2015, “mostly due to the planned unwinding of fiscal stimulus,” the IMF said.
  • In the 18-country euro region, Italy and France were cut while Spain was revised higher to 1.2 percent, up from 0.9 percent.
  • U.S., which was cut to 1.7 percent from an April prediction of 2.8 percent because of a first-quarter contraction. The forecast for 2015 was unchanged at 3 percent.

European Stocks Fall as LVMH Leads Luxury Retailers Lower

  • LVMH fell the most in nine months after the world’s largest luxury-goods company also said demand weakened in Asia.

Emerging ETFs Turn Positive for 2014 as Outflows Reversed

  • Flows into the funds turned positive for the year yesterday, by $109 million, reversing investor flight that had drained as much as $13.9 billion in the first 2 1/2 months of the year amid financial crises in Ukraine, Argentina and Turkey.

Russia Unexpectedly Raises Key Rate Third Time on Ukraine

  • The central bank in Moscow increased its one-week auction rate to 8 percent from 7.5 percent.
  • None of the economists surveyed by Bloomberg predicted an increase, with 22 of 23 seeing no change and one forecasting a quarter-point cut.

Japan’s Export-Champ Days Are Left Behind, Chart Shows

  • Japan’s exports stagnated even as Germany, South Korea and the U.S. saw their shipments surpass levels registered from the 2008 credit crisis.
  • The CHART OF THE DAY shows the value of Japan’s exports is 23 percent below a March 2008 peak.
  • On a separate note, consumer prices excluding fresh food rose 3.3 percent from a year earlier after a 3.4 percent gain in May.
  • The increase matched the projection in a Bloomberg News survey of 32 economists.
  • A slowdown in electricity price gains to 9.9 percent from 11.4 percent in the previous month dragged on core inflation.
  • Fresh seafood prices rose 15 percent, and gasoline gained 10.6 percent.

TODAY in HISTORY

  • The United States tested the first underwater atomic bomb at Bikini Atoll (1946)
  • Puerto Rico became a commonwealth of the United States (1952)
  • The world’s first test-tube baby, Louise Joy Brown, was born in Lancashire, England (1978)
  • Soviet cosmonaut Svetlana Savitskaya became the first woman to walk in space(1984)
  • The supersonic airliner Concorde crashed after takeoff outside Paris (2000)

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Fluctuate at the Open amid Facebook, Caterpillar Results

  • The Standard & Poor’s 500 index rose to an all-time high yesterday, as Apple boosted technology companies and health-care shares rallied amid earnings.
  • The S&P 500 has advanced 7.5 % this year amid better-than-estimated corporate results and central-bank support.
  • Profits at S&P 500 members probably rose 6.2 % in the second quarter, while sales gained 3.3 %.
  • The index trades at 18.4 times the reported earnings of its members, the highest since 2010.
  • Facebook jumped 5.2 % after saying second-quarter sales surged 61 %.
  • AT&T dropped 1.3 % as earnings missed forecasts.
  • Caterpillar sank 2 % after forecasting full-year profit that fell short of estimates.
  • Qualcomm declined 6.5 % after forecasting quarterly profit that may trail projections.
  • Global equities advanced today after reports showed euro-area manufacturing and services grew this month while Chinese factory activity rose to an 18-month high in July.

Facebook Posts Second-Quarter Revenue, Profit Topping Estimates

  • Facebook’s revenue surged 61 % in the second quarter, fueled by mobile advertising.
  • Sales rose to $2.91 billion for the period from $1.81 billion a year earlier, topping the average analyst estimate of $2.81 billion.
  • Facebook’s costs and expenses in the quarter increased 22 % to $1.52 billion.
  • Facebook reported profit that more than doubled. Net income rose to $791 million from $333 million a year earlier.
  • Promotions on wireless devices accounted for 62 % of advertising sales. That was up from 59 % in the prior period and from almost nothing at the time of the company’s 2012 IPO.
  • Facebook accounted for 5.8 % of worldwide digital ad revenue in 2013, up from 4.1 % in 2012, according to EMarketer Inc.
  • Digital ad spending worldwide rose 14.8 % to $120 billion last year and is projected to reach $140 billion this year.
  • Facebook said it now has 1.32 billion monthly active users, up from 1.28 billion in the prior quarter, with 654 million using the product daily on mobile phones.
  • Revenue per user was $2.24, up from $2 in the prior quarter and $1.60 a year earlier.

AT&T Misses Earnings Estimates as Customers Shift to Phone Financing

  • The second-largest U.S. wireless carrier said sales rose 1.6 % to $32.6 billion, below the $33.2 billion average estimate.
  • Net income slid to $3.5 billion from $3.8 billion a year earlier.
  • The company added more than 1 million monthly wireless subscribers.
  • That surpassed the 816,000 average of analysts’ estimates, though it fell short of Verizon’s gain of 1.4 million.
  • AT&T’s additions included about 700,000 smartphone subscribers, compared with Verizon’s 304,000 new phone subscriptions. About half of the smartphones AT&T sold were through Next plans.
  • The average monthly wireless-phone bill fell to $62.28 from $67.49 a year earlier.
  • AT&T’s wireless-service profit margin expanded 0.2 percentage point from a year earlier to 42.6 %.
  • In AT&T’s landline video-and-broadband business, called U-verse, the company added 488,000 Internet users and 190,000 video subscribers. That compared with 641,000 U-verse Internet customers and 233,000 TV customers added a year ago.

