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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.

 

Pence Wealth Management Financial Markets Reports

US FINANCIAL MARKET

U.S. Stocks Fluctuate as Microsoft Gain Offsets Sanctions

  • U.S. stocks fluctuated, after the Dow Jones Industrial Average closed at a record yesterday.
  • Microsoft gained 3 % after saying it will eliminate as many as 18,000 jobs.
  • UnitedHealth jumped 2.2 % as earnings topped forecasts.
  • SanDisk dropped 11 % after posting profit margins and sales forecasts that fell short of some analysts’ estimates.
  • The U.S. and European Union said more sanctions against Russia may follow after the most punitive sanctions so far over the unrest in Ukraine.
  • The U.S. Housing starts fell 9.3 % to an 893,000 annualized rate from a 985,000 pace in May that was weaker than initially estimated.
  • The Federal Reserve Bank of Philadelphia’s factory index increased to 23.9 in July. Readings greater than zero signal growth.

Microsoft Eliminating 18,000 Jobs as Nadella Streamlines

  • The restructuring, amounting to about 14 % of its workforce, includes 12,500 Nokia factory and professional positions.
  • The reductions will result in a pretax charge of $1.1 billion to $1.6 billion.
  • Microsoft will also shift the Nokia X, which uses Google’s Android, to the Windows Phone operating system in order to broaden its products in the cheaper smartphone category.

EBay Reports Second Quarter Results

  • Revenue increased 13% to $4.4 billion.
  • Earnings increased 9 % to $676 million.
  • PayPal net total payment volume grew 29% with Merchant Services volume up 35% and on-eBay volume up 13%.
  • PayPal’s revenue grew to $1.9 billion.
  • PayPal gained 4.0 million new active registered accounts to end the quarter at 152 million, up 15%.

PPG Reports Record Second Quarter Net Sales and Earnings

  • Second quarter net sales was $4.1 billion, up 5 % versus prior year, slightly below estimate.
  • Net income was $393 million, slightly above estimate.

Grainger Reports Results for the 2014 Second Quarter

  • Sales increased 5 % to $2.5 billion.
  • Operating earnings decreased 3 % to $341 million.
  • Both numbers were below average estimate.
  • The company’s gross profit margin for the quarter decreased 0.9 percentage point versus the prior year to 43.1 %.

Morgan Stanley profit more than doubles, beating estimates

  • Net income rose to $1.86 billion from $803 million.
  • Revenue rose 1 % to $8.61 billion.

Philip Morris Earnings Top Estimates on European Sales

  • The world’s largest publicly traded tobacco company’s net income fell 13 % to $1.85 billion from $2.12 billion a year earlier.
  • Revenue fell 1.5 % to $7.8 billion. That exceeded analysts’ $7.53 billion average estimate.

Danaher Reports Record Second Quarter 2014 Results

  • Net earnings increased 9% to $676.4 million, missed average estimate.
  • Revenues increased 5% to $5 billion, which also missed average estimate.

Yum Brands Profit Trails Some Estimates on Pizza Hut

  • Net income rose 19 % to $334 million from $281 million a year earlier.
  • Revenue gained 10 % to $3.2 billion, missing the $3.24 billion average estimate.

Boeing Buoyed at Show with $46 Billion in Day-Three Sales

  • Boeing escaped Airbus’s shadow on the third day of the Farnborough Air Show as an agreement to sell new 777X jets to Qatar Airways drove a $46 billion haul of orders and options.
  • The agreement nudged Boeing ahead of Airbus in announced sales at the biggest aviation expo, with about $63 billion to the European planemaker’s $61 billion.

 

US ECONOMY & POLITICS

Construction of New U.S. Homes Declines on Plunge in South

  • Housing starts fell 9.3 % to an 893,000 annualized rate from a 985,000 pace in May.
  • Construction slumped 29.6 % in the South to a 375,000 pace.
  • Construction of single-family houses declined 9 % to a 575,000 rate.
  • Work on multifamily homes, such as apartment buildings, fell 9.9 % to a 318,000 rate.
  • The average rate for a 30-year fixed mortgage was 4.15 in the week ended July 10.
  • The median selling price of a new home sold in May increased 6.9 % to $282,000.
  • Building permits decreased 4.2 % in June to a 963,000 annualized rate.

Jobless Claims in U.S. Unexpectedly Decreased Last Week

  • Jobless claims declined by 3,000 to 302,000 in the week ended July 12.
  • The four-week average of jobless claims declined to 309,000, the lowest since June 2007.
  • The number of people continuing to receive jobless benefits dropped by 79,000 to 2.51 million in the week ended July 5, the fewest since June 2007.

The July Philly Fed manufacturing index was stronger than expected, on solid composition

  • The Philly Fed manufacturing index rose to 23.9 in July from +17.8 in June.

Fed seen likely to raise rates in 2nd quarter of 2015: Reuters poll

  • The Fed will likely raise its target for the overnight lending rate, known as the Fed funds rate, to 0.25 % between April and June next year, according to the median forecast of 71 analysts polled in the past week.
  • Economists now see the Fed funds rate ending next year at 0.75 %.
  • Most thought the first hike would come in the third quarter of 2015 but that rates would end the year at 1.0 %.

 

EUROPE & WORLD

Reserves Break $3 Trillion Mark in Emerging Markets

  • Developing nations from Colombia to South Korea have accumulated so many dollars through intervening to curb currency gains that their foreign reserves now exceed $3 trillion for the first time.
  • Nations are filling up with dollars while they can, before a boost in U.S. interest rates reduces the yield advantage their assets enjoy.
  • China isn’t included in Bloomberg’s aggregate figures because its $3.99 trillion of reserves are larger than all its peers combined.

China Faces Second Corporate Bond Default Amid World’s Biggest Debt

  • Huatong Road & Bridge, based in the northern province of Shanxi, said it may miss a 400 million yuan ($64.5 million) note payment due July 23.
  • Companies in China are facing tougher operating conditions as growth looks set to cool to 7.4 % this year, the slowest in more than two decades.

 

TODAY in HISTORY

  • Spain ceded Florida to the United States (1821)
  • Spain surrendered to the United States at Santiago, Cuba, ending the Spanish-American War (1898)
  • The British royal family changed its name from the House of Saxe-Coburg-Gotha to Windsor amid anti-German sentiment during World War I (1917)
  • President Harry Truman, Soviet leader Joseph Stalin and British Prime Minister Winston Churchill meet at the opening of the Potsdam Conference (1945)
  • Disneyland opened in Anaheim, CA (1955)
  • The last Russian Czar Nicholas II was buried 80 years after he and his family were executed by the Bolsheviks (1998)

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 at the Open as Intel to Time Warner Jump amid Deals

  • Merger and acquisition activity continued to thrive on Wall Street.
  • A partnership struck between IBM and Apple also helped boost indexes.
  • Time Warner surged 17 % as Rupert Murdoch’s 21st Century Fox made a takeover bid that was rebuffed.
  • Intel gained 5.9 % as its third-quarter sales forecast fueled optimism the personal-computer market is emerging from a two-year slump.
  • Apple and IBM rose at least 1.1 % after agreeing to develop applications for corporate users of wireless devices.
  • Bank of America dropped 2.2 %. The second-biggest U.S. bank said profit declined 43 % as it spent $4 billion to cover litigation costs.
  • Yahoo! fell 4.1 %. The U.S. Web portal reported second-quarter earnings and sales that fell short of analysts’ estimates.
  • Data today also showed China’s economic growth accelerated for the first time in three quarters.
  • U.S. industrial production climbed 0.2 % in June, capping the strongest quarter in almost four years.
  • Wholesale prices in the U.S. rose more than forecast in June, reflecting a jump in energy costs that is now abating.

