July Ended with a Question Mark, August with an Exclamation Mark, What Will Happen in September?
By Larry C. Paxton
Compared to July’s big plummet on the last day, August featured new stock market highs as the bulls maintained their run through the end of the month. This despite some big continuing question marks on the US economy, impacts of sanctions on Russia because of their activities in the Ukraine area, and other regional problems in Iraq and Syria. There was also an earthquake that caused some damage in Napa Valley and an Iceland volcano played a small part as well to help remind us that Mother Nature does not want to be left out of the economic influence mix.
The big news for PBRMarketTools.com is that it has made available to the general public The PBR US Indices Monthly Snapshot! Click here for more info & an Introductory Offer!
News items of interest for The PBR1000 in August follow, with the most current date first.
Sunday, August 31:
3M(PBR91) completes acquisition of Sumitomo Electrics’ 25% ownership of Sumitomo 3M for $865 million. Click here for the 3M press release.
Friday, August 29:
Stock Exchanges Recap for the Week:
DJIA closes at 17,098.45, +0.57% over last Friday, +3.23% MTD, +1.62% QTD, +3.15% YTD.
NASDAQ closes at 4,580.27, +0.92% over last Friday, +4.82% MTD, +3.90% QTD, +9.67% YTD.
SPX closes at 2,003.37, +0.75% over last Friday, +3.77% MTD, +2.20% QTD, +8.39% YTD.
BE Aerospace(PBR610) files SEC registration for public spin-off of its KLX Consumables Management segment. Click here for the BE Aerospace press release.
Briggs & Stratton(PBR912) closes its acquisition of towable electronic devices Allmand Bros for $62 million. Click here for the Briggs & Stratton press release.
Beacon Roofing Supply(PBR827) has acquired Vancouver, Canada, based residiential roofing systems distributor All Weather Products LTD, terms not disclosed. Click here for the Beacon press release.
Arthur J Gallagher(PBR649) completes assets acquisition of Baker Tilly’s Employee Benefits Solutions business. Click here for the AJG press release.
The US Dept of Commerce reports personal income in July 2014 increased 0.2 percent. Nominal personal consumption expenditures (PCE) fell 0.1 percent, while real PCE fell 0.2 percent. Nominal and real disposable personal income (DPI) rose 0.1 percent. The personal saving rate as a percentage of DPI was 5.7 percent in July. Click here for the USDOC press release.
Thursday, August 28:
PBRMarketTools.com today makes available to the general public The PBR US Indices Monthly Snapshot! Click here for more info & an Introductory Offer!
RadioShack(PBR618) to be exclusive national retailer for new nationwide 4G LTE mobile services provider Defense Mobile Corp. Click here for the RadioShack press release.
Tyson Foods(PBR87) completes its $8.55 billion acquisition of Hillshire Brands(PBR571), which will be delisted. Click here for the Tyson Foods press release.
Fred’s(PBR893) announces it will close 60 stores without pharmacies after disappointing 2nd quarter results. Click here for the Fred’s press release.
KKR(PBR270) & Borealis Maritime grow shipping fleet through acquisition of 9 ships from Commerzbank. Click here for the KKR press release.
The US Dept of Commerce reports that the 2nd estimate of 2nd quarter Gross Domestic Product is a 4.2% annual rate, $17,311.3 billion. Click here for the USDOC press release.
FreddieMac reports that the average 30 year fixed rate mortgage for the week is 4.10% with 0.5 fees & points. Click here for the FreddieMac press release.
Wednesday, August 27:
Liberty Interactive Corp(PBR232) announces completion of Liberty TripAdvisor Holdings(NASDAQ: LTRPA, LTRPB) spin-off, which will start trading as a separate company on 08/28/14. Click here for the Liberty Interactive Corp press release.
AAR Corp(PBR852) acquires temperature-controlled container assets from Cool Containers, terms not disclosed. Click here for the AAR Corp press release.
Medtronic(PBR163) acquires private Italian based hospital managed services firm NGC Medical SpA, valued at $350 million. Click here for the Medtronic press release.
United Technologies(PBR45) increases stock repurchase program from $1.25 billion to $1.35 billion. Click here for the UT press release.
The US Congressional Budget Office forecasts $506 billion deficit for FY2014, $170 billion less than in FY2013. Click here for the USCBO press release.
