Chillin' out till it needs to be funded
..Who will take care of the Drought!
In a manner of speaking, record yields in US agriculture of no avail as it takes a 40% downtick in production to get better Corn prices for the Farmers this year, which will in the end pay the farmer as probably less than he earned last year from low prices.
Similarily, Coke’s record sales and a double digit uptick in BRIC countries with India growth at 20% in case volumes is of no avail as S&P Futures and the Dow trade essentially flat. The Financials keep treading below Book Value even as Goldman Sachs follows JP Morgan’s Friday score with a $1.78 Earnings score that definitely makes it a jump candidate. Even in aviation, the industry’s best managed quarter with lower Oil prices could be lost in consumption degrowth with retail sales down for June as well.
Meanwhile, Marissa Mayer was appointed as Yahoo CEO. She comes from Google after an illustrious career and some controversy if a Google incumbent should have been twirling the horses at Yahoo. Marissa’s entry means a new pair trade has taken shape aheqad of Google’s results, Sell Google and Buy Yahoo! You can buy August 480/500 puts in GOOG and Sell that $14/$15 in august in Yahoo in puts, though the latter trade means you think Google’s Employee #20 will survive the six month jinx Ross Levi. could not.
Coca Cola repeated its performance in Brazil, China and importantly india where it had grown by 20% in Q1 as well. Coke reported $1.21 per share on $13.1 B while Goldman Sachs beat estimates by much more at $1.78 or $1 B in profits on $6.6 B in revenues (Coke $2.79 B or $1.21 per share) Global volumes rose 5% for Coca Cola. Coca Cola has also announced a 2 for 1 split to a stock of 11.2 B common shares due end July( trading August 10) Goldman Sachs is running an ongoing sharebuyback program. in most portfolios Financials like goldman Sachs are slowly crawling back to their average 50% share of portfolio even as retail sales keep consumers on edge but bottomlines happy
US Consumer Price index thankfully remained par for the course at 1.7% for the year rising 0.2% sequentially for the Core inflation number while fuel prices tick down to keep the number floating at zero for the overall data Store Sales for July in the weekly Goldman Sachs report remain below the new 3% average for the first half at 2.6% for the week of July 14