Murdoch Is Open to Offer $75 Billion for Time Warner

  • Fox is willing to pay more than $85 a share.
  • Fox calculates the combined company could achieve more than $1 billion in cost savings.
  • A deal would reshape the media industry by giving the TV-and-film companies bargaining power in negotiations with cable operators such as Comcast and Time Warner Cable.

BofA Profit Declines on $4 Billion Costs for Litigation

  • Net income fell to $2.29 billion in the second quarter from $4.01 billion a year earlier.
  • Revenue dropped 4.3 % to $22 billion as expenses climbed 16 % to $18.5 billion because of the litigation costs.
  • U.S. prosecutors have asked for $17 billion to resolve probes into the lender’s sale of mortgage bonds before the financial crisis.
  • Bank of America has offered $13 billion to settle a probe into mortgage securities sold by the bank, the Wall Street Journal reported today.

Apple Puts IBM Rivalry to Rest with Corporate Sales Deal

  • The deal unveiled yesterday gives Apple access to an IBM sales force that will recommend Apple’s devices to customers in industries such as health care and banking, which have never been priorities for the consumer-focused iPhone maker.
  • A key element of the Apple-IBM deal is developing mobile-centric software tools for businesses.
  • IBM gets a boost in a long-running effort to sell software and services to companies seeking to manage workers’ smartphones and tablets.
  • The partnership helps Apple pursue a bigger slice of the market for corporate users of wireless devices.
  • Apple has already recognized the potential of the corporate market, touting that its devices are used by employees at 98 % of Fortune 500 companies. Deutsche Bank has almost 20,000 iPhones, while Siemens has 30,000, Apple said in April.
  • Apple and rival Samsung are seeking to further displace BlackBerry, which once held a strong grip on the corporate market.

Intel Rises as Sales Forecast Fuels PC-Market Optimism

  • Net income in the second quarter rose 40 % to $2.8 billion from $2 billion a year earlier.
  • Sales rose 8 % to $13.8 billion. Analysts had predicted sales of $13.7 billion.
  • Gross margin, or the percentage of sales remaining after deducting the cost of production, was 64.5 %.
  • The PC market has shown signs of improvement this year as corporate spending picked up and U.S. shipments returned to growth.
  • Revenue in the current period will be $14.4 billion, plus or minus $500 million. Analysts on average estimated sales of $14.1 billion.

CSX Sales Hit Record as Rail Cargo Shows Economy Strength

  • Record quarterly revenue from CSX, the largest railroad in the eastern U.S., signals a strengthening economy as companies shipped more goods, grain and domestic coal by rail.
  • CSX reported revenue of $3.24 billion in the second quarter.
  • Net income was $529 million compared with $521 million a year earlier.
  • CSX operates on about 21,000 miles of route track across 23 states east of the Mississippi River.
  • Coal rebounded during the quarter as the harsh winter and higher natural gas prices caused more utilities to burn more coal.
  • Shipments of crude oil produced in U.S. shale fields have also contributed to the increase of carloads.
  • The railroads, which usually don’t own oil tank cars, agreed in February to slow crude oil trains to 40 miles per hour from 50 mph in urban areas and install new sensors on oil routes to detect track defects.
  • The railroad is seeking to increase train speeds and boost on-time deliveries following a systemwide traffic jam caused in part by the harsh winter weather in the first quarter.

Yahoo to Keep More of Alibaba after IPO, Return Cash

  • Yahoo! said it would return at least half of the cash it reaps from Alibaba’s IPO to shareholders.
  • Yahoo’s sales, excluding revenue shared with partner websites, was $1.04 billion in the second quarter, missing analysts’ average estimate of $1.09 billion.
  • Net income was $269.7 million, down from $331.2 million a year ago.
  • Yahoo’s display ad sales fell 7 %.

Boeing Bounces Back at Show as Qatar Doubles 777-9X Order

  • Boeing, which lagged behind Airbus’s order haul on the first two days of the Farnborough Air Show, bounced back with a commitment from Qatar Airways to double planned purchases of the 777-9X model.
  • Qatar Airways said it wants to buy an additional 50 of the largest twin-engine model.
  • The value of the follow-up commitment is $18.9 billion, making it the single biggest deal yet at this year’s show.

 

US ECONOMY & POLITICS

Wholesale Prices in U.S. Increase More Than Forecast on Fuel

  • The 0.4 % increase in the producer price index (PPI) followed a 0.2 % drop in May.
  • Fuel costs climbed 2.1 %, the biggest gain since February 2013.
  • Crude oil prices have dropped this month as concerns about supply disruptions ease.
  • Compared with a year earlier, companies paid 1.9 % more for goods and services, matching the median forecast of economists.
  • The core measure, which strips out volatile food and fuel costs, climbed 0.2 %, matching the survey median.
  • The core index increased 1.8 % in the 12 months ended June.

Industrial Production in U.S. Climbed 0.2% in June

  • Industrial production climbed 0.2 % in June, capping the strongest quarter in almost four years and indicating manufacturers are providing a bigger spark for the U.S. economy.
  • The gain in output at factories, mines and utilities last month followed a revised 0.5 % advance in May.
  • Production rose at a 5.5 % annualized rate from April through June, the most since the third quarter of 2010.
  • The fastest pace of motor vehicle sales in eight years and a recent pickup in bookings for business equipment indicate further gains in output.
  • An improvement in overseas markets would also contribute to busier assembly lines and propel the economy in the second half of the year.
  • Manufacturing, which makes up 75 % of total production, grew 0.1 % in June, less than forecast.
  • In the second quarter, factory production advanced at a 6.7 % annualized rate, the fastest since the first three months of 2012.
  • Capacity utilization, which measures the amount of a plant that is in use, held at 79.1 % in June.

Homebuilder Confidence in U.S. Climbs to Six-Month High

  • The NAHB/Wells Fargo sentiment measure climbed to 53 from 49 in June.
  • The housing market is showing signs of improvement after higher mortgage rates and harsh winter weather stalled the recovery earlier this year.
  • A strengthening labor market, combined with wage gains and rising consumer sentiment, will probably support further progress in the industry
  • The measure of the six-month sales outlook rose to its highest level since September, climbing to 64 this month from 58 in June.
  • An index of current single-family home sales increased to 57, the best reading since January, from 53.

Yellen Watches American Paycheck for Signals on Shadow Slack

  • The central bank chief referred to the “slow pace of growth” in measures of hourly compensation in remarks to the Senate yesterday.
  • “You can’t have sustained inflation without sustained wage growth because then people have no purchasing power and higher prices just can’t stick,” said Aneta Markowska chief U.S. economist at Societe Generale.

