The Long Term Investor

Adding oil companies to the stocks that I never buy………see above. I have owned Exxon a few times in the distant past. I have also owned Chevron 3-4 times over the past 20 years. I avoid them now. Commodity based stocks are just too boom and bust.

 

A micro-gain in my account today.....but.....green is green.....so it counts as a win. I did get beat by the SP500 today by 0.20%.

I see that ALL the averages were green today........I guess I just did not have the right holdings.

 

I dont own TESLA any longer....but I still somewhat follow the company.....at least as to earnings.

Tesla reports more than $1 billion in net income during Q2, up tenfold from a year ago

https://www.cnbc.com/2021/07/26/tesla-tsla-earnings-q2-2021.html

(BOLD is my opinion OR what I consider important content)

"Key Points

• Elon Musk’s electric vehicle company beat expectations on both top and bottom lines, and passed $1 billion in quarterly net income for the first time.
• The company reported a $23 million impairment related to bitcoin.

Tesla reported earnings after the bell Monday, and it’s a beat on both top and bottom lines. Shares rose about 1% after hours. Here are the results.

• Earnings: $1.45 vs 98 cents per share adjusted expected, according to Refinitiv
• Revenue: $11.96 billion vs $11.30 billion expected, according to Refinitiv

The company reported $1.14 billion in (GAAP) net income for the quarter, the first time it has surpassed $1 billion.

Overall automotive revenues came in at $10.21 billion, of which only $354 million came from sales of regulatory credits. That’s a lower number for credits than in any of the previous four quarters. Automotive gross margins came in at 28.4%, higher than in any of the last four quarters.

Tesla had already reported deliveries (its closest approximation to sales) of 201,250 electric vehicles, and production of 206,421total vehicles, during the quarter ending June 30, 2021.

The company also reported $801 million in revenue from its energy business, including solar energy for homes and businesses and storage for utilities, an increase of over 60% from last quarter. While Tesla does not disclose how many energy storage units it sells each quarter, in recent weeks Musk said, in court, that Tesla’s demand for its Powerwall backup batteries for homes stood around 80,000. He added that the company would only be able to produce 30,000 to 35,000 at best during the current quarter, blaming the lag on chip shortages.

Tesla also reported $951 in services and other revenues. A $23 million impairment related to the value of its bitcoin holdings was reported as an operating expense under “Restructuring and other.”

The company’s cash position decreased about 5% from last quarter, to $16.23 billion. The decline was “driven mainly by net debt and finance lease repayments of $1.6B, partially offset by free cash flow of $619M,” the company said in its earnings statement.

During the quarter, among other challenges, Tesla faced a backlash from consumers in China, recalls in China and the US, and delayed deliveries of the high-performance version of its flagship sedan, the Model S Plaid.

Institutional investors are now looking for updates on two new factories Tesla is building in Austin and near Berlin, when the company plans to start commercial production of its Cybertruck and custom battery cells, and how Tesla will weather ongoing parts shortages and the rising cost of raw materials that CEO Elon Musk previously complained about."

MY COMMENT

A REALLY nice quarter for Tesla. A good CHUNK of their money coming from auto sales versus the regulatory credits. Looks like this could be a big driver for the stock going forward. They were in need of something to jump start the stock again.

 

The markets today did better in general than I did. Hopefully the great TESLA earnings will cause some carry over to tomorrow.

Stock market news live updates: S&P 500, Dow and Nasdaq reach fresh record highs as investors look ahead to Big Tech earnings

https://finance.yahoo.com/news/stock-market-news-live-updates-july-26-2021-114525679.html

(BOLD is my opinion OR what I consider important content)
"Stocks gained on Monday, with investors at least temporarily looking past concerns over the growth outlook and ahead to more second-quarter earnings.

The S&P 500, Dow and Nasdaq each eked out record intraday and closing levels, shaking off earlier declines."

MY COMMENT

I think the rest of this little article is just re-hashing old stuff....but any can click the link a d read it if they are interested.

