6B
L awrence J ournal -W orld - USA TODAY TUESDAY, APRIL 5, 2016
AMERICA’S MARKETS What to watch Adam Shell @adamshell USA TODAY
U.S. corporate earnings are in a so-called profits recession. But contracting profit growth in the final two quarters of 2015 and another negative quarter for 2016 is pretty much known on Wall Street. That’s why what corporate CEOs say about future quarters is critical when the first-quarter earnings season unofficially kicks off next week when aluminum maker Alcoa reports its results. “With earnings season upon us, the most important takeaway for investors is what management guidance has to say about the rest of the year,” says David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, which
Facts about America’s investors who use SigFig tracking services:
manage nearly $27 billion in client assets. “While analysts have been furiously downgrading estimates, the actual reports will likely beat these estimates,” he added. “Management guidance was cloudy and downbeat at the end of 2015. Analysts now will be looking for any changes in the upcoming guidance reports, reading the tea leaves and hoping for clarity about what to expect for the rest of the year.” Heading into the second quarter, Donabedian says investors should expect more market ups and downs and prepare for lower returns. “While prices got cheap at the beginning of the year, that has been taken care of by the recent rally,” he said. “We expect earnings to improve but to grow slowly. We have a slightly upward bias for the rest of the year. It’s all about stock picking.”
DOW JONES
Freeport-McMoRan (FCX) was the most-bought stock in mid-March among the most conservative SigFig portfolios (less than 30% equities).
-55.75
-6.65
INDUSTRIAL AVERAGE
CHANGE: -.3% YTD: +311.97 YTD % CHG: +1.8%
CLOSE: 17,737.00 PREV. CLOSE: 17,792.75 RANGE: 17,710.67-17,806.38
NASDAQ
COMP
-22.74
-9.14
CHANGE: -.5% YTD: -115.62 YTD % CHG: -2.3%
CLOSE: 4,891.80 PREV. CLOSE: 4,914.54 RANGE: 4,885.17-4,917.75
CLOSE: 2,066.13 PREV. CLOSE: 2,072.78 RANGE: 2,062.57-2,074.02
CLOSE: 1,108.54 PREV. CLOSE: 1,117.68 RANGE: 1,108.17-1,119.41
S&P 500’S BIGGEST GAINERS/LOSERS $ Chg
105.08 +15.16
+16.9 +33.0
Price
Edwards Lifesciences (EW) Aortic valves save more lives in study. Southwestern Energy (SWN) Boosts access to second-quarter borrowing.
+.70
+9.0
+19.7
Vertex Pharmaceuticals (VRTX) 82.87 +3.72 Rebounds from year’s low as fund manager reveals.
+4.7
-34.1
Anthem (ANTM) UBS keeps bullish view.
147.26
+5.41
+3.8
+5.6
Allergan (AGN) Positive note, climbs all day.
277.55
+9.46
+3.5
-11.2
59.21
+1.79
+3.1
-.1
8.51
5-day avg.: 6 month avg.: Largest holding: Most bought: Most sold:
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
-1.36 -7.45 AAPL AAPL AAPL
141.23 +4.07
+3.0
-3.5
Alexion Pharmaceuticals (ALXN) Announces strong clinical data.
147.10
+4.16
+2.9
-22.9
Boston Scientific (BSX) Extends winning streak and reaches 2016 high.
19.47
+.53
+2.8
+5.6
622.06 +15.56
+2.6
+13.9
Intuitive Surgical (ISRG) Strong sector overcomes rating downgrade. Company (ticker symbol)
Price
$ Chg
YTD % Chg % Chg
PulteGroup (PHM) 17.21 -1.21 CEO to step down under pressure from founder; rating cut.
-6.6
-3.4
BorgWarner (BWA) Early drop erases March’s gain.
Alaska Air
POWERED BY SIGFIG
-2.40
-6.4
-18.4
9.42
-.47
-4.8
+39.1
Legg Mason (LM) Solid rating, yet dips early.
33.01
-1.46
-4.2
-15.9
Republic Services (RSG) Off Wall Street starts with sell rating.
46.27
-1.97
-4.1
+5.2
Delphi Automotive (DLPH) 70.83 Environmental push in Europe negatively affects.
-2.86
-3.9
-17.4
Viacom (VIAB) Stock rating cut to neutral at MoffettNathanson.
39.56
-1.61
-3.9
-3.9
Mosaic (MOS) Downgrades at CIBC on lower price estimates.
25.81
-1.03
-3.8
-6.5
J.M. Smucker (SJM) Rating cut to sell at Goldman Sachs.
127.57
-4.95
-3.7
+3.4
Ralph Lauren (RL) March’s apparel sales lag.
