6B
L awrence J ournal -W orld - USA TODAY THURSDAY, JUNE 25, 2015
AMERICA’S MARKETS What to watch Adam Shell @adamshell USA TODAY
For the moment, the three most important factors for global financial markets are Greece, Greece, Greece. Not to be flip, but it’s Let’s Make a Deal time in Europe, where a new bailout deal between the Greek government and its Eurozone creditors remains elusive. Time, of course, is running out on Athens. Its current bailout ends June 30, the same day it needs to fork over a $1.8 billion payment to the International Monetary Fund. Global markets are on edge, of course. While the general Wall Street consensus is a bad outcome in Greece — meaning no deal is struck and Greece defaults on its debts, paving the way for its
Facts about America’s investors who use SigFig tracking services:
eventual exit from the Eurozone — is not akin to a Lehman Brothers moment. (The bankruptcy filing of the Wall Street bank in the fall of 2008 ushered in the financial crisis.) The fact is, no one is quite sure what exactly a messy end to the years-old Greek debt crisis will mean for financial markets. A batch of research distributed recently by Wall Street firms suggests that a bankrupt Greece, one cut off from bailout funds, doesn’t pose a systemic risk to the global economy or markets. But most investors would rather not have to find out how turbulent markets could get if the Greece drama turns tragic. The hope is an 11th-hour deal gets done, perhaps at a summit of European leaders Thursday, or later this week. If things don’t pan out, markets will learn if the Greek debt crisis was a big deal or not.
-178.00
DOW JONES
0.5% 60% of SigFig investors own at least one fund that has more than 0.5% in expense ratio.
-15.62
INDUSTRIAL AVERAGE
CHANGE: -1.0% YTD: +143.00 YTD % CHG: +.8%
CLOSE: 17,966.07 PREV. CLOSE: 18,144.07 RANGE: 17,966.07-18,139.10
NASDAQ
COMP
-37.68
-11.88
CHANGE: -.7% YTD: +386.36 YTD % CHG: +8.2%
CLOSE: 5,122.41 PREV. CLOSE: 5,160.09 RANGE: 5,121.64-5,164.36
CLOSE: 2,108.58 PREV. CLOSE: 2,124.20 RANGE: 2,108.58-2,125.10
RUSSELL 2000 INDEX
CHANGE: -.9% YTD: +79.22 YTD % CHG: +6.6%
CLOSE: 1,283.92 PREV. CLOSE: 1,295.80 RANGE: 1,283.20-1,295.03
S&P 500’S BIGGEST GAINERS/LOSERS GAINERS
LOSERS
Company (ticker symbol)
Price
$ Chg
YTD % Chg % Chg
Lennar (LEN) Profit tops as jobs gains spark homebuying.
51.06 +2.06
+4.2
+13.9
Sysco (SYY) Takeover block brings relief to investors.
38.75
+1.16
+3.1
-2.4
Tyson Foods (TSN) 45.01 +.95 Ranks third-largest packaged food company in the world.
+2.2
+12.3
Freeport-McMoRan (FCX) Energy IPO to improve free cash flow.
20.56
+.45
+2.2
-12.0
Host Hotels & Resorts (HST) Rating raised to buy vs. hold at Stifel.
20.73
+.44
+2.2
-12.8
Darden Restaurants (DRI) 70.84 Real estimate diversification would be more appetizing.
+1.45
+2.1 +20.8
Electronic Arts (EA) Raised to buy vs. hold at Jefferies.
67.68
+1.10
+1.7 +44.0
Pentair (PNR) Residential and commercial gains to help.
63.80
+.98
+1.6
-3.9
Agilent Technologies (A) 40.19 Jump on vague Thermo Fisher merger speculation.
+.59
+1.5
-1.6
McCormick (MKC) Jumps as agrees to acquire One World Foods.
+1.16
+1.4
+9.6
Company (ticker symbol)
81.42
YTD % Chg % Chg
Monsanto (MON) 106.32 Dips after mixed third quarter and lower fourth quarter.
-6.46
-5.7
-11.0
33.18
-1.37
-4.0
-20.0
Staples (SPLS) 15.85 Sysco takeover block brought fears of merger block.
-.65
-3.9
-12.5
120.59
-4.28
-3.4
+21.8
DuPont (DD) 66.20 Declines as JPMorgan weighs Chemours spinoff.
-2.30
-3.4
-10.5
Cablevision Systems (CVC) 23.85 Shares appear overvalued at MoffettNathanson.
-.81
-3.3
+15.6
184.98
-5.94
-3.1
unch.
General Motors (GM) 35.16 Cut to neutral vs. buy at Goldman on China concern.
-1.14
-3.1
+.7
Alexion Pharmaceuticals (ALXN) Dips as completes Synageva acquisition.
Humana (HUM) Has most to lose without merger deal.