Tomorrow we will see earnings from APPLE and GOOGLE.....both of which I own......after the market close. Others that report tomorrow are 3M, AMD, GE, and SBUX. I dont own any of these but their earnings will provide some clue as to the progress of the re-opening.

I did not really benefit today....but new record high's for the averages are always a good thing to see.

 

HERE is a cool little rumor that is making the rounds lately.

A surprising tech company could be next to join the Dow

https://www.cnn.com/2021/07/26/investing/nvidia-stock-dow/index.html

(BOLD is my opinion OR what I consider important content)

"New York (CNN Business)Chip giant Nvidia is the ninth-most valuable company in the S&P 500. With a market capitalization of almost $500 billion, the company is now worth nearly as much as semiconductor rivals Intel, Advanced Micro Devices and Qualcomm — combined. Could Nvidia soon wind up listed on the venerable Dow, too?

There's a strong case to be made for Nvidia (NVDA) joining the Dow Jones Industrial Average, the most famous of market barometers. In fact, one could argue that Nvidia might be a better fit than current chip king Intel (INTC) or stodgy tech giant IBM (IBM).

To be sure, the chip maker's annual sales still pale in comparison to Intel or IBM, which are both expected to generate more than $70 billion in revenue this year. But Nvidia's revenue forecast of about $25 billion for this fiscal year isn't too shabby.
It's also higher than the sales expectations for Dow components Visa (V) and McDonald's (MCD), and on par with the revenue estimates for software giant Salesforce (CRM), which was added to the Dow last year.

Adding Nvidia could give the Dow more exposure to the lucrative industries of gaming and cryptocurrencies, as Nvidia's graphics processing chips are a big part of high-end PCs used by gamers as well as for cryptocurrency mining rigs.
There's another big reason why there's been more chatter lately about Nvidia potentially joining the Dow. (Investing sites Motley Fool and Seeking Alpha have both speculated about the possibility.)

Stock split could set up Nvidia for Dow inclusion

Nvidia, until recently, would have been too expensive for the Dow, which weights the 30 companies it lists by stock price.
Shares of Nvidia had been trading north of $750 as of a few weeks ago. So putting it in the Dow at that price would have made it by far the biggest member of the index. UnitedHealth (UNH), with a stock price of around $415, is the current top stock in the Dow, accounting for about 8% of the average.

But Nvidia recently split its stock, which cut its share price by a quarter. Stocks now trade for around $190. There are a dozen Dow components that have a stock price higher than that.

Apple (AAPL) split its stock to a more Dow-friendly level before it was added to the blue chip average in 2015.

And the fact that tech titans Amazon (AMZN) and Google owner Alphabet (GOOGL), which each have shares prices in the quadruple digits, have not split their stock recently is arguably the main reason why neither company is in the Dow — despite having market valuations approaching $2 trillion.

Facebook (FB) is another possible future Dow addition, too, given that it is now worth more than $1 trillion.
The social media giant might need to split its stock as well though. At a price of nearly $375, Facebook would be the third-largest Dow component if added at current levels, trailing only UnitedHealth and Goldman Sachs (GS). That's why Nvidia seems like a more logical Dow addition.

Nvidia could also be an attractive option if the company's planned purchase of UK-based mobile chip designer Arm from SoftBank goes through. The $40 billion purchase would make Nvidia an even bigger player in the world of tech.

There are questions about whether that deal will pass regulatory muster, as it is being scrutinized by several agencies around the globe. There has even been speculation that Arm might pursue an initial public offering instead.

Nvidia was not available for comment. A spokesperson for Arm told CNN Business that the company's CEO, Simon Segars, has stated to The Telegraph that there are no plans for an IPO and that the company is focused on closing the Nvidia deal.

A spokeswoman for S&P Dow Jones Indices, which has a committee in charge of making changes to the firms listed on the Dow, had no comment about the possible inclusion of Nvidia or any other changes to the index.

