Friday, September 5, 2014

Higher markets on hopes for extending low interest rates

Dow rose 67 (virtually matching the previous record), advancers over decliners 3-2 & NAZ add 20.  The MLP index recovered 2+ to the 535s & the REIT index went up 2+ to 314 (near a 15 month high).  Junk bond funds inched higher & Treasuries retreated.  Oil dropped after weaker-than-estimated US job growth in Aug & as Ukraine & pro-Russian separatists agreed to a cease-fire.  Gold rose from an 11-week low, after the jobs report, adding some pressure on the Federal Reserve to maintain lower interest rates.

AMJ (Alerian MLP Index tracking fund)












CLV14.NYM....Crude Oil Oct 14....93.13 Down ...1.32  (1.4%)

Live 24 hours gold chart [Kitco Inc.]




Apple will add new security features after the accounts of celebrities using its services were hacked & photographs of them were posted on the internet.  The company said people will receive e-mails & other alerts on iPhones & iPads if an effort is made to change a password, log in from a new device or restore files -- steps that AAPL thinks will help signal to customers whether their accounts are at risk.  The new layer of notifications is for iCloud, the service for storing files including pictures, contacts & e-mail on AAPL data centers.  The company will also add more password protection, called 2-step verification, which will send an extra code to a person’s mobile phone after a password is entered.  That feature has previously only been available for iTunes & App Store.  AAPL is grappling with the fallout from the recent hacks, which shone a spotlight on the company’s security systems & drew scrutiny from the FBI.  Hackers gained access to the iCloud accounts of celebrities, stealing their nude photographs & posting the images online.  The stock went up pocket change.  If you would like to learn more about AAPL, click on this link:
club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7

Apple Plans New Security Features After Celebrity Hacking

Apple (AAPL)


stock chart


Boeing, a Dow stock, is poised to win a jet order from Ryanair valued at about $11B after agreeing to create a new version of the 737 Max model that squeezes in more seats.  Ryanair, Europe's largest discount carrier, will buy 100 of the narrow-body Max planes that feature upgraded engines.  An announcement may come on Mon.  A Max order for Ryanair would cap more than a yearlong review in which it studied the potential fuel savings & operating costs.  Prodded by Ryanair to offer a higher-capacity plane, BA said in Jul it would build a variant of its Max 8 that could carry 200 passengers instead of the usual 189.  BA had no comment.  The deal would cement BA ties to Ryanair, which flies only the 737.  The airline agreed to buy 175 current-generation 737-800s last year as part of its expansion to meet rising demand for short-haul flights.  Ryanair, competing with discounters such as EasyJet, is revamping its network & seeking to shed its no-frills reputation thru measures such as assigned seating, designed to appeal to business travelers.  The Max 8, the first of 3 redesigned 737 models, will be outfitted with new engines from a General Electric (GE), another Dow stock, joint venture & more aerodynamic wings.  The plane lists for $106.9M before discounts.  BA is targeting a commercial debut for the Max in 2017.  BA stock fell 77¢.  If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7

Boeing Poised to Win $11 Billion Ryanair Sale for 737 Max

Boeing (BA)




Russian policy makers are discussing non-standard monetary instruments they may use if the EU tightens the stranglehold of sanctions over Ukraine, according to central bank First Deputy Chairman Ksenia Yudaeva.  “We have different scenarios, different alternatives to act -- the situation demands creativity,” Yudaeva said.  “We’re in constant dialogue with banks and are considering all options. To be honest, we don’t see any need for unsecured loans, but we’re preparing this instrument, too.”  Russia's gov & the central bank are weighing measures to support the financial system after the US & EU imposed sanctions to penalize the country over the Ukrainian crisis, choking access to intl credit for some lenders.  Representatives of the 28 EU govs are considering tightening the economic restrictions that were imposed on Russia in Jul.  The EU followed the US in putting more pressure on Russia’s banking industry, prohibiting state-controlled lenders from selling shares or bonds in the EU.  “We’re considering now whether non-standard instruments are necessary,” Yudaeva said.  The gov has already stepped up support for the affected banks by investing 214B rubles ($5.8B) into preferred shares of VTB Group & 25B rubles in Russian Agricultural Bank from the National Wellbeing Fund (one of the country’s sovereign wealth funds).

Russia Discusses Monetary ‘Creativity’ If Sanctions Stiffened Over Ukraine


Dow is inches from reaching a new record & S&P 500 is over the magic 2K support level.  Volume is not impressive.  There will be more analysis on the jobs data this weekend.  It's major attraction for the bulls is the data will encourage the Fed to extend low interest rates, the major driver for higher stock prices.  The NATO meeting produced a lot of hot air, not much else.

Dow Jones Industrials



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