AFLAC Raises Dividend by 21%
Posted by Eddy Elfenbein on November 15th, 2021 at 6:36 pm

AFLAC (AFL) announced that it’s hiking its quarterly dividend from 33 cents to 40 cents per share. That’s an increase of 21.2%. That’s the duck stock’s 39th consecutive increase.

Aflac Incorporated (NYSE: AFL) today announced that its Board of Directors has declared the first quarter dividend of $0.40 per share, payable on March 1, 2022, to shareholders of record at the close of business on February 16, 2022. This represents a 21.2% increase over the previously declared fourth quarter dividend.

Commenting on the announcement, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos said: “I am pleased with the Board’s action to increase the first quarter 2022 dividend. We treasure our record of 39 consecutive years of dividend increases, and our dividend track record is supported by the strength of our capital and cash flows. We remain committed to maintaining strong capital ratios on behalf of our policyholders and balance this financial strength with tactical capital deployment.”

10 Mistakes Every Investor Makes
Posted by Eddy Elfenbein on November 15th, 2021 at 2:11 pm

Abbott Labs Hits New High
Posted by Eddy Elfenbein on November 15th, 2021 at 11:57 am

The stock market is creeping higher today which follows up days on Thursday and Friday. The S&P 500 isn’t far from yet another all-time high. The current all-time high close came last Monday when the index closed at 4,701.70. So far today, we’ve been as high as 4,697.42.

There isn’t much economic news today. Earlier this morning, the Empire State Manufacturing Index rose for October after dropping sharply in September.

Shares of Tesla (TSLA) are down again today. The stock has been falling lately after Elon Musk talked about selling his shares. Tesla is no longer a member of the Trillion Dollar Club. The car company’s market value is currently $991 billion, but don’t feel too bad for Elon; it’s still up over 40% this year.

On our Buy List, Ross Stores (ROST) will report its earnings on Thursday. The other “off cycle” report that’s due soon is from Heico (HEI) but the company hasn’t said yet when it will report. It should be soon.

Five months ago, shares of Abbott Labs (ABT) dropped 9% after the company lowered its earnings guidance. The reason for the lower guidance was fading demand for their Covid tests. At the time, I said, “Don’t let this week’s drop scare you. Abbott is a very sound company.”

Since then, Abbott has released very strong reports in July and October. In fact, the company has raised its full-year guidance higher than where it was before. Today the stock hit a new all-time high.

Morning News: November 15, 2021
Posted by Eddy Elfenbein on November 15th, 2021 at 7:03 am

Global Wealth Surges as China Overtakes U.S. to Grab Top Spot

The Crypto Capital of the World

Japan’s Economy Shrinks, but Outlook Is Brighter as Virus Ebbs

14 Million Tons a Day Show Why China and India Won’t Quit Coal

Oil Declines as Biden Faces Mounting Calls for an SPR Release

Crunch at Ports May Mean Crisis for American Farms

How America’s Pandemic Economic Response Fought the Last War

Dollar Near 16-Month High as Clues on Fed Policy Awaited

Post Recovery? Fed, Elected Officials Now Challenged to Define New Normal

Morgan Stanley Says Steer Clear of U.S. Stocks and Bonds in 2022

Shell Ditches the Dutch, Moves to London in Share Structure Overhaul

Pfizer Fights to Keep Its $36 Billion Covid Recipe a Secret

Santa Claus is Coming to Town – But At What Cost to Walmart and Target?

‘The Freighter Markets Are on Fire Right Now. That’s Where We See Real Growth,’ Boeing Exec Says

It Would Help If the Neo ‘Inflation’ Hawks Understood What Inflation Is

Big Short’s Michael Burry Thinks Elon Musk ‘Just Wants to Sell Tesla’

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The Divorce Market
Posted by Eddy Elfenbein on November 12th, 2021 at 1:10 pm

Everyone’s breaking up! At least it seems that way. Johnson & Johnson (JNJ) said it will break itself in two, consumer products and pharmaceuticals. General Electric (GE) will break itself into three—jet engines, power and healthcare. Toshiba (TOSBF) is also getting in the act. That company will break itself in three.

