Monday 21 Jul 2014

USA

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,973.63 -0.23% 1,848.36 +6.78%
DJIA INDU 17,051.73 -0.28% 16,576.66 +2.87%
NASDAQ IXIC 4,424.70 -0.17% 4,176.59 +5.94%

The shape of the day

Market indices today: Ukraine and Gaza drive market down (Chart: Yahoo Finance)

Market indices today: Ukraine and Gaza drive market down (Chart: Yahoo Finance)

Comment

The geopolitical situation (in Russia/Ukraine and Israel/Gaza) is an overarching damper on the market and underneath that this week we’re right in the heart of second quarter earnings. While the market is net focused on earnings, we’re still trying to keep a pulse on what’s going on around the world.
Matthew Kaufler, Portfolio Manager, Federated Clover Investment Advisors More

People are naturally cautious against these geopolitical events and the market having had such a strong rally. Markets are nervous given we haven’t had a correction yet so people are thinking we’re overdue. People are just looking for reasons for the market to sell off.
Patrick Spencer, Head of Equity Sales (UK), Robert W. Baird & Co. Incorporated ($100m) More

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Portfolio indices Opinion

:-( Underperformed Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.565 -0.44% 1.399 +11.82%
Valuation Rate USD/AUD 0.94247 -0.19% 0.89789 +4.96%
Portfolio Index AUD 1.660 -0.25% 1.558 +6.53%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $93.94 -0.52% $80.1457 +17.21%
Amazon AMZN $359.76 +0.31% $398.79 -9.79%
Ebay EBAY $51.70 +0.43% $54.865 -5.77%
Facebook FB $69.40 +1.43% $54.649 +26.99%
Google A GOOGL $598.44 -1.10% $560.365 +6.79%
Google C GOOG $589.47 -0.94% $560.365 +5.19%
Linkedin LNKD $161.96 +1.23% $216.83 -25.31%
VMware VMW $92.95 -2.48% $89.71 +3.61%

Week: 14-20 Jul 2014

MOON

"One small step for man, a giant leap for mankind."

“One small step for man, a giant leap for mankind.”

45 years ago, 20 Jul 1969, Apollo 11 commander Neil Armstrong became the first person to stand on the moon’s surface. There were theories that he’d sink into the surface – but Armstrong found it like a walk in desert dust.

Where were you that day? In Lloyd’s case it was the mess at 1 Army Air Supply Organisation (1AASO), Wallgrove, NSW, Australia.

USA

US market indices

Index 18 Jul 2014 Week 11 Jun 2014 Month 30 Jun 2014 Year 31 Dec 13
S&P 500 1,978.22 +0.54% 1,967.57 +0.92% 1,923.57 +7.03% 1,848.36
DJIA 17,100.18 +0.92% 16,943.81 +1.63% 16,717.17 +3.16% 16,576.66
NASDAQ 4,432.15 +0.38% 4,415.49 +0.54% 4,242.62 +6.12% 4,176.59

The shape of the week

S&P500, DJIA and NASDAQ index performance this week  (Chart: Yahoo Finance)

S&P500, DJIA and NASDAQ index performance this week (Chart: Yahoo Finance)

PORTFOLIO

Bunting portfolio indices

indices_20140719

This week’s performance Impact

Index 18 Jul 2014 Week 11 Jun 2014 Month 30 Jun 2014 Year 31 Dec 13
USD Index 1.572 +0.20% 1.568 +2.14% 1.539 +12.32% 1.399
Trading USD/AUD 0.94429 +0.02% 0.94408 -0.42% 0.94828 +5.17% 0.89789
AUD Index 1.664 +0.18% 1.661 +2.58% 1.622 +6.80% 1.558

Portfolio stocks

Apple AAPL -0.83%

AAPL share price performance this week (Chart: Yahoo Finance)

AAPL share price performance this week (Chart: Yahoo Finance)

  • Friday close: $94.43 -0.83% from $95.22.
  • P/E (historical): 15.79 Change from 15.93
  • P/E (1 year fwd): 14.78 Change from 15.08
  • Target (1 year): NASDAQ consensus $102, range $75 ↔ $115.
    Consensus increased from $100.
  • Analyst recommendations: 24 (-+1) strong buy, 6 buy, 8 (-1) hold.
  • SEC filings (CIK 0000320193): Edgar Search (New, Beta)
  • Press releases: Apple

Amazon AMZN +3.60%

AMZN share price performance this week (Chart: Yahoo Finance)

AMZN share price performance this week (Chart: Yahoo Finance)

Ebay EBAY -0.04%

EBAY  share price performance this week (Chart: Yahoo Finance)

EBAY share price performance this week (Chart: Yahoo Finance)

Facebook FB +3.14%

FB  share price performance this week (Chart: Yahoo Finance)

FB share price performance this week (Chart: Yahoo Finance)

Google Class A GOOGL +3.14%

GOOGL  share price performance this week (Chart: Yahoo Finance)

GOOGL share price performance this week (Chart: Yahoo Finance)

  • Friday close: $605.11 +3.14% from $586.65.
  • P/E (historical): 31.26 Change from 30.99
  • P/E (1 year fwd): 25.95 Change from 25.89
  • Target (1 year): NASDAQ consensus $647.5 range $600 ↔ $700.
    Lower limit increased from $300. Consensus increased from $645.
  • SEC filings (CIK 0001288776): Edgar Search (New, Beta)

Google Class C GOOG +3.15%

GOOG  share price performance this week (Chart: Yahoo Finance)

GOOG share price performance this week (Chart: Yahoo Finance)

  • Friday close: $595.08 GOOG +3.15% from $579.18.
  • P/E (historical): 20.75 Change from 17.43
  • P/E (1 year fwd): N/A
  • Analyst recommendations: 5 strong buy, 2 buy, 0 hold.

Linkedin LNKD +2.18%

LNKD  share price performance this week (Chart: Yahoo Finance)

LNKD share price performance this week (Chart: Yahoo Finance)

VMware VMW +1.22%

VMW  share price performance this week (Chart: Yahoo Finance)

VMW share price performance this week (Chart: Yahoo Finance)

USD/AUD

USD/AUD this week (Chart: xe.com)

USD/AUD this week (Chart: xe.com)

Friday 18 Jul 2014

USA

Economy

Consumer confidence (Prelim) – Jul 2014 Opinion

The preliminary reading for Jul 2014 was 81.3, below June’s final reading of 82.5, and below the expected level of 83.