 

EUROPE & WORLD

Japan’s Holdings of U.S. Treasuries Rose to Record in May

  • Japan’s holdings of U.S. government debt rose $10.4 billion to a record $1.22 trillion in May.
  • China’s holdings of Treasuries in May increased for the first time since January, gaining $7.7 billion to $1.27 trillion.

BRICS Agree on $50 Billion Bank with Something for Everyone

  • Leaders of the five BRICS nations agreed on the structure of a $50 billion development bank by granting China its headquarters and India its first rotating presidency.
  • The leaders also formalized the creation of a $100 billion currency exchange reserve.
  • Both initiatives, which require legislative approval, are designed to provide an alternative to financing from the IMF and the World Bank, where BRICS countries have been seeking more say.

China’s Economic Expansion Accelerates to 7.5%

  • Industrial production rose 9.2 % in June from a year earlier, topping the 9 % median estimate.
  • Fixed-asset investment excluding rural households increased 17.3 % in the first half from a year earlier. That compared with the median estimate of analysts for 17.2 % growth.

 

TODAY in HISTORY

  • The District of Columbia was established as the seat of the United States government (1790)
  • Russia’s Czar Nicholas II and his family were executed by the Bolsheviks (1918)
  • The first parking meters were installed in Oklahoma City (1935)
  • The first atomic bomb was tested in Alamogordo, N.M. (1945)
  • Apollo 11 took off on the first manned flight to the moon (1969)
  • Saddam Hussein became president of Iraq (1979)
  • John F. Kennedy, Jr., his wife Carolyn Bessette, and her sister Lauren, died in a plane crash near Martha’s Vineyard, Massachusetts (1999)

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 Open Positive as Yellen Says Stimulus Must Continue

  • JPMorgan and Goldman increased more than 1.5 % after the banks reported better-than-estimated earnings.
  • Lorillard dropped 7.1 % after Reynolds American reached agreement to buy its rival for $27.4 billion including debt.
  • The S&P 500 Index is higher by more than 190 % during the current five-year bull market. The gauge has rallied 7.2 % this year.
  • Retail sales increased 0.2 % after a 0.5 % advance in May that was larger than previously reported.
  • Manufacturing in the New York region grew in July. The Federal Reserve Bank of New York’s general economic index rose to 25.60.

JPMorgan Profit Beats Estimates on Trading, Shares Climb

  • Net income declined 7.9 % to $5.99 billion from $6.5 billion a year earlier, topping average estimate.
  • Revenue slid 2.3 % to $25.4 billion from a year earlier.
  • JPMorgan, the second largest U.S. mortgage lender after Wells Fargo, said its profit from mortgage lending fell 38 % to $709 million, while mortgage application volumes dropped 54 % to $30.1 billion.

Goldman Posts Surprise Profit Gain on Trading, Deal Fees

  • Net income climbed 5 % to $2.04 billion from $1.93 billion a year earlier. That beat average estimate.
  • Revenue rose 6 % to $9.13 billion.
  • Goldman Sachs ranked first in advising on announced mergers and acquisitions and fifth in underwriting U.S. bonds.

J&J’s New Hepatitis C Medicine Pushes Profit Past Estimates

  • Net income rose 13 % to $4.3 billion from $3.8 billion a year earlier.
  • Revenue was $19.5 billion, up 9 % from a year before.
  • Johnson & Johnson also raised its adjusted earnings guidance for the year.

Reynolds Acquiring Lorillard for About $25 Billion

  • Reynolds, the producer of Camel and Pall Mall cigarettes, will pay a mixture of cash and stock valuing each Lorillard share at $68.88.
  • British American Tobacco (BAT) will fund $4.7 billion of the transaction, letting it maintain a 42 % stake in Reynolds.
  • BAT’s U.K. rival Imperial Tobacco, meanwhile, will acquire brands such as Kool and Blu e-cigarettes for $7.1 billion.

Hewlett-Packard Chairman Whitworth Resigns for Health

  • Hewlett-Packard will discuss a replacement for Whitworth, 58, at its next meeting.

Time Warner Seeks NBA Renewal to Tap Sports Gold Mine

  • Time Warner, along with Walt Disney’s ESPN, is seeking to renew the last major U.S. sports deal that’s up for grabs until 2021.
  • The current deal expires in 2016.
  • Time Warner and Disney, which split up airing the games, pay the league an average of $930 million a year combined.
  • Time Warner currently has rights to air 52 regular-season games and up to 52 playoff games.
  • Disney’s rights include 75 regular season games and up to 29 playoff games.
  • The merger of Comcast and Time Warner Cable will give the combined company 30 million TV subscribers, while AT&T’s bid to buy DirecTV will give it a total of about 25 million subscribers.
  • The added heft would give them more leverage when negotiating licensing agreements with programmers like Time Warner.

U.S. approves limited flights for F-35 fighters

  • U.S. military officials have approved limited flights for Lockheed Martin’s F-35 fighter jets.
  • The F-35, the world’s most expensive weapons project with a price tag of about $400 billion, has been grounded since the massive failure of the Pratt & Whitney engine on a U.S. Air Force F-35 plane at a Florida air base on June 23.
  • Global orders for the F-35 are expected to exceed 3,000, with Italy, Turkey, Canada and Australia among the U.S. allies planning to purchase the plane.

Google’s Nest launches network technology for connected home

  • Google’s Nest Labs unveiled an industry group to encourage makers of smart home gadgets like locks and light bulbs to use Thread, a new standard for devices to communicate on a network.
  • The attempt by Nest to lead the way on how future household devices to speak to each other, underscores the importance Google puts on areas like cars and the home.

GE expects to meet $30 billion air show target early

  • GE Aviation CEO expects to achieve its Farnborough Airshow target of $30 billion of orders.

 

US ECONOMY & POLITICS

Yellen Says Continued Easing Needed Amid Job-Market Slack

  • Janet Yellen told lawmakers the central bank must press on with monetary stimulus as “significant slack” remains in labor markets and inflation is still below the Fed’s goal.
  • Yellen cited labor-market weaknesses even after an unexpectedly fast decline in unemployment put pressure on Fed officials to consider accelerating their timetable for an interest-rate increase.
  • Signs of labor-market slack include slow wage growth and low labor-force participation.

Retail Sales in U.S. Showed Broad-Based Increase in June

  • Purchases increased 0.2 % after a 0.5 % advance in May that was larger than previously reported.
  • The reading fell short of the 0.6 % increase projected by the median estimate of 83 economists.
  • Consumers are more comfortable opening their wallets as a strengthening labor market lifts earnings.
  • Core sales, the figures used to calculate GDP and which exclude such categories as autos, gasoline stations and building materials, increased 0.6 % last month, the best showing since March.

U.S. business inventories up, retail stocks rise modestly

  • Inventories increased 0.5 % after rising 0.6 % in April.
  • Retail inventories, excluding autos, which go into the calculation of GDP, edged up 0.1 % after a similar gain in April.
  • A sharp slowdown in the pace of inventory accumulation helped to weigh down on the economy, which contracted at a 2.9 % annual pace in the first quarter.
  • Inventories subtracted 1.7 percentage points from GDP and a swing in restocking is expected to raise growth above a 3.0 % pace in the second quarter.
  • Business sales rose 0.4 % in May after advancing 0.8 % in April.