Union Pacific Profit Meets Estimates as Recovery Spurs Freight

  • Union Pacific posted second-quarter profit that matched analysts’ estimates as an economic rebound drove cargo demand and boosted sales to a record.
  • Net income rose 17 % to $1.3 billion from $1.1 billion a year earlier.
  • Sales increased 10 % to a record $6.02 billion.
  • Union Pacific’s carloads rose 8.2 % during the quarter.
  • Gains were led by shipments of agriculture and general merchandise known as intermodal.
  • It joined CSX and Norfolk Southern in posting record quarterly revenue.

Qualcomm’s Profit Hurt by Dispute over China Royalties

  • Qualcomm shares fell as much as 7 %.
  • Qualcomm’s disclosure signals an escalation of its challenges in China, a market the company has been touting as a main driver of future earnings growth.
  • Qualcomm is in a dispute with a large customer over license revenue, and other customers are under-reporting the amount of phones sold that they should have paid license fees on.
  • Qualcomm predicts industrywide shipments of 1.3 billion 3G and 4G mobile devices in 2014. Of that total, the company estimates that customers will report 1.04 billion to 1.13 billion units as the basis for license revenue calculations, meaning Qualcomm won’t get paid for the technology on as many as 260 million phones this year unless it can solve the disputes and sign up new licensees.
  • Third-quarter net income rose 42 % to $2.24 billion.
  • Sales rose 9 % to $6.81 billion, only the second time quarterly revenue has increased less than 10 % since 2010.

3M Profit Matches Estimates amid Emerging Markets Focus

  • Net income rose 5.8 % to $1.27 billion from $1.2 billion a year earlier.
  • Total sales climbed 4.9 % to a record $8.13 billion as revenue rose across all business lines and geographic regions. Analysts had estimated an average of $8.08 billion.

Caterpillar Sees No Sign of Upturn in Mining Industry

  • Full-year sales and earnings fell short of analysts’ estimates as it said there’s no sign of an upturn in the industry in 2014.
  • Mining companies have cut billions of dollars of capital spending amid surplus commodities production and a drop in prices for coal, iron ore and other metals.
  • Caterpillar said that the industry remains “weak” and order levels are still low.
  • Caterpillar second-quarter sales dropped 3.2 % to $14.2 billion, trailing the $14.5 billion average estimate.
  • Net income rose to $999 million from $960 million a year earlier.

Lilly Profit Beats Estimates on Sales of Diabetes Drug

  • Second-quarter net income fell 39 % to $734 million from $1.21 billion a year earlier.
  • Although revenue overall declined 17 % to $4.9 billion, Humalog sales jumped 11 % to $700.1 million, compared to analyst estimates of $682.7 million.
  • Revenue for the antidepressant Cymbalta were $401.3 million in the quarter, beating estimates of $388.5 million.
  • In December, Lilly lost exclusive marketing rights for the antidepressant Cymbalta, which had $5.08 billion in 2013 sales and is projected to sell $1.51 billion this year.

Bristol-Myers Tops Earnings Estimates on Drug Sales

  • Net income for the quarter fell 37 % to $333 million from $536 million a year earlier.

Ford Profit Tops Estimates Europe Delivers Surprise Gain

  • The second-largest U.S. automaker posted profit that topped analysts’ estimates as sales in China increased and the company reported its first profit in Europe in three years.
  • Ford sales in China soared 35 % in the year’s first half to a record 549,256 vehicles, while deliveries rose 6.6 % in Europe. Ford reported its 21st consecutive profitable period, with net income of $1.3 billion compared with $1.23 billion a year earlier.
  • Ford earned $42.3 billion in the last five years after losing $30.1 billion from 2006 to 2008.
  • The company’s operating margin in North America improved to 11.6 %, from 10.6 % a year ago.
  • Revenue was $37.4 billion compared with $37.9 billion a year ago.

GM’s profit falls on recall costs, victims’ compensation fund

  • GM reported a much lower second-quarter profit due to numerous recalls and the expected cost of at least $400 million for a compensation fund for those killed or injured by a defective ignition switch linked to at least 13 deaths.
  • GM’s revenue rose to $39.6 billion from $39.1 billion a year earlier, missing the $40.6 billion average estimate of six analysts.
  • Net income fell to $278 million from $1.4 billion during the same quarter a year earlier.

American Airlines declares first dividend since 1980 as profit rises

  • The carrier reported net income rose to $864 million from $220 million a year earlier, when the company was not merged.

 

US ECONOMY & POLITICS

Jobless Claims in U.S. Unexpectedly Drop to Eight-Year Low

  • Jobless claims fell by 19,000 to 284,000, the fewest since February 2006 and lower than any economist surveyed by Bloomberg forecast.
  • The four-week average of jobless claims, considered a less volatile measure than the weekly figure, decreased to 302,000, the lowest since May 2007, from 309,250 in the prior week.
  • The number of people continuing to receive jobless benefits declined by 8,000 to 2.5 million, the fewest since June 2007.

U.S. factory activity expands in July: Markit

  • Markit’s preliminary U.S. Manufacturing Purchasing Managers Index (PMI) was 56.3 in July, down from the June reading of 57.3 and below analyst expectations for a reading of 57.5.
  • The output subindex dipped slightly, to 60.4 from 61 in June.

Sales of U.S. New Homes Fell in June after Large Revision

  • Sales of newly built homes declined 8.1 % to a 406,000 annualized pace, the fewest since March and less than any economist surveyed by Bloomberg.
  • The median price of a new home increased 5.3 % last month from a year ago to $273,500.
  • Sales of new properties, which are tallied when purchase contracts are signed, are considered a more timely measure of the market than sales of previously owned dwellings, which are counted when a sale is final.