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.

The survey’s one-year inflation expectation rose to 3.3 percent from 3.1 percent in June, while the survey’s five-to-10-year inflation outlook fell to 2.6 percent from 2.9 percent.

Thomson Reuters-University of Michigan, “Consumer confidence – Prelim. – Jul 2014“, 16 Jul 2014 (09:55am) More

Regional and State employment and unemployment – Jun 2014 Opinion

Extract

Regional and state unemployment rates were generally little changed in June. Twenty-two states and the District of Columbia had unemployment rate decreases from May, 14 states had increases, and 14 states had no change, the U.S. Bureau of Labor Statistics reported today. Forty-nine states and the District of Columbia had unemployment rate decreases from a year earlier and one state had an increase. The national jobless rate declined to 6.1 percent from May and was 1.4 percentage points lower than in June 2013.

In June 2014, nonfarm payroll employment increased in 33 states and the District of Columbia and decreased in 17 states. The largest over-the-month increases in employment occurred in Florida (+37,400), California (+24,200), and New York (+22,500). The largest over-the-month decrease in employment occurred in Georgia (-9,500), followed by West Virginia (-9,100) and Alaska (-5,900). The largest over-the-month percentage increases in employment occurred in the District of Columbia, Indiana, North Dakota, and Oklahoma (+0.6 percent each). The largest over-the-month percentage decline in employment occurred in Alaska (-1.7 percent), followed by West Virginia (-1.2 percent), and New Hampshire and New Mexico (-0.6 percent each). Over the year, nonfarm employment increased in 47 states and the District of Columbia and decreased in 3 states. The largest over-the-year percentage increase occurred in North Dakota (+4.8 percent), followed by Nevada (+3.9 percent) and Utah (+3.5 percent). The over-the-year percentage decreases in
employment occurred in Alaska (-0.7 percent), Vermont (-0.1 percent), and New Mexico (which declined by less than 0.05 percent).

Department of Labor – Bureau of Labor Statistics, “Regional and State employment and unemployment – Jun 2014“, 16 Jul 2014 (10am) More

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,978.22 +1.03% 1,848.36 +7.03%
DJIA INDU 17,100.18 +0.73% 16,576.66 +3.16%
NASDAQ IXIC 4,432.15 +1.57% 4,176.59 +6.12%

The shape of the day

Market indices today (Chart: Yahoo Finance)

Market indices today (Chart: Yahoo Finance)

Nightly Business Report: 18 Jul 2014 Watch
Expectations (before market opens)

There will be a greater level of uncertainty in the market today with yesterday’s events in Ukraine. The U.S. is in a good place right now, with positive results from several domestically-focused companies. The U.S. economy is moving along quite nicely. I’m expecting a modestly rising trend in sentiment as a result.
Nick Skiming, Fund Manager, Ashburton (Jersey) Limited ($10bn) More

Comment (during the day)

When all these things (like the shooting down of an airliner over Ukraine) hit the headlines, there’s a knee-jerk reaction for the day. This is a terrible tragedy, but the odds of it developing into something that’s going to be a sustained market event are fairly low. You get a lot of investors coming in today and taking advantage of opportunities in the sense of having a re-priced market yesterday.
Jim Paulsen, Chief Investment Strategist, Wells Capital Management Inc. ($357bn) More

On the subject of leading indicators: “We had a bit of a low expectation going into the second quarter given the first quarter. We do feel the second quarter finished much stronger than it began. We think the economic drumbeat is growing louder and more constructive for the markets moving forward.
Jim Russell, Senior Equity Strategist, U.S. Bank Wealth Management ($120bn) More

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Portfolio indices Opinion

:-) Outperformed Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.572 +1.85% 1.399 +12.32%
Valuation Rate USD/AUD 0.94429 +0.38% 0.89789 +5.17%
Portfolio Index AUD 1.664 +1.46% 1.558 +6.80%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $94.43 +1.44% $80.1457 +17.82%
Amazon AMZN $358.66 +1.76% $398.79 -10.06%
Ebay EBAY $51.48 +0.88% $54.865 -6.17%
Facebook FB $68.4199 +3.03% $54.649 +25.20%
Google A GOOGL $605.11 +4.18% $560.365 +7.98%
Google C GOOG $595.08 +3.72% $560.365 +6.20%
Linkedin LNKD $159.99 +1.77% $216.83 -28.21%
VMware VMW $95.31 +2.34% $89.71 +6.24%

Thursday 17 Jul 2014

EUROPE

Ukraine: Malaysian Airlines flight crashes, killing 295 Opinion

Malaysian Airlines report Facebook

Malaysia Airlines confirms it received notification from Ukrainian ATC that it had lost contact with flight MH17 at 1415 (GMT) at 30km from Tamak waypoint, approximately 50km from the Russia-Ukraine border.

Flight MH17 operated on a Boeing 777 departed Amsterdam at 12.15pm (Amsterdam local time) and was estimated to arrive at Kuala Lumpur International Airport at 6.10 am (Malaysia local time) the next day.

The flight was carrying 283 passengers and 15 crew onboard.

The aircraft had flown through Ukraine airspace and was within minutes (40KM) of leaving Eastern Ukraine and entering Russian airspace.

Main crash site.  Crash photo. Map

Main crash site South of Hrabove (Mouseover for photo). Map

Other reports

The Ukraine government reports that the aircraft disappeared from radar at an altitude of 10,000m. Photos show that tail of the aircraft is separated from the main crash site. Dmitry Lovetsky, an Associated Press journalist, reports “The plane appeared to have broken up before impact and the burning wreckage — which included body parts and the belongings of passengers — was scattered over a wide area.” The AP journalist counted at least 22 bodies at the crash site near the rebel-held village of Hrabove in eastern Ukraine, 40 kilometers (25 miles) from the Russian border. More Reuters reports that the black boxes from the crashed airliner have been found.

Shoot-down claim

Photo uploaded to Facebook by Anton Gerashchenko

Missile trail photo uploaded to Facebook by Anton Gerashchenko


Anton Gerashchenko, an adviser to Ukraine’s interior minister, posted photos of a missile launcher and missile trail to Facebook with the claim “A civilian airliner travelling from Amsterdam to Kuala Lumpur has just been shot down by a Buk anti-aircraft system.

