Shares of car giant Ford (F) are sharply lower despite an earnings beat announced earlier. EARNINGS ASTERISK: Before the market open on Wednesday, Ford reported second quarter adjusted earnings per share of 56c on revenue of $39.9B. Analysts’ estimates for the quarter were 43c for EPS on revenue of $37.1B. The big asterisk for Q2 results was the much lower tax rate in the quarter of 10.2% compared to the 32% rate it paid last year. Under new CEO Jim Hackett, who was hired in May to replace Mark Fields, the company recorded a $248M pre-tax charge that was related to write-offs that the automaker took in association with the decision to s...
Steen Jakobsen, Saxo Bank chief economist and CIO just pinged me with a PowerPoint presentation on the preceding and next 30 years. He commented “I somehow to my own surprise came to one single trend I believe in: everything is deflationary. Enjoy the “funny pictures” and the outlook.” 30 Years Ago Current and Foreward Trends Mish Comments I agree with Steen that the trends are deflationary from a CPI perspective. Compare the GMO 7-Year returns estimate to the John Bogle view. I believe GMO has this correct. Public pensions are in serious trouble even on the more optimistic view. Credit Impulse Pay close attention to the global credit...
Stocks end the day flat as the FOMC announcement came and went with no surprises. In this market update video we look in-depth at which big name stocks are taking a beaten and now offering a healthy dividend. Investing doesn’t have to be sexy. Watch this video to find out which stocks to buy and hold for the long term and collect a nice dividend… Video Length – 00:12:14...
Whole Foods Market (WFM – Free Report) released its fiscal third-quarter financial results, and the company was quick to show off its record-high revenues of $3.7 billion. Nevertheless, the grocery chain faced familiar problems, as comparable-store sales and earnings slipped again. Total revenues were up 0.6% year-over-year, while comps slipped about 1.9%. Adjusted earnings came in at 36 cents per share, beating the Zacks Consensus Estimate of 34 cents but falling about 2.7% from the prior-year quarter. “For the quarter, we delivered record sales and free cash flow, and returned $44 million in dividends to our shareholders,” said ...
So “dovish” it was, or at least “dovish” was the market’s read on the Fed statement. The language on the outlook for inflation was timid and “relatively soon” on the balance sheet gives them an out if they end up needing it. “The post-meeting statement noted that the Committee expects to begin balance sheet normalization ‘relatively soon,’ likely implying an announcement at its next meeting on September 19-20,” Goldman wrote after the release. “The FOMC set the stage for a September announcement of an October start for tapering its $4.5t balance sheet,” Stone & McCarthy Research Associates’ Terry Sheehan said,...
Asia closed broadly positive following yet more European and US stock records. Given stock, strength has reversed the yen’s gains and in late trading see the currency back above the 112 level. The Nikkei added an additional 0.5% with automakers benefiting as European rivals suffer from detrimental events but also as better than expected results (Mitsubishi Motors) aid the move. Exporters (Nintendo) also supported the rally as the currency aides their progress. In China, the Shanghai (+0.12%) and Hang Seng (+0.35%) saw strong property related stocks after money continues to find its way into the region. Australia’s inflation number rel...
On June 4th 2012, one Bitcoin was worth $5.49. On June 6th 2017, the price of Bitcoin closed at $2,851…good for a 51,000%+ gain in five years. This truly incredible surge has minted thousands of new millionaires. It has also birthed a booming cryptocurrency industry. After seeing early Bitcoin investors get rich, some of the world’s most talented entrepreneurs and computer programmers have entered the space. They’ve created dozens of competing cryptocurrencies… and they’ve achieved stunning technological breakthroughs along the way. Cryptocurrencies are perhaps the most exciting sector in the markets today. But what does the...
Are corporate earnings genuinely wonderful? It may depend on your perspective. For example, after-tax corporate profits have grown at an annualized pace of less than 1% over the last 5 years. You won’t find many 5-year periods that have been as anemic as that. In the same vein, earnings per share (EPS) growth has been equally unimpressive. Yet stock prices have been climbing with or without corporate earnings support. One could make a case that corporate profits are just now hitting their stride. Indeed, one might assert that the only thing of importance is earnings acceleration since the fourth quarter of 2016. Unfortunately, the notion th...
Photo Credit: HCC Public Information Office Celgene Corporation (CELG) Releasing 7/27/17 BMO The Estimize consensus calls for EPS of $1.79, two cents higher than the Wall Street consensus. Currently, the Estimize community is looking for revenues of $3.214B, slightly lower than the Street’s expectation for $3.225B. Will Celgene be delivering an earnings surprise this quarter? Let’s take a look. During the Great Biotech Wreck in 2015, CELG is one of the few biotech stocks that held up and bounced back quickly. The loss for the industry was approximately 40%, but unlike other biotech stocks that lost close to 60%, CELG stayed below the...
Regular readers know I’m a big fan of discrimination. As such, I choose my friends wisely. I chat regularly with a select group of friends and colleagues whose particular areas of expertise and intellect I value deeply. Sometimes we agree… and sometimes we don’t but always the thought process is extremely valuable. It is where we disagree that often the most value can be found. One of those fine gentlemen is Brent Johnson. Brent runs the Santiago Capital gold fund and he recently published a video presenting his ideas – topics I’ve discussed at length with him in the past. I’ve been asked often why I’m not heavily invested in ...