 

EUROPE & WORLD

EU’s Juncker urges minimum wage in all EU countries

  • Designated European Commission President Jean-Claude Juncker said he would work towards the introduction of a minimum social wage in each member state of the European Union.

 

TODAY in HISTORY

  • Georgia became the last of the Confederate States to be readmitted to the Union (1870)

 

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 at the Open amid Deals Activity as Citigroup Rallies

  • Citigroup climbed 3.1 percent after also agreeing to pay $7 billion to settle a mortgage-bond probe.
  • Apple rose after Barclays Plc advised investors to buy shares in the world’s biggest company by market value.
  • The S&P 500 has rallied 7 percent this year amid signs the U.S. economy is recovering from a 2.9 percent contraction in the first quarter.
  • The benchmark gauge closed at an all-time high and the Dow topped 17,000 for the first time on July 3.
  • The S&P 500 hasn’t had a drop of 10 percent in more than two years.
  • The gauge trades at a valuation of 18 times reported earnings, the highest since 2010.
  • JPMorgan, Goldman, Yahoo, and Intel are among the 58 companies on the S&P 500 posting earnings this week.
  • Investors will also be watching statements from central banks and economic reports this week. Janet Yellen is due to testify to U.S. lawmakers.
  • European Central Bank President Mario Draghi testifies today at the European Parliament.
  • Economists surveyed by Bloomberg expect the Bank of Japan will maintain the pace of its monthly bond-buying at this week’s policy meeting.

Citigroup Reaches $7 Billion Mortgage-Bond Settlement

  • Citigroup posted second-quarter profit that beat analysts’ estimates.
  • The bank took a $3.7 billion charge in the second quarter.
  • Net income after legal charges fell 96 percent to $181 million from $4.18 billion a year earlier.
  • Revenue fell 3 percent from a year earlier to $19.4 billion, while operating expenses dropped 3 percent to $11.8 billion.
  • Analysts surveyed by Bloomberg projected $18.8 billion in revenue.

AbbVie Moves Closer to Shire Deal With $53.7 Billion Bid

  • Shire said it would support a formal bid of 53.20 pounds a share, or 9.2 percent more than Shire’s closing share price on July 11.
  • Buying Shire allows AbbVie to move its tax residence to the U.K. and add treatments for rare diseases and attention deficit disorder.

Mylan to buy some Abbott drug assets in $5.3 billion deal

  • Generic drugmaker Mylan said it would buy Abbott Laboratories’ specialty and branded generics business outside the United States in an all-stock transaction valued at about $5.3 billion.

Whiting to buy Kodiak for $3.8 billion, create No. 1 Bakken producer

  • Whiting Petroleum, after the deal, will become the largest producer in North Dakota’s Bakken shale oil formations.

Airbus jet re-launch heralds busy aerospace show

  • The Farnborough air show kicks off Monday at an airfield in rural England, represents the aerospace community’s annual opportunity to take the pulse of the business of flying.
  • Airbus will begin the air show with up to 100 commitments for the A330neo, stepping up a contest with Boeing for up to $250 billion of orders at the core of the long-haul jet market.
  • Airbus unveils revamp of A330 passenger jet. Deliveries of the A330neo will start in the fourth quarter of 2017.

Boeing Squeezes Seats into 737 to Boost Low-Cost Carrier Appeal

  • The aircraft will seat as many as 200 in a single cabin and is based on the re-engined 737 Max 8 set to debut in 2017.
  • The modified 737 model will be targeted at ultra-low-cost carriers seeking high-density seating configurations to pack in passengers on shorter flights were demand exceeds capacity.
  • Airbus previously said it planned to boost the number of seats on its A320neo by nine to 189.

Lockheed F-35 Fire Probe Finds No Sign of Systemic Flaws

  • U.S. defense officials see no broad safety issues with Lockheed Martin’s F-35 Joint Strike Fighter after an engine fire forced the grounding of the fleet.
  • The F-35 has been plagued by a costly redesign, bulkhead cracks, excessive weight and delays in software. Building all 2,443 planes is projected to cost $398.6 billion, a 71 percent increase in inflation-adjusted dollars since the contract with Lockheed was signed in 2001.

VW to spend $900 million at Tennessee plant to build new SUV

  • The German automaker chose to build the seven-passenger, three-row SUV at its plant in Chattanooga, Tennessee, instead of at its facility in Puebla, Mexico starting in late 2016.
  • About $600 million of the $900 million will be invested in Tennessee, VW said.
  • VW’s $1 billion factory in Chattanooga started operating in 2011, building a cheaper, roomier version of the carmaker’s mid-sized Passat sedan specifically designed for American customers.
  • From 2014 to 2018, VW will invest more than $7 billion in the United States and Mexico.

Home Depot Starts Selling 3-D Printers in Stores

  • The 3-D printing industry is still in its early stages and will need people to become educated on how to use software to design objects, said Tim Shepherd, an analyst at research firm Canalys in the U.K.
  • “Ten years from now, it will be quite common for people to have 3-D printers in their homes,” he said.
  • The consumer market for 3-D printing will reach $600 million in 2017, up from $70 million to $80 million last year.
  • Home Depot is the home-repair market leader — with $78.8 billion in revenue last year — followed by Lowe’s, which had $53.4 billion.

Aecom Technology Agrees to Buy URS for About $4 Billion

  • The transaction brings together companies that provide support and planning services for governments and large engineering and construction projects in the U.S., Canada and other countries.
  • The combined company will have more than 95,000 workers in 150 countries.

Uber Woos Drivers With $1,000 Bonuses in Tussle With Lyft

  • For Uber, more drivers are important to establishing itself as the biggest car-booking provider.
  • Drivers are independent contractors who can work for multiple companies at the same time.
  • They typically own their car and can make as much as $8,000 a month, depending on how long they’re on the road and excluding insurance, gas and other costs.
  • Uber has rolled out its service in 75 U.S. cities and is in a total of 39 countries. Lyft is in 68 cities in the U.S.

‘Planet of the Apes’ Reigns in Cinemas with $73 Million in Sales

  • A big summer sequel from 21st Century Fox, opened as the No. 1 film in domestic theaters over the weekend.
  • Summer cinema sales in the U.S. are falling further behind last year’s record pace, in large part because studios spread out the timing for their biggest films to avoid stealing sales from each other and to work around soccer’s World Cup.
  • Weekend sales for the top 10 films fell 27 percent to $134.8 million from a year earlier.

US ECONOMY & POLITICS

Yellen says Fed easy money needed even after recovery

  • The Federal Reserve will still need to deliver “unusually accommodative” monetary policy even once the U.S. economy returns to “where we want it to be”.

Fed officials debate timing of interest rate increases: WSJ

  • A debate is intensifying among the Federal Reserve’s regional bank presidents about whether to push interest rates up from zero sooner than planned because of recent improvements in the U.S. job market, the Wall Street Journal reported.
  • Most Fed officials at June’s policy meeting didn’t see rate increases until 2015.
  • Fed officials hadn’t expected unemployment to fall to near 6.1 percent until the end of this year.

