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L awrence J ournal -W orld - USA TODAY FRIDAY, AUGUST 7, 2015
AMERICA’S MARKETS What to watch Matt Krantz USA TODAY
Ready for some more twisted Wall Street thinking? Good news for workers could be bad news for investors. Investors are looking for solid job growth in the report due Friday. Non-farm payrolls are expected to show an increase of 225,000 jobs in July, a tad better than the 223,000 growth reported a month ago, says Bespoke Investment Group. That’s great news if you are looking for a job. It’s not great news for investors. Why the disconnect? The better the jobgrowth picture looks, the more convinced investors are the Federal Reserve will get the guts to boost short-term interest rates. And while investors are happy to see economic growth, they also
Facts about America’s investors who use SigFig tracking services:
know fighting the Fed is often a losing battle. Investors’ complicated relationship with job growth is clear when you compare market reactions to job reports when they’re better or worse than expected. Over the past two years, non-farm payroll numbers have beaten expectations about half the time, Bespoke says. On those days, stocks have gained 0.16% on average on the news. But these market gains after better-than-expected jobs numbers have eroded over time. The fear good job numbers means higher rates is overwhelming the fact the economy is good enough to give companies the courage to hire in the first place. Stocks fell 0.1% in early June after the better-than-expected jobs report, Bespoke says. And stocks jumped 0.7% in early April and 1.4% in May when the jobs number came in worse than expected.
-120.72
DOW JONES
Apple was the most-traded stock across all SigFig investor categories in mid-July as the company unveiled more details on the Apple Watch.
-16.28
INDUSTRIAL AVERAGE
CHANGE: -.7% YTD: -403.32 YTD % CHG: -2.3%
CLOSE: 17,419.75 PREV. CLOSE: 17,540.47 RANGE: 17,362.86-17,572.04
NASDAQ
COMP
-83.51
-15.91
CHANGE: -1.6% YTD: +320.39 YTD % CHG: +6.8%
CLOSE: 5,056.44 PREV. CLOSE: 5,139.95 RANGE: 5,035.41-5,149.93
CLOSE: 2,083.56 PREV. CLOSE: 2,099.84 RANGE: 2,075.53-2,103.32
RUSSELL 2000 INDEX
CHANGE: -1.3% YTD: +11.15 YTD % CHG: +.9%
CLOSE: 1,215.85 PREV. CLOSE: 1,231.76 RANGE: 1,207.77-1,232.77
S&P 500’S BIGGEST GAINERS/LOSERS GAINERS
Price
$ Chg
YTD % Chg % Chg
8.19
+1.16
+16.5 -58.2
Transocean (RIG) Expense cut led to profit beat.
13.84
+1.50
+12.2 -24.5
Michael Kors (KORS) Overseas sales fuel profit gain.
43.77 +4.28
+10.8
-41.7
Helmerich & Payne (HP) 61.66 +4.20 Excellent balance sheet could benefit in the future.
+7.3
-8.5
Newfield Exploration (NFX) 34.77 +2.22 Rises as boosts capital spending on oil production growth.
+6.8 +28.2
Diamond Offshore Drilling (DO) Makes up month’s loss in strong sector.
+6.5
Company (ticker symbol)
Chesapeake Energy (CHK) May get demand boost under Clean Power Plan.
LOSERS
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
-1.91 -3.83 AAPL TRIP HAL
MORE THAN 80% U.S. INVESTMENTS
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
5-day avg.: 6-month avg.: Largest holding: Most bought: Most sold:
-2.10 +0.34 AAPL NBG GLW
4-WEEK TREND
The energy drink company posted better-than-expected financial re- $60 Price: $57.56 sults for the second quarter. HerbChg: $8.46 alife has been waging an ugly battle % chg: 17.2% Day’s high/low: with billionaire Bill Ackman over $40 the legitimacy of its business. July 9 $59.47/$53.41
Michael Kors Holdings
Price: $43.77 Chg: $4.28 % chg: 10.8% Day’s high/low: $44.59/$41.70
+1.37
The oil and natural gas exploration and production company reported second-quarter revenue that topped expectations, boosted its production guidance and said it is considering more asset sales.
Price: $8.19 Chg: $1.16 % chg: 16.5% Day’s high/low: $8.44/$7.01 Fund, ranked by size Vanguard 500Adml Vanguard TotStIAdm Vanguard TotStIdx Vanguard InstIdxI Vanguard InstPlus Fidelity Contra American Funds GrthAmA m American Funds IncAmerA m American Funds CapIncBuA m Vanguard TotIntl
17.17
+1.02
+6.3
-42.7
Southwestern Energy (SWN) Rises on possible demand boost.
17.45
+.88
+5.3
-36.1
Apache (APA) Makes up early loss in leading sector.
46.60
+2.16
+4.9
-25.6
Molson Coors Brewing (TAP) Revenue meets, earnings top.