The US Congressional Budget Office forecasts increasing federal deficit spending through 2024. Click here for the USCBO press release.
Tuesday, August 26:
Burger King(PBR1050) & Canadian based coffee/doughnut co Tim Hortons agree to merge, to be Canadian based, $12.5 billion financing in place, will create 3rd largest quick service restaurant company in the world. Click here for the Burger King press release.
Amazon(PBR36) to acquire interactive game company Twitch for $970 million. Click here for the Amazon press release.
American Airlines(PBR644) withdrawing fares for economic reasons from Orbitz(OWW) immediately, US Airways unit 09/01/14. Click here for the American Airlines press release.
Medtronic(PBR163) has acquired Netherland’s deep brain stimulation tech developer Sapiens SBS for $200 million cash. Click here for the Medtronic press release.
Yahoo!(PBR494) completes its acquisition of mobile analytics firm Flurry(NR). Click here for the Yahoo! press release.
The US Dept of Labor reports that 61% of 4.3 million workers displaced from 2011-2013 have been re-employed. Click here for the USDOL press release.
The US Dept of Commerce says July durable goods at $300.1 billion, up 22.6% over June, shipments at $248.9 billion, unfilled orders $1,158.5 billion, inventories at $401.9 billion. Click here for the USDOC press release.
Monday, August 25:
SunPower(PBR766) announces that Verizon(PBR15) investments in solar power to generate 25 MW of green energy, enough to power 8,500 homes annually. Click here for the SunPower press release.
Alcoa(PBR122) announces the permanent closing of 150k metric ton/year Portovesme Smelter in Italy, not cost competitive now. Click here for the Alcoa press release.
ANN(PBR770) receives an open joint letter from activist investors Engine Capital Management & Red Alder regarding why they think the retailer should be sold. Click here for the Ulitzer news article, which includes the letter.
Calpine Corp(PBR391) to acquire Boston area natural gas-fired 809 Megawatt power plant from Exelon Corp(PBR108) for $530 million. Click here for the Calpine press release.
Lockheed(PBR59) completes its acquisition of 25 employee Boston area energy management firm Sun Catalytix, terms not disclosed. Click here for the Lockheed press release.
Archer-Daniels-Midland(ADM)(PBR27) announces it has opened its new global headquarters & customer center in downtown Chicago. Click here for the ADM press release.
Kathryn Bufano officially becomes President/CEO of Bon-Ton Stores(PBR700). Click here for the Bon-Ton brief biography of KB.
The US Dept of Labor reports that July unemployment rates were much lower in 18 states, higher in 8 & DC, and around the 6.2% avg in 24 states. For more details click here for the DOL press release.
The US Dept of HUD reports that July sales of new homes was at a 412,000 annual rate, down 2.4% from the revised June rate, median sale price was $269,800. Click here for the HUD press release.
Apollo Education Group(PBR592) announces the death of 93 year old Dr. John Sperling, founder of AEG & its flagship University of Phoenix. Click here for the CNN article.
Friday, August 22:
Stock Exchanges Recap for the Week:
DJIA closes at 17,001.22, +2.03% over last Friday, +2.64% MTD, +1.04% QTD, +2.56% YTD.
NASDAQ closes at 4,538.55, +1.65% over last Friday, +3.86% MTD, +2.96% QTD, +8.67% YTD.
SPX closes at 1,988.40, +1.71% over last Friday, +2.99% MTD, +1.44% QTD, +7.58% YTD.
Dynegy(NR) to buy 12,500 MW of coal & gas generation from Duke Energy(PBR112) & Energy Capital Partners(NR) for $6.25 billion. Click here for the Dynegy press release.
Goldman Sachs(PBR72) settles with the Federal Housing Finance Agency(FHFA), will repurchase $3.15 billion in residential backed mortgage securities(RMBS) sold to Freddie Mac(PBR32) & Fannie Mae(PBR16) in 2005-2007. Click here for the Goldman Sachs press release.
Keurig Green Mountain(PBR527) & Kraft Foods(PBR146) announce multi-year agreement to package Kraft’s branded coffees in Keurig portion pack formats. Click here for the Keurig press release.
Lockheed(PBR59) completes the acquisition of satellite launch preparations services firm Astrotech Space Operations, terms not disclosed. Click here for the Lockheed press release.