It's worth noting that the Dow did just have an overhaul. Salesforce was one of three new members that joined last year. Amgen (AMGN) and Honeywell (HON) were also added while Exxon Mobil (XOM), Pfizer (PFE) and Raytheon (RTN) were given the boot."

MY COMMENT

This entire little article seems a bit speculative to me. There does not seem to be a lot of supporting evidence other than the fact that some sites have speculated on this issue......and.....there are rumors of this happening. Perhaps this article.....itself....is a trial balloon to raise this issue and try to push it forward. Who knows.......but there is at least talk about this as a potential happening.

The stock seems to be range bound since the split....pretty flat. One BIG news event WILL be the ARM transaction....or lack of transaction. I dont know what the timing will be on any announcement......probably in 2022........and........the Chinese might hold it up for a long time. They do report earnings on August 18.

 

Ok....markets are open on this big earnings day. Usually the greater the anticipation the greater the chance that NOTHING actually happens. I have NO DOUBT that earnings this week will be great....but....the real question is....will anyone care.

 

Lots of people this year are seeing HUGE increases in net worth. One BIG reason.....the housing market.
US home price growth soars to a new record

https://finance.yahoo.com/news/case-shiller-home-price-may-2021-130004294.html

(BOLD is my opinion OR what I consider important content)

"Home price growth in the U.S. soared to a new record in May as the housing market continues to heat up.

Standard & Poor’s said Tuesday that its S&P CoreLogic Case-Shiller national home price index posted a 16.6% annual gain in May, up from 14.8% in April — marking the highest reading in more than 30 years of data. It is also the 12th straight month of accelerating prices. The 20-City Composite posted a 17% annual gain, up from 15% a month earlier. The 20-City results surpassed analysts’ expectations of a 16.3% annual gain, according to Bloomberg consensus estimates.

“Housing price growth set a record for the second consecutive month,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, in a press statement. “A month ago, I described April’s performance as 'truly extraordinary,' and this month I find myself running out of superlatives.”

The results were expected as low interest rates and historically low inventory continued to fuel home buying. Last week, the National Association of Realtors reported that the median existing-home price for all housing types in June hit $363,300, the highest level recorded since January 1999.

“This month's S&P Case Shiller Index highlighted a housing market in full swing during May 2021, when strong demand and insufficient supply pushed home prices up at a record-breaking pace,” said Realtor.com Senior Economist George Ratiu in a statement prior to the results. “The combination of historically-low mortgage rates, business re-openings and the lifting of pandemic restrictions fueled a buying frenzy with multiple bids, price escalation clauses and contingency waivers. The summer buying season is fully underway, with many families seeking to take advantage of the current market and favorable financing to find their next home before the start of the school year.”

According to the index, home price growth was recorded in all 20 cities, and the gains in the 12 months ended in May exceeded the gains in the 12 months ended in April. Prices in 18 of the index's 20 cities now stand at all-time highs.

“The market’s strength continues to be broadly-based," said Lazarra.

Once again Phoenix led the 20-City Composite, recording a 25.9% annual gain. The city has led the composite for two years now. San Diego and Seattle followed by posting 24.7% and 23.4% gains respectively.

“Despite home prices skyrocketing, the acceleration in home price growth has not deterred prospective buyers’ desire for ownership,” CoreLogic Deputy Chief Economist Selma Hepp said in a press statement prior to the results. “In fact, the number of homes selling over the asking price continues to rise with more than half of homes sold now closing above the original listing price.”

“I expect that home price growth will continue to inch upwards until more existing homeowners choose to sell their homes and more new homes come on the market,” said Bill Dallas, President of Finance of America Mortgage, in a statement prior to the results."

MY COMMENT

I think what is important here is the fact that this data is for MAY. Since that time my.....feeling....from what I watch is that the market has softened a BIT. It is DEFINITELY STILL a strong sellers market......but my....feeling....is that it has slowed down just a tad.

In my little local area.....Central Texas.....there seem to be a few more listings......and.....homes seem to be taking a slight bit longer to go pending......and......I am seeing more homes come back on the market after going pending.