73.76 +3.35
+4.8
-1.0
$ Chg
YTD % Chg % Chg
Keurig Green Mountain (GMCR) Plunges after cutting sales forecast.
52.67 -22.31
-29.8 -60.2
Teradata (TDC) Dips after second-quarter result report.
30.43
-5.84
-16.1
-30.3
Viacom (VIAB) Tumbles as sales miss estimates.
44.10
-7.31
-14.2
-41.4
5.22
-.43
-7.6
-38.6
116.17
-9.29
-7.4
-4.0
21st Century Fox (FOXA) 29.87 Hits 2015 low as investors concerned over industry.
-2.05
-6.4
-22.2
ETF, ranked by volume SPDR S&P500 ETF Tr CS VelSh 3xLongCrude Mkt Vect Gold Miners CS VelSh 3xLongNatGs Barc iPath Vix ST Dir Dly Gold Bull3x PowerShs QQQ Trust iShares Rus 2000 iShs Emerg Mkts SPDR Energy
Ticker SPY UWTI GDX UGAZ VXX NUGT QQQ IWM EEM XLE
Chg. -1.45 -0.44 -0.44 -1.44 -1.43 -1.33 -0.51 -0.09 -0.18 -0.06
Close 208.35 1.30 13.37 2.03 16.26 3.14 110.45 120.69 36.32 68.25
4wk 1 +0.9% +0.4% +0.4% +0.9% +0.9% +2.3% +1.6% +0.2% +1.2% +0.4%
YTD 1 +2.4% +2.5% +2.5% +2.4% +2.4% +7.9% +6.3% -0.1% +1.2% +4.2%
Chg. -1.72 -0.04 +0.28 +0.04 +0.52 +0.21 -1.80 -1.65 -0.32 +1.07
% Chg -0.8% -3.0% +2.1% +2.0% +3.3% +7.2% -1.6% -1.3% -0.9% +1.6%
%YTD +1.4% -73.4% -27.3% -49.0% -48.4% -71.9% +7.0% +0.9% -7.6% -13.8%
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% 0.14% 0.12% 0.07% 0.01% 1.61% 1.48% 2.23% 1.96%
Close 6 mo ago 3.95% 3.85% 3.02% 2.93% 2.67% 2.84% 3.23% 3.52%
SOURCE: BANKRATE.COM
COMMODITIES
Genworth Financial (GNW) Rating cut to outperform at Raymond James. Dun & Bradstreet (DNB) Misses second-quarter earnings and revenues.
Monster Beverage (MNST) Energy drink shares fall on quarterly results.
144.87
-9.13
-5.9 +33.7
Harman (HAR) Yearly earnings forecast trails estimates.
111.00
-7.01
-5.9
+4.0
Mallinckrodt (MNK) Dips to lowest since January after third quarter.
98.49
-6.02
-5.8
-.5
316.60
-18.81
-5.6
-6.7
Biogen (BIIB) Takes another blow after removal by CVS.
SOURCE: BLOOMBERG AND THE ASSOCIATED PRESS
Commodities Close Prev. Cattle (lb.) 1.50 1.49 Corn (bushel) 3.70 3.73 Gold (troy oz.) 1,090.20 1,085.70 Hogs, lean (lb.) .78 .80 Natural Gas (Btu.) 2.81 2.80 Oil, heating (gal.) 1.55 1.54 Oil, lt. swt. crude (bar.) 44.66 45.15 Silver (troy oz.) 14.67 14.55 Soybeans (bushel) 9.86 9.92 Wheat (bushel) 5.07 5.02
Chg. +0.01 -0.03 +4.50 -0.02 +0.01 +0.01 -0.49 +0.12 -0.06 +0.05
% Chg. +0.7% -0.8% +0.4% -2.7% +0.5% +0.7% -1.1% +0.9% -0.6% +1.0%
% YTD -9.6% -6.9% -7.9% -3.9% -2.6% -16.1% -16.2% -5.8% -3.3% -14.0%
FOREIGN CURRENCIES Currency per dollar British pound Canadian dollar Chinese yuan Euro Japanese yen Mexican peso
Close .6446 1.3120 6.2073 .9156 124.71 16.3307
Prev. .6411 1.3191 6.2127 .9176 124.90 16.3894
6 mo. ago .6565 1.2530 6.2366 .8835 119.14 14.8779
Yr. ago .5936 1.0922 6.1630 .7475 102.05 13.2496
FOREIGN MARKETS Country Frankfurt Hong Kong Japan (Nikkei) London Mexico City
Close 11,585.10 24,375.28 20,664.44 6,747.09 44,921.22
$57.56
Aug. 6
July 9
Aug. 6
4-WEEK TREND $12
$6
$8.19
July 9
Aug. 6
INVESTING ASK MATT
NAV 192.60 52.43 52.41 190.72 190.74 104.74 45.37 21.23 59.29 15.99
1 – CAPITAL GAINS AND DIVIDENDS REINVESTED
-39.2
Enesco (ESV) Climbs all day amid solid drillers.
