Industrial Select Sector SPDR® ETF
What key PMI indicators mean for stocks and investors
Last week, the Institute for Supply Management (or ISM) and Markit both released their reports on the Purchasing Managers Index (or PMI). The ISM’s report gave its strongest reading since February.
How Post-Brexit Trade Deals Impact US Multinationals in Europe
If the United Kingdom doesn’t strike a deal with EU, tariffs on industrial goods and services would range between 0% and 16%, depending on the nature of the products.
Kocherlakota said the FOMC could have done more for labor markets
In evaluating the FOMC’s performance over the past three years, Kocherlakota mentioned that the unemployment rate fell to 5.6%.
How Stocks and Bonds Reacted to Trump’s Victory
The CBOE Volatility Index suddenly rose 6.0% on November 9, 2016, after it was clear that Trump had unexpectedly clinched the election.
Why the Dallas Fed report shows manufacturing continues to recover
The Dallas Fed conducts a monthly survey of manufacturers in Texas regarding their operations in the state to come out with the production index and the business activity index.
How Is Norfolk Southern Valued against Its Peers?
NSC’s next-12-months PE (price-to-earnings) multiple is valued at 15.2x against the peer average of 14.8x. This indicates a premium of 3%.
What Can We Expect from Norfolk Southern’s 3Q16 Earnings?
Virginia-based Norfolk Southern (NSC) is set to announce its 3Q16 earnings on October 26, 2016. In this series, we’ll analyze analysts’ estimates for the company’s revenues and margins.
September Manufacturing Report: Are US Business Conditions Better?
The US September manufacturing PMI (purchasing managers’ index) report indicated an improvement in US (QQQ) (IWM) business conditions.
US Industrial Production Data Disappoint Investors
Data indicated that industrial production edged down by 0.17% in May. So far, the industrial production index has declined in four out of five months this year.
Can manufacturing activity in the northeast increase the pace?
The Philadelphia Fed will release the results of its Business Outlook Survey for June, on Thursday, June 19.
Why Are Analysts Expecting Honeywell’s EPS to Rise in 4Q16?
As of January 20, 2017, Wall Street analysts expect Honeywell (HON) to post adjusted EPS (earnings per share) of $1.74 in 4Q16.
Can 3M Beat Analysts’ Earnings Estimates in 4Q17?
3M (MMM) is expected to post earnings per share (or EPS) of $2.01 in 4Q17, an increase of 6.9% over 4Q16.
What Was Canadian Pacific’s Original Indication of Interest?
Canadian Pacific (CP) proposed a 50% cash and 50% stock transaction based on CP’s and Norfolk Southern’s (NSC) stock closing prices on November 13, 2015.
CSX Stock Rises on Record 2Q15 Earnings
CSX reported its second quarter earnings on July 14. The company beat the Wall Street analysts’ EPS estimates of $0.52, posting earnings per share of $0.56.
Norfolk Southern’s Aggressive Shareholder Return Plan
Norfolk Southern (NSC) has always tried to enhance shareholders’ wealth through dividend payments and share repurchases.
General Electric in 3Q16: How Has the Stock Performed So Far?
Industrial conglomerate General Electric (GE) will release its 3Q16 earnings on October 21, 2016. It is currently in a transformation phase, focusing on its core industrial business.
General Electric Stock Traded near Its Ten-Year Low
On December 7, General Electric’s closing price was $7.01. Currently, the stock trades near its ten-year low of $6.66.
Boeing Stock Falls after Comments by Delta’s CEO
Delta Air Lines (DAL) reported its earnings on October 14, 2015. The earnings call caused greater movement in one of Delta’s key vendors—Boeing (BA).
March manufacturing releases are critical in assessing a recovery
The Purchasing Managers Manufacturing Index (or PMI) is based on a monthly survey of selected companies that provide an advanced indication of what’s really happening in the private-sector economy.
The Boon of Tax Reform and Infrastructure Spending: More Than Just High Hopes?
President Trump is expected to submit a tax reform and infrastructure spending package to Congress this year—all aimed at increasing business investments.
Strong Dollar Is Playing Spoilsport in International Trade
Exports account for about 14% of the US GDP. A stronger dollar has deteriorated competitiveness of US companies in international trade.
US Freight Rail Traffic Was a Mixed Bag in Week 30
The Association of American Railroads (or AAR) publishes North American rail freight (UNP) data every week.
What worries Charles Evans?
A slowing global economy is also a worrying factor for Charles Evans. Companies with an export focus will hire fewer people if there are fewer orders.
Why J.P. Morgan Believes the Market Rally Could Pause
Various US indexes such as the S&P 500 Index (SPY), the Dow Jones Industrial Average (DIA), and the NASDAQ Composite have performed well since the US election.