93.80
-3.46
-3.6
-15.9
SOURCE: BLOOMBERG AND THE ASSOCIATED PRESS
$4.29
$5
$3
March 7
The airline is buying rival Virgin America for $2.6 billion in cash. $100 The deal grounds a bidding battle with JetBlue. Virgin America is the airline associated with British bil- $60 lionaire Richard Branson. March 7 4-WEEK TREND
Shares of the electric car maker $250 jumped Monday after CEO Elon Price: $246.99 Musk sent out a message on TwitChg: $9.40 ter indicating 276,000 orders for % chg: 4.0% Day’s high/low: its $35,000 Model 3 vehicle, better $200 March 7 $252.12/$243.64 than expected. Fund, ranked by size Vanguard 500Adml Vanguard TotStIAdm Vanguard InstIdxI Vanguard TotStIdx Vanguard InstPlus Vanguard TotIntl Fidelity Contra American Funds IncAmerA m American Funds GrthAmA m American Funds CapIncBuA m
Chg. -0.58 -0.19 -0.56 -0.19 -0.56 -0.03 -0.38 -0.01 -0.14 +0.06
4wk 1 +3.5% +3.4% +3.5% +3.4% +3.5% +1.4% +3.3% +2.8% +3.0% +2.8%
YTD 1 +1.7% +1.2% +1.7% +1.1% +1.7% -1.4% -1.1% +3.1% -2.3% +3.8%
1 – CAPITAL GAINS AND DIVIDENDS REINVESTED
Close 206.25 17.57 19.53 33.74 3.42 4.36 9.08 22.59 11.13 19.17
Chg. -0.67 +0.45 -0.59 -0.41 +0.26 +0.17 -0.25 -0.11 unch. +0.95
% Chg %YTD -0.3% +1.2% +2.6% -12.6% -2.9% +42.3% -1.2% +4.8% +8.2% -79.3% +4.1% -30.4% -2.7% -17.5% -0.5% -5.2% unch. -8.2% +5.2% -32.4%
INTEREST RATES
MORTGAGE RATES
Type Prime lending Federal funds 3 mo. T-bill 5 yr. T-note 10 yr. T-note
Type 30 yr. fixed 15 yr. fixed 1 yr. ARM 5/1 ARM
Close 6 mo ago 3.50% 3.25% 0.37% 0.13% 0.20% 0.01% 1.21% 1.29% 1.76% 1.99%
Close 6 mo ago 3.62% 3.84% 2.75% 2.87% 2.74% 2.58% 3.06% 3.02%
SOURCE: BANKRATE.COM
Commodities Close Prev. Cattle (lb.) 1.33 1.33 Corn (bushel) 3.55 3.54 Gold (troy oz.) 1,218.00 1,222.20 Hogs, lean (lb.) .68 .68 Natural Gas (Btu.) 2.00 1.96 Oil, heating (gal.) 1.09 1.13 Oil, lt. swt. crude (bar.) 35.70 36.79 Silver (troy oz.) 14.94 15.04 Soybeans (bushel) 9.14 9.18 Wheat (bushel) 4.75 4.76
Chg. unch. +0.01 -4.20 unch. +0.04 -0.04 -1.09 -0.10 -0.04 -0.01
% Chg. unch. +0.1% -0.3% unch. +2.2% -3.8% -3.0% -0.7% -0.5% -0.2%
% YTD -1.9% -1.2% +14.9% +13.2% -14.5% -1.1% -3.6% +8.5% +4.9% +1.0%
FOREIGN CURRENCIES Currency per dollar British pound Canadian dollar Chinese yuan Euro Japanese yen Mexican peso
Close .7002 1.3061 6.4800 .8774 111.26 17.4726
Prev. .7035 1.3023 6.4787 .8778 111.73 17.3505
6 mo. ago .6583 1.3189 6.3539 .8905 119.87 16.7906
Yr. ago .6706 1.2478 6.1455 .9111 118.98 14.8114
FOREIGN MARKETS Country Frankfurt Hong Kong Japan (Nikkei) London Mexico City
Close 9,822.08 20,498.92 16,123.27 6,164.72 45,678.18
$78.92
April 4
$246.99
April 4
INVESTING ASK MATT
NAV 190.61 51.14 188.74 51.12 188.75 14.25 97.16 20.68 40.34 57.48
ETF, ranked by volume Ticker SPDR S&P500 ETF Tr SPY Barc iPath Vix ST VXX Mkt Vect Gold Miners GDX iShs Emerg Mkts EEM Dir Dly Gold Bear3x DUST CS VS 2x Vix ShTm TVIX US Oil Fund LP USO SPDR Financial XLF iShare Japan EWJ ProShs Ultra VIX ST UVXY
April 4
4-WEEK TREND
COMMODITIES
35.28
Freeport-McMoRan (FCX) Reverses early gain and erases March’s gain.
-1.99 -10.31 MSFT AAPL AAPL
4-WEEK TREND
TOP 10 EXCHANGE TRADED FUNDS
Cigna (CI) Makes up March’s loss as sells Florida unit.
LOSERS
AGGRESSIVE 71% or more in equities
TOP 10 MUTUAL FUNDS
AbbVie (ABBV) CHMP acts positively for Crohn’s treatment.