EUROPE & WORLD

Draghi Seen Delivering $1 Trillion to Banks in ECB Offer

  • The ECB has identified lending to companies and households as a key weakness in the euro area’s fragile recovery.
  • The ECB targeted lending program for banks will boost credit for the real economy as planned, and at the same time help keep the financial system flush with cash.

China’s Okay Airlines orders Boeing 737 planes

  • China’s airlines had ordered six 737 MAX 8 planes and four 737-800 aircraft, worth $980 million at list prices.

Euro zone industry stumbles in May, recovery still frail

  • Output in the 18 countries sharing the euro dropped 1.1 percent on the month in May.

Putin signs nuclear energy deal with Argentina

  • Putin’s energy minister, Alexander Novak, told reporters in the Argentine capital that the Russian state atomic energy corporation, Rosatom, had made an offer to tender for the construction of two new nuclear power units in Argentina.

TODAY in HISTORY

  • The storming and destruction of Bastille marked the beginning of the French Revolution (1789)
  • Congress passed the Sedition Act, making it a crime to publish false, scandalous, or malicious writing about the U.S. government (1798)

 

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 Open amid Bank Earnings and Portugal Debt

  • Wall St. is flat, but Internet names support NASDAQ. Amazon up 4.2 percent and eBay up 2.4 percent.
  • Whirlpool rose 1.9 percent after the company agreed to buy 66.8 percent of voting stock of Italy’s Indesit Company for about $1.03 billion.
  • The S&P 500 is valued at 18 times reported earnings, the highest level since 2011.
  • Wells Fargo fell 1.3 percent after reporting per-share earnings that did not rise for the first time in 18 quarters.
  • Fastenal sank 5.6 percent after sales fell short of analysts’ estimates.
  • Lorillard jumped 4.8 percent after Reynolds American Inc. said it’s in talks to buy the cigarette maker.
  • More than 140 companies in the S&P 500, including Citigroup, JPMorgan, Goldman Sachs, and Johnson & Johnson, will report quarterly results between now and July 23

Wells Fargo reports slight profit rise, says economy improving

  • The world’s most valuable bank said profit increased 3.8 percent on lower credit costs even as the lender’s per-share earnings failed to top the preceding quarter’s for the first time since 2009.
  • Net income for the second quarter advanced to $5.73 billion from $5.52 billion a year earlier.
  • Revenue fell 1.5 percent to $21.1 billion from a year earlier.
  • Wells Fargo accounted for about 28 percent of U.S. home loans in the first quarter of 2012.
  • Wells Fargo lent $47 billion in home loans, down from $112 billion a year earlier but up from $36 billion in the first quarter.
  • Income from mortgage banking fell 39 percent to $1.7 billion compared with the second quarter of 2013.
  • The bank had $30 billion of mortgage applications in the pipeline at quarter-end, up from $27 billion at the end of the first quarter.

Amazon Seeks FAA Permission to Test its Drones Outdoors

  • Amazon asked aviation regulators for permission to expand testing its deliver packages by drone outside its research laboratory.
  • The company wants to deliver packages weighing less than 5 pounds (2.3 kilograms) with unmanned aircraft capable of reaching speeds of more than 50 miles (80 kilometers) an hour.
  • Amazon says 86 percent of its deliveries are light enough to be made by its proposed drones, allowing for faster service to customers.

Reynolds American Confirms Discussions to Buy Lorillard

  • Together, Reynolds and Lorillard have a market value of about $56 billion and annual sales of more than $13 billion.
  • British American Tobacco owns 42 percent of Reynolds.
  • If the three companies reach an agreement, Lorillard’s biggest brand, Newport, would join Camel as the combined company moves to compete with Altria, whose brands account for more than half of the U.S. retail cigarette market.
  • Altria’s Marlboro by itself has market share in the U.S. of about 44 percent.

BMWs Made in America Surge as Biggest Auto Export

  • BMW started auto assembly in South Carolina 20 years ago today.
  • Pushed by spiraling energy costs and tightening labor rules in Germany, BMW will have poured additional $7.3 billion into the site once the latest expansion is completed in two years.
  • Auto workers in the U.S. are about 47 percent cheaper to employ than their counterparts in Germany, according to data from the Berlin-based VDA auto lobby.
  • The factory, which will employ 8,800 people by 2016, is already the biggest exporter of U.S.-made cars to markets outside North America, beating any facility run by GM, Ford or Chrysler as well as the entire state of Michigan.

Chrysler to recall 900,000 SUVs to fix mirror wiring

  • Some 2011-2014 models of Jeep Grand Cherokee and Dodge Durango will be recalled.

U.S. sues Amazon over purchases by kids using mobile apps

  • The U.S. government sued Amazon.com on Thursday for allowing children to collectively run up millions of dollars in purchases on the credit cards of their unsuspecting parents.
  • The FTC settled a similar case with Apple in January. Apple agreed to refund to customers at least $32.5 million in unauthorized charges made by children.
  • The FTC complaint cited “Tap Zoo” and “Ice Age Village” in which children manage a zoo or an ancient town.

Microsoft CEO signals change, defers talk on job cuts

  • Nadella said he would address detailed organizational and financial issues for the company’s new financial year.
  • He described Microsoft as a “productivity and platform company” focused on mobile and cloud computing, a subtle advance on Ballmer’s reinvention of Microsoft as a “devices and services” company.

Pimco’s Gross Cuts U.S. Government-Related Debt Holdings in June

  • The proportion of U.S. government-related debt in the $225 billion Total Return Fund was 47 percent last month.
  • That compared with 50 percent the previous month, which was the highest level since 54 percent in July 2010.

Carl Icahn says ‘time to be cautious’ on U.S. stocks

  • Billionaire activist investor said “While we are having a great year, I am being very selective about the companies I purchase.”

US ECONOMY & POLITICS

Obama and corporate giants announce plan to boost suppliers

  • President Barack Obama is enlisting several major U.S. and multinational companies to draw attention to an initiative aimed at helping small businesses expand and hire workers.
  • The president will meet on Friday with representatives of household name firms such as Apple, AT&T, Coca Cola, and Johnson & Johnson to spotlight the corporate giants’ pledge to pay their smaller suppliers within 15 days.
  • Other firms attending the White House event include CVS, FedEx, IBM, Lockheed Martin, Honda, Toyota, Rolls Royce, and Walgreens.
  • Frustrated by a legislative stalemate with the Republican-led House of Representatives, Obama has vowed to act unilaterally when he can to achieve his agenda.

Fed’s Fischer sees little benefit in breaking up too-big banks

  • The Federal Reserve’s new vice chair all but dismissed the idea of breaking up the largest U.S. banks, saying on Thursday it is unclear that such a complex task would help stabilize the country’s financial system.
  • Stanley Fischer also floated the idea of adding a financial stability mandate to all of the U.S. regulators under the umbrella of the Financial Stability Oversight Council (FSOC).

U.S. wholesale inventories rise, point to rebound in second-quarter GDP

  • Wholesale inventories increased 0.5 percent from a month earlier.
  • Inventories are a key component of GDP changes.
  • A sharp slowdown in the pace of restocking by businesses helped to sink economic growth in the first quarter.