Canadian Pacific’s Carloads: Even Coal’s Rise Failed to Stop the Decline
Canadian Pacific (CP) registered a fall of 7.3% in total railcars in the week ended July 23, 2016. The company hauled ~23,000 railcars that week.
Comparing Lockheed Martin with other major defense contractors
With total sales of $45,358 million in 2013, Lockheed Martin is the largest defense contractor in the world. The other major defense contractors in the world include The Boeing Company and Raytheon Company.
What You Should Know about Stanley Security’s Business Mix
The Stanley Security business saw a steady decline in the last four years with sales falling from $2.4 billion in 2012 to ~$2.1 billion in 2015.
US Rail Freight Traffic Got a Push from Intermodal in Week 32
In Week 32, US railroads’ overall rail volumes, including intermodal, rose 2.8% YoY to ~556,900 railcars from ~541,600 in Week 32 of 2017.
How Did FedEx Grow into One of the Largest Logistics Giants?
In the international arena, FedEx primarily competes with DHL, United Parcel Service (UPS), and foreign postal authorities.
General Electric’s Mission, Vision, and Strategy
General Electric’s strategy is to reshape its portfolio from a broad conglomerate to a more focused industrial leader.
UPS and the Trans-Pacific Partnership: Simplicity in Trade?
The Trans-Pacific Partnership is expected open cross-border trade between member nations by increasing imports and exports and cutting taxes and tariffs.
Behind Union Pacific’s Railcar Traffic in Week 6
Another major Western US railroad Union Pacific (UNP) posted a marginal 0.6% contraction in carload traffic in the sixth week of 2018, ended February 10.
Kansas City Southern’s Coal Carloads Offered a Surprise
In the week ended July 9, 2016, Kansas City Southern’s (KSU) total railcars were down 5.8% compared with the corresponding period last year.
GE Stock Gains on Asset Divestment Announcement
General Electric (GE) gained ~1.8% yesterday after the company demonstrated its intent to improve its liquidity position.
Analysts Expect More than $10 Billion in Revenue for Honeywell
Honeywell (HON) is announcing its 4Q16 earnings on January 27, 2017.
Raytheon Company’s Integrated Defense Systems
Raytheon’s Integrated Defense Systems segment saw marginally lower sales during the year due to lower sales across most of its major programs such as the Patriot program.
United Rentals Gains 4% on Strong Q4 Earnings and 2019 Outlook
United Rentals (URI) stock gained 4.3% during after-hours trade yesterday after the company announced strong fourth-quarter results.
How Has Roper Technologies’ Stock Fared ahead of Its 2Q16 Earnings?
Roper Technologies’ stock has declined since July 2015, after touching a high of $195.93 per share on November 30, 2015.
Overview of General Electric’s Power and Water Segment
General Electric’s Power and Water Segment contributed 23% of the company’s total revenues in 2015.
Chicago Bridge & Iron Stock: How It’s Performing
As of November 24, 2017, CBI stock has fallen 51% YTD due to earnings misses and a fall in profits.
Can Boeing Deliver on Its New Guidance?
The Boeing Company updated its guidance for 2015. It expects revenues to end in the range of $95 billion–$97 billion by the end of 2015 compared to its previous outlook of $94.5 billion–$96.5 billion.
Boeing Stock: Worst Weekly Fall since 2016
Boeing stock fell 10.3% last week—the biggest weekly loss in the last three years. The stock fell 11.4% during the week ending February 12, 2016.
Graphical Representation of General Electric’s Business Model
General Electric’s industrials and finance services are its two broader divisions, contributing 91% and 9%, respectively, to its consolidated 2015 earnings.
Did Kansas City Southern Overreact to Trump’s Success?
Eastern US railroad stocks (NSC) (CSX) celebrated Trump’s prospective entry into the White House. Why did the smallest Class I railroad stock catch a cold?
Times Change: Why the Dow Theory Is Less Applicable Today
The economic make-up of the US has changed significantly over the past century, making the Dow Theory less applicable today than it might once have been.
Canadian National Railway: What Led Volume Growth in Week 35
Since the beginning of 2017, Canadian National Railway (CNI) has continually kept its positive momentum. In the week ended September 2, 2017, CNI’s carloads rose 4.2%.
Why the Sudden Jump in General Electric’s Debt-to-Equity Ratio?
As of September 30, 2015, General Electric’s industrial plus verticals had a much cleaner balance sheet than consolidated GE in 3Q15.
Week 41: Affirmed Slow Growth Trend in US Rail Traffic Volumes
On October 17, the AAR (Association of American Railroads) published its weekly traffic data for Week 41, which ended on October 13.
What Does UPS’s Supply Chain & Freight Segment Do?
UPS has addressed complex supply chain issues such as transportation, distribution, and international trade and brokerage services by offering a variety of services.