 

EUROPE & WORLD

Global economy starts second half on solid footing: PMIs

  • China’s factory activity expanded at its fastest in 18 months.
  • HSBC/Markit Flash China Manufacturing Purchasing Managers’ Index (PMI) suggested that government stimulus was working.
  • It rose to 52 in July from 50.7 in June, and beating the consensus forecast of 51 in a Reuters poll.

Euro zone business on solid footing in July but firms cut prices – PMI

  • Markit’s Composite Purchasing Managers’ Index (PMI) rose to 54.0 in July from 52.8, its highest since April.
  • Europe PMI is based on surveys of thousands of companies across the region and a good early indicator of overall growth.
  • Factory activity strengthened in Germany and contracted at the fastest pace this year in France.

 

TODAY in HISTORY

  • Brigham Young and the first members of the Church of Jesus Christ of Latter Day Saints (Mormons) arrived at the Great Salt Lake (1847)
  • Tennessee became the first Confederate state to be readmitted to the Union (1866)
  • The U.S. Supreme Court unanimously ruled that President Richard Nixon had to turn over White House tapes to the Watergate special prosecutor (1974)

 

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Fluctuate at the Open amid Earnings Data From Microsoft, Boeing

  • Microsoft was little changed after fourth-quarter revenue beat estimates.
  • Apple rose 2 %.
  • Boeing sank 2.2 % after taking a charge related to a military tanker.
  • PepsiCo climbed 4.1 %. The softdrink maker reported better-than-projected profit and raised its annual forecast after reducing costs.
  • Whirlpool sank 4.2 %. The appliance maker cut its full-year profit forecast after second-quarter results fell short of analysts’ targets.
  • Biogen jumped 12 %. The world’s biggest maker of multiple sclerosis drugs raised its 2014 profit forecast after quarterly results beat forecasts.
  • The S&P 500 rose yesterday after inflation data signaled the Federal Reserve won’t be compelled to raise interest rates in the near future and earnings reports boosted optimism about the economy.
  • Profits at S&P 500 members probably rose 6.2 % in the second quarter, while sales gained 3.3 %.

Boeing Falls Most in Dow as Tanker Cost Stirs Concern

  • The $272 million after-tax expense for the military jet KC-46A overshadowed Boeing’s increase in its full-year profit forecast.
  • Second-quarter earnings also beat analysts’ estimates today, buoyed by faster production that is sending jetliner deliveries to record levels.
  • The company handed over 181 commercial jets to customers last quarter, the most ever.
  • Sales increased 1 % to $22 billion, trailing the $23 billion projected by analysts.
  • Revenue in the commercial business rose 5 % to $14.3 billion and slid 5.4 % to $7.75 billion in Boeing’s defense operations as the U.S. government pares military spending.
  • Net income jumped 52 % to $1.65 billion from $1.09 billion a year earlier.
  • While Boeing still loses money on every Dreamliner it assembles, losses are shrinking as it smoothes out production kinks and takes advantage of supplier discounts that took effect earlier this year.

Apple Posts Second Straight Profit Gain as IPhone Sales Jump

  • Apple said quarterly profit rose 12 % to $7.75 billion, with a jump in iPhone and Mac sales helping to make up for a drop in iPad demand.
  • Apple sold 35.2 million iPhones and 4.4 million Macs, up 13 % and 18 % respectively.
  • That helped boost revenue by 6 % to $37.4 billion.
  • IPad sales fell for the second straight quarter to 13.3 million from 14.6 million a year earlier.
  • Revenue surged 28 % in greater China despite intense competition.
  • The results were mostly in line with analysts’ estimates.
  • Gross margins were better than expected at 39.4 %, up from 36.9 %.
  • Apple is also approaching one of its most critical product rollouts in years.
  • IPhone sales alone totaled $91.3 billion last year, more than the revenue of Google, Facebook, Twitter, LinkedIn and Tesla Motors combined.
  • Apple had $164.5 billion in cash and investments at the end of last quarter, with all but $27 billion held outside the U.S. International sales accounted for 59 % of the company’s revenue last quarter.

Microsoft’s Quarterly Profit Hurt by Nokia Acquisition

  • Microsoft reported a greater-then-expected 17 % jump in revenue but its profit fell 7 %.
  • Net income was $4.61 billion. That compared with $4.96 billion in the year-ago quarter.
  • Overall quarterly revenue rose 17 % to $23.38 billion, above analysts’ average estimate of $23 billion, mainly because of additional sales from Nokia.
  • Microsoft is struggling to cut costs at Nokia after it completed its 5.44 billion euros ($7.33 billion) acquisition of the mobile-phone operations in April.

Norfolk Southern posts better-than-expected profit

  • Norfolk Southern, which joins other U.S. and Canadian railroads in reporting strong quarterly results, said overall volume rose 8 % as shipments of building materials, metals and coal all rose.
  • Coal volumes, which had been declining due to the growing availablity of cheap shale gas, rose 3 % as rising gas prices encouraged utilities to switch back.
  • Volumes in company’s intermodal business rose 11 %.
  • Net income rose about 21 %, to $562 million from $465 million a year earlier.
  • Railway operating revenue rose 8.6 % to $3.04 billion.

Whirlpool cuts outlook as sales outside North America fall

  • The company also cut its full-year earnings outlook, citing expenses from two pending acquisitions.
  • The company posted second-quarter earnings of $179 million, down from $198 million a year earlier.
  • Whirlpool said it had sold $4.7 billion in goods during the quarter, unchanged from a year earlier.