In my area.....4200 homes.....we continue with about 20 listings at any one time. Prices seem firm and are rising....but not nearly as fast as before. I think we are seeing the AUGUST market.....when buyers look toward the start of school and the corporate moving season is wraping up as we start the transition to the FALL market. Normally we see a drop in listings in the Fall here. If that happens this year......inventory will be reduced even more and prices may be driven up. I DO NOT expect any drop off in the strong sellers market in the Fall and Winter in my area. We have seen a very strong market ALL YEAR LONG in this area for the past few years with NO drop off in demand.

INTERESTINGLY....the Case-Shiller data cited above DOES NOT include Austin, Texas......the 10th or 11th largest city in the country. If it did I suspect that we would be the HOTTEST market in the country.

 

SO.....the averages and the markets have now turned DISTINCTLY negative. ALL the averages are at about the same place....a loss of about half a percent for the day....so far.

Stock market news live updates: Stocks dip, falling from records before Big Tech earnings

https://finance.yahoo.com/news/stock-market-news-live-updates-july-27-2021-223342842.html

(BOLD is my opinion OR what I consider important content)

"Stocks declined Tuesday on the heels of another record-setting session, with investors looking ahead to the start of earnings results from mega-cap technology companies on Tuesday. Concerns over the spread of the Delta variant and a regulatory crackdown in China also lingered.

The S&P 500 headed lower after the blue-chip index eked out a record closing and intraday high during the regular trading day on Monday. The Dow and Nasdaq also slipped. Chinese stocks listed in the U.S. sank further on Tuesday, with shares of companies like Alibaba (BABA) and Baidu (BIDU) each lower, amid speculation that a broad-based regulatory crackdown in China might spur U.S. restrictions against investments in Chinese companies.

On Tuesday, investors are set to receive quarterly earnings results from companies including Apple (AAPL), Alphabet (GOOGL) and Microsoft (MSFT), or some of the most heavily weighted stocks in the S&P 500. These will come on the heels of an already strong second-quarter earnings season, with the expected growth rate for aggregate S&P 500 earnings per share hovering at more than 74%, or the highest since 2009, according to FactSet. And in the past week, major tech names including Snap (SNAP), Twitter (TWTR) and Tesla (TSLA) have posted results that handily exceeded estimates, adding to optimism around the forthcoming reports.

"These companies, for example Google, Microsoft, even Amazon, have cloud types of research and business coming in, which will bode well for the big push into big data and 5G," Sylvia Jablonski, Defiance ETFs co-founder and chief investment officer, told Yahoo Finance. "I just think that these companies are so much more than they were even a year ago, and they're poised to continue to grow."

"In terms of, is this the peak? We have this weird scenario, where we're still sort of comparing base case from year-over-year, which was in the heart of COVID," she added. "It's thought that this quarter will have growth of 8% to 9%. Next quarter will cool down to 8%. We'll probably finish off the year at 7% to 7.5% GDP. I still personally like that number. I think that these tech names, the names that are reporting this week, have a good 10% left to go for the rest of the year. And they've really been slow movers up until now, so I think it's still a good opportunity to be in these names."

Concerns over the path forward for growth have also continued to linger for investors, especially given the recent surge in the spread of the Delta variant. Goldman Sachs economists downgraded their forecast for third and fourth quarter growth on Monday, citing risks that a slower return of service sector activity would generate a sharper-than-expected growth deceleration.

Other economists, however, have maintained a more upbeat outlook.

"We're not on the side of thinking that you're seeing a very sharp growth slowdown. We think the consumer remains solid, we think services spending for the consumer remains solid," Matthew Luzzetti, Deutsche Bank senior economist, told Yahoo Finance on Monday.

"There are no doubt growth concerns out there, there are no doubt concerns about the Delta variant spilling over into economic activity over the coming months," he added. "But at this point we're viewing that as a downside risk. We really do have a baseline still of a very robust growth outlook, at least through the remainder of this year."

.............