EUROPE & WORLD

Portugal’s PM tries to soothe investors; BES says can cover any losses

  • Banco Espirito Santo sought to reassure investors by revealing its exposure to related companies after a missed payment on short-term debt by a member of the Portuguese group roiled global markets.
  • The bank provided the update after a parent company, Espirito Santo International missed payments on commercial paper.
  • Portugal’s regulator banned short selling of Banco Espirito Santo shares until the end of today.

British banks paying $2 billion for swaps mis-selling: regulator

  • Britain’s banks are in the process of paying out 1.2 billion pounds ($2 billion) to compensate small businesses that were mis-sold complex interest rate hedging products.
  • The figure represents about a third of the 3.75 billion pounds set aside by Britain’s four biggest banks.

TODAY in HISTORY

  • Pope Clement VII excommunicated England’s King Henry VIII (1533)
  • Former vice president Aaron Burr fatally wounded former secretary of the treasury Alexander Hamilton in a duel. Hamilton died the following afternoon (1804)
  • The Rev. Dr. Martin Luther King, Jr., was posthumously awarded the Presidential Medal of Freedom for his work to advance civil rights (1977)

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 Drop at the Open as Portugal Debt Stress Fuels Concern

  • “People will shoot first and ask questions later when news like this hits,” said Lawrence Creatura, a fund manager at Federated Investors.
  • European stocks and Portuguese bonds tumbled with investor concern deepening over missed debt payments by a company linked to the Iberian nation’s second-largest lender.
  • Espirito Santo Financial suspended trading in its shares and bonds, citing “material difficulties” at parent company ESI. Shares of the bank fell 17.2 %.
  • The Chicago Board Options Exchange Volatility Index (VIX) spiked 8.6 % today to 12.65, the highest since June 17.
  • Minutes of the Federal Reserve’s June meeting, released yesterday, showed officials have agreed they’ll end their asset-purchase program in October if the economy holds up.
  • Profit at S&P 500 companies probably rose 5 % in the three months through June, while sales gained 3 %, estimates show.
  • The forecasts have decreased from the start of April, when analysts predicted a 7.3 % jump in earnings and 3.7 % sales increase.
  • The S&P 500 has not had a drop of 10 % in more than two years. The gauge trades at a valuation of 18 times reported earnings, the highest since 2011 when it was in the middle of a 19 % slide, its biggest during the current five-year bull market.

Boeing sees $5.2 trillion jet market and win versus Airbus on twin-aisles

  • Boeing made its most bullish 20-year forecast for jetliner demand since 2011, saying the world will need 36,770 new planes worth $5.2 trillion by 2033.
  • Last year Boeing predicted a 20-year need for 35,280 planes valued at $4.8 trillion.
  • Boeing expects airlines to buy 25,680 new single-aisle planes over 20 years, and that the global fleet will double to 42,180. About 58 % of those planes will represent growth at airlines. The rest will replace retired aircraft.
  • It also predicted beating rival Airbus in the lucrative market for twin-aisle planes as the planes are built and delivered over the next two decades.
  • Boeing’s annual forecast said single-aisle airplanes such as the 737 and A320 will garner the most orders, reflecting booming demand for air travel in Asia and the growth of low-cost carriers there.
  • Planes are delivered years after orders are placed, so the final numbers may change as airlines change their plans.

Bank of America resubmits request for dividend increase: WSJ

  • Bank of America has asked regulators to approve a higher quarterly dividend of 5 cents per share after it withdrew a previously planned increase in April.
  • The bank withdrew its previously planned increase to 5 cents from 1 cent per share, after it found errors that reduced a key capital level by $4 billion.

Amazon E-Books Proposal Puts Authors in a Tough Bind

  • Amazon’s proposal to give writers all of the proceeds from digital-book sales leaves in a bind.
  • The proposal set off a new round of backbiting between Amazon and Hachette in a dispute that first flared into the open in May. Hachette this week rejected Amazon’s move, asking “Amazon to withdraw the sanctions they have unilaterally imposed.”
  • Amazon, seeking to ratchet up pressure on Hachette, took its appeal directly to writers at the publishing house this week by asking them what they thought of gaining all of the proceeds from sales of e-books. Accepting Amazon’s deal without a publisher’s approval would violate publisher-writer contracts and open authors up to lawsuits, said Joseph Capobianco.

IBM Invests $3 Billion in Chip Research amid Talks to Sell Unit

  • The company will fund two programs to create smaller, more powerful chips that can be used in systems like IBM’s Watson technology — which analyzes data in plain English — and to develop semiconductor parts out of materials other than silicon.

Las Vegas Drought Drains Lake Mead to Lowest Since 1937

  • The lake, now at 39 % of capacity, has been dropping since 2012.
  • Lake Mead, created by Hoover Dam in 1936 and 1937, holds mountain snowmelt from the Colorado River for farms, homes and businesses predominately in southern Nevada, southern California and most of Arizona.
  • No metropolitan area depends on the lake more than Las Vegas, which lacks groundwater or other local sources.

Shale Seen Shifting Flows at America’s Biggest Oil Port

  • For more than 30 years, the Louisiana Offshore Oil Port (LOOP) has been a symbol of U.S. dependence on foreign oil, pumping Nigerian and Saudi Arabian crude from the world’s biggest supertankers into underground storage caverns beneath the marshes of southern Louisiana.
  • Now, with domestic production at a 28-year high, LOOP’s managers are thinking the previously unthinkable: They want to reverse the flows and send North American oil out as well as take foreign oil in.
  • Total U.S. imports fell to 6.47 million barrels a day in the week ended May 16, the least since 1997.
  • U.S. produces up to 8.5 million barrels a day today, the highest level since 1986.
  • Production in Canada has risen 42 % to 3.6 million barrels a day in the past five years. The U.S. allows re-exports of foreign crude that hasn’t been mixed with domestic oil.

 

US ECONOMY & POLITICS

Fed mulls policy exit, eyes end of asset purchases

  • Fed has begun detailing how it plans to ease the U.S. economy out of an era of loose monetary policy.
  • It will end its asset purchases in October.
  • The minutes showed the Fed participants also “generally agreed” that monthly bond purchases would end in October, with a final reduction of $15 billion in monthly purchases of U.S. Treasuries and mortgage-backed securities.
  • According to the minutes, there continues to be division over when the Fed should stop reinvesting proceeds of the $4.2 trillion in assets it purchased to support financial markets.
  • Ending reinvestment will put the central bank’s balance sheet on a declining path, and some members argue that should not take place until interest rates have been increased.

Fewer Americans Than Forecast Filed Jobless Claims Last Week

  • Jobless claims declined by 11,000 to 304,000 in the week ended July 5.
  • The median forecast of 45 economists surveyed by Bloomberg called for 315,000.
  • The four-week moving average, a less volatile measure than the weekly figures, dropped to 311,500 last week from 315,000.