Biogen Raises Forecast After Profit Beats Estimates

  • The world’s biggest maker of multiple sclerosis drugs said that second-quarter net income rose 46 % to $714.5 million from $490.7 million a year earlier.
  • Revenue jumped 40 % to $2.4 billion.
  • Sales of Tecfidera more than tripled to $700 million in the quarter from a year earlier, exceeding the analysts’ average estimate of $555.7 million.

Dow Chemical profit beats due to higher prices, lower costs

  • Dow Chemical reported a better-than-expected quarterly profit as sales rose and margins improved due to higher prices and a tight control on costs.
  • Dow plans to raise as much as $6 billion from non-core asset sales by the end of 2015 and has put its epoxy business and some chlorine and derivatives assets up for sale.
  • Rival DuPont and a number of other chemical makers are facing increasing investor pressure to divest volatile businesses and return more money to shareholders.
  • Revenue rose 2 % to $14.92 billion, slightly above the average analysts’ estimate of $14.82 billion.

Delta Air quarterly profit rises, aided by U.S. demand

  • Second quarter net income was $801 million compared with $685 million a year earlier.
  • Revenue rose 9 % to $10.62 billion, compared with $10.65 billion expected by analysts.

PepsiCo raises profit forecast as North America snack sales rise

  • The company said organic revenue grew 5 % in its global snacks business, partly due to price hikes.
  • Snack volumes in North America grew 2.5 %, but soda volumes fell 2 %, as health-conscious consumers favored juices and health drinks.
  • PepsiCo’s net income fell 2 % to $1.98 billion from $2.01 billion a year earlier.
  • Revenue rose 0.5 % to $16.89 billion.

 

US ECONOMY & POLITICS

U.S. mortgage applications rise in latest week: MBA

  • The Mortgage Bankers Association (MBA) said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 2.4 % in the week ended July 18.
  • Fixed 30-year mortgage rates averaged 4.33 % in the week, unchanged from the week before.

 

EUROPE & WORLD

TransAsia Airways plane crashes in typhoon-hit Taiwan, killing 47

  • A domestic TransAsia Airways plane crashed on landing on an island off the west coast of typhoon-hit Taiwan.
  • The plane, a 70-seat turboprop ATR 72, crashed near the runway with 54 passengers and four crew on board, the Civil Aeronautics Administration said.

EU Regulators Propose 30% Energy-Savings Target for 2030

  • The EU is currently forecast to boost energy efficiency by 18 % to 19 % by 2020.

Israel Says Offensive to Continue as Kerry Seeks Truce

  • Israel doesn’t plan to stop its Gaza Strip offensive as long as the Palestinian territory’s Hamas rulers continue to pose a threat.
  • Sixteen days of violence have claimed the lives of almost 700 people, including hundreds of Palestinian civilians.
  • Millions of Israeli civilians have been menaced by rocket fire.

Two Ukraine Fighter Jets Downed by Rebels near MH17 Site

  • Rebels downed two Su-25 fighters in the Donetsk region, Defense Ministry spokesman said.
  • They were hit from a missile-defense system over the village of Dmytrivka.
  • The pilots ejected and their whereabouts are unknown, the ministry said on Facebook.

OPEC’s Two-Decade Ride on Global Growth Stalls: Chart of the Day

  • For the past two decades, growth in the global economy spelled higher revenues for the OPEC.
  • Production among OPEC’s 12 members fell 2.5 % to average 31.6 million barrels a day last year.
  • Libya’s output slumped 31 % amid political protests at oilfields and export terminals.
  • Output from Iran, whose exports are subject to international sanctions, fell by 4.4 %.
  • The average price of Brent futures fell 2.7 % to $108.70 a barrel in 2013.

isoEYhWXPcZU

 

TODAY in HISTORY

  • William Burt patented a forerunner of the typewriter (1829)
  • Austria and Hungary issued an ultimatum to Serbia after the assassination of Archduke Ferdinand, precipitating World War I (1914)
  • Revolution erupted in Egypt as the military took power in a bloodless coup. The following year the monarchy was abolished and, for the first time since the pharaohs, Egypt was again ruled by Egyptians (1952)

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Rise on Inflation, Home Data amid Earnings

  • Chipotle jumped 12 % after reporting earnings and sales that beat projections.
  • Comcast added 1.8 % after profit topped estimates on higher revenue from Internet customers.
  • DuPont slid 1 % after the U.S. chemicals producer posted lower-than-estimated revenue after some farmers switched to genetically modified soybeans from corn.
  • McDonald’s fell 2.4 % after profit fell short of analysts’ estimates.
  • Coca-Cola dropped 3 % after the world’s largest beverage company reported second-quarter sales that missed analysts’ estimates amid sluggish demand for drinks such as juice and Diet Coke in North America.
  • Travelers dropped 4.3 % as earnings slid 26 %.
  • Data today showed the consumer price index (CPI) increased 0.3 % in June, paced by a jump in gasoline that is now reversing.
  • The S&P 500 advanced almost 6.8 % this year through yesterday amid better-than-estimated corporate earnings and central bank stimulus.