Shoot-down evidence

DONETSK, July 17. /ITAR-TASS/. Militiamen of the self-proclaimed Donetsk People’s Republic (DPR) brought down a military transport Antonov-26 (An-26) plane of the Ukrainian Air Force on the outskirts of the town of Torez, eyewitnesses said. A missile hit the An-26, it fell on the ground and caught blaze, they said. On July 14, militiamen of the self-proclaimed Luhansk People’s Republic downed another An-26 of the Ukrainian Air Force.More

Intercepted communications between Col. Vasyl Mykolaiovych Geranin of Russia’s main intelligence unit (GRU) and pro-Russian militants in the area appear to confirm that the aircraft was shot down by militants who believed they were targeting a military plane. The Buk missiles had been seized by self-proclaimed Donetsk People’s Republic (DNR) from (Ukrainian) surface-to-air missile regiment A1402 hours before the firing. Watch

  • Igor Bezler (militant): “We have just shot down a plane. That was Miner’s group. It fell down outside Enakievo.
  • V. Geranin (Russia): “Pilots? Where are the pilots?”
  • Bezler: “Set off to search for the shot down plane and take the pictures of it. A plume of smoke is visible.”
  • Geranin: “How many minutes ago?”
  • Bezler: “About 30 minutes ago.”

crash04

  • “Major” (militant) to “Grek” (militant): so these were “those from Chernukhinsk who shot down the plane. From Chernukhinsk check-point cossaks that are nearby Chernukhino.”
  • “Major”: “The plane broke into pieces in the air, close to Petropavlovskaya (coal) mine. There is the first two-hundredth (dead), we have found the first two-hundredth. It’s a civilian.”
  • “Grek”: “How are things going there?”
  • “Major”: “Well, we are 100% sure that it was a civilian plane.”
  • “Grek”: “Are there a lot of people?”
  • “Major”: “F*ck! The debris was falling straight into the yards.”

crash001

  • “Grek”: “What plane is that?”
  • “Major”: “I haven’t figured it out yet. I haven’t got close to the main wreckage. Now I’m standing nearby the place where the first bodies started falling … here are remnants of internal brackets, chairs, bodies.”
  • “Grek”: “Are there any weapons?”
  • “Major”: “Nothing at all. Civilian belongings, medical scraps, towels, toilet paper.”
  • “Grek”: “Are there any documents?”
  • “Major”: “Yes. One belonging to a student from Indonesia. From Thompson university.”

crash03

  • Militant to Cossack military leader Mykola Kozitsyn: “As to this plane shot down nearby Snezhnoe-Torez. This turned out to be a passenger one. It fell down outside Hrabove (Grabove). There is a whole lot of bodies of women and children. Cossacks are now looking around there … On TV ITAR-TASS they say it is a Ukrainian AN-26, a transport plane. But the writing says ‘Malaysian Airlines’. What was it doing over the territory of Ukraine?”
  • Kozitsyn: “Well then it was bringing spies. Why the hell were they flying? This is a war going on.”
Cossack Kozitsyn Mykola Ivanovych

Cossack Kozitsyn Mykola Ivanovych

And now … it’s spot the difference time

Antonov AN-26

One of these two aircraft is a military Antonov AN-26, and the other is a Malaysian Airlines Boeing 777. For 298 civilian lives, the question is: which is the Antonov AN-26?
MAS Boeing 777

Other shoot-downs of large civilian aircraft

  • 1 Sep 1983: Korean Airlines Flight 007, Boeing 747, shot down by the Russian Airforce. 269 killed. The aircraft was mistaken for a military aircraft. Video documentary
  • 3 July 1988: Iran Air Flight 655, Airbus A300, shot down by US Navy destroyer Vincennes. 290 killed. The aircraft was mistaken for a military aircraft. Video documentary 1/3 Part 2/3 Part 3/3

Ukraine government request

The (Ukraine) government insists that a comprehensive international investigation into the crash of an Armed Forces An-26 aircraft downed in Luhansk region on July 14, the crash of an Armed Forces Su-25 aircraft downed in Donetsk region on July 16, and the crash of a Malaysia Airlines Boeing 777 [on July 17] be conducted with the participation of the International Civil Aviation Organization (ICAO) and the European Organization for the Safety of Air Navigation (EUROCONTROL).More

MIDDLE EAST

Israel announces increased military action in Gaza Opinion

15 minutes before close of trading in NY, a report has been heard that the Israel government is launching ground military action in Gaza.

USA

Economy

Unemployment Insurance Weekly Claims Report: Week to 12 Jul 2014 Opinion

Extract

In the week ending July 12, the advance figure for seasonally adjusted initial claims was 302,000, a decrease of 3,000 from the previous week’s revised level. The previous week’s level was revised up by 1,000 from 304,000 to 305,000. The 4-week moving average was 309,000, a decrease of 3,000 from the previous week’s revised average. This is the lowest level for this average since June 2, 2007 when it was 307,500. The previous week’s average was revised up by 500 from 311,500 to 312,000.

The advance seasonally adjusted insured unemployment rate was 1.9 percent for the week ending July 5, a decrease of 0.1 percentage point from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending July 5 was 2,507,000, a decrease of 79,000 from the previous week’s revised level. This is the lowest level for insured unemployment since June 30, 2007 when it was 2,501,000. The previous week’s level was revised up 2,000 from 2,584,000 to 2,586,000. The 4-week moving average was 2,559,000, a decrease of 13,000 from the previous week’s revised average. This is the lowest level for this average since October 20, 2007 when it was 2,544,500. The previous week’s average was revised up by 750 from 2,571,250 to 2,572,000.

U.S. Employment and Training Administration, “Unemployment Insurance Weekly Claims Report – Week to 12 Jul 2014“, 17 Jul 2014 (08:30am) More

New residential construction (permits, starts, completions – Jun 2014 Opinion

Extract

BUILDING PERMITS

Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 963,000. This is 4.2 percent (±1.5%) below the revised May rate of 1,005,000, but is 2.7 percent (±1.8%) above the June 2013 estimate of 938,000.

