Dr Pepper Snapple Continues to Impress with its 2Q15 Earnings
Dr Pepper Snapple’s (DPS) adjusted earnings per share came in at $1.13 for the second quarter of 2015, which ended June 30, 2015.
Food commodity costs have been favorable to the restaurant industry so far in 2015. But where do they stand as of July 2015?
Sector ETF Analysis
Natural gas futures contracts for August delivery rose by 1.43% on July 28. The consensus of rising demand due to warm weather estimates supported natural gas prices.
Alaska Air Group had a blockbuster second quarter, with its top line growing 5% year-over-year. Its operating income surged by 41% YoY, driven by lower fuel expenses.
Sprint (S) is expected to report its 1Q15 results on August 4. Wall Street analysts expect the company to report an adjusted loss per share of $0.07.
VF Corporation (VFC) released its 2Q15 earnings on July 24, coming in ahead of Wall Street estimates on both earnings and revenue after three quarters of misses.
Freeport-McMoRan (FCX) released its 2Q15 earnings on July 23. It reported a net loss of $1.85 billion, which was largely attributable to the $2 billion write-down of its oil and gas assets.
Weak corporate results and falling long-term Treasury yields led to losses in the US financial sector in the week ended July 24.
The two big events dominating this week are the continued slew of earnings report and the FOMC meeting on Wednesday.
Macro ETF Analysis
Mergers and acquisitions continue to drive the biotech sector. In the week ending July 17, 2015, Celgene (CELG) acquired Receptos (RCPT) for ~$7.2 billion.
A fall in the price of commodities lowered the outlook on inflation in the United States. This fueled gains for investment-grade bonds in the week ended July 24.
At one point on Monday, July 20, gold prices had fallen to $1,086 per ounce before settling at $1,104 per ounce—the lowest level since March 2010.
Chinese equities in freefall have been worrying investors. The fall has been sudden and steep with the Shanghai Composite Index falling more than 32% from a seven-year high on June 12.
Income ETF Analysis
The day the Fed released its FOMC minutes began with the ten-year bond yielding 2.24%. Bonds didn’t react much to the minutes and finished the day a couple of basis points higher in yield.