Comcast Profit Tops Estimates with Web Customer Sign-Ups

  • Comcast’s second-quarter net income rose 15 % to $1.99 billion, up from $1.73 billion a year ago.
  • Revenue increased 3.5 % to $16.8 billion, while analysts estimated almost $17 billion.
  • The average customer bill rose to $137.24 a month. More than a third of Comcast’s customers subscribe to all three services: Internet, voice and video.
  • The Philadelphia-based company added 203,000 broadband customers, more than the 159,000 analysts estimated.
  • The company lost 144,000 TV subscribers in a seasonally weak period when college students typically disconnect their TV service for summer vacation.
  • Sales at Comcast’s NBCUniversal group were little changed at about $6 billion, as NBC became the most-watched broadcast network in prime time among 18- to 49-year-olds.

Verizon Beats Earnings Estimates on Stronger User Gains

  • The largest U.S. wireless carrier exceeded profit estimates on stronger customer gains even as T-Mobile brought more promotions and price cuts to the industry.
  • Sales climbed 5.7 % to $31.5 billion, the New York-based company said. Analysts had estimated $31.1 billion in sales.
  • Verizon added 1.4 million contract customers, an improvement from 941,000 a year earlier.
  • The company said it added 100,000 FiOS video customers and 139,000 net new FiOS Internet connections in the quarter.
  • Tablet sales and a shift to phone-financing offers that give customers quicker device-upgrade and trade-in options have helped offset increased competition.
  • The average size of customers’ monthly bills grew 4.7 % to $159.73.
  • Verizon’s wireless service margins expanded to 50.3 %.

DuPont Sees Profit up at Most Units amid Peltz Pressure

  • Second-quarter net income roseto $1.07 billion from $1.03 billion a year earlier.
  • Sales dropped 1.4 % to $9.71 billion, missing the $9.77 billion average prediction.
  • DuPont plans to eliminate $1 billion in annual costs by 2019.
  • DuPont reiterated its full-year operating earnings forecast of $4 to $4.10 a share. The company lowered its guidance in June, citing disappointing agriculture sales.

Lockheed’s Second-Quarter Profit Beats Analyst Estimates

  • The largest U.S. government contractor topped analysts’ estimates for second-quarter profit and sales on the strength of its aircraft division.
  • Net income rose 3.5 % to $889 million from $859 million a year earlier, in part due to lower pension costs.
  • Lockheed also boosted its full-year profit outlook.
  • The maker of the F-35 jet said that sales declined less than 1 % in the quarter to $11.3 billion, but beat the average $11.1 billion estimate of 17 analysts surveyed by Bloomberg.
  • Federal budget reductions contributed to the fourth consecutive annual decline in U.S. government contracting last year, the longest stretch since Ronald Reagan was president.
  • The performance of Lockheed’s largest division, aeronautics, provided a buffer in the second quarter. The unit’s sales jumped 13 % to $3.86 billion, helped by the F-35.

Altria Profit Trails Estimates on Lower Cigarette Shipments

  • The largest seller of tobacco in the U.S. reported second-quarter net income of $1.26 billion, down from $1.27 billion a year earlier.
  • Revenue rose about 1 % to $4.57 billion. Analysts projected $4.59 billion on average.

Coca-Cola Misses Sales Estimates amid Juice and Diet Coke Slide

  • Revenue fell 1.4 % to $12.6 billion. Analysts had estimated $12.8 billion on average.
  • Global juice sales volume declined 1 %, hurt by price increases in North America to offset higher ingredient costs.
  • Gross margin in the quarter rose to 61.7 % from 60.9 % a year ago.
  • Net income fell 3 % to $2.6 billion from $2.68 billion a year earlier.

McDonald’s Profit Trails Estimates as Sales Slump Persists

  • The largest restaurant chain by sales posted second-quarter net income that fell less than 1 % to $1.39 billion from $1.4 billion a year earlier.
  • Revenue rose 1.4 % to $7.18 billion, trailing the estimate for $7.29 billion.
  • McDonald’s U.S. business faces a crowded field and last year it added many new items, slowing down its kitchens.
  • Competitors such as Taco Bell, Wendy’s, and Burger King also are selling more new fare that’s attracting Americans.
  • McDonald’s U.S. same-store sales fell 1.5 %.
  • McDonald’s has more than 35,400 restaurants worldwide and about 19 % are owned by the company. By 2016, the chain is seeking to franchise as many as 1,500 of its company-owned stores, primarily overseas.

Chipotle traffic jumps even after price increase

  • Chipotle Mexican Grill reported a nearly 26 % jump in quarterly profit after traffic to the burrito chain surged despite a menu price increase.
  • Net income grew to $110.3 million from $87.9 million a year earlier.
  • Revenue increased almost 29 % to $1.05 billion during the quarter.
  • Sales at restaurants open at least 13 months, a closely watched gauge of industry performance, increased 17.3 % for the quarter, blowing past 23 analysts’ average estimate for a gain of 10.5 %.
  • Chipotle reported a 13.4 % same-restaurant sales rise for the first quarter.
  • Chipotle has more than 1,600 stores with 45,000 employees.

Netflix profit more than doubles

  • The company’s profit rose to $71 million for the second quarter from $29.5 million a year earlier.
  • Revenue rose 25 % to $1.34 billion from $1.07 billion.
  • Netflix added 570,000 new domestic streaming customers in the quarter and brought the U.S. total to 36.2 million.
  • International customers rose by 1.12 million to 13.8 million.
  • It now exceeds 50 million subscribers.
  • Viewers have reacted positively to shows like “House of Cards” and “Orange is the New Black”.
  • Last year, the company’s original programming was nominated for 14 Emmy TV awards, winning three, and this year its programming garnered a record 31 nominations.
  • Netflix has sought to upend the television industry by commissioning original content for its streaming-video platform and taking on established brands like HBO.
  • At the end of 2013, HBO and its sister channel Cinemax had about 127 million subscribers globally, including 43 million in the U.S. and 84 million overseas, parent Time Warner said in Feb. 26 regulatory filing.

iR2wESEHFpzU

Apple asks suppliers to produce up to 80 million large-screen iPhones: WSJ

  • Apple has asked suppliers to manufacture between 70 million and 80 million of its two forthcoming large-screen iPhones by the end of the year.
  • Foxconn and Pegatron plan to start mass producing the 4.7-inch iPhone model next month, and Hon Hai Precision Industry, whose parent is Foxconn, will begin making the 5.5-inch version exclusively in September, the people said.

