Thursday, April 18, 2013

Morning Journal--More on the Reinhart/Rogoff debate


News on Stocks in Our Portfolios courtesy of Seeking Alpha

Kinder Morgan Partners (KMP): Q1 EPS of $0.97. Revenue of $2.66B beats by $0.2B.

Linear Tech (LLTC):
 Q1 EPS of $0.46 beats by $0.02. Revenue of $314.5M (+1% Y/Y) beats by $1.04M
 
Sonoco Products (SON): Q1 EPS of $0.50 misses by $0.03. Revenue of $1.18B (-3% Y/Y) misses by $0.02B.

Sherwin-Williams (SHW):
 Q1 EPS of $1.11 beats by $0.01. Revenue of $2.17B (+1.4% Y/Y) misses by $0.06B

PepsiCo (PEP): Q1 EPS of $0.77 beats by $0.07. Revenue of $12.6B (+1% Y/Y) misses by $0.01B.

Philip Morris International (PM):
 Q1 EPS of $1.29 misses by $0.05. Revenue of $7.6B beats by $0.08B

AbbVie to cut hundreds of sales jobs. AbbVie (ABBV) reportedly intends to lay off hundreds of employee and contract representatives who sell its heart drugs, as the medicines are losing patent protection and face generic rivals. The plans come as AbbVie changes its focus from primary care, such as with cholesterol treatments, to specialty drugs for unmet needs.

P&G looks to save $2B by delaying payments.Procter & Gamble (PG) is reportedly planning to save up to $2B by extending the time it takes to pay suppliers to 75 days from 45 days. P&G hopes to sweeten the pain by working on an arrangement in which banks would pay the suppliers, possibly early, and then receive the money from P&G later on. The suppliers would be charged a low interest rate until P&G pays up.

J&J wins lawsuit over hip implant. Johnson & Johnson (JNJ) has won the second lawsuit over its ASR hip implant, with a jury in Chicago ruling that the company didn't inappropriately market the all-metal device, which the plaintiff argued J&J knew was flawed. The verdict follows a decision in LA to award $8.3M against the company. J&J faces 10,000 lawsuits over ASR, including a class-action case in Ohio.

Economics

   This Week’s Data

            The latest Fed Beige Book reported economic activity was advancing moderately, singling out real estate as improving markedly:

            Weekly jobless claims rose 4,000 versus expectations of a 1,000 increase.

   Other

            More on the Reinhart/Rogoff debate (medium):

            Even if their hypothesis is wrong, could their slow growth conclusion still be right (medium):

            Goldman and BofA lower their expectations for 2013 growth (medium):

                Pimco on the good, bad and ugly of Fed policy (medium):

Politics

  Domestic

A brief look at Rubio and the gang of eight’s immigration plan (medium):

            And (medium):

            US military spending versus the world (short):

  International War Against Radical Islam

            Lessons in supreme leadership (medium):

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