Consumer Indebtedness Declines|
The New York Fed announced Tuesday in its quarterly report that total
consumer indebtedness on a decline in mortgage debt and home equity lines of
credit dropped $74 billion to $11.31 trillion Q3, a decline of 0.7%. Household
debt - excluding real estate - rose 2.3% to $2.7 trillion on increases in auto
loans, student loans and credit-card balances. As nearly 242,000 consumers had a
new foreclosure added to their credit report, new foreclosures are returning to
pre-crisis levels striking lowest levels seen in nearly six years. Student loan
balances 90 or more day’s delinquent held at 11.0%.
Reports are out Tuesday that Apple Inc. (AAPL) axed Rich Williamson, executive
in charge of the flawed mapping application included in the recently updated iOS
6 mobile operating system and shipped with the iPhone 5. Williamson had been
with Apple for more than a decade. Apple mobile mapping software had been
criticized as inferior to the Google Maps application that was embedded in
previous versions of the iOS platform.
Research In Motion Limited (RIMM) shares were hammered on Tuesday to end the
trading session down 11%.
Corning Inc. (GLW) shares posted nice gains on Tuesday, ending the trading
session higher by 7%. The company credited stronger-than-expected demand in
North America and China for a raised view of sales of television panels and
handheld specialty glass during Q4. Volume in its main LCD glass segment,
including a joint venture with Samsung Electronics Co. according to Corning,
will increase in the low-single digits on a percentage basis from Q3, topping
its prior projection of flat volume to a low-single-digit decline. A 5% sales
increase over Q3 levels which exceed an earlier call for roughly similar revenue
is expected. "We expect our share of the LCD glass market to remain stable at
[fourth-quarter] levels as a result of the long-term supply agreements we
entered into last quarter," Corporate Controller Tony Tripeny said in prepared
remarks ahead of an investor conference Tuesday. Corning affirmed its views for
its telecommunications and environmental technologies units, but expects its
life sciences segment revenue to increase more than 15% from Q3 thanks to a
recent acquisition, compared with its earlier expectations for a decline of
The U.S. Commerce Department reported on Tuesday that orders for big-ticket U.S.
goods remained essentially flat during October. Declines in defense and
transportation offset increases in electrical equipment, machinery and metals.
Excluding defense and transportation, orders for core capital goods which is a
key barometer of broad U.S. business spending, jumped 1.7% during October
striking the biggest increase since May. Volatile categories - bookings for
transportation equipment, declined 3.1% during October and orders minus defense
moved slightly higher by 0.1%. Tanks, jets and missiles, defense capital-goods
orders, sank 7.1% in October after a 37.5% increase in September. Orders for
overall durable goods have risen 4.9%, year to date so far during 2012. A number
used to help determine gross domestic product, shipments of core capital goods,
fell 0.4% during October to mark the fourth straight decline.
According to the S&P/Case-Shiller home-price index released Tuesday, U.S. home
prices rose for the sixth month in September, signaling that the housing market
is "in the midst of a recovery." Following a 0.8% gain in August, the
S&P/Case-Shiller 20-city composite posted a 0.3% increase in September. David
Blitzer, chairman of the index committee at S&P Dow Jones Indices said, "We are
entering the seasonally weak part of the year. Despite the seasons, housing
continues to improve." Compared to 2011, home prices are up 3%. Among the 20
cities tracked by the S&P Index, 13 posted monthly gains in September. While
consistent low mortgage rates attract some buyers, tight credit standards
continue to plague potential buyers with officials reporting factors such as
tight lending terms will block a powerful housing recovery. According to
Case-Shiller data, despite recent gains, home prices are nearly 30% below peak
levels from 2006.
According to data released Tuesday by the Conference Board, consumer confidence
rose to 73.7 in November from 73.1 during October, striking its best reading
seen in over four years. Reading for October was upwardly revised from 72.2.
Lynn Franco, director of economic indicators at the Conference Board said, "This
month's moderate improvement was the result of an uptick in expectations, while
consumers' assessment of present-day conditions continues to hold steady. Over
the past few months, consumers have grown increasingly more upbeat about the
current and expected state of the job market, and this turnaround in sentiment
is helping to boost confidence."
Green Mountain Coffee Roasters Inc. (GMCR) shares were steaming hot during
aftermarket trading session on Tuesday, higher by 25% in heavy trading volume
after reporting fiscal Q4 results and raising forecasts that beat expectations
of Wall Street. Adjusted earnings Green Mountain came in at 64 cents a share and
revenue surged higher by 33% to $946.7 million from $711.9 million in the 2011
period. In the most recent period, net earnings were $91.9 million or 58 cents a
share, compared with $75.4 million or 47 cents a share in the same period of
2011. The company increased its fiscal-year 2013 forecast for adjusted earnings
to a range from $2.64 to $2.74 a share in comparison to previously expected
adjusted earnings of $2.55 to $2.65 a share. Green Mountain backed its fiscal
year 2012 forecast with total net sales growth of 15% to 20%. The company
forecasts fiscal Q1 adjusted earnings of 62 cents to 67 cents a share, higher
than Wall Street’s forecast of 57 cents a share.
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Nov 27, 2012