Single-family authorizations in June were at a rate of 631,000; this is 2.6 percent (±1.4%) above the revised May figure of 615,000. Authorizations of units in buildings with five units or more were at a rate of 301,000 in June.

HOUSING STARTS

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 893,000. This is 9.3 percent (±10.3%)* below the revised May estimate of 985,000, but is 7.5 percent (±14.4%)* above the June 2013 rate of 831,000.

Single-family housing starts in June were at a rate of 575,000; this is 9.0 percent (±10.1%)* below the revised May figure of 632,000. The June rate for units in buildings with five units or more was 305,000.

HOUSING COMPLETIONS

Privately-owned housing completions in June were at a seasonally adjusted annual rate of 789,000. This is 12.0 percent (±8.3%) below the revised May estimate of 897,000, but is 3.4 percent (±11.6%)* above the June 2013 rate of 763,000.

Single-family housing completions in June were at a rate of 586,000; this is 6.5 percent (±9.4%)* below the revised May rate of 627,000. The June rate for units in buildings with five units or more was 198,000.

US Census Bureau, “New residential construction (permits, starts, completions – June 2014“, 17 Jul 2014 (08:30am) More

NBR Comment Watch

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,958.12 -1.18% 1,848.36 +5.94%
DJIA INDU 16,976.81 -0.94% 16,576.66 +2.41%
NASDAQ IXIC 4,363.45 -1.41% 4,176.59 +4.47%

The shape of the day

Market indices today: Issues - Housing, Ukraine, Gaza   (Chart: Yahoo Finance)

Market indices today: Issues – Housing, Ukraine, Gaza (Chart: Yahoo Finance)

Nightly Business Report: 17 Jul 2014 Watch

Tech reporting season: Jun 2014 quarter

Opinion Google GOOGL -1.66% Report

Key numbers

For the Jun 2014 quarter:

  • Revenue increased 22% to $15.96bn from $13.11bn last year, ahead of expectations of $15.62bn.
  • Profit increased 5.9% to $3.42bn, compared to $3.23bn for the same period in 2013.
  • Diluted GAAP EPS were $4.99, up from $4.77.
Comment

NBR comment Watch

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Portfolio indices Opinion

:-( Underperformed Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.543 -1.62% 1.399 +10.28%
Valuation Rate USD/AUD 0.94067 -0.11% 0.89789 +4.76%
Portfolio Index AUD 1.640 -1.52% 1.558 +5.26%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $93.09 -1.78% $80.1457 +16.15%
Amazon AMZN $352.45 -0.97% $398.79 -11.62%
Ebay EBAY $51.03 +0.65% $54.865 -6.99%
Facebook FB $66.41 -1.85% $54.649 +21.52%
Google A GOOGL $580.62 -1.66% $560.365 +3.65%
Google C GOOG $573.73 -1.53% $560.365 +2.39%
Linkedin LNKD $157.21 -0.29% $216.83 -27.50%
VMware VMW $93.13 -0.98% $89.71 +3.81%

USD/AUD

The AUD may have responded to the Ukraine air crash and increased military action in Gaza

The Ukraine air crash and increased military action in Gaza may have dropped the AUD

Wednesday 16 Jul 2014

CHINA

Economy

GDP growth – Jun 2014 Quarter Opinion

China’s economy expanded at a 7.5 percent annual pace in the second quarter, the statistics bureau said, just beating the 7.4 percent median forecast in a Reuters poll. The data confirmed the economy had stabilized after a shaky start to the year, though analysts said the pick-up was largely driven by government stimulus.More

Comment

The data are quite positive. The government will continue to support the key sectors it is supporting now but will not expand to sectors they are not encouraging.
Zhu Haibin, Chief China Economist, JP Morgan Chase & Co. More

USA

Economy

Producer price index – Jun 2014 Opinion

Extract

The Producer Price Index for final demand rose 0.4 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This increase followed a 0.2-percent decline in May and a 0.6-percent advance in April. On an unadjusted basis, the index for final demand moved up 1.9 percent for the 12 months ended in June.

In June, the 0.4-percent increase in final demand prices can be traced to a 0.5-percent advance in the index for final demand goods and a 0.3-percent rise in prices for final demand services.

Within intermediate demand, prices for processed goods advanced 0.4 percent, the index for unprocessed goods fell 0.9 percent, and prices for services moved up 0.6 percent.

US Bureau of Labor Statistics, “Producer price indexes – June 2014“, 16 Jul 2014 (08:30am) More

Industrial production – Jun 2914 Opinion

Industrial production 0.2% in Jun 2014, below the expected rise of 0.3% – 0.4% and below May’s revised 0.5% rise.

Extract

Industrial production increased 0.2 percent in June and advanced at an annual rate of 5.5 percent for the second quarter of 2014. In June, manufacturing output edged up 0.1 percent for its fifth consecutive monthly gain, while the production at mines moved up 0.8 percent and the output of utilities declined 0.3 percent. For the second quarter as a whole, manufacturing production rose at an annual rate of 6.7 percent, while mining output increased at an annual rate of 18.8 percent because of gains in the extraction of oil and gas; by contrast, the output of utilities fell at an annual rate of 21.4 percent following a weather-related increase of 15.6 percent in the first quarter. At 103.9 percent of its 2007 average, total industrial production in June was 4.3 percent above its level of a year earlier. The capacity utilization rate for total industry was unchanged in June at 79.1 percent, a rate that is 1.0 percentage point below its long-run (1972–2013) average.

US Federal Reserve, “Industrial production and capacity utilization – June 2014“, 16 Jul 2014 (09:15am) More

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,981.57 +0.42% 1,848.36 +7.21%
DJIA INDU 17,138.20 +0.45% 16,576.66 +3.39%
NASDAQ IXIC 4,425.97 +0.22% 4,176.59 +5.97%

The shape of the day

Market indices today: DJIA achieves a new record   (Chart: Yahoo Finance)

Market indices today: DJIA achieves a new record (Chart: Yahoo Finance)

Nightly Business Report: 16 Jul 2014 Watch

Tech reporting season: Jun 2014 quarter

Opinion Ebay EBAY -0.23% Report

Key numbers

For the Jun 2014 quarter:

  • Revenue increased 13% to $4.4bn, compared to the same period in 2013.
  • GAAP diluted EPS increased to $676m or $0.53.
  • non-GAAP diluted EPS increased to $868m or $0.69.