Raytheon’s Intelligence, Information and Services Segment
The Intelligence, Information and Services segment was almost in line with last year. So were the operating income and margins, all of which saw marginal declines.
Evaluating UPS’s Supply Chain and Freight Segment in 3Q15
UPS has the fourth-highest market share in US freight. As of 2014, UPS’s freight segment had a market share of 8%. FedEx enjoys the highest market share.
A look at L-3’s largest business segment
In this article, we will see how Aerospace Systems, L-3’s largest business segment, performed in 3Q14.
How Will UPS Deliver in the 2015 Holiday Season?
UPS expects package volumes during the 2015 holiday season to rise by 10%. On December 22, UPS expects to ship 36 million packages—double its daily average.
Week 9: CSX’s Freight Volumes Trended in Contrast with Industry
Eastern US major railroad company CSX Corporation (CSX) continues to see a declining trend in its carload traffic in 2018.
How BNSF’s Carloads Compare to UNP’s
BNSF Railway’s total railcars for the week ended July 9, 2016, fell by 11% to 85,000 plus units compared with 96,000 plus units on a year-over-year basis.
How Komatsu Benefits from Acquiring Joy Global
From its acquisition of Joy Global, Komatsu expects to double the size of its manufacturing equipment business and to strengthen its core mining business.
Why Danaher Is Relatively Immune from Growth Concerns in China
Organically, Danaher (DGR) has grown at a CAGR of roughly 10% in China over the last five years. Approximately 50% of the company’s revenues in China are derived from its Diagnostics segment.
UPS and the Coyote Logistics Deal: New Capabilities and Synergies
UPS expects its acquisition of Coyote Logistics to provide high-tech light entry into the truckload brokerage market and help manage its backhaul capacity.
Week 49: US Rail Freight Traffic Climbs
On December 13, 2017, the AAR (Association of American Railroads) released North American railroads’ freight data for the week ended December 9, 2017, or Week 49.
Understanding FedEx’s Dividend Trend
In fiscal 2Q17, FedEx (FDX) paid a quarterly cash dividend of $0.4 per share, which represents a rise of 60% on a yearly basis.
Raytheon Company: An Introduction
Raytheon is a global technology leader and US defense contractor. It primarily develops and manufactures weapons and military and commercial electronics.
What’s Stanley Black & Decker’s Market Position?
Stanley Black & Decker (SWK) has a stupendous record of launching at least 1,000 products every year at an average of three products a day.
Where Is UPS Making Its Next Set of Capital Investments?
For 2016, UPS has anticipated an investment of $2.8 billion in the procurement of capital assets.
What to Expect from Transportation Stocks This Fall
The airline industry has maintained its stellar performance in the last five years.
Dover Fluids: A Brief Overview
Dover Corporation’s (DOV) Fluids businesses include the Pump Solutions Group (or PSG), which provides pumping solutions to several end markets.
Citadel Advisors Raises Position in United Technologies Corporation
United Technologies Corporation (UTC) provides high technology products and services to the building systems and aerospace industries worldwide.
United Rentals: What Could Drive Its Q4 Earnings?
United Rentals (URI) is scheduled to report its fourth-quarter results on January 23.
Infrastructure investment is crucial for the G20 countries
The IMF linked fiscal policy consolidation with infrastructure investment. A boost in infrastructure projects is positive for companies and ETFs.
Gauging General Electric’s Appliance Segment
General Electric recently announced that its appliance and lighting division would be sold to Haier.
UPS’s Domestic Segment: Assessing 3Q15 Performance
In 3Q15, UPS’s domestic segment saw a strong 1.9% YoY growth in revenues, reaching $8.86 billion, due to strong base-rate improvements.
Union Pacific: How Its Railcar Traffic Trended in Week 7
In the seventh week of 2018, Union Pacific (UNP) registered a 5.2% expansion in intermodal traffic.
What Analysts Expect of Flowserve in 2016
For 2016, analysts expect Flowserve (FLS) to report revenues of ~$3.9 billion, which would be ~14% lower than its $4.5 billion in 2015.
What Are Stanley Black & Decker’s Business Segments?
Stanley Black & Decker (SWK) markets its products through three business segments: Global Tools & Storage, Security, and Industrials.
Why General Electric Sold Its Appliances Business to Haier
General Electric wants to shift away from the appliances business, as this segment doesn’t fit into its core business portfolio.
Could FedEx’s Stock Buyback Drive Continue in Fiscal 2017?
FedEx paid a quarterly cash dividend of $0.15 per share in 2014, which was raised to $0.20 per share in fiscal 2015.
Boeing’s Commercial Aircraft Classifications
Boeing’s commercial aircraft carry 100–500 passengers, including dual-aisle wide-body aircraft and narrow-body planes with four- to seven-across seating.