 

US ECONOMY & POLITICS

Consumer Prices in U.S. Climb on Jump in Gasoline Costs

  • The consumer price index (CPI) increased 0.3 %.
  • The core measure, which excludes volatile food and fuel costs, increased 0.1 %, less than projected.
  • Consumer prices rose 2.1 % in the 12 months ended June.
  • The core measure climbed 1.9 %.
  • Gasoline costs jumped 3.3 %, the biggest gain since June 2013, accounting for two-thirds of the increase in total prices, today’s report showed.
  • The average cost of regular gasoline has been falling, reaching $3.57 a gallon on July 20 after being as high as $3.68 on June 25.

Previously Owned U.S. Home Sales Rise to Eight-Month High

  • Sales increased 2.6 % to a 5.04 million annual rate last month.
  • The median forecast of 78 economists surveyed by Bloomberg projected sales would rise to a 4.99 million rate.
  • The median price of an existing home increased 4.3 % to $223,300 in June from $214,000 a year before.
  • The number of existing properties on the market rose 6.5 % to 2.3 million in June from a month earlier, the most since August 2012.
  • First-time buyers accounted for 28 % of all purchases in June, up from 27 % a month earlier.

 

EUROPE & WORLD

Saudi to Open $531 Billion Stock Market to Foreigners

  • The oil-producing kingdom whose stock market has been off-limits to outsiders will allow foreign investors to buy and sell shares next year as it seeks to lure capital to the $745 billion economy.
  • The government pursues a $130 billion spending plan to boost non-energy industries.
  • Saudi Arabia is the biggest stock market outside China, where domestic shares are excluded from MSCI’s global gauges because of limits on foreign investors.

 

TODAY in HISTORY

  • Cleveland, Ohio, was founded by Gen. Moses Cleaveland (1796)
  • Wiley Post became the first person to fly solo around the world (1933)
  • Prince George of Cambridge is born. He is the first child of Prince William, Duke of Cambridge, and Catherine, Duchess of Cambridge (2013)

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

US FINANCIAL MARKET

U.S. Stocks Fall at the Open amid Earnings, Mounting Global Tensions

  • Geopolitical tensions kept investors on the sidelines before major companies report earnings.
  • Reynolds American dropped 1.7 percent after a jury ordered a unit of the company to pay a Florida woman $23 billion for her husband’s death from lung cancer.
  • Halliburton gained 1.5 percent after reporting that second-quarter revenue topped estimates.
  • EMC rallied 4.3 percent to $28.13 after the Wall Street Journal reported that Elliott Management bought a stake in the maker of storage computers for more than $1 billion.
  • The S&P 500 rallied 1 percent on July 18, rebounding from its biggest loss since April 10 that came after the downing of a Malaysian Airlines passenger jet in Ukraine and the Israeli ground invasion of the Gaza Strip.
  • European Union foreign ministers meeting in Brussels tomorrow will consider tougher sanctions on Russian individuals and companies.
  • About 76 percent of S&P 500 companies that have posted results this season have beaten analysts’ estimates for profit, while 68 percent exceeded sales projections so far.

Reynolds Must Pay $23 Billion Smoker Verdict Likely to be Cut

  • A Reynolds American unit was ordered by a Florida jury to pay a Pensacola woman $23 billion in punitive damages for her husband’s death from lung cancer, her lawyer said.
  • Since a Florida Supreme Court decision in 2006, individual plaintiffs in the state have been awarded large verdicts, with most of those being reduced on appeal.

Gilead Drug Combination Cures Hepatitis C in HIV Patients

  • In a study of 223 HIV-infected patients, Gilead Sciences’ Solvadi cleared the most common U.S. strain of hepatitis C in 76 percent of newly treated patients over 24 weeks.
  • Only seven participants stopped treatment because of side effects and there were no adverse effects on HIV treatment.
  • The high cost of Sovaldi has come under scrutiny from U.S. lawmakers and U.K. regulators.
  • The 12-week course of treatment would be $94,500 and the 24-week course $189,000, according to Saag’s editorial.

Google May Transform NYC Pay Phones Into Wi-Fi Hot Spots

  • Google is among several technology companies considering a plan that uses pay-phone locations to give New Yorkers free wireless Internet access.
  • There are more than 7,300 pay phones in the city.

Yum and McDonald’s apologize as new China food scandal brews

  • Chinese regulators shut a local meat supplier following a TV report that showed workers picking up meat from a factory floor, as well as mixing meat beyond its expiration date with fresh meat.
  • The firms said they’ll stop using the supplier.