"8:32 a.m. ET: Durable goods orders posted back-to-back monthly gain in June
Durable goods orders, or orders for manufactured products intended to last at least three years, rose for a second straight month in June, with the manufacturing sector holding up despite rising concerns over the Delta variant.

Durable goods orders increased 0.8% in June compared to May, according to the Commerce Department's preliminary monthly report. This was below the 2.2% rise expected, however, according to Bloomberg data. However, May's increase was upwardly revised to 3.2%, from the 2.3% previously reported.

Transportation orders comprised the bulk of June's gain, and non-defense aircraft and parts orders were up 17.0% during the month. Excluding transportation, durable goods orders were up 0.3%, or also below the 0.8% consensus expectation.

Non-defense capital goods orders, excluding aircraft, rose 0.5% during the month, matching May's upwardly revised rate. This metric is used as a proxy for business capital expenditures. "

MY COMMENT

The economy CONTINUES to BOOM......as do the markets. BUT....with the markets.....there is a total disconnect between the average retail investor and the so called experts and the financial media. We are no doubt......DOOMED.....to a continuation of the constant fear mongering that we have been living with for the past year and a half. At some point we will have a.....normal.....correction and they will all be SCREAMING......"see, I told you so"......as the little silent majority of investors continue to just plug away and do nothing.

 

HERE is the economic data that no one will care about........more evidence of the strength of the re-opening and the economy.

U.S. core capital goods orders and shipments rise solidly in June

https://www.reuters.com/world/us/us-core-capital-goods-orders-rise-solidly-june-2021-07-27/

(BOLD is my opinion OR what I consider important content)

"WASHINGTON, July 27 (Reuters) - New orders for key U.S.-made capital goods increased solidly in June despite supply constraints hampering production at some factories, suggesting business spending on equipment could remain strong beyond the second quarter.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.5% last month, the Commerce Department said on Tuesday. These so-called core capital goods orders had gained 0.5% in May.

Economists polled by Reuters had on average forecast core capital goods orders advancing 0.7%.

U.S. stock index futures moved lower after the data. The dollar slipped against a basket of currencies. U.S. Treasury prices were higher.

Business investment on equipment has boomed during the COVID-19 pandemic, underpinning manufacturing, which accounts for 11.9% of the U.S. economy. Meanwhile consumer spending shifted to goods from services, with millions of Americans cooped up at home.

Record low interest rates and massive fiscal stimulus measures offered a further boost, causing supply constraints.

Though demand is reverting to services, with just under half of the population fully vaccinated against the coronavirus, spending on goods is likely to remain strong.

Households accumulated at least $2.5 trillion in excess savings during the pandemic and inventories are low, which will likely see businesses continuing to invest in equipment to boost output.
Core capital goods orders were lifted last month by machinery and primary metal products, as well as computers and electronic products. Orders for electrical equipment, appliances and components were unchanged.

BUSINESS SPENDING

Shipments of core capital goods increased 0.6% after accelerating 0.9% in May. Core capital goods shipments are used to calculate equipment spending in the government's gross domestic product measurement.

Business spending on equipment has recorded three straight quarters of double-digit growth. Another solid quarter of growth is expected when the government publishes its advance estimate of GDP growth for the second quarter on Thursday.

According to a Reuters survey of economists, GDP growth likely increased at an 8.6% annualized rate last quarter, an acceleration from the first quarter's 6.4% pace. The anticipated growth in the second quarter would be the fastest since 1983 and could mark a peak in the current cycle.

Orders for durable goods, or items ranging from toasters to aircraft that are meant to last three years or more, advanced 0.8% in June after rebounding 3.2% in May. They were supported by a 2.1% increase in orders for transportation equipment.

Orders for civilian aircraft climbed 17.0%. Boeing (BA.N) reported on its website it had received 219 aircraft orders last month, including 200 for the 737 MAX jet from United Airlines (UAL.O). That compared with 73 aircraft orders in May.