Price
POWERED BY SIGFIG
$43.77
$50
Chesapeake Energy
TOP 10 EXCHANGE TRADED FUNDS
Company (ticker symbol)
-2.12 -0.24 AAPL AAPL TWTR
4-WEEK TREND
The London-based luxury retailer reported fiscal first-quarter earnings and revenue that topped ana$30 lysts’ expectations.
TOP 10 MUTUAL FUNDS
22.32
-2.81 -2.94 AAPL PBR TSLA
51% TO 80% U.S. INVESTMENTS
STORY STOCKS Herbalife
RUSSELL
RUT
COMPOSITE
21% TO 50% U.S. INVESTMENTS
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: -.8% YTD: +24.66 YTD % CHG: +1.2%
LESS THAN 20% U.S. INVESTMENTS
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 foreign investment 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?
Investors hold breath for job-growth report
ALL THE MARKET ACTION IN REAL TIME. AMERICASMARKETS.USATODAY.COM
Prev. Change 11,636.30 -51.20 24,514.16 -138.88 20,614.06 +50.38 6,752.41 -5.32 44,937.61 -16.39
%Chg. YTD % -0.4% +18.2% -0.6% +3.3% +0.2% +18.4% -0.1% +2.8% unch. +4.1%
SOURCES: MORNINGSTAR, DOW JONES INDEXES, THE ASSOCIATED PRESS
IN-DEPTH MARKETS COVERAGE USATODAY.COM/MONEY
Caution ahead for electric car company stock
Q: Should I bail on Tesla stock? Matt Krantz
mkrantz@usatoday.com USA TODAY
A: Investing in shares of speculative, money-losing companies is great — when the momentum works in your favor. But when reality sets in — investors look for the exits. Tesla is a classic “story stock,” a promising company led by a visionary CEO in Elon Musk with a relatively untapped market. Stocks such as Tesla catch the interest of people who might not have thought about investing before. But that’s the problem — the valuation can get stretched and create disappointing returns when the stock price races ahead of fundamentals. Shares of the electric car company sank 10% Thursday to roughly $240 a share after business late Wednesday lowered guidance for the number of vehicles it expects to ship this year to as low at 50,000, down from 55,000. The company says it’s more about supply constraints than demand. Tesla’s adjusted loss during the quarter of 48 cents a share was less than expected and revenue of $1.2 billion beat views by 2%. Analysts remain bullish, calling Tesla an “outperform” and saying shares will be worth $279.39 in 18 months — up 16% from current levels. But it’s still a speculative stock. Research firm New Constructs says shares are trading much above the present value of expected future cash flows.
In CEO ‘pay ratio’ world, some salaries below employees’ Matt Krantz USA TODAY
Workers at most companies would readily trade their pay for the CEO’s. But that’s not the case at a few giant companies. There are three CEOs in Standard & Poor’s 500 companies who were paid less than their company’s median employee pay, according to a USA TODAY analysis of CEO pay data from S&P Capital IQ and employee compensation from Glassdoor.com. The so-called CEO “pay ratio” is getting great attention since the
JUSTIN SULLIVAN, GETTY IMAGES
Google’s Larry Page had a $1 salary, but his 43.9 million shares of the company earned him roughly $4 billion.
Securities and Exchange Commission on Wednesday approved a new rule that would force U.S. companies to spell out the gap between what CEOs are paid and
what the median employee receives. The rule could cause embarrassment for some companies and their boards considering CEOs are typically paid 216 times more than their employees. That’s up from a pay gap of just 20 times in the 1950s, according to Bloomberg Businessweek. There are even nine CEOs that made 800 times more than the median worker. But there’s an opposite pay gap at some companies. Perhaps the most startling example is Google, which has had net income of more than $15 billion during the past 12 months by mining consumers’ online data and using that to sell lu-
crative online ads. Lawrence Page was paid $1 during the last fiscal year as the head of the company. That pay is in stark contrast with the company’s relatively high median employee pay of $110,000 a year, says Glassdoor.com. Organic food seller Whole Foods might be infamous for its “whole paycheck” prices, but CEO John Mackey isn’t reaping the rewards in his paycheck. He also was paid a buck last year while median pay reported by employees is $24,880. And then there’s Fossil’s long-time CEO Kosta Kartsotis — who was paid nothing last fiscal year — as employees
took in a median $35,240. But don’t go feeling too sorry for these companies’ CEOs, since some have found wealth despite their relative low salaries. Page owns 43.9 million shares of the company — making him the largest single owner of Google, says S&P Capital IQ. Shares of Google have risen 16% over the past year, meaning the value of Page’s stock has soared roughly $4 billion during that time. This analysis has some caveats, as companies aren’t required to disclose median employee pay yet. Many caveats will be removed when rules mandate disclosures.