Dow dropped 181, decliners over advancers 3-2 & NAZ lost 10. The MLP index fell 1+ to 379 (last seen in Dec 2011 on the way up) & the REIT index was off 1+ to the 316s. Junk bond funds ran into selling & Treasuries rose. Oil crawled higher & gold slid below 1100.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.017758287043412202)
Chesapeake Energy, the 2nd-largest US natural gas producer, will suspend divs starting in Q2 to save up to $240M a year. The company, which like other oil & gas producers has been hurt by a drop in prices, had planned to pay an annual div of 35¢. In suspending its payout for the first time since 1998, CHK joins other companies in the energy industry that are looking at divs as means of conserving capital. Chevron (CVX), a Dow stock, said in May it would not raise its div in Q2 & that it would see "where things shake out long term" before raising its payout. ConocoPhillips (COP) last week raised its quarterly payout by a smaller-than-normal 1¢, citing low oil prices. CHK reported a Q1 loss in May & said it would raise production this year. The money saved by not paying a div would be used to develop its "high-quality" assets. The stocks fell 1.01. If you would like to learn more about CHK, click on this link:
club.ino.com/trend/analysis/stock/CHK?a_aid=CD3289&a_bid=6ae5b6f7
Citigroup will refund $700M to consumers & will pay $70M in fines for illegal & deceptive credit card practices. The Consumer Financial Protection Bureau said that Citi will have to issue refunds to 8.8M affected consumers who paid for credit card add-on products & services, like credit score monitoring or "rush" processing of payments. It said that Citi representatives allegedly told consumers there were 30-day "free" trials for some products, when there wasn't, or sold them fraud & identity theft protection when Citi wasn't performing such services at all. Citi said it stopped illegal practices in 2013 & is in the process of issuing refunds or credit card statement credits to the affected customers. The stock went up 25¢. If you would like to learn more about Citi, click on this link:
club.ino.com/trend/analysis/stock/C?a_aid=CD3289&a_bid=6ae5b6f7
Harley-Davidson posted a lower quarterly net profit as the strong US dollar hurt intl sales while the company's foreign competitors cut prices. The company beat expectations by reporting EPS of $1.44 in Q2, down about from $1.62 a year earlier. Analysts had expected EPS of $1.39. The company's operating income was negatively impacted by fewer motorcycle shipments as foreign competitors offered lower prices. Total revenue fell to $1.82B from $2B a year ago. Analysts had expected $1.67B. Its worldwide retail motorcycle sales fell to 89K in Q2, from 90K last year. The company kept its motorcycle shipment guidance unchanged at a 2-4% increase from 2014, or 276K-281K motorcycles. The stock went up 2.73. If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
The disappointing earnings reports will continue. Today's came from 3 prominent Dow stocks The themes of unsatisfactory sales & problems with the strong $ will be repeated. MLPs are in trouble short term, losing many friends. Possible IRS problems & low oil prices are hurting. Dow closed near the lows & is back under 18K.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLQ15.NYM | ....Crude Oil Aug 15 | ....50.35 |  ...0.20 | (0.4%) |
Chesapeake Energy, the 2nd-largest US natural gas producer, will suspend divs starting in Q2 to save up to $240M a year. The company, which like other oil & gas producers has been hurt by a drop in prices, had planned to pay an annual div of 35¢. In suspending its payout for the first time since 1998, CHK joins other companies in the energy industry that are looking at divs as means of conserving capital. Chevron (CVX), a Dow stock, said in May it would not raise its div in Q2 & that it would see "where things shake out long term" before raising its payout. ConocoPhillips (COP) last week raised its quarterly payout by a smaller-than-normal 1¢, citing low oil prices. CHK reported a Q1 loss in May & said it would raise production this year. The money saved by not paying a div would be used to develop its "high-quality" assets. The stocks fell 1.01. If you would like to learn more about CHK, click on this link:
club.ino.com/trend/analysis/stock/CHK?a_aid=CD3289&a_bid=6ae5b6f7
Chesapeake Energy Suspends Dividend Payments
Chesapeake Energy (CHK)
Citigroup will refund $700M to consumers & will pay $70M in fines for illegal & deceptive credit card practices. The Consumer Financial Protection Bureau said that Citi will have to issue refunds to 8.8M affected consumers who paid for credit card add-on products & services, like credit score monitoring or "rush" processing of payments. It said that Citi representatives allegedly told consumers there were 30-day "free" trials for some products, when there wasn't, or sold them fraud & identity theft protection when Citi wasn't performing such services at all. Citi said it stopped illegal practices in 2013 & is in the process of issuing refunds or credit card statement credits to the affected customers. The stock went up 25¢. If you would like to learn more about Citi, click on this link:
club.ino.com/trend/analysis/stock/C?a_aid=CD3289&a_bid=6ae5b6f7
Citi to refund $700 million for deceptive card practices
Citigroup (C)
Harley-Davidson posted a lower quarterly net profit as the strong US dollar hurt intl sales while the company's foreign competitors cut prices. The company beat expectations by reporting EPS of $1.44 in Q2, down about from $1.62 a year earlier. Analysts had expected EPS of $1.39. The company's operating income was negatively impacted by fewer motorcycle shipments as foreign competitors offered lower prices. Total revenue fell to $1.82B from $2B a year ago. Analysts had expected $1.67B. Its worldwide retail motorcycle sales fell to 89K in Q2, from 90K last year. The company kept its motorcycle shipment guidance unchanged at a 2-4% increase from 2014, or 276K-281K motorcycles. The stock went up 2.73. If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
Harley Davidson 2Q Earnings Fall, Beat Expectations
Harley-Davidson (HOG)
The disappointing earnings reports will continue. Today's came from 3 prominent Dow stocks The themes of unsatisfactory sales & problems with the strong $ will be repeated. MLPs are in trouble short term, losing many friends. Possible IRS problems & low oil prices are hurting. Dow closed near the lows & is back under 18K.
Dow Jones Industrials
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