How Major US Rail Stocks Behaved following Trump’s Victory
In this short series, we’ll focus on how major US rail stocks have reacted to Donald Trump’s winning the US presidential election.
How FedEx Ground Evolved as a Major Provider in North America
FedEx Ground (FDX) caters to customers in the North American small-package market. This segment focuses on the commercial and non-commercial delivery of packages weighing up to 150 pounds.
More about Roper Technologies’ Industrial Technology Segment
Roper Technologies’ (ROP) Industrial Technology segment has long lead times and provides highly engineered custom-configured products.
How Big Is Komatsu in the Construction and Mining Equipment Space?
Komatsu is the largest manufacturer of construction and mining equipment in Japan. Its the second-largest globally, after US-based Caterpillar (CAT).
Lincoln Electric’s Position in Global Welding and Cutting Industry
The global welding product market is expected to grow at a CAGR of 4.5% until 2020. The market is expected to touch $23.8 billion by the end of 2020.
Stay tuned for this must-know manufacturing report this week
Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on markets.
Why Rising Trade Is a Great Sign for the Global Economy
According to the latest trade deficit report, exports of food, feed, and beverages have decreased $1.3 billion, and soybean exports have decreased $1.4 billion.
Lockheed Martin’s 4Q14 and full-year financial performance
Lockheed Martin (LMT) had a successful fourth quarter. Its net sales grew from $11.5 billion to $12.5 billion. The net earnings were $904 million for the quarter.
Why is CSX Getting Revalued by the Market?
CSX’s current PE (price-to-earning) ratio is at 18x, compared to the S&P 500 at 19.1x. Overall, the company is expected to grow by 5% over the next two years.
The Fed calls job gains ‘strong,’ not ‘solid’
Job gains may have been strong, but two other measures are also important—the labor force participation rate and average hourly wage growth.
Can Honeywell Beat Analysts’ Adjusted EPS Estimate in Q2 2018?
Honeywell (HON) is expected to post adjusted EPS of $2.01 in Q2 2018, implying an increase of 11.7% YoY.
Analyzing Norfolk Southern’s Rail Traffic Performance in Week 14
Norfolk Southern’s (NSC) rail freight traffic grew 3% YoY in Week 14 to 154,293 railcars from 149,798 railcars.
Why Union Pacific’s Operating Margin Contracted in 3Q17
Union Pacific’s reported a 4.5% rise in overall operating revenues in 3Q17, but its operating expenses totaled $3.4 billion—up 6% from $3.2 billion in 3Q16.
September’s Fall in Import and Export Prices: What Does It Mean?
With the continuous decline in export prices, it is evident that the rising dollar is hampering the US competitiveness in the foreign market.
Why 3M’s Electronics and Energy Segment Operating Margin Jumped in 4Q16
The Electronics and Energy segment is 3M’s fourth-largest revenue contributor. It reported revenue of $1.21 billion in 4Q16, representing a 1% fall.
US Manufacturing PMI Points to Weakening Business Conditions
On July 1, Markit Economics reported the final reading for the June US Manufacturing PMI at 53.6 index points—slightly above the flash reading of 53.4.
Analyzing David Einhorn’s Top Sells in 3Q17
Although General Motors has been the top holding of Einhorn’s portfolio for a long time, he reduced some of his position in the stock in 3Q17.
Why Canadian Pacific’s Revenue Soared in 4Q17
In 4Q17, Canadian Pacific Railway (CP) witnessed a 4% rise in its total freight revenue to $1.7 billion Canadian dollars.
October Manufacturing Report: Is the US Business Condition Improving?
The October manufacturing PMI (purchasing managers’ index) report indicates an improvement in the US business condition.
Aeronautics: Lockheed Martin’s highest revenue segment
Lockheed Martin started deliveries on its major F-35 program just three years ago. Lockheed Martin works with almost 1400 suppliers, including companies like Northrop Grumman.
Consider these key risks facing Lockheed Martin
The U.S. government is Lockheed Martin’s (LMT) major customer. With almost 82% of its revenues from the U.S. government, LMT highly depends on the government.
Do acquisitions support Lockheed Martin’s growth strategy?
Lockheed Martin on an acquisition spree As we saw in the previous article in this series, Lockheed Martin’s revenue has been negatively affected by U.S government spending cuts through sequestration and the Budget Control Act (or BCA) of 2011. Future revenue growth is also at risk, given Congress’s deadlock over the rollback of the BCA. As the largest defense contractor, […]
A guide to purchasing managers’ indexes for ETF investors
As we’ve seen in this series, there are three major Purchasing Managers Index (or PMI) reports issued in the U.S.
This week’s releases are key to the Fed funds rate and yield curve
This week, Wednesday to Friday is crammed with economic releases, many of which will be key data points for the Fed’s April FOMC and have a significant impact on the Fed funds rate and the yield curve.