Sep 2014 quarter forecasts are below expectations:

  • Revenue forecast: $4.3bn to $4.4bn. Expectation: $4.42bn
  • EPS forecast: $0.65 to $0.67. Expectation: $0.70

Ebay also announced a $1.7bn share buyback program.

Comment

NBR comment Watch
EBay has a tailwind from the global growth of e-commerce. We’re at a point where most of growth in retail is coming online.
Gil Luria, Analyst at Wedbush Securities Inc. More

Market reaction

In after hours trading Ebay’s share price reversed its loss of 0.23% at close to a gain of 0.94%.

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Opinion We had expected a better result from Apple AAPL -0.57% today, given the positive response to yesterday’s announcement of a partnership with IBM.

AAPL share price today (Chart: NASDAQ)

AAPL share price today (Chart: NASDAQ)

Portfolio indices Opinion

:-( Underperformed Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.568 -0.43% 1.399 +12.10%
Valuation Rate USD/AUD 0.94166 -0.05% 0.89789 +4.87%
Portfolio Index AUD 1.666 -0.37% 1.558 +6.89%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $94.78 -0.57% $80.1457 +18.26%
Amazon AMZN $355.90 +0.41% $398.79 -10.76%
Ebay EBAY $50.70 -0.23% $54.865 -7.59%
Facebook FB $67.66 +0.74% $54.649 +23.81%
Google A GOOGL $590.62 -0.41% $560.365 +5.40%
Google C GOOG $582.66 -0.36% $560.365 +3.98%
Linkedin LNKD $157.67 -0.53% $216.83 -27.28%
VMware VMW $94.05 -0.81% $89.71 +4.84%

Tuesday 15 Jul 2014

USA

Economy

Advance monthly retail sales – Jun 2014 Opinion

Extract

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for June, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $439.9 billion, an increase of 0.2 percent (±0.5)* from the previous month, and 4.3 percent (±0.9) above June 2013. Total sales for the April through June 2014 period were up 4.5 percent (±0.7) from the same period a year ago. The April to May 2014 percent change was revised from +0.3 percent (±0.5)* to +0.5 percent (±0.2).

Retail trade sales were up 0.3 percent (±0.5)* from May 2014, and 4.1 percent (±0.9) above last year. Nonstore retailers were up 8.1 percent (±2.3) from June 2013 and health and personal care stores were up 7.9 percent (±1.9) from last year.

US Census Bureau, “Advance Monthly Sales for Retail and Food Services – Jun 2014“, 15 Jul 2014 (08:30am) More

US import and export price indexes – Jun 2014 Opinion

Extract

U.S. import prices advanced 0.1 percent in June following a 0.3-percent rise in May, the U.S. Bureau of Labor Statistics reported today. Higher fuel prices drove the monthly increases for both June and May. Prices for U.S. exports decreased 0.4 percent in June, after ticking up 0.1 percent the previous month.

US Bureau of Labor Statistics, “US import and export price indexes – Jun 2014“, 15 Jul 2014 (08:30am) More

Manufacturing and trade: Inventories and sales – May 2014

Extract

Sales. The U.S. Census Bureau announced today that the combined value of distributive trade sales and manufacturers’ shipments for May, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,343.3 billion, up 0.4 percent (±0.2%) from April 2014 and were up 4.6 percent (±0.5%) from May 2013.

Inventories. Manufacturers’ and trade inventories, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $1,737.4 billion, up 0.5 percent (±0.1%) from April 2014 and up 5.6 percent (±0.4%) from May 2013.

Inventories/Sales Ratio. The total business inventories/sales ratio based on seasonally adjusted data at the end of May was 1.29. The May 2013 ratio was 1.28.

US Census Bureau, “Manufacturing and trade inventories and sales – May 2014“, 15 Jul 2014 (10:00am) More

Yellen testimony on monetary policy before the Committee on Banking, Housing, and Urban Affairs

Extracts

Current Economic Situation and Outlook …

Although the decline in GDP in the first quarter led to some downgrading of our growth projections for this year, I and other FOMC participants continue to anticipate that economic activity will expand at a moderate pace over the next several years, supported by accommodative monetary policy, a waning drag from fiscal policy, the lagged effects of higher home prices and equity values, and strengthening foreign growth. The (Federal Open Market Committee) sees the projected pace of economic growth as sufficient to support ongoing improvement in the labor market with further job gains, and the unemployment rate is anticipated to continue to decline toward its longer-run sustainable level. Consistent with the anticipated further recovery in the labor market, and given that longer-term inflation expectations appear to be well anchored, we expect inflation to move back toward our 2 percent objective over coming years.

Monetary Policy …

… in June the Committee reiterated its expectation that the current target range for the federal funds rate likely will be appropriate for a considerable period after the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal and provided that inflation expectations remain well anchored. In addition, we currently anticipate that even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the federal funds rate below levels that the Committee views as normal in the longer run.

Janet Yellen, Chair, Board of Governors of the Federal Reserve System, “Statement before the Committee on Banking, Housing, and Urban Affairs“, 15 Jul 2014 (10:00am) More

Federal Reserve Monetory Policy Report Opinion

This comment in today’s Monetary Policy Report was the driver of a drop in stock prices today:

…signs of risk-taking have increased in some asset classes. Equity valuations of smaller firms as well as social media and biotechnology firms appear to be stretched, with ratios of prices to forward earnings remaining high relative to historical norms.

Board of Governors of the Federal Reserve System, “Monetary Policy Report“, 15 Jul 2014 (10:00am) More

Comment

(Janet Yellen) signaled in her comments about extreme valuations in biotech and social media. And that seems to be an addendum to her text. It’s very unusual for the Fed chairman to take a micro view of a specific industry group. Usually the comments are very top level. So I think the Fed is a little more in tune with what has been bothering the market. My thought is it’s late, but not too late in terms of recognition.

Fred Dickson, Chief Investment Strategist, D.A. Davidson Companies More

The Fed wants to pay attention to valuations given that they might have to change the interest rate backdrop that has been a strong catalyst for the market. The small cap area is going to be much more interest rate sensitive.