-1.44 +0.34 AAPL LLY AAPL
MODERATE 51%-70% equities
AGGRESSIVE 71% or more in equities
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
-0.76 +1.54 AAPL AAPL FSLR
-0.77 +3.10 AAPL AAPL FB
POWERED BY SIGFIG
4-WEEK TREND
The social media giant’s stock set an all-time high, pushing its mar- $100 Price: $88.86 ket value above Walmart. FaceChg: $0.98 book now is one of the 10 largest % chg: 1.1% Day’s high/low: companies in the benchmark Stan- $60 dard & Poor’s 500 index. May 27 $89.25/$87.45
Lennar
The homebuilder reported fiscal second-quarter earnings that $60 topped expectations. Strong sales helped it earn $183 million, or 79 cents a share, which was 15 cents a $40 share more than estimated. May 27
Price: $51.06 Chg: $2.06 % chg: 4.2% Day’s high/low: $52.38/$50.60
Freeport-McMoRan
Fund, ranked by size Vanguard 500Adml Vanguard TotStIAdm Vanguard TotStIdx Vanguard InstIdxI Vanguard TotStIIns Vanguard InstPlus Fidelity Contra American Funds GrthAmA m American Funds IncAmerA m American Funds CapIncBuA m
NAV 194.45 53.46 53.43 192.57 53.47 192.58 103.97 45.77 21.60 59.99
Close 210.50 3.42 40.75 17.30 2.07 13.06 127.91 24.96 20.21 66.91
4wk 1 -0.7% -0.4% -0.4% -0.7% -0.4% -0.7% +0.7% unch. -1.3% -1.7%
YTD 1 +3.4% +4.1% +4.0% +3.4% +4.1% +3.4% +7.2% +7.2% +1.6% +2.4%
Chg. -1.54 -0.15 -0.29 +0.29 +0.06 -0.14 -1.10 -0.21 -0.26 -0.58
% Chg %YTD -0.7% +2.4% -4.2% -30.1% -0.7% +3.7% +1.7% -45.1% +3.0% -48.0% -1.1% +16.2% -0.9% +6.9% -0.8% +0.9% -1.3% -0.7% -0.9% +10.0%
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 3.25% 3.25% 0.13% 0.13% 0.01% 0.01% 1.68% 1.76% 2.37% 2.27%
Close 6 mo ago 4.20% 3.95% 3.19% 3.13% 2.63% 2.85% 3.19% 3.11%
SOURCE: BANKRATE.COM
COMMODITIES
184.23
-5.63
-3.0 +28.3
UnitedHealth Group (UNH) 119.17 Reverses gain on outperform as leaves lobbying group.
-3.57
-2.9
+17.9
SOURCE: BLOOMBERG AND THE ASSOCIATED PRESS
Commodities Close Prev. Cattle (lb.) 1.51 1.52 Corn (bushel) 3.67 3.68 Gold (troy oz.) 1,172.60 1,176.20 Hogs, lean (lb.) .75 .74 Natural Gas (Btu.) 2.76 2.73 Oil, heating (gal.) 1.88 1.91 Oil, lt. swt. crude (bar.) 60.27 61.01 Silver (troy oz.) 15.85 15.73 Soybeans (bushel) 9.82 9.88 Wheat (bushel) 5.18 5.22
Chg. -0.01 -0.01 -3.60 +0.01 +0.03 -0.03 -0.74 +0.12 -0.06 -0.04
% Chg. -0.9% -0.3% -0.3% +0.5% +1.2% -1.8% -1.2% +0.7% -0.6% -0.7%
% YTD -9.1% -7.7% -1.0% -8.0% -4.5% +1.6% +13.1% +1.8% -3.7% -12.2%
FOREIGN CURRENCIES Currency per dollar British pound Canadian dollar Chinese yuan Euro Japanese yen Mexican peso
Close .6370 1.2392 6.2083 .8927 123.84 15.4893
Prev. .6363 1.2336 6.2041 .8953 123.96 15.4231
6 mo. ago .6428 1.1628 6.2144 .8196 120.46 14.7102
Yr. ago .5889 1.0740 6.2306 .7352 101.98 13.0559
FOREIGN MARKETS Country Frankfurt Hong Kong Japan (Nikkei) London Mexico City
Close 11,471.26 27,404.97 20,868.03 6,844.80 45,424.94
$51.06
June 24
$20.56
June 24
INVESTING ASK MATT Chg. -1.44 -0.43 -0.43 -1.42 -0.42 -1.42 -0.75 -0.40 -0.12 -0.30
1 – CAPITAL GAINS AND DIVIDENDS REINVESTED
ETF, ranked by volume Ticker SPDR S&P500 ETF Tr SPY CS VelSh 3xLongCrude UWTI iShs Emerg Mkts EEM Barc iPath Vix ST VXX CS VelSh 3xLongNatGs UGAZ iShare Japan EWJ iShares Rus 2000 IWM SPDR Financial XLF US Oil Fund LP USO iShares EAFE ETF EFA
June 24
4-WEEK TREND
The copper and gold producer filed $25 plans for an initial public offering of shares in its Freeport-McMoRan Oil & Gas subsidiary, just two years after it originally bought the $15 May 27 business.
