Tuesday, May 6, 2014

Morning Journal--Don't bet on rising wages

   News on Stocks in Our Portfolios
·         Emerson Electric (EMR): FQ2 EPS of $0.80 misses by $0.01.
·         Revenue of $5.81B (-2.5% Y/Y) misses by $90M.
·         HollyFrontier (HFC): Q1 EPS of $0.76 misses by $0.01.
·         Revenue of $4.79B (+1.7% Y/Y) beats by $610M.

    • EOG Resources (EOG): Q1 EPS of $1.40 beats by $0.21.
    • Revenue of $4.08B (+21.4% Y/Y) beats by $300M.
·         Balchem (BCPC): Q1 EPS of $0.29 misses by $0.08.
·         Revenue of $85.99M (+1.6% Y/Y) misses by $3.61M.

Economics

   This Week’s Data

            The April Markit PMI services index was reported at 55.0 versus expectations of 55.3.

            The April ISM nonmanufacturing index came in at 55.2 versus estimates of 54.2.

                The March US trade deficit narrowed to $40.4 billion ($42.3 billion in February) versus forecasts of $40.5 billion.

   Other

            How low is inflation (short)?

            Don’t bet on rising wages (medium):

            Real earnings of private employees (medium):

Politics

  Domestic

Quote of the day (short):

  International

            EU economists are predicting more growth and less inflation (medium):


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