Growth Seen Beating 3% in Sixth Year of U.S. Expansion

  • GDP will expand 3.1 % from July through December following a 3.3 % advance last quarter, according to the median forecast of 74 economists.
  • This year’s pickup in hiring is among reasons economists are downplaying the 2.9 % slump in GDP in the first three months of the year.
  • The first-quarter contraction in the economy pulled the 2014 median growth estimate down to 1.7 % from the 2.2 projected last month.
  • Accelerated consumer spending, which is projected to grow 2.8 % next year after climbing 2.2 % in 2014, is one reason for the improved performance.
  • Business investment, propelled by improving sales, will play a role in sustaining bigger gains in GDP.
  • Economists forecast spending on new equipment will climb at an average 5 % pace in the second half of the year after a 10 % second-quarter advance that reflected a snap-back from a first-quarter drop.
  • State and local spending on construction projects climbed 6.1 % in the three months ended in May, the biggest gain over a similar period in four years.

Fed’s Bullard Says Unemployment Drop to Push Inflation

  • “I think we are going to overshoot here on inflation,” St. Louis Fed’s President Bullard said yesterday.
  • He predicted inflation of 2.4 % at the end of 2015, “well above” the Fed’s 2 % target.
  • The St. Louis Fed chief, who calls himself the “North Pole of inflation hawks,” estimates full employment at about 6 %.
  • Bullard, 53, also said he’s confident the economy will expand at a 3 % pace through the rest of the year after an “unnerving” 2.9 % first-quarter contraction.

U.S. wholesale inventories rose in May

  • Wholesale inventories rose 0.5% in May.
  • It reinforces the view that economic growth should surge in the second quarter following a weak start to the year.

 

EUROPE & WORLD

Europe Stocks Drop to 2-Month Low on Portugal, Italy Bank

  • Banks in Portugal, Italy and Spain sank, sending an industry gauge for its biggest slump since March.
  • Espirito Santo International is considering making a request for protection from creditors in Luxembourg if it can’t reach a debt renegotiation agreement with its main creditors.
  • Banque Privee Espirito Santo, fully owned by Espirito Santo Financial, said on July 8 that there was a delay in payments of some of the last maturities of short-term debt securities issued by ESI.
  • Portugal’s PSI 20 Index tumbled 4.3 %.

U.K. Trade Deficit Is Widest in Four Months on Exports

  • The gap was 9.20 billion pounds ($15.8 billion) compared with 8.81 billion pounds in April.
  • Exports rose 0.6 % and imports climbed 1.7 %, largely due to 1.2 billion pounds of aircraft purchases.

French Stocks Seen Extending Losses on Economy Concern

  • France’s economic recovery has fallen behind the euro area for the past three quarters.

China June trade data misses forecasts, doubts over economy linger

  • Overseas shipments gained 7.2 % from a year earlier, the customs administration said today in Beijing, compared with the 10.4 % median estimate.
  • Imports rose 5.5 %, leaving a $31.6 billion trade surplus.
  • China will release second-quarter gross domestic product data on July 16. The economy probably grew 7.4 % from a year earlier.

Australia Unemployment Returns to 11-Year High; Bond Yields Drop

  • The unemployment rate rose to 6 % from a revised 5.9 %.
  • Bond yields dropped and the local dollar weakened after the report suggested the economy’s momentum has slowed.

Japan Machine Orders Fall by Record in Spending Caution Sign

  • Core orders, a leading indicator of capital spending, dropped 19.5 % from April.
  • Large companies across all industries plan to raise capital spending 7.4 % this fiscal year through March, a Bank of Japan report showed this month.

 

TODAY in HISTORY

  • Wyoming became the 44th state in the United States (1890)
  • The Bahamas became independent from Great Britain (1973)
  • The Coca-Cola Company announced that it was bringing back the original Coke and calling it Coca-Cola Classic (1985)
  • President Bush lifted economic sanctions against South Africa (1991)

 

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

Wall Street gains modestly at the open after two-day selloff

  • U.S. equities retreated a second day yesterday amid growing investor concern that stocks have rallied too fast after benchmark indexes ended last week at all-time highs.
  • The Fed will publish at 2 p.m. New York time minutes of its June 17-18 meeting, when officials trimmed monthly bond purchases to $35 billion.
  • Recent data from employment to housing is indicating the world’s largest economy is recovering after the worst contraction in GDP since 2009.
  • The S&P 500 has not had a drop of 10 % in more than two years. The gauge trades at a valuation of 18 times reported earnings, the highest since 2011 when it was in the middle of a 19 % slide, its biggest during the current five-year bull market.

Alcoa pledges finished products push as results beat Wall Street

  • Releasing second-quarter results on Tuesday, Alcoa said it earned $138 million, compared with a loss of $119 million a year earlier.
  • Sales were flat at $5.8 billion.
  • Alcoa sees bigger aluminum deficit on China cutbacks.

Amazon Offers Authors E-Book Proceeds Amid Hachette Spat

  • Amazon blocked pre-orders for some of Hachette’s books earlier this year.
  • While physical book sales in the U.S. are projected to fall to $19.5 billion this year from $26 billion in 2010, e-book revenue is anticipated to jump more than eightfold to $8.7 billion, according to Forrester Research.

Apple Gives Up Dividend Advantage Over S&P 500

  • Apple no longer provides a higher dividend yield than the Standard & Poor’s 500 Index.
  • Apple ended yesterday’s trading at a 1.86 % yield, and the S&P 500 yielded 1.91 %.
  • The main reason is Apple’s stock performance.
  • Apple’s stock climbed 27 % from April 23, when the higher dividend was announced along with a 7-for-1 stock split, through yesterday. The S&P 500 gained 4.7 % in the same period.

Allergan Planning Cost Cuts amid Valeant Defense

  • A broad restructuring plan is set to be outlined during Allergan’s earnings announcement later this month.
  • The changes are among moves aimed at boosting profit in the coming months as well as forecasts for future years to convince shareholders that the company is better as a standalone investment.
  • Allergan is battling criticism from Valeant and activist Ackman’s Pershing Square Capital Management LP as the hostile bidders seek a shareholder vote this year to oust most of the incumbent board to get a deal done.

PetSmart Activists Wave Cash Flow at LBO Firms: Real M&As

  • Activists are trying to sell PetSmart before it gets to the point where it needs reviving.
  • Same-store sales at the $6.8 billion pet-care company fell last quarter for the first time in at least a decade as competition with Amazon.com and other retailers intensified.
  • PetSmart’s high free-cash-flow yield and low debt relative to earnings open up several ways to boost returns.

Emirates finalizes $56 billion order for 150 Boeing 777X planes

  • The 777X is the latest version of Boeing’s best-selling widebody jet, a so-called mini-jumbo, which carries a list price of up to $320 million.
  • The current versions are capable of seating up to 550 passengers in a single-class configuration.
  • In a more typical three-class configuration, the jet family seats up to 386 passengers and has a range of up to 9,395 nautical miles.
  • The deal includes purchase rights for an additional 50 airplanes which, if exercised, could increase the value to about $75 billion at list prices.
  • It follows the surprise cancellation in June of a $16-billion order by Emirates to buy 70 of Airbus’ A350 aircraft, which delivered a blow to Airbus.

American, Southwest signal solid demand ahead of earnings

  • American Airlines and Southwest Airlines forecast growth in an important revenue measure for the second quarter.
  • Unit revenue, also known as passenger revenue per available seat mile, is expected to grow between 5.5 % and 6.5 %.