Halliburton sees North America margin growth on rise in drilling

  • The world’s No.2 oilfield services provider expects higher margins in North America due to strong drilling activity and is signaling an industry-wide recovery in the region after a two-year slump.
  • Halliburton said that it expects North America margins to touch 20 percent in the third quarter.
  • Its margins in the region rose 2.8 percentage points to 18.2 percent in the second quarter, and were higher than Baker Hughes’ 12 percent and Schlumberger’s 18 percent for the same period, according to analysts.
  • Net income rose 20 percent to $774 million in the quarter, meeting Wall Street’s expectations.
  • Revenue rose 10 percent to $8.05 billion, beating the average analyst estimate of $7.88 billion

Tiffany CEO Kowalski to retire, president Cumenal to take over

  • Kowalski, 62, has been with Tiffany for over three decades. He became chief executive in 1999 and assumed the role of board chairman in 2003.

CBS Outdoor buys Van Wagner billboard unit for $690 million

  • Van Wagner Communications has outdoor advertising in New York’s Times Square and buses on the Las Vegas strip.
  • CBS Outdoor has customers include Apple, McDonald’s, and Sony and went public in late March after it was spun off from CBS.

Tesco ditches CEO for Unilever man after profit warning

  • Clarke, who has spent more than 1 billion pounds ($1.7 billion) on a failed recovery plan in Tesco’s main home market, will be succeeded on Oct. 1 by Dave Lewis.
  • The darling of the retail sector during two decades of uninterrupted earnings growth, Tesco started losing ground in the UK in the final years of long-standing CEO Terry Leahy’s tenure.

US ECONOMY & POLITICS

NABE survey points to rising U.S. wage pressures

  • The National Association for Business Economics’ (NABE) latest business conditions survey found that 43 percent of the 79 economists who participated said their firms had increased wages.
  • That compared to only 19 percent last year and marked an increase from 35 percent in the three months to April.
  • It was the first time since October 2012 that no respondents reported declining wages at their firms.
  • The share of businesses increasing employment jumped to 36 percent in the July quarter from 29 percent a year ago. That was up from 28 percent in the April quarter.

EUROPE & WORLD

Putin Says MH17 Crash Shouldn’t Be Used for Politics

  • As leaders from London to Washington signaled Putin risks becoming a pariah, the Russian leader suggested they were playing politics.
  • A total of 282 bodies have been found, the Ukrainian government said today.
  • Putin again blamed the downing of the plane on the Ukraine conflict and said that international investigators should have full access to the wreckage. Russia will “do everything it can” to seek a negotiated settlement of the Ukraine conflict, he said.

TODAY in HISTORY

  • The first train robbery west of the Mississippi was pulled off by Jesse James and his gang (1873)
  • The U.S. Senate ratified the North Atlantic Treaty (1949)
  • WorldCom filed for bankruptcy, the largest bankruptcy in U.S. history (2002)

 This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

 Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

 

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Advance at the Open on Google While Bonds Fall With Gold

  • Google posted revenue that exceeded analysts’ estimates.
  • GE slipped 0.9 percent as profit matched estimates and the company moved forward with an IPO of its Synchrony Financial.
  • IBM fell after saying revenue dropped for a ninth quarter.
  • AbbVie was little changed after agreeing to buy Shire.
  • The S&P 500 had its biggest drop since April 10 as concern about the implications of escalating tension in Ukraine and the Middle East.
  • Malaysian Airlines jet went down over eastern Ukraine, killing all 298 people on board.
  • Israel began a ground operation in Gaza.
  • The Thomson Reuters/University of Michigan preliminary July index of consumer sentiment decreased to 81.3 from 82.5 the prior month.
  • Treasury 10-year yields climbed to 2.47 percent.
  • Gold, which climbed 1.3 percent yesterday for the biggest advance in four weeks.

Google Sales Top Estimates on Robust Ad Demand

  • Revenue was $12.7 billion. That topped the average projection of analysts for $12.3 billion.
  • Net income rose to $3.42 billion from $3.23 billion a year earlier.
  • The average price for an ad declined 6 percent as smartphones encourage users to bypass Google’s search services and instead go directly to applications to find information.
  • The number of clicks on ads on YouTube, search and other Google sites increased 33 percent in the latest quarter, making up for a decline in ad prices.
  • In the mobile-ad market, prices on smartphones were 57 percent lower than those on desktop computers.
  • Google’s operating expenses, other than the cost of revenue, climbed 25 percent during the quarter to $5.58 billion.
  • The company ramped up hiring during the quarter, adding more than 2,000 employees, pushing headcount to more than 52,000.

GE Profit Matches Estimates as Synchrony IPO Set for July

  • Profit climbed 8 percent from a year earlier to $3.9 billion.
  • Quarterly revenue rose to $36.23 billion, up 3.4 percent from a year ago. Analysts estimated sales of $36.3 billion.
  • GE’s profit margin for its industrial businesses, a closely watched barometer by Wall Street, expanded 0.2 percentage point to 15.5 percent.
  • GE’s backlog of equipment and services rose in every segment, up 10 percent overall, to a total of $246 billion.

IBM’s Nine-Quarter Sales Slump Overshadows Cloud Growth

  • Second-quarter revenue dropped 2 percent from a year earlier to $24.4 billion.
  • Net income climbed to $4.1 billion from $3.2 billion a year earlier.
  • IBM’s contract signings for services — an indicator of expected future revenue — fell 33 percent from a year earlier to $11 billion.
  • IBM ended the quarter with $9.7 billion in cash on hand, little changed from the last quarter.

