Wednesday, October 16, 2013

Morning Journal--What the latest retail sales numbers are telling us

  News on Stocks in Our Portfolios
 
PepsiCo beats by $0.07
o                                                        PepsiCo (PEP): Q3 EPS of $1.24 beats by $0.07.
o                                                        Revenue of $16.91B misses by $0.12B.

|7:03 AM
BlackRock operating earnings up 12% as margins expand
o                                                        AUM of $4.1T up 12% Y/Y. Adjusted operating income of $978M up 12% Y/Y, with operating margin of 41.2% vs. 40.7% a year ago.
o                                                        "The current investment environment presents a wide range of challenges for our clients. Fundamentals continue to be outweighed by policy decisions and global growth is dictated more by central bankers and elected officials than business leaders. This uncertainty is keeping many investors on the sidelines."
o                                                        Retail inflows of $8.3B brings AUM up to $438M, with base fees of $708M. iShares inflows of $20.2B brings AUM up to $856.9B, with base fees of $721M. The newish Core Series brought in $2B of net inflows.

Linear Tech beats by $0.06, beats on revenues
o                                                        Linear Tech (LLTC): FQ1 EPS of $0.52 beats by $0.06.
o                                                        Revenue of $340.4M (+2% Y/Y) beats by $1.14M. Shares -3.5% 

Economics

   This Week’s Data

            The International Council of Shopping Centers reported weekly sales of major retailers sown 0.7% versus the prior week but up 1.0% versus the comparable period a year ago; Redbook Research reported month to date retail chain store sales rose 3.2% on a year over year basis.

                Weekly mortgage applications rose 0.5%; however, purchase applications fell 5.0%.

   Other

            Fitch put US government debt on ‘rating watch negative’.

Politics

  Domestic

The welfare state in action (medium):

More on student loans (medium):


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