Eric Teal, Chief Investment Officer, First Citizens BancShares Inc ($3.6bn) More

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,973.28 -0.19% 1,848.36 +6.76%
DJIA INDU 17,060.68 +0.03% 16,576.66 +2.93%
NASDAQ IXIC 4,416.39 -0.54% 4,176.59 +5.74%

The shape of the day

Market indices today: Market down on Fed valuation comments  (Chart: Yahoo Finance)

Market indices today: Market down on Fed valuation comments (Chart: Yahoo Finance)

Nightly Business Report: 15 Jul 2014 Watch
Tech reporting season: Jun 2014 quarter
  • Opinion Intel reported EPS of $0.55, exceeding expectations of $0.52, and revenue $13.8bn beat expectations of $13.7bn – driven by a rebound in demand for personal computers. INTC increased its price gain from 0.70% at close to 5.21% in late trading (from $31.71 to $33.13). NBR report (Watch)
  • Opinion Yahoo! reported EPS of $0.37, below expectations of $0.38, and revenue of $1.04bn, below expectations of $1.08bn. YHOO increased its price fall from -0.25% at close to -2.49% in late trading (from $35.61 to $34.81). YHOO’s problem is a drop in advertising revenue. More NBR report (Watch). That’s probably not a great sign for Google, but GOOGL and GOOG held their close prices in late trading.

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Portfolio indices Opinion

:-( Underperformed Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.575 -0.97% 1.399 +12.58%
Valuation Rate USD/AUD 0.94217 -0.25% 0.89789 +4.93%
Portfolio Index AUD 1.672 -0.71% 1.558 +7.29%

Portfolio stock news

Apple AAPL -1.17% and IBM IBM -0.72% partner on enterprise mobility Opinion

IBM and Apple CEOs, Ginni Rometty and Tim Cook (Photo: NASDAQ BusinessWire)

IBM and Apple CEOs, Ginni Rometty and Tim Cook (Photo: NASDAQ BusinessWire)

Extract (released after market close)

CUPERTINO, California and ARMONK, New York—July 15, 2014—Apple® and IBM (NYSE: IBM) today announced an exclusive partnership that teams the market-leading strengths of each company to transform enterprise mobility through a new class of business apps—bringing IBM’s big data and analytics capabilities to iPhone® and iPad®.

The landmark partnership aims to redefine the way work will get done, address key industry mobility challenges and spark true mobile-led business change—grounded in four core capabilities:

  • a new class of more than 100 industry-specific enterprise solutions including native apps, developed exclusively from the ground up, for iPhone and iPad;
  • unique IBM cloud services optimized for iOS, including device management, security, analytics and mobile integration;
  • new AppleCare® service and support offering tailored to the needs of the enterprise; and
  • new packaged offerings from IBM for device activation, supply and management.

The new IBM MobileFirst for iOS solutions will be built in an exclusive collaboration that draws on the distinct strengths of each company: IBM’s big data and analytics capabilities, with the power of more than 100,000 IBM industry and domain consultants and software developers behind it, fused with Apple’s legendary consumer experience, hardware and software integration and developer platform. The combination will create apps that can transform specific aspects of how businesses and employees work using iPhone and iPad, allowing companies to achieve new levels of efficiency, effectiveness and customer satisfaction—faster and easier than ever before.

As part of the exclusive IBM MobileFirst for iOS agreement, IBM will also sell iPhones and iPads with the industry-specific solutions to business clients worldwide.

Apple, “Apple and IBM Forge Global Partnership to Transform Enterprise Mobility“, 15 Jul 2014 More

Market reaction (late trading)

In late trading Apple rose 1.55% from its close price of $95.32 to $96.80, and IBM rose 2.02% from its close price of $188.49 to $192.30.

NBR report on the agreement Watch

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $95.32 -1.17% $80.1457 +18.93%
Amazon AMZN $354.44 -0.25% $398.79 -11.12%
Ebay EBAY $50.81 -0.68% $54.865 -7.39%
Facebook FB $67.17 -1.08% $54.649 +22.91%
Google A GOOGL $593.06 -0.20% $560.365 +5.83%
Google C GOOG $584.78 -0.02% $560.365 +4.36%
Linkedin LNKD $158.51 -0.75% $216.83 -26.90%
VMware VMW $94.82 -1.20% $89.71 +5.70%

Monday 14 Jul 2014

BUSINESS TRAVEL

The US Department of Homeland Security’s National Cybersecurity and Communications Integration Center (NCCIC) warns business (and other) travellers about the risks of using computers in hotel business centres (and other services, such as airport lounges). Hackers are installing key logging malware into these publicly available computers. Watch NBR Report

USA

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,977.11 +0.48% 1,848.36 +6.97%
DJIA INDU 17,055.42 +0.66% 16,576.66 +2.89%
NASDAQ IXIC 4,440.42 +0.56% 4,176.59 +6.32%

The shape of the day

Market indices today   (Chart: Yahoo Finance)

Market indices today: Citigroup and tech stocks lead rally (Chart: Yahoo Finance)

Nightly Business Report: 14 Jul 2014 Watch

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Portfolio indices Opinion

:-) Outperformed Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.590 +1.41% 1.399 +13.68%
Valuation Rate USD/AUD 0.94457 +0.05% 0.89789 +5.20%
Portfolio Index AUD 1.684 +1.36% 1.558 +8.06%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $96.45 +1.29% $80.1457 +20.34%
Amazon AMZN $355.32 +2.63% $398.79 -10.90%
Ebay EBAY $51.16 -0.66% $54.865 -6.75%
Facebook FB $67.90 +2.35% $54.649 +24.25%
Google A GOOGL $594.26 +1.30% $560.365 +6.05%
Google C GOOG $584.87 +0.98% $560.365 +4.37%
Linkedin LNKD $159.70 +1.99% $216.83 -26.35%
VMware VMW $95.97 +1.92% $89.71 +6.98%

Week: 7-13 Jul 2014

Sandridge Beach (western end of Port Melbourne) - Melbourne City in background

Sandridge Beach (Western end of Port Melbourne) – Melbourne skyline in the background