-1.51 -6.46 AAPL AAPL AAPL
MODERATE 51%-70% equities
Tesla
YTD % Chg % Chg
Company (ticker symbol)
GAINERS
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
-1.39 -4.87 AAPL NFLX AAPL
The online coupon seller saw its struggling shares jump after priPrice: $4.29 vate investment firm, Atairos, said Chg: $0.37 it is investing $250 million in the % chg: 9.4% Day’s high/low: company by buying debt that could be converted to shares. $4.53/$4.04
Price: $78.92 Chg: -$3.09 % chg: -3.8% Day’s high/low: $78.98/$77.01
RUSSELL 2000 INDEX
CHANGE: -.8% YTD: -27.35 YTD % CHG: -2.4%
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
STORY STOCKS Groupon
RUSSELL
RUT
COMPOSITE
BALANCED 30%-50% equities
More than half a million investors nationwide with total assets of $200 billion manage their investment portfolios online with SigFig investment tracking service. Data on this page are based on SigFig analysis.
STANDARD & POOR'S
CHANGE: -.3% YTD: +22.19 YTD % CHG: +1.1%
CONSERVATIVE Less than 30% equities
NOTE: INFORMATION PROVIDED BY SIGFIG IS STATISTICAL IN NATURE AND DOES NOT CONSTITUTE A RECOMMENDATION OF ANY STRATEGY OR SECURITY. VISIT SIGFIG.USATODAY.COM/DISCLOSE FOR ADDITIONAL DISCLOSURES AND INFORMATION.
POWERED BY SIGFIG
S&P 500
SPX
USA’s portfolio allocation for tech stocks Here’s how America’s individual investors are performing based on data from SigFig online investment tracking service:
MAJOR INDEXES DJIA
How we’re performing
DID YOU KNOW?
CEO ‘outlook’ is key to earnings season
ALL THE MARKET ACTION IN REAL TIME. AMERICASMARKETS.USATODAY.COM
Prev. Change 9,794.64 +27.44 20,776.70 -277.78 16,164.16 -40.89 6,146.05 +18.67 46,062.92 -384.74
%Chg. +0.3% -1.3% -0.3% +0.3% -0.8%
YTD % -8.6% -6.5% -15.3% -1.2% +6.3%
SOURCES: MORNINGSTAR, DOW JONES INDEXES, THE ASSOCIATED PRESS
IN-DEPTH MARKETS COVERAGE USATODAY.COM/MONEY
Personal-finance software due for a makeover Q: Is Quicken still valuable for investors? Matt Krantz
@mattkrantz mkrantz@usatoday.com USA TODAY
A: Most people simply use their bank or brokerage websites to track their finances. But savvy investors know a tool like Quicken still has a place. Due to years of neglect, Quicken looks dated and is a bit more complicated then some less-powerful personal finance apps. But investors know the software is still valuable. Quicken can analyze data not just from one bank or brokerage but all of them, giving investors a comprehensive view of their entire portfolio. Quicken also allows investors to fine-tune their asset allocation, for instance, seeing what percentage of their total accounts, including retirement funds, are in bonds, small cap stocks, real estate or foreign investments. Quicken also helps investors measure total risk exposure. This type of information is one of the best ways for investors to enhance longterm success. Eric Dunn, CEO of the new company and a long-term Quicken employee, says he knows the product needs to be updated and promises to do so. Quicken was recently sold by its former parent company, Intuit (INTU), to a private equity firm, H.I.G. Capital. The new structure allows Quicken to update its software and migrate to the cloud to make it more modern and useful, Dunn says.
FCC’s new labels for Internet shoppers will look familiar New consumer broadband labels for home and mobile Internet service resemble nutrition labels.
Mike Snider USA TODAY
New consumer broadband labels, unveiled by the Federal Communications Commission on Monday, aim to educate buyers about the Internet service they are shopping for. Just as food labels tell you what you are about to eat, new consumer broadband labels let you know how big of a broadband bill you might be biting off before you sign a contract. The voluntary labels are “a simplified approach to the core
FCC
information that consumers need to make an informed purchase decision,” FCC Chairman Tom Wheeler said during an event unveiling the labels Monday. The labels, designed for home and mobile broadband service, look like “a nutrition label,” he said. The FCC’s Open Internet or Net neutrality rules, passed last year, require Internet service providers (ISPs) to disclose information about their services in an understandable fashion. The labels, which the FCC worked with the Consumer Financial Protection Bureau on creating, are not
mandatory. But they’re recommended by the agency to bring ISPs into compliance. Examples of the labels provided by the FCC show monthly charges and data allotments, along with costs for exceeding limits. The average monthly broadband bill is $60-$70, the FCC said. But taxes and fees can add as much as 40% to advertised broadband services, the agency says. “Hidden fees have no place to hide,” Wheeler said. “The surprise of when you open your first bill and you say, ‘That wasn’t what I was expecting,’ won’t hap-
pen anymore because everything is laid out.” In creating the labels, the CFPB addressed Internet service as it had previously designed disclosures for mortgages and student loans. “Signing up for (Internet) service represents a significant financial commitment,” said CFPB Director Richard Cordray. The National Cable & Telecommunications Association said in a statement, “We appreciate this contribution by the commission to offer consumers that same information in a format they are familiar with.”