Thursday, August 21:
Bank of America(PBR21) to pay $16.65 billion settlement in deal with the US Dept of Justice for financial fraud before & during financial crisis. Click here for the USDOJ press release.
Family Dollar(PBR253) rejects the Dollar General(PBR153) $9.7 billion offer based on antitrust issues. Click here for the Family Dollar press release.
Dollar General(PBR153) reconfirms its interest in Family Dollar(PBR253), says no antitrust issues. Click here for the Dollar General press release.
Home Depot(PBR34) names Craig Menear as CEO effective 11/01/14; current Chairman/CEO Frank Blake to remain as chairman. Click here for the Home Depot press release.
The Conference Board Leading Economic Index for July is up sharply at 0.9%, indicating that the economy is gaining traction. Click here for the Conference Board press release.
The National Association of Realtors reports that July existing home sales were at a 5.15 million annual rate, up 2.4% over June. Click here for the NAR press release.
The US Census Bureau reports that the gap between the wealthy, with median assets of $630K in 2011, and poor, with median assets of -$6k, widened from 2000. Click here for the Census Bureau press release.
Wednesday, August 20:
Ventas(PBR704) completes $900 million acquisition of Canadian senior healthcare facilities firm Holiday Retirement. Click here for the Ventas press release.
AES Corp(PBR170) sells 100% of its equity interests in 87.5 MW of operating wind projects in the UK for $160 million. Click here for the AES press release.
ADP(PBR230) announces name of Dealer Services public spinoff will be CDK Global. Click here for the ADP press release.
VMWare(PBR453) acquires real-time application delivery technologies company CloudVolumes, terms not disclosed. Click here for the VMWare press release.
Tuesday, August 19:
PetSmart(PBR360) announces it is exploring strategic alternatives to maximize shareholder value, including possible sale of the company. Click here for the PetSmart press release.
The US Dept of Labor reports Real Earnings Per Hour were at $24.45 in July, unchanged from June, and unchanged from July, 2013. Click here for the USDOL press release.
The US Dept of Labor reports that the Consumer Price Index was up 0.1% in July, was up 0.3% in June, food prices up, energy costs down. Click here for the USDOL press release.
The US Dept of Housing & Urban Development reports that July Building Permits were at an annual rate of 1,052,000, up 8.1% over June, 7.7% over July 2013. Also, July Housing Starts were at an annual rate of 1,093,000, up 15.7% from June, up 7.7% from July, 2013. Click here for the USHUD press release.
Monday, August 18:
Dollar General(PBR153) bids $78.50/share, $9.7 billion cash for Family Dollar(PBR253), beats the $74.50/share Dollar Tree(PBR328) offer. Click here for the Dollar General press release.
Cameron International(PBR267) selling its Centrifugal Compression unit to Ireland based Ingersoll-Rand for $850 million. Click here for the Cameron International press release.
Kroger Co(PBR25) completes acquisition of online vitamin seller Vitacost.com for $8/share, $280 million. Click here for the Kroger Co press release.
HealthcareDIVE reports on the 4.5 million patients data hack in April or June of Community Health Systems(PBR181) originating from China. Click here for the HealthcareDIVE article.
Vulcan Materials(PBR706) acquires an Oklahoma quarry & 2 Dallas area distribution yards from Martin Marietta Materials(PBR843) for cash & property. Click here for the Vulcan Materials press release.
Aeropostale(PBR863) announces that Julian Geiger has rejoined company as CEO immediately, replaces Thomas Johnson who is also leaving the board. Click here for the Aeropostale press release.
Lockheed Martin(PBR59) completes acquisition of security systems provider Zeta Associates(NR), terms not disclosed. Click here for the Lockheed Martin press release.
Mobile apps city guides developer Jetpac announces it has been acquired by Google(PBR46). Click here for the Jetpac announcement.
Fannie Mae(PBR16) gives its outlook on housing for the rest of 2014, 2015; forecasts a flat market. Click here for the Fannie Mae analysis.
The National Association of Home Builders/Wells Fargo Housing Market Index rises 2 points to 55, composite of 3 components, highest of the year. Click here for the NAHB article.
Dept of Labor says eCommerce has grown to 6% of all retail sales in 1st quarter of 2014 from 2% in 2004. For more click here for the USDOL press release.