SOCCER WORLD CUP

Germany has won the World Cup, defeating Argentina 1-0 in extra time More

USA

US market indices

Index 11 Jul 2014 Week 4 Jun 2014 Month 30 Jun 2014 Year 31 Dec 13
S&P 500 1,967.57 -0.90% 1,985.44 +0.37% 1,923.57 +6.45% 1,848.36
DJIA 16,943.81 -0.73% 17,068.26 +0.70% 16,717.17 +2.21% 16,576.66
NASDAQ 4,415.49 -1.57% 4,485.92 +0.17% 4,242.62 +5.72% 4,176.59

The shape of the week

S&P500, DJIA and NASDAQ index performance this week  (Chart: Yahoo Finance)

S&P500, DJIA and NASDAQ index performance this week (Chart: Yahoo Finance)

PORTFOLIO

Bunting portfolio indices

Bunting USD and AUD denominated indices over the last 12 months

Bunting USD and AUD denominated indices over the last 12 months

This week’s performance Impact

Index 11 Jul 2014 Week 4 Jul 2014 Month 30 Jun 2014 Year 31 Dec 13
USD Index 1.568 +0.63% 1.559 +1.94% 1.539 +12.10% 1.399
Trading USD/AUD 0.94408 +0.35% 0.94080 -0.44% 0.94828 +5.14% 0.89789
AUD Index 1.661 +0.28% 1.657 +2.39% 1.622 +6.61% 1.558

Portfolio stocks

Apple AAPL +1.27%

AAPL share price performance this week (Chart: Yahoo Finance)

AAPL share price performance this week (Chart: Yahoo Finance)

Amazon AMZN +2.58%

AMZN share price performance this week (Chart: Yahoo Finance)

AMZN share price performance this week (Chart: Yahoo Finance)

Ebay EBAY +1.10%

EBAY share price performance this week (Chart: Yahoo Finance)

EBAY share price performance this week (Chart: Yahoo Finance)

Facebook FB +0.08%

FB share price performance this week (Chart: Yahoo Finance)

FB share price performance this week (Chart: Yahoo Finance)

  • Friday close: $66.34 +0.08% from $66.29
  • P/E (historical): 88.45 Change from 88.39
  • P/E (1 year fwd): 55.45 Change from 56.79
  • Target (1 year): NASDAQ consensus $79, range $50 ↔ $90.
    Consensus increased from $78.5.
  • Analyst recommendations: 28 strong buy, 3 (-1) buy, 2 hold.
  • SEC filings (CIK 0001326801): Edgar Search (New, Beta)

Google Class A GOOGL -1.08%

GOOGL  share price performance this week (Chart: Yahoo Finance)

GOOGL share price performance this week (Chart: Yahoo Finance)

  • Friday close: $586.65 -1.08% from $593.08.
  • P/E (historical): 30.99 Change from 30.66
  • P/E (1 year fwd): 25.89 Change from 26.37
  • Target (1 year): NASDAQ consensus $645 range $300 ↔ $700.
  • SEC filings (CIK 0001288776): Edgar Search (New, Beta)

Google Class C GOOG -0.95%

GOOG  share price performance this week (Chart: Yahoo Finance)

GOOG share price performance this week (Chart: Yahoo Finance)

  • Friday close: $579.18 -0.95% from $584.73.
  • P/E (historical): 17.43 Change from 17.60
  • P/E (1 year fwd): N/A
  • Analyst recommendations: 5 strong buy, 2 buy, 0 hold.

Linkedin LNKD -9.86%

LNKD  share price performance this week (Chart: Yahoo Finance)

LNKD share price performance this week (Chart: Yahoo Finance)

VMware VMW -4.24%

VMW  share price performance this week (Chart: Yahoo Finance)

VMW share price performance this week (Chart: Yahoo Finance)

  • Friday close: $94.16 -4.24% from $98.33.
  • P/E (historical): 39.07 Change from 40.80
  • P/E (1 year fwd): 38.96 Change from 39.51
  • Target (1 year): NASDAQ consensus $114.5, range $85 ↔ $126.
    Lower limit increased from $75. Consensus increased from $114.
  • Analyst recommendations: 15 strong buy, 3 buy, 9 (+1) hold.
  • SEC filings (CIK 0001124610): Edgar Search (New, Beta)

USD/AUD

 USD/AUD this week (Chart: xe.com)

USD/AUD this week (Chart: xe.com)

Friday 11 Jul 2014

USA

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,967.57 +0.15% 1,848.36 +6.46%
DJIA INDU 16,943.81 +0.17% 16,576.66 +2.21%
NASDAQ IXIC 4,415.49 +0.44% 4,176.59 +5.72%

The shape of the day

Market indices today   (Chart: Yahoo Finance)

Market indices today (Chart: Yahoo Finance)

Nightly Business Report: 11 Jul 2014 Watch
Comment

With the start of earnings season, we’re expecting the U.S. to rebound. The U.S. is pretty clearly on the road to recovery. Their GDP, unemployment, and manufacturing figures are all fairly decent. From an economic view, it is the better place to put your money, a natural safe haven.
Nick Skiming, Fund Manager, Ashburton (Jersey) Limited ($10bn) More

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Portfolio indices Opinion

:-) Outperformed Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.568 +0.73% 1.399 +12.10%
Valuation Rate USD/AUD 0.94408 -0.07% 0.89789 +5.14%
Portfolio Index AUD 1.661 +0.80% 1.558 +6.61%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $95.22 +0.19% $80.1457 +18.81%
Amazon AMZN $346.20 +5.57% $398.79 -13.19%
Ebay EBAY $51.50 +2.31% $54.865 -6.13%
Facebook FB $66.34 +2.26% $54.649 +21.39%
Google A GOOGL $586.65 +1.14% $560.365 +4.69%
Google C GOOG $579.18 +1.41% $560.365 +3.36%
Linkedin LNKD $156.58 +0.17% $216.83 -27.79%
VMware VMW $94.16 -1.35% $89.71 +4.96%

Thursday 10 Jul 2014

EUROPE

Portugal

Espirito Santo Financial Group, the largest shareholder in Portugal’s Banco Espirito Santo, suspended trading in its shares and bonds, citing “material difficulties” at parent company ESI. The bank’s shares tumbled 17.2 percent. Portugal’s benchmark stock index fell 4.2 percent and Italy’s FTSE MIB slid 1.9 percent.More

USA

Economy

Comments by James Bullard, President of St Louis Fed Opinion

James Bullard has again raised concerns about an early rise in interest rates. On 26 Jun 2014 Bullard said “inflation is moving in the right direction toward the central bank’s 2% target … perhaps prompting an interest rate hike as early the first quarter of 2015.More Yesterday in his comments on the FOMC minutes Bullard said “I think we are going to overshoot here on inflation” predicting inflation of 2.4% at the end of 2015. More

Unemployment Insurance Weekly Claims Report: Week to 4 Jul 2014 Opinion

Last week jobless claims fell to 304,000 from 315,000. This was below economists’ expectations of 315,000.