Orders for motor vehicles and parts slipped 0.3% after rising 2.0% in May. Motor vehicle production has been hit by a global semiconductor chip shortage. Output of computers and electronic products has also been impacted.

Unfilled durable goods orders increased 0.9% in June after rising 1.0% in May."

MY COMMENT

This data is a very STRONG INDICATOR.....for the future of the short term economy........12 months or so. Will anyone care.......NO......not really. This is DULL and BORING stuff......and.....does not have a GREEK alphabet letter name like.....delta.....attached to it.

 

Speaking of economic data.......yes no one cares......here is a bit more.

Consumer Confidence Relatively Unchanged in July

https://www.prnewswire.com/news-rel...e-relatively-unchanged-in-july-301342177.html

(BOLD is my opinion OR what I consider important content)

"NEW YORK, July 27, 2021 /PRNewswire/ -- The Conference Board Consumer Confidence Index® was relatively unchanged in July, following gains in each of the prior five months. The Index now stands at 129.1 (1985=100), up from 128.9 in June. The Present Situation Index—based on consumers' assessment of current business and labor market conditions—rose from 159.6 to 160.3. The Expectations Index—based on consumers' short-term outlook for income, business, and labor market conditions—was virtually unchanged at 108.4, compared to 108.5 last month.

"Consumer confidence was flat in July but remains at its highest level since February 2020 (132.6)," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. "Consumers' appraisal of present-day conditions held steady, suggesting economic growth in Q3 is off to a strong start. Consumers' optimism about the short-term outlook didn't waver, and they continued to expect that business conditions, jobs, and personal financial prospects will improve. Short-term inflation expectations eased slightly but remained elevated. Spending intentions picked up in July, with a larger percentage of consumers saying they planned to purchase homes, automobiles, and major appliances in the coming months. Thus, consumer spending should continue to support robust economic growth in the second half of 2021."

Present Situation
Consumers' appraisal of current business conditions improved slightly in July.

• 26.4% of consumers said business conditions are "good," up from 25.2%.
• 19.3% of consumers said business conditions are "bad," up from 19.1%.

Consumers' assessment of the labor market was relatively flat.

• 54.9% of consumers said jobs are "plentiful," up from 54.7%.
• 10.5% of consumers said jobs are "hard to get," unchanged from June.

Expectations Six Month Hence
Consumers' optimism about the short-term business conditions outlook eased slightly in July.

• 33.4% of consumers expect business conditions will improve, down from 33.7%.
• 10.5% expect business conditions to worsen, down from 10.8%.

Consumers were mixed about the short-term labor market outlook.

• 27.7% of consumers expect more jobs to be available in the months ahead, up from 26.6%.
• Conversely, 16.8% anticipate fewer jobs, up from 15.7%.

Consumers remained upbeat about their short-term financial prospects.

• 20.6% of consumers expect their incomes to increase, up from 20.0%.
• Only 8.6% expect their incomes will decrease, up from 8.4%.

The monthly Consumer Confidence Survey®, based on an online sample, is conducted for The Conference Board by Toluna, a technology company that delivers real-time consumer insights and market research through its innovative technology, expertise, and panel of over 36 million consumers. The cutoff date for the preliminary results was July 21.

MY COMMENT

This is very strong data showing that the average consumer is fully on board with the economic re-opening. People are not dumb.....they know that the FREE MONEY is hurting the jobs numbers....they ALSO know that teh economy is going to do just fine over the next 6-12 months as we continue to re-open. THIS.....is what actually counts...not what some ECONOMIST happens to think. I will take the view of REAL PEOPLE any time....over those that work and live in a government and media BUBBLE.......like the mainstream predictive ECONOMISTS.

 

NOW.....lets talk about what REALLY MATTERS......THIS is the HUGE story of the day. We need to get our priorities straight.

Popeyes debuts highly anticipated chicken nuggets, launches food donation campaign

https://www.foxbusiness.com/lifestyle/popeyes-nuggets-chick-fil-a-chicken-sandwich

MY COMMENT

WOW......cant wait to try them. Their chicken tenders and chicken sandwich are really good.....as are their red beans and rice and biscuits. These will probably be mini-tenders. Just to get some investing content in here......this is a really good business move.