Kansas City Southern revenue beats on grain, automobile shipments

  • Total revenue rose 12 percent to $649.7 million. Analysts had expected revenue of $645.1 million.
  • Net income jumped to $129.8 million from $15.4 million a year earlier. The year-ago quarter included debt retirement costs of $111.4 million.
  • Revenue from grain shipments rose 33 percent while it increased 25 percent in automotive.
  • KSU operates on a unique, north-south route in central U.S. and derives half of its annual revenue from cross-border business with Mexico.
  • Exports from the United States to Mexico rose 6 percent in the first five months of 2014 while imports increased 3 percent.

Honeywell Tops Profit Estimates on Factory-Gear Demand

  • Honeywell beat analysts’ second-quarter profit estimates, boosted by rising demand for factory automation equipment, and raised the lower end of its full-year forecast.
  • Honeywell is benefiting from U.S. industrial output that expanded at a 5.5 percent annual rate last quarter.
  • The company also is tapping an energy boom in the U.S. on increasing hydraulic fracturing, or fracking, for oil and gas in shale formations.
  • Sales rose 5.8 percent to $10.25 billion, beating the $10.18 billion average estimate.

Johnson Controls revenue rises on higher demand from China

  • Johnson Controls reported a 3 percent rise in quarterly revenue, as demand rose for its car seats.
  • Demand in Johnson Controls’ automotive business, its largest was driven mainly by China, which contributed about 32 percent to the division’s third-quarter revenue of $5.7 billion.
  • Total revenue rose to $10.8 billion from $10.5 billion, a year earlier.

Rebounding North America boosts Schlumberger revenue

  • Schlumberger, the world’s largest oilfield services company, reported better-than-expected second quarter revenue as drilling activity picked up in North America.
  • North America revenue jumped 16 percent to $3.89 billion from a year earlier.
  • Schlumberger has the lowest exposure to North America among the big four oilfield service providers, which include Halliburton and Baker Hughes.
  • International markets brought in about two-thirds of Schlumberger’s quarterly revenue.
  • Total revenue rose 8 percent to $12.05 billion.
  • Net income fell by nearly a quarter to about $1.60 billion from $2.10 billion. The company recorded $205 million settlement charges.

Amazon Starts $9.99-a-Month Service for Unlimited E-Books

  • Amazon introduced a $9.99-a-month service for unlimited Kindle e-book downloads.
  • Kindle Unlimited includes more than 600,000 Kindle books and thousands of audiobooks from Audible.

AbbVie to Buy Shire for $54.8 Billion in Tax Inversion

  • Shire holders will receive cash and stock valued at 52.48 pounds a share.
  • The price is 53 percent above Shire’s closing level on May 2, before AbbVie made its first takeover proposal.
  • AbbVie becomes the latest U.S. health company to move abroad amid a record period of pharmaceutical deals.

US ECONOMY & POLITICS

Leading Economic Indicators Index in U.S. Increased 0.3% in June

  • The Conference Board’s gauge, a measure of the outlook for the next three to six months, increased 0.3 percent after a revised gain of 0.7 percent in May.
  • The median forecast of 49 economists surveyed by Bloomberg called for a 0.5 percent advance.

U.S. consumer sentiment dips in preliminary July reading

  • The Thomson Reuters/University of Michigan’s preliminary July reading on the overall index on consumer sentiment came in at 81.3, below both the consensus analyst expectation of 83 and the final June read of 82.5.
  • The survey’s barometer of current economic conditions rose to 97.1 from 96.6, compared with a forecast of 97.0.
  • The survey’s gauge of consumer expectations slipped for a third straight month, to 71.1 from 73.5. The subindex was below an expected 74.0.

EUROPE & WORLD

Russian-Made Missile Hit Malaysian Jet, U.S. Officials Say

  • A Russian-made air-defense missile appears to have hit the Malaysian Airline plane that crashed in Ukraine, according to U.S. military and intelligence officials.
  • Evidence so far indicates that the plane was struck by a weapons system known as the SA-11 or Buk, according to four officials.
  • It’s not clear who fired the missile at the airliner.

Netanyahu Orders Military to Ready Wider Gaza Incursion

  • Israeli soldiers, backed by tanks, heavy artillery, aircraft and warships, moved into the Hamas-controlled enclave late yesterday after 2,100 air strikes over 10 days failed to quash barrages of rockets fired from Gaza at Israel.
  • More than 260 Palestinians, including dozens of children, and two Israelis have been killed since fighting intensified last week.

TODAY in HISTORY

  • A great fire began that ultimately destroyed most of Rome. The emperor Nero blamed it on Christians and began the first Roman persecution of them (64)
  • President Harry S. Truman signed the Presidential Succession Act (1947)
  • 14-year-old Romanian gymnast Nadia Comaneci earned the first perfect score, a ten, at the Olympics and went on to score six more tens and win three gold medals (1976)

 

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

 Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements.  Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed.  Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial.  Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success.  Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.

 

All Financial Consultants at Pence Wealth Management are Registered Representatives with, and securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC. Financial Planning offered through Pence Wealth Management, a Registered Investment Advisor and separate entity from LPL Financial. The LPL Financial representative associated with this website may only discuss and/or transact securities business with residents of the following states: Alaska (AK), Alabama (AL), Arkansas (AR), Arizona (AZ), California (CA), Colorado (CO), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Kansas (KS), Louisiana (LA), Massachusetts (MA), Michigan (MI), Minnesota (MN), Missouri (MO), North Carolina (NC), New Hampshire (NH), New Jersey (NJ), New Mexico (NM),

Nevada (NV), New York (NY), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), Texas (TX), Utah (UT), Virginia (VA), Washington (WA),

Wyoming (WY), Washington (DC)

Laila Marshall-Pence CA Insurance Lic# 0545421