Citigroup may pay $7 billion to resolve U.S. mortgage probes

  • Citigroup is close to paying about $7 billion to resolve a U.S. probe into whether it defrauded investors on billions of dollars’ worth of mortgage securities in the run-up to the financial crisis, a source familiar with the matter said on Tuesday.
  • A settlement of around $7 billion for Citigroup would be higher than analysts had expected.
  • JPMorgan Chase paid $13 billion in November to resolve a range of probes from the task force.

Shale boom confounds forecasts as U.S. set to pass Russia, Saudi Arabia

  • Four years into the shale revolution, the U.S. is on track to pass Russia and Saudi Arabia as the world’s largest producer of crude oil, most analysts agree.

Uber Faces Challenges in NY with Lyft Debut, Price Caps

  • Lyft said yesterday it will start offering ride-sharing services on July 11 in New York with 500 drivers, bringing more competition to Uber.
  • Uber has been operating in the city since 2011.
  • The company was valued at $17 billion in its latest financing round.
  • Uber also reached an agreement with New York Attorney General Eric Schneiderman to limit its peak-pricing tactics and cap fees during emergencies, potentially restricting revenue.

 

US ECONOMY & POLITICS

Mortgage applications rose in latest week

  • The MBA’sseasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 1.9 % in the week ended July 4.
  • Fixed 30-year mortgage rates averaged 4.32 % in the week, up 4 basis points from 4.28 % the week before.

 

EUROPE & WORLD

Carlos Slim bows to Mexico telecoms reform

  • Slim’s America Movil said on Tuesday it is ready to divest assets in an unprecedented step to cut its market share in Mexican telecoms below 50 % and escape the burden of tougher regulations.
  • America Movil is Latin America’s biggest telecoms company.
  • The Mexican government hailed the decision, saying it was a direct result of its drive to improve competition.
  • Investors also welcomed news of the divestiture. Shares of America Movil, which has about 70 % of Mexico’s mobile business and 80 % of its fixed line market, rose more than 5 % after markets opened on Wednesday.

 

TODAY in HISTORY

  • Argentina formally declared independence from Spain (1816)
  • The British Parliament proclaimed that as of Jan. 1, 1901, the six Australian colonies would be united at the Commonwealth of Australia (1900)
  • Boxer Mike Tyson was temporarily banned from boxing for biting Evander Holyfield’s ear (1997)

 

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 broadly at the Open Second Day on Valuations before Earnings

  • Both the S&P 500 and the Dow retreated from records yesterday amid speculation the Fed will raise interest rates sooner than expected.
  • The Fed will release minutes from its June meeting tomorrow.
  • Officials are debating the timing for the first increase in the main interest rate since 2006.
  • Policy makers have kept their target for overnight lending between banks in a range of zero to 0.25 % since December 2008.
  • In Europe, signs the economic recovery is losing momentum sent stocks lower for a third day. U.K. manufacturing unexpectedly slumped the most in 16 months in May and German exports contracted more than estimated.
  • Profit for S&P 500 members probably climbed 5 % in the three months through June, while sales rose 3 %, according to analyst estimates compiled by Bloomberg.
  • Three rounds of monetary stimulus from the Fed and better-than-forecast corporate earnings have driven the S&P 500 up more than 190 % from a low reached in March 2009.
  • The U.S. equity index is trading at 16.7 times the projected earnings of its members, near its highest valuation since the end of 2009 and higher than the five-year average of 14.3.

AbbVie Raises Offer for Shire to $51.5 Billion

  • AbbVie increased the offer by about 11 % to 51.15 pounds a share in cash and stock.
  • Buying Shire would allow AbbVie to have its tax domicile in the U.K., which has a lower tax rate than the U.S.

Samsung Sees Phone Rebound After Earnings Miss Estimates

  • Operating income fell about 24 % to 7.2 trillion won ($7.1 billion), compared with the 8.1 trillion-won average of analyst estimates.
  • Sales were about 52 trillion won in the quarter. That compares with the 53.2 trillion-won average estimates.
  • Samsung’s telecommunications unit generates more than 70 % of earnings.
  • While smartphones drove Samsung to record profits last year, the market is maturing.
  • The company’s total smartphone shipments slid to 78 million units in the second quarter from 87.5 million units sold in the first quarter.
  • Research firm IDC predicts global shipments growth will slow to 19.3 % this year from 39.2 % in 2013.

Tesla sued in China for trademark infringement

  • A Chinese businessman, Zhan Baosheng, registered the “Tesla” trademark before the U.S. company came to China, is now taking Tesla to court, demanding that it stop all sales and marketing activities in China, shut down showrooms and supercharging facilities and pay him 23.9 million yuan ($3.85 million) in compensation.
  • Apple was embroiled in a similar case for years before reaching a $60 million deal last year for the rights to use the iPad trademark in China.

VW brand sales up 1.1 % to 514,900 cars in June

  • Six-month deliveries at VW’s largest division by sales were up 3.8 % at 3.07 million cars.

BMW brand auto sales up 7.3 % in June on China, U.S.

  • BMW sales increased 7.3 % in June to 164,214 autos.
  • BMW’s six-month deliveries were up 10.2 % at 886,347 cars.

Samsung, Intel, Dell team up on standards for connected gadgets

  • The new Open Interconnect Consortium aims to establish how smart devices work together in a trend increasingly called the Internet of Things.

Most F-35 engines inspected; U.S. contract talks on hold for now

  • Most of the 97 Lockheed Martin F-35 fighter jets grounded last week have been inspected, and officials hope to wrap up the remaining inspections.
  • The U.S. military last week ordered a fleetwide grounding of the F-35 Joint Strike Fighter after the engine on an Air Force F-35 A-model jet broke apart and caught fire as a pilot was preparing to take off from Eglin Air Force Base in Florida.

 

US ECONOMY & POLITICS

U.S. small business confidence edges lower, still near six-year high

  • The NFIB Small Business Optimism Index fell 1.6 points to 95 last month.

Job Openings Rise in May

  • JOLTS job openings was 4.635 million for May, more than median forecast of 4.35 million.

 

EUROPE & WORLD

Japan Investors Sell German Bunds, Buy Record Amount French Debt

  • Investors sold 1.05 trillion yen ($10.3 billion) of bunds in May.
  • They boosted holdings of French sovereign bonds by 1.86 trillion yen and added 731.6 billion yen of U.S. Treasuries and 129.2 billion of Australian securities.

U.K. Manufacturing Unexpectedly Slumps Most in 16 Months

  • Factory output plunged 1.3 % from April, the most since January 2013 and the first decline in six months.

Japan current account surplus improves in May, outlook dim

  • The surplus was 522.8 billion yen ($5.14 billion), more than the median forecast for a 403.6 billion yen surplus.
  • In April, the surplus was 187.4 billion yen.
  • Exports rose 2.0 %. Imports fell 0.4 %.
  • The current account data also highlighted the need to stimulate domestic demand and the services sector as exports are no longer enough to drive economic growth.

 

TODAY in HISTORY

  • The first public reading of the Declaration of Independence was given in Philadelphia, Pa (1776)
  • Vermont became the first colony to abolish slavery (1777)
  • The Wall Street Journal began publication (1889)
  • General Douglas MacArthur was named commander-in-chief of the United Nations forces in Korea (1950)

 

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),

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