Price: $20.56 Chg: $0.45 % chg: 2.2% Day’s high/low: $21.17/$20.15
$88.86
4-WEEK TREND
TOP 10 EXCHANGE TRADED FUNDS
$ Chg
Mallinckrodt (MNK) Slides as third-quarter expectations come out.
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
-1.52 -0.28 AAPL LULU RAD
TOP 10 MUTUAL FUNDS
Price
NetApp (NTAP) Early drop enough to erase June’s gain.
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
STORY STOCKS Facebook
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: -.7% YTD: +49.68 YTD % CHG: +2.4%
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 by risk
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?
Market focus: Greece is the word
ALL THE MARKET ACTION IN REAL TIME. AMERICASMARKETS.USATODAY.COM
Prev. Change 11,542.54 -71.28 27,333.46 +71.51 20,809.42 +58.61 6,834.87 +9.93 45,454.15 -29.21
%Chg. YTD % -0.6% +17.0% +0.3% +16.1% +0.3% +19.6% +0.2% +4.2% -0.1% +5.3%
SOURCES: MORNINGSTAR, DOW JONES INDEXES, THE ASSOCIATED PRESS
IN-DEPTH MARKETS COVERAGE USATODAY.COM/MONEY
Social media site has bright future, but be cautious Q: Did I miss my chance to own Facebook? Matt Krantz
mkrantz@usatoday.com USA TODAY
A: Facebook investors have plenty to smile about with the stock hitting another all-time high. Getting into the stock now, though, might not be all giggles and hugs. The No. 1 social network’s stock is up roughly 170% over the past three years — leaving the Standard & Poor’s 500 behind with its 58% gain. Shares of Facebook on Wednesday closed at $88.86, giving the company a $250 billion market value. Facebook becomes just one of a handful of stocks — already trading at record highs — in which analysts think there’s more upside. Analysts, on average, expect Facebook shares to be trading for $97.05 a share in 18 months. If they’re right, that means Facebook still has 9% higher to go. And analysts still think there’s plenty of growth ahead. Facebook is expected to post $17 billion in revenue this year, up 37% from last year. But this is a stock analysts expect near perfection from already. Facebook shares are trading for 86 times the company’s earnings over the past 12 months. That’s nearly three times greater than the company’s 29% long-term expected growth rate. New Constructs, which compares stock prices to expected cash flow, ranks the stock “dangerous.” Be careful with this one.
Report says IRS gave $18 million to firms with tax debts Kevin McCoy USA TODAY
The IRS awarded $18.8 million in contracts to 17 corporations that owed back taxes in fiscal years 2012 and 2013, despite a ban on the agreements, according to a government report. The nation’s tax agency did not have “effective controls in place to prevent the award of contracts to corporations with certain federal tax debt and/or felony convictions,” the report by the Treasury Inspector General for Tax Administration concluded.
The IRS challenged the number and dollar value of the contract awards questioned by the report but said the agency had taken corrective steps. Starting with the 2012 fiscal year, a federal law prohibited the IRS and other government agencies from contracting with corporations that have federal tax debts and/or felony convictions. A separate 2012 law barred the IRS from contracting with any corporation convicted of a federal felony during the prior 24 months. Additionally, Department of the Treasury guidance requires
IRS contract officers to obtain self-certification statements in which corporations seeking contracts attest to whether they or their officers had federal tax debts or felony convictions. However, the IRS does not conduct proactive examinations to determine whether prospective contracting firms are in compliance with the federal requirements, TIGTA found. Auditors reviewed a sample of 143 contracts and found the IRS did not require any of the corporations involved to include the mandated self-certification. As a result, TIGTA identified
17 corporations with tax debts that received 57 contracts valued at $18.8 million. In all, 32 of the awards represented modifications to existing contracts with a value of about $18 million; 25 were new awards cumulatively valued at $900,000. TIGTA recommended that the IRS update its procurement policies and develop procedures to determine what constitutes federal tax debt. The IRS fully or partially agreed. But Kevin McIver, the IRS’ acting chief of Agency-Wide Shared Services, contended that TIGTA auditors “improperly” included
modifications to existing IRS contracts in their analysis. Only new contract awards were covered by the federal prohibitions on doing business with firms that had tax debts, McIver wrote. TIGTA responded that all of the contract modifications and the nearly $18 million to fund the work were approved “after the new law was enacted.” “The IRS remains deeply concerned about awarding contracts to delinquent corporations. We have taken a number of corrective steps to make improvements in this area, and we will continue to do more,” the tax agency said.