Friday, August 15:
Stock Exchanges Recap for the Week:
DJIA closes at 16,662.91, +0.66% over last Friday, +0.60% MTD, -0.97% QTD, +0.52% YTD.
NASDAQ closes at 4,464.93, +2.15% over last Friday, +2.18% MTD, +1.29% QTD, +6.90% YTD.
SPX closes at 1,955.06, +1.22% over last Friday, +1.26% MTD, -0.26% QTD, +5.77% YTD.
Coca-Cola Co(PBR58) buys 16.7% stake in Monster Beverage(PBR824) for $2.15 billion, enters into long term strategic relationship. Click here for the Coca-Cola Co press release.
Deere & Co(PBR76) announces it is laying off 600 workers. Click here for the Des Moines Register article.
Gilead Sciences(PBR236) wins Solvaldi Hepatitis C drug legal fight with Roche. Click here for the San Francisco Business Times article.
Quebec, Canada based Valeant Pharmaceuticals extends expiration date for acceptance of acquisition of Allergan(PBR392) to 12/31/14. Click here for the Valeant press release.
Canadian based energy company Fortis completes its $4.3 billion acquisition of UNS Energy Corp(PBR990). Click here for the Fortis press release.
The US Dept of Labor reports that the Producer Price Index was up 0.1% in July, up 1.7% over 12 months. Click here for the USDOL press release.
Thursday, August 14:
Bloomberg reports that Cisco Systems(PBR54) is cutting 6,000 jobs, 8% of its workforce, after flat financial results. Click here for the Bloomberg article.
Briggs & Stratton(PBR912) to acquire towable light towers, industrial heaters, & solar LED arrow boards manufacturer Allmand Bros for $62 million cash. Click here for the B & S press release.
Donaldson Co(PBR783) to acquire United Arab Emirates based gas turbine inlet air filtration systems manufacturer Northern Technical, no terms disclosed. Click here for the Donaldson Co press release.
The Chiquita Brands(PBR658) board determines $13/share Safra bid not sufficient, pushing for Fyffes merger offer. Click here for the Chiquita Brands press release.
The US Dept of Labor reports that US import prices fell 0.2% in July, primarily from fuel prices, & prices for exports were unchanged. Click here for the USDOL press release.
Wednesday, August 13:
Allergan(PBR392) to acquire worldwide rights to TARIS Holding’s LiRIS program, in 2nd phase testing, for $67.5 million plus up to $520 million in incentives. Click here for the Allergan press release.
WellPoint(PBR40) announces that pending stockholder approval it will change its name to Anthem by the end of 2014. Click here for the WellPoint press release.
Weyerhauser(PBR303) announces increased dividend, $700 million stock repurchase program. Click here for the Weyerhauser press release.
The US Dept of Labor reports that from April to July youth(16-24) employment is up 2.1 million to 20.1 million, 51.9 percent employed in July. Click here for the USDOL press release.
Tuesday, August 12:
Caesars Entertainment(PBR301) & Caesars Entertainment Operating Co(CEOC) reach agreement with certain creditors to reduce debt by nearly $550 million in preparation for CEOC going public. Click here for the Caesars Entertainment press release.
JPMorgan Chase(PBR18) is selling 50% of portfolio of companies in One Equity Partners to a group lead by Lexington Partners. Click here for the JPMorgan Chase press release.
The US Dept of Labor reports 4.58 million job openings at the end of June, 4.83 million hires, 4.55 million separations, all up over May. Click here for the USDOL press release.
The US Treasury reports $210.6 billion in receipts for July, $305.2 billion in outlays, $94.6 billion deficit. Fiscal Year-To-Date $460.4 billion deficit. Click here for the USDOT press release.
Monday, August 11:
Kinder Morgan(PBR196) to acquire all outstanding securities of KMP, KMR, & EPB, consolidate operations, $70 billion transaction value. Click here for the KMI press release.
Chiquita Brands(PBR658) confirms unsolicited $13/share buyout offer from Brazil based Cutrale Group & Safra Group. Click here for the Chiquita press release.
Anixter(PBR398) announces the acquisition of the independent security & low voltage technology products distributor Tri-Ed unit of Audax Group for $420 million. Click here for the Anixter press release.
Fred’s(PBR893) announces a multi-year agreement with Cardinal Health(PBR22) to be its primary pharmaceuticals provider. Click here for the Cardinal Health press release.
ConAgra Foods