 

POOR 3M......a Rodney Dangerfield stock....they dont get any respect. They reported before the open today....with hardly any mention. I used to own this company as part of my Portfolio MODEL for many, many, years.

3M Earnings, Revenue Beat in Q2

https://www.investing.com/news/stock-market-news/3m-earnings-revenue-beat-in-q2-2568943

(BOLD is my opinion OR what I consider important content)

"Investing.com - 3M reported on Tuesday second quarter earnings that beat analysts' forecasts and revenue that topped expectations.

3M announced earnings per share of $2.59 on revenue of $8.95B. Analysts polled by Investing.com anticipated EPS of $2.29 on revenue of $8.53B.

3M shares are up 15% from the beginning of the year, still down 3.48% from its 52 week high of $208.95 set on May 10. They are under-performing the S&P 500 which is up 17.74% from the start of the year.

3M follows other major Industrials sector earnings this month

3M's report follows an earnings beat by United Parcel Service on Tuesday, who reported EPS of $3.06 on revenue of $23.42B, compared to forecasts EPS of $2.79 on revenue of $23.19B.


Honeywell had beat expectations on Friday with second quarter EPS of $2.02 on revenue of $8.81B, compared to forecast for EPS of $1.94 on revenue of $8.64B."

MY COMMENT

THESE big but......IGNORED....companies continue to report GREAT earnings. A very nice BEAT by 3M. BUT....the media coverage of this story is very skimpy. Post-it-notes and consumer/industrial products are just not that.......SEXY.....in the current investing world.

 

SPEAKING of.....dont get NO RESPECT.

U.S. Equities Fall From Record as Earnings Roll In: Markets Wrap

https://finance.yahoo.com/news/asia-eyes-cautious-open-amid-220614272.html

(BOLD is my opinion OR what I consider important content)
"

U.S. Equities Fall From Record as Earnings Roll In: Markets Wrap
"
"(Bloomberg) -- U.S. stocks declined as investors digested the latest batch of corporate earnings reports and braced for results from tech heavyweights including Apple Inc. and Microsoft Corp.

All of the main American equity indexes retreated from all-time closing highs. Tesla Inc. fell, while General Electric Co. rose after both reported results that beat analysts’ estimates. The Hang Seng Index sank the most since May 2020 as speculation swirled that U.S. funds are offloading China and Hong Kong assets.

The rout in China is adding to global market unease, with investors already concerned about the economic recovery, given the rise in the Covid-19 delta variant and central-bank talk of tightening policy. While a strong start to the earnings season has helped U.S. equities, further catalysts may come from this week’s Federal Reserve meeting and the updates due today from Apple, Microsoft and Alphabet Inc., which are among the top five heaviest-weighted stocks in the S&P 500.

“Blockbuster profits have offset investors’ concerns around the virus spread and inflation,” Mathieu Racheter, head of equity strategy at Julius Baer, said in a research note. The second quarter “likely marks the peak in earnings growth and economic momentum, supporting our view that the rotation out of cyclicals and value into defensives and growth will likely continue,” he said.

In China, the yuan slid to its lowest since April against the dollar and bonds slumped, indicating mounting worries that Beijing’s crackdown on education, food delivery and property sectors could expand to other industries. While the Hang Seng Tech Index plunged, trading in Chinese education stocks listed in the U.S. showed some signs of the selloff easing.

Elsewhere in markets, Treasuries rose with the yen amid demand for haven assets. Bitcoin traded around $38,000 after briefly rising above $40,000 overnight.

Here are some key events to watch this week:

Alphabet, Apple, Facebook, Amazon report earnings this weekFederal Reserve policy meeting concludes WednesdayU.S. GDP data are due Thursday

Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1811The British pound was little changed at $1.3814The Japanese yen rose 0.4% to 109.90 per dollar

Bonds

The yield on 10-year Treasuries declined six basis points to 1.23% Germany’s 10-year yield declined two basis points to -0.44%Britain’s 10-year yield declined two basis points to 0.55%

Commodities

West Texas Intermediate crude was little changed Gold futures rose 0.2% to $1,806.60 an ounce."

