|Bid||0.00 x 900|
|Ask||0.00 x 21500|
|Day's Range||74.86 - 75.46|
|52 Week Range||66.47 - 80.96|
|PE Ratio (TTM)||337.80|
|Expense Ratio (net)||0.14%|
Yahoo Finance editor-in-chief Andy Serwer sits down with Mark Weinberger, Global Chairman and CEO of EY, at the Milken Institute Global Conference in Los Angeles to discuss the potential impact of proposed tariffs, CEO confidence and future economic growth.
Capacity utilization in US industries and industrial production data are published by the Federal Reserve every month. There are only a few economic indicators that act as a precise leading indicator for the US economy, and capacity utilization is one of them.
The Federal Reserve released the April industrial production report on May 16. Tracking changes to the industrial production index helps us assess future changes to the business cycle. Industrial production continued to increase in the last few months except for a slump in January, which was a known seasonality.
3M (MMM) is falling on Wednesday, even as the Industrial Select Sector SPDR (XLI) edges up 0.1%, following a bearish note from Jefferies. Analyst Laurence Alexander downgraded 3M to Hold from Buy, and shaved $30 off his price target, to $220, writing that he sees less room for its multiple to expand in a rising-interest-rate environment. Alexander writes that that we are now in a "long late-cycle period where consolidation, bottlenecks, structural improvements in behavior, and a steeper cost curve create opportunities for rallies in upstream and intermediate chemicals where multiples have fallen." The analyst expects early-cycle large cap stocks, such as 3M, to lag.
3M (MMM) announced the key dates for its second-quarter dividend on May 8. Investors on record as of May 18, 2018, will be eligible for the dividend. 3M’s ex-dividend date is May 17. The dividend will be paid to shareholders on June 12. At the end of the first quarter, 3M had 612.7 million outstanding shares. Assuming that 3M doesn’t buy back any shares until the record date, it would pay ~$833.30 million in dividends in the second quarter. In the second quarter of 2017, 3M paid a dividend of $701 million.
So far this year, Western US rail freight giant Union Pacific’s (UNP) YoY (year-over-year) freight volume growth has lagged behind rival BNSF Railway’s (BRK.B). In Week 18, UNP’s carload traffic rose 5.2% YoY (year-over-year) to ~94,400 carloads (excluding intermodal units) from ~89,800. It underperformed BNSF Railway (BRK.B), whose carload traffic grew 10.7%, and US railroads.
As of April 30, the data show that Delta Air Lines’ (DAL) short interest has increased since it announced its 1Q18 earnings. One of the major reasons for the rise in DAL’s short interest is the high price of crude oil. Higher crude oil prices could have an adverse impact on airlines, as it’ll increase their operating costs in a big way, which in turn could negatively affect operating profits.
The “Job Openings and Labor Turnover Survey” (or JOLTS) data for March was reported on May 8 and contains key information about job openings and total separations. The total number of separations include layoffs, retirements, and voluntary quits. As per the latest JOLTS report, the total separations for March came in at 5.3 million at a rate of 3.6% of the total workforce, an increase from the February reading of 5.2 million and 3.5%, respectively.
The Bureau of Labor Statistics (or BLS) released the “Job Openings and Labor Turnover Survey” (or JOLTS) data for March on May 8. The BLS collects the data through a monthly survey of nearly 16,000 employers in the government, private (XLI), and non-farm sectors. The survey measures new employees hired, employees who have quit, employees who have been asked to leave, and other job separations.
As part of its statutory mandate, the US FOMC seeks to foster maximum employment and stable prices (TIP). The unemployment rate peaked at 9.0% during the recession of 2007–2010 and has slowly decreased to a 17-year low of 4.1% in March.
For the week ending May 4, the S&P 500 Index (SPY) closed at 2,663.42. With a minor change, the index was 0.24% compared to the close for the week ending April 27. To sum up the earnings season, nearly 90% of the companies reported better-than-expected earnings, which kept SPY afloat during the previous week.
In 1Q18, Boeing’s (BA) Global Services segment’s revenues jumped 8.0% to $3.9 billion compared with $3.6 billion in 1Q17. Growth in commercial services boosted the segment’s revenues in 1Q18. The segment’s revenues accounted for 16.5% of total revenues in 1Q18, compared with 16.5% in 1Q17.
Defense stocks haven't done well since reporting first-quarter earnings, which Wells Fargo's Sam Pearlstein blames on investors selling industrial stocks as they fret about the economic cycle. Pearlstein writes that defense stocks have historically outperformed most years.
In the previous parts of this series, we discussed how the broader market S&P 500 Index (SPY) and major sectors of the S&P 500 Index performed in April. Modifications in Donald Trump’s import tariff imposition and companies’ 1Q18 earnings played important roles in market movement in April 2018.
KLX Aerospace Solutions, which is KLX Inc.’s (KLXI) primary business, is a global provider of aerospace fasteners, consumables, and logistics services. The company also offers oilfield services and associated rental equipment in North America as KLX Energy Services.
The Industrial Select Sector SPDR (XLI) , the largest exchange traded fund tracking industrial stocks, and rival industrial ETFs are lagging broader equity indexes in significant fashion. For example, XLI entered Wednesday with a year-to-date loss of 4.6% while the S&P 500 was lower by just 0.3%. Some big-name industrial stocks have been slammed on fears of an escalating trade war between the U.S. and China, the world’s two largest economies.
As the Trump administration drags on the trade negotiations and keeps extending speculation over a potential trade war, industrial stocks and industrial ETFs will likely continue to underperform U.S. markets. The Industrial Select Sector SPDR (XLI) , the largest exchange traded fund tracking industrial stocks, declined 9.3% over the past three months, while the S&P 500 fell 5.5%. Meanwhile, the ProShares UltraShort Industrials (SIJ) , which tracks the inverse 2x or -200% daily performance of the Dow Jones U.S. Industrials Index, jumped 17.5% over the same three month period.
It appears that the confidence and complacency that has dominated the U.S. stock market for several years is now beginning to dissipate. Investor psychology is changing, the market is no longer bulletproof, and many of the high flying stocks are coming down to earth.
The Industrial Select Sector SPDR (NYSEArca: XLI), the largest exchange traded fund tracking industrial stocks, is down about 3% year-to-date while the S&P 500 is modestly higher. That may not seem like ...
In the previous week, the charge for the S&P 500 Index was led by the utilities, real estate, and healthcare sectors with gains of 2.8%, 2.6%, and 1.8%, respectively. The industrial (XLI), materials, and financial (XLF) sectors were the S&P 500 Index’s laggards. The S&P 500 Index’s large speculators, including hedge funds, decreased the number of net bullish positions last week.
In Week 16, US-Mexico railway Kansas City Southern’s (KSU) carload traffic fell 1.2% YoY (year-over-year) to ~24,600 carloads from ~25,000, opposing the upward momentum seen in US railroads’ (XLI) (GWR) carload traffic that week.