Dow slumped 33, decliners over advancers better than 2-1 & NAZ gained 46, largely due to Google (GOOG) - see below. The MLP index lost 5+ to 389 (a new multi year low) & the REIT index declined 1+ to 317. Junk bond funds were off about ½% & Treasuries rose as stocks sold off. Oil is below 51 & gold is near 2 year lows.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.1853350514727874)
Google gains $50B in value on day that may set a record
Stocks had down day, although Dow gained over 300 this week. Although its breadth was today, NAZ is at a new record thanks to the big pop by GOOG. There are plenty of clouds out there starting with additional uncertainty surrounding the Greek debt bailout. The change in gov shows it's unclear who is in charge or where the bailout is going. Oil keeps slipping & sliding, dragging MLPs to new depths not seen in a few years. That performance contrasts with the popular averages at or near record highs. Something will have to give & problems in Greece or with slumping oil prices are not going away soon.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLQ15.NYM | ....Crude Oil Aug 15 | ....50.76 |  ...0.15 | (0.3%) |
Greek Prime Minister Tsipras replaced some ministers in a
cabinet reshuffle after almost a qtr of his lawmakers rejected
measures he agreed on with creditors to keep the country in the euro. His office said Panagiotis Skourletis
will replace Panagiotis Lafazanis, who heads the Left Platform fraction
of Tsipras’s Syriza party, as energy minister. George Katrougalos will
succeed Panagiotis Skourletis as labor minister. The Greek parliament backed the deal
with creditors, needed to unblock further financing aid, with decisive
votes from the opposition. With 38 of 149 Syriza lawmakers refusing to support further spending cuts & tax increases, that marked a blow
for Tsipras, who came to power on an anti-austerity platform. Tsipras told his associates after the parliament vote that he would
be forced to lead a minority gov until a final deal with
creditors is concluded. The EU finalized a €7.2B
($7.8B) bridge loan to Greece today that will help provide
the nation with a stop-gap until its full 3-year
bailout is settled. In all, 64 of the parliament’s 300 lawmakers voted against the bill.
Half of the “no” votes came from Syriza, including from Lafazanis &
former Finance Minister Yanis Varoufakis.
Greece’s Tsipras Shakes Up Cabinet in Bid to Rebuild
General Electric, a Dow stock, is riding
demand for jet engines & gas turbines, is getting more bullish about
industrial profits as the company speeds efforts to shrink the finance
unit. “We’re more confident about how the year is going to play out,” CFO Jeff Bornstein said. “The world
is incredibly volatile and all over the map, and the portfolio continues
to deliver.” GE raised the low end of its 2015 forecast for profit from
manufacturing, & the shares advanced. Revenue increased in the Power & Water &
Aviation divisions, cushioning the blow from slumping oil prices that
are weighing on energy sales. CEO Jeffrey Immelt’s push to divest most of GE
Capital ties the parent company’s fortunes more firmly than ever to
products such as locomotives & oilfield equipment. His plan for $200B in GE Capital asset sales is so sweeping that it
had, until today, largely overshadowed how GE’s nonfinancial businesses
were faring. Sales climbed 2% to $32.8B, with industrial revenue of
$26.1B. Industrial margins rose 0.7 percentage point to 16.2%. Analysts had projected revenue of $28.8B. Rising sales of aircraft engines & power-generation equipment helped boost backlog 8% to a record $272B. The orders “position GE to
meet our long-term organic growth targets,” Immelt said. The new projection for full-year industrial profit is $1.13-$1.20, up from a range starting at $1.10. Q2 adjusted
EPS profit of 31¢ exceeded the 28¢ estimate. Adjusted profit from continuing operations was $2.8B. Operating EPS on that basis
was 28¢. The 31¢ figure represents industrial earnings
plus what the company calls GE Capital “verticals” -- businesses that
will be retained amid the finance selloff. Since announcing the disposal of $27B in real estate assets in
Apr, GE has agreed to another $23B of divestitures, including a $12B deal to sell most of its US private-equity lending business to Canada Pension Plan Investment Board. GE is still awaiting approval from European regulators for the €12.4B ($13.5B) acquisition of Alstom SA’s energy business. The company is also working to sell the
home-appliances unit to Electrolux, & faces a Justice
Dept lawsuit to block that $3.3B deal on the grounds that it would hurt consumers. The stock rose 20¢. If you would like to learn more about GE, click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3289&a_bid=6ae5b6f7GE Gets More Bullish on Industrial Profits Amid Finance Exit
General Electric (GE)
Google is already one of the
largest companies in the world, & today it made one of the
largest stock market moves in history. The internet giant reported strong Q2 results yesterday &
its shares are up about 15% today, pushing
GOOG Class A stock above $700 for the first time. The
market capitalization, already around $400B, rose $52B
during the day. Including
the gains in GOOG Class A & nonvoting Class C shares. That
puts the company on pace for the biggest single-day market cap gain
ever. Not
adjusting for inflation, the current record holder is Apple (AAPL), before it became a Dow stock. Its market cap rose $46.4B in value in Apr 2012, after a
better-than-expected Q1 report. GOOGL (with voting rights) stock rose a whopping 97 to 699 today. If you would like to learn more about GOOG, click on this link:
club.ino.com/trend/analysis/stock/GOOG?a_aid=CD3289&a_bid=6ae5b6f7Google gains $50B in value on day that may set a record
Google (GOOGL)
Stocks had down day, although Dow gained over 300 this week. Although its breadth was today, NAZ is at a new record thanks to the big pop by GOOG. There are plenty of clouds out there starting with additional uncertainty surrounding the Greek debt bailout. The change in gov shows it's unclear who is in charge or where the bailout is going. Oil keeps slipping & sliding, dragging MLPs to new depths not seen in a few years. That performance contrasts with the popular averages at or near record highs. Something will have to give & problems in Greece or with slumping oil prices are not going away soon.
Dow Jones Industrials
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