Dow retreated 361 (near session lows), decliners over advancers about 5-1 & NAZ was off 157. The MLP index fell 2+ to the 233s & the REIT index declined 4+ to the 364s. Junk bond funds slid lower & Treasuries had a little selling, bringing higher yields. Oil remained weak, off 1+ to 81, & gold dropped 8 to 1935 (more on both below).
AMJ (Alerian MLP Index tracking fund)
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Regional banks slide after Fed’s Kashkari advocates ‘significantly further’ capital regulation
Investors least bearish on stocks since early 2022: Bank of America on stocks since early 2022: BofA
Home Depot (HD), a Dow stock, topped earnings expectations, but posted a 2% year-over-year
sales decline as customers remained wary of big purchases & major
projects. It marked the first time in 3 qtrs that the company beat revenue expectations. Yet
the home improvement retailer reiterated its muted
forecast for the fiscal year despite the beat, saying it still expects
sales & comparable sales to decline 2-5% compared with
the year-ago period. It had lowered the forecast last qtr. CFO McPhail said the
company has seen “continued caution on the part of consumers when it
comes to larger-ticket, more discretionary spending.” He added in some
cases, homeowners already made those bigger purchases during the Covid pandemic. In other instances, they are likely deferring them because of higher interest rates. McPhail
said key pandemic dynamics are reversing, too. Transportation costs
have dropped. Vendors aren't coming to HD with as many requests
for price increases & added that supply chain disruption is “largely
behind us. “We don’t expect to see meaningful inflation in the second half of the year,” McPhail said. The company reported net income for the 3-month period that ended
Jul 30 of $4.66B, $4.65 per share, down from $5.17B, $5.05 per share, a year earlier. Revenue fell year over year from
$43.8B. Comparable sales in the US & companywide declined by 2% in fiscal Q2, but that exceeded expectations for a 3.9%
decline. It marked the 3rd straight qtr of
falling comparable US sales. The stock rose 2.14.
If you would like to learn more about HD, click on this link:
club.ino.com/trend/analysis/stock/HD_aid=CD3289&a_bid=6aeoso5b6f7
Home Depot beats earnings estimates, but sales slide as consumers pull back
Gold Falls Again as the US Reports Retail Sales Surged in July
Oil futures slumped again, ending lower after another round of disappointing economic data out of China, which was followed by interest rate cuts by the central bank in Beijing. West Texas Intermediate crude for Sep fell $1.52 (1.8%) to close at $80.99 a barrel. Oct Brent crude, the global benchmark, dropped $1.32 (1.5%) to settle at $84.89 a barrel. In the US, Sep gasoline finished with a loss of 2% at $2.848 a gallon, while Sep heating oil declined 2% to $3.028 a gallon. Sep natural gas dropped 4.9%, ending at $2.659 per M British thermal units. Data released today showed China's retail sales & industrial production grew less than expected in Jul. The figures followed other lackluster data & comes amid worries over severe distress in the countries property sector, which prompted a series of interest rate cuts by the People's Bank of China.U.S. Oil Price Ends More Than 2% Lower on China Worries
China has reported a further decline in health for its economy. Its central bank unexpectedly cut a range of key interest rates in a bid to spur growth. And now some US banks are getting more attention. Risk averse thinking by investors has become more common among investors.
Dow Jones Industrials