MY COMMENT

Whats new.....yields are stable. The dollar is stable. Stocks are DOWN on uniformly GREAT news for earnings season to date.

I believe the PRIMARY story line is the CHINESE governments POWER MOVE to quash business and bring them under more and more government control. It is also a way to THUMB THEIR nose at the USA. A BRUTAL indicator that ALL business in China operates under the discretion, control, and ONLY with the consent of the Chinese government.

The chart above is interesting.....showing various times when......the typical.....big tech anti-climax happens when they report earnings. If I had to bet ACTUAL MONEY.......I would say there is a slight "probability" that we are looking at the same thing this week.

 

DONT blame me.....for today....I was gone all day and just got back a few minutes ago. I was medium RED today.....and....of course....got beat by the SP500 by .42%. NOTHING good about today.....well....except for HON, COST and PG......my only green holdings today.

ZUKODANY.....I understand exactly what those DELI owners are talking about. I did the same thing.....closed a very profitable business in 1999 when the taxes and fees got over 50% of the gross. If you dont need the money or irritation....there is no need to stay in business.....and.....risk your personal assets......and.....work your ass off.....to pay over 50% to the government. FUNNY.....I never saw anyone from the government in there working with me EVERY SUNDAY.......and.....many late nights.

 

OK.....here we go.

Microsoft posts big earnings beat, but Windows revenue from device makers falls 3%

https://www.cnbc.com/2021/07/27/microsoft-msft-earnings-q4-2021.html

(BOLD is my opinion OR what I consider important content)

"Key Points

• Microsoft surpassed expectations on the top and bottom lines.
• The company also beat expectations on Azure revenue growth.

Microsoft shares fell as much as 3% in extended trading on Tuesday after the software and hardware company reported fiscal fourth-quarter earnings.

Here’s how the company did:

• Earnings: $2.17 per share, adjusted, vs. $1.92 per share as expected by analysts, according to Refinitiv.
• Revenue: $46.15 billion, vs. $44.24 billion as expected by analysts, according to Refinitiv.

Revenue rose 21% year over year in the quarter, which ended June 30, according to a statement. In the previous quarter revenue had increased by 19%.

The Productivity and Business Processes unit, which contains Office productivity software along with LinkedIn and Dynamics, contributed $14.69 billion in revenue, up 25% and above the StreetAccount consensus of $13.93 billion.

Microsoft’s More Personal Computing segment, which features Windows, as well as devices, gaming and search advertising, generated $14.09 billion in revenue. That’s up 9% and more than the $13.74 billion StreetAccount consensus.

Technology industry research company Gartner estimated that PC shipments grew 4.6% in the quarter. Microsoft’s revenue from device makers for Windows licenses in the quarter fell 3%. The company pointed to supply constraints, which PC makers Dell and HP have flagged in recent months.

During the quarter, Microsoft announced its intent to acquire speech-recognition company Nuance Communications for $19 billion, including debt. It also introduced Windows 11, a new version of its desktop operating system, although sales of licenses to device makers will be deferred.

The company’s board voted to make CEO Satya Nadella its chair, and Microsoft’s top individual shareholder, Co-Founder Bill Gates, announced that he’s splitting up with his wife, Melinda French, who also once worked at Microsoft.

Executives will discuss the results with analysts and issue guidance on a conference call starting at 5:30 p.m. ET.

Notwithstanding the after-hours move, Microsoft shares are up about 29% since the start of 2021, while the S&P 500 index has risen almost 17% over the same period."

MY COMMENT

YES.....great earnings. BUT....the entire focus will of course be on the windows drop.....which....the company has no control over....being based on shipment of PC shipments. RIDICULOUS as usual.....but that is the norm for the past years.