Thursday, August 1, 2013

Morning Journal--Obamacare, funding al Qaeda and other incompetentcies

News on Stocks in Our Portfolios

ConocoPhillips raises production forecast; more on Q2 results
·                                 ConocoPhillips' (COP) Q2 production rose to 1.52M boe/day from 1.49M; Eagle Ford output soared 98% to 121K boe/day.
·                                 Raises Q3 production forecast to 1.46B-1.49B boe/day; raises FY 2013 production raises to 1.515-1.53B boe/day.
·                                 FY 2013 capital program expected to be $15.9B for continuing operations, $0.6B for discontinued operations.
·                                 Q2 results don’t include earnings from refining, chemical and pipeline assets spun off to form Phillips 66 in 2012, vs. a month of such results in the year-ago period.

Automatic Data misses by $0.01, revenues in-line
·                                 Automatic Data (ADP): FQ4 EPS of $0.55 misses by $0.01.
·                                 Revenue of $2.81B (+7% Y/Y) in-line

CME boosted by rate volatility and renewed relevance of WTI crude
·                     Sleepy Eurodollar and Treasury pits woke up in Q2 with June interest rate trading volumes up 70% Y/Y - for the entire Q, volumes rose 33%; OTC interest rate business tripled from Q1 with open interest now at $4T.
·                     The whole meme about WTI crude no longer being a benchmark seemingly went away and energy volumes rose 3.2%, reversing a string of declines.
·                     Overall, average daily volume in Q2 of 14.3M contracts was up 16% Y/Y.
·                     Average rate per contract, however, fell to $0.748 from $0.785 as a higher proportion of volume came from products with lower fees.
·                     Total revenue of $816.1M up 2.5% Y/Y, operating income of $507.8M up 8.2%.

Procter & Gamble's Q2
·                                 Procter & Gamble (PG) says organic sales rose 4% during Q2 to help the company best estimates.
·                                 Net sales rose 6% in the Health Care segment, consisting of a 5% increase in volume and 1% boost from higher prices which helped to offset the negative impact of foreign exchange.
·                                 For FY14, the company sees organic sales growth of around 3.5% and EPS growth of 5%-7%

Teva Pharma EPS in-line, misses on revenue
·                                 Teva Pharma (TEVA): Q2 EPS of $1.20 in-line.
·                                 Revenue of $4.92B misses by $0.02B

Nu Skin beats by $0.02, beats on revenue
·                                 Nu Skin (NUS): Q2 EPS of $1.22 beats by $0.02.
·                                 Revenue of $682.9M (+15% Y/Y) beats by $103.8M.

Becton Dickinson beats by $0.06, revenues in-line
·                                 Becton Dickinson (BDX): FQ3 EPS of $1.54 beats by $0.06.
·                                 Revenue of $2.05B in-line.

Suncor Energy misses by C$0.02.
·                                 Suncor Energy (SU): Q2 EPS of C$0.62 misses by C$0.02

Murphy Oil beats by $0.22, misses on revenue
·                                 Murphy Oil (MUR): Q2 EPS of $1.75 beats by $0.22.
·                                 Revenue of $7.22B misses by $0.04B

Western Gas Partners beats by $0.01
·                                 Western Gas Partners (WES): Q2 EPS of $0.41 beats by $0.01


Balchem misses by $0.01, misses on revenue
·                                 Balchem (BCPC): Q2 EPS of $0.38 misses by $0.01.
·                                 Revenue of $83.3M misses by $4.2M. (PR)

Mastercard beats estimates, emerging markets contributing more
·                                 MasterCard's (MA) financial services revenue rose 15% Y/Y to $2.1B.
·                                 Worldwide purchase volume up 12%.
·                                 The company makes special mention of making progress in emerging markets to increase access to financial products.
 
Economics

   This Week’s Data

            The FOMC statement (1) downgraded the growth of the economy from ‘moderate’ to modest’, (2) increased its emphasis on rising inflation and (3) mentioned nary a word about ‘tapering’:      

            The July Chicago PMI came in at 52.3 versus expectations of 54.0.

                Weekly jobless claims fell 19,000 versus estimates of a 2,000 rise.

   Other

Politics

  Domestic

Obama’s not so ‘grand’ bargain (medium):

And:

More problems with Obamacare (medium):
               
And other problems (medium):

  International

            Draghi’s dilemma at today’s news conference (medium):  ***the ECB left rates unchanged

            The EU’s debt to GDP ratios (short):

            Spain has new solution to its overbuilt housing segment (medium):
            ***overnight the Chinese and Eurozone PMI’s improved while Japan, Australia and South Korea PMI’s were below expectations
            Only in America.  Defense Department awards contracts to the Taliban and al Qaeda (medium):


No comments:

Post a Comment