This is a big deal. JNJ is a Dow component. GE no longer is, but it’s an original member of the index.

It seems to me that there’s a natural energy working to keep companies from getting too large. In 1911, the government sued Standard Oil. The company was divided into 39 different companies. Standard Oil of New Jersey became Esso which later became Exxon. Standard Oil of New York (or Socony) later became Mobil and now today we have Exxon Mobil.

The same thing happened with AT&T. The government broke it up and the Baby Bells later merged back together.

A popular theme in some dystopian movies is massive evil conglomerates. In Stanley Kubrick’s 2001, the Orion is owned by…Pan-Am!!

Thanks to inflation, real wages are down and folks are not happy. Today’s consumer confidence report fell to a 10-year low. The University of Michigan Consumer Sentiment Index fell to 66.8. That was below estimates of 72.5.

The Labor Department said that 4.43 million Americans quit their jobs in September. That’s up by 1.1 million from one year ago. There are now 10.4 million job openings.

It’s a good day so far for stocks. On our Buy List, FactSet (FDS) and Sherwin-Williams (SHW) got to new highs today.

Morning News: November 12, 2021
Posted by Eddy Elfenbein on November 12th, 2021 at 7:00 am

Furious Investors Test China’s Resolve to Crack Down on Property

High Energy Prices Likely to Mean Less Oil Demand This Year, OPEC Says

Can Joe Biden Control Gas Prices? Here’s What the President Can Do

Dollar Set for Biggest Weekly Rise in 5 Months as Yields Rise

Treasuries Most Sensitive to Fed Set for Biggest Loss Since 2019

What Are Investors Focused on for the Next Fed Chair?

The White House Says Its Plans Will Slow Inflation. The Big Question Is: When?

Homes Now Typically Sell in a Week, Forcing Buyers to Take Risks

Alibaba’s Singles Day Sales Top $30 Billion. The Party May Not Last.

Johnson & Johnson to Split into Two Companies; Shares Rise

Toshiba Plans to Split into Three Firms, Rejects Calls to Go Private

Now TV Wants Nielsen to Measure Up

What Bosses Really Think About the Future of the Office

The Shadow of Ronald Reagan Is Costing Us Dearly

Rivian Rockets Past GM to Become 2nd-Most-Valuable Automaker

Musk Throws Fresh Shade at Rivian a Day After Rival’s Big IPO

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Morning News: November 11, 2021
Posted by Eddy Elfenbein on November 11th, 2021 at 7:02 am

Stocks Soar in India, Luring Investors at Home and Abroad

Crypto Is Forbidden for Muslims, Indonesia’s National Religious Council Rules

A Chastened Alibaba Tones Down Its Singles Day Retail Bonanza

Global Luxury Sales Set to Outpace Pre-COVID Levels This Year, Bain Says

Fed’s ‘Transitory’ Inflation Plot Thickens Again with Rate at 30-Year High

Fastest Inflation in 31 Years Puts More Heat on Washington

Inflation Shock Tears Up Trader Playbooks From Stocks to Bitcoin

U.S. Oil Refiners Bet the Farm Biden Will Back Them on Biofuels

How GE’s Larry Culp Found a Way Out of the Mess Jack Welch Made

Tencent Says Beijing Likely to Support Metaverse – As Long As It Obeys China Rules

Elon Musk Sells $5 Billion of Tesla Stock

Rivian I.P.O. Is Embraced by Investors Looking for Another Tesla

Hershey to Buy Two Pretzel Makers for $1.2 Billion

The Core Legal Strategy Against Opioid Companies May Be Faltering

China Weighs Moderating Property Curbs to Help Troubled Developers Unload Assets

Tesla Had 5 Founders. Why Did Only 2 Get Really Rich?