Extract

In the week ending July 5, the advance figure for seasonally adjusted initial claims was 304,000, a decrease of 11,000 from the previous week’s unrevised level of 315,000. The 4-week moving average was 311,500, a decrease of 3,500 from the previous week’s unrevised average of 315,000.

The advance seasonally adjusted insured unemployment rate was 2.0 percent for the week ending June 28, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending June 28 was 2,584,000, an increase of 10,000 from the previous week’s revised level. The previous week’s level was revised down by 5,000 from 2,579,000 to 2,574,000. The 4-week moving average was 2,571,250, a decrease of 7,750 from the previous week’s revised average. This is the lowest level for this average since October 27, 2007 when it was 2,561,750. The previous week’s average was revised down by 1,250 from 2,580,250 to 2,579,000.

U.S. Employment and Training Administration, “Unemployment Insurance Weekly Claims Report – Week to 4 Jul 2014“, 10 Jul 2014 (08:30am) More

Monthly wholesale trade – May 2014

Extract

Sales The U.S. Census Bureau announced today that May 2014 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $453.2 billion, up 0.7 percent (+/-0.5) from the revised April level and were up 6.6 percent (+/-1.4%) from the May 2013 level. The April preliminary estimate was virtually unchanged. May sales of durable goods were up 0.2 percent (+/-0.7%)* from last month and were up 5.9 percent (+/-1.2%) from a year ago. Sales of metals and minerals, except petroleum, were up 3.2 percent from last month, while sales of computer and computer peripheral equipment and software were down 1.6 percent. Sales of nondurable goods were up 1.1 percent (+/-0.5%) from April and were up 7.2 percent (+/-2.6%) from last May. Sales of farm product raw materials were up 6.6 percent from last month and sales of apparel, piece goods, and notions were up 2.0 percent.

Inventories Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $532.7 billion at the end of May, up 0.5 percent (+/-0.4%) from the revised April level and were up 7.9 percent (+/- 0.9%) from the May 2013 level. The April preliminary estimate was revised downward $0.5 billion or 0.1 percent. May inventories of durable goods were up 1.0 percent (+/-0.4%) from last month and were up 8.5 percent (+/-1.2%) from a year ago. Inventories of metals and minerals, except petroleum, were up 2.1 percent from last month and inventories of motor vehicle and motor vehicle parts and supplies were up 1.9 percent. Inventories of nondurable goods were down 0.3 percent (+/-0.5%)* from April, but were up 6.9 percent (+/-1.1%) from last May. Inventories of farm product raw materials were down 3.2 percent from last month, while inventories of petroleum and petroleum products were up 2.0 percent.

Inventories/Sales Ratio The May inventories/sales ratio for merchant wholesalers, except manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.18. The May 2013 ratio was 1.16.

US Census Bureau, “Monthly wholesale trade – May 2014“, 10 Jul 2014 (10:00am) More

Stock market indices Opinion

Index Ticker Today Change 31 Dec 13 YTD
S&P 500 SPX 1,964.68 -0.41% 1,848.36 +6.29%
DJIA INDU 16,915.07 -0.42% 16,576.66 +2.04%
NASDAQ IXIC 4,396.20 -0.52% 4,176.59 +5.26%

The shape of the day

US markets followed European stocks down over concerns about missed debt payments by a company linked to Portugal’s second-largest lender. Investors were also concerned that US stocks have risen too far, too fast.

Market indices today: Concerns about valuations and Portugal   (Chart: Yahoo Finance)

Market indices today: Concerns about valuations and Portugal (Chart: Yahoo Finance)

Nightly Business Report: 10 Jul 2014 Watch
Comment

People will shoot first and ask questions later when news like (Portugal) hits. The concern of an event like this is always determining whether it’s occurring in isolation or whether it’s the first domino. It’s a classic flight to safety across the equity, commodities and bond markets.
Lawrence Creatura, Fund Manager, Federated Investors Inc. ($363.8bn) More

Everyone expected the worst, and the contagion fears were brought back to fruition, but as the day has gone on those fears have abated a bit. Right now the market is saying that their concerns are not going to be as widespread as they were when they walked in this morning.
Bill Schultz, Chief Investment Officer at McQueen, Ball & Associates ($1.2bn) More

There seems to be a lot of angst in the market short term, but given the fact we had such a run the past couple of weeks, it seems to be more psychological than real.
Walter (Bucky) Hellwig, Senior Vice President, BB&T Wealth Management ($17bn) More

In my mind, it is time to be cautious about the U.S. stock markets. While we are having a great year, I am being very selective about the companies I purchase.
Carl Icahn More

PORTFOLIO

Share price movements

Portfolio stocks and market indices: price changes today (%)

Portfolio stocks and market indices: price changes today (%)

Portfolio indices Opinion

:-| About square Currency Today Change 31 Dec 13 YTD
Portfolio Index USD 1.557 -0.43% 1.399 +11.29%
Valuation Rate USD/AUD 0.94474 -0.17% 0.89789 +5.22%
Portfolio Index AUD 1.648 -0.26% 1.558 +5.76%

Portfolio stock prices

Stock Ticker Today Change 31 Dec 13 YTD
Apple AAPL $95.035 -0.37% $80.1457 +18.58%
Amazon AMZN $327.92 -0.62% $398.79 -17.77%
Ebay EBAY $50.335 -1.17% $54.865 -8.27%
Facebook FB $64.8725 -0.15% $54.649 +18.70%
Google A GOOGL $580.04 -0.57% $560.365 +3.51%
Google C GOOG $571.10 -0.86% $560.365 +1.92%
Linkedin LNKD $156.31 -2.04% $216.83 -27.91%
VMware VMW $95.45 +0.77% $89.71 +6.40%