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Disney Earns 37 Cents per Share
Posted by Eddy Elfenbein on November 10th, 2021 at 4:16 pm

After the closing bell, Disney (DIS) reported fiscal Q4 earnings of 37 cents per share. That missed expectations of 44 cents per share. Quarterly revenues were $18.53 billion. That was also below expectations of $18.79 billion.

One problem is parks, experiences and products. Revenue for that division came in at $640 million. While that’s double last year’s Q4, it’s still below expectations of $900 million.

Disney+ is now up to 118.1 million subs. The Street was expecting 125.4 million. For the quarter, they added 2.1 million while Wall Street had been expecting an increase of 9 million.

One bright spot is ESPN+. They added 17.1 million subs compared with expectations of 16.4 million. Revenues per user came in at $4.74 which also beat expectations by 10 cents.

Disney is down about 4% after hours.

Year-Over-Year Inflation Reaches 30-Year High
Posted by Eddy Elfenbein on November 10th, 2021 at 3:04 pm

Thanks to the rally in Trex (TREX), yesterday was one of our Buy List’s best days against the S&P 500 this year. Our Buy List gained 0.94% while the S&P 500 fell 0.35%. The latter snapped an eight-day win streak.

This morning’s jobless claims report fell to 267,000. That’s another pandemic low. Economists had been expecting 275,000. Jobless claims are now within the ballpark of their range prior to Covid. For most of 2018 and 2019, jobless claims came in between 200,000 and 240,000. The peak was 6.1 million. The report usually comes out on Thursday but tomorrow is Veteran’s Day.

Today’s inflation report showed that consumer prices rose by 0.94% last month. That’s the highest in 13 years and the 4th-highest in the last 39 years. Wall Street had been expecting an increase of 0.6%.

Over the last year, consumer prices have increased by 6.2%. That’s the most in 30 years.

Core inflation, which excludes food and energy, rose by 0.6%. Wall Street had been expecting an increase of 0.4%. The 12- month core rate is 4.58%.

Fuel oil prices soared 12.3% for the month, part of a 59.1% increase over the past year. Energy prices overall rose 4.8% in October and are up 30% for the 12-month period.

Used vehicle prices again were a big contributor, rising 2.5% on the month and 26.4% for the year. New vehicle prices were up 1.4% and 9.8%, respectively.

Food prices also showed a sizeable bounce, up 0.9% and 5.3% respectively. Within the food category, meat, poultry, fish and eggs collectively rose 1.7% for the month and 11.9% year over year.

The price increases meant that workers fell further behind.

Morning News: November 10, 2021
Posted by Eddy Elfenbein on November 10th, 2021 at 7:03 am

U.S. Credit Card Use Returning to Pre-Pandemic Patterns, NY Fed Report Finds

The Making of a Feel-Bad Boom

China Begins Euro Bond Deal After Strong Dollar Debt Sale

‘China’s Economy is Hitting a Great Wall’: Parallels to the ’08 Housing Crash Could Unleash a Major Recession, Says University of Chicago Economist

Evergrande Teeters on Edge of Default as $148 Million Payment Falls Due

Li Ka-Shing Adds Hydrogen Bet to Bolster $31 Billion Fortune

Rivian Set for Debut After Year’s Blockbuster $11.9 Billion IPO

Lordstown’s Auto Industry Is Coming Back. The Jobs? Not So Much

How Data Is Reshaping Real Estate

How GE’s Larry Culp Split the Empire Jack Welch Built

Judge Denies Apple’s Request to Delay App Store Changes

Elon Musk Loses $50 Billion in Two Days in Record Wealth Plunge

Meta Plans to Remove Thousands of Sensitive Ad-Targeting Categories

Google Loses Appeal of $2.8 Billion Fine in E.U. Antitrust Case

Scammer Who Cheated Buffett’s Berkshire Gets 30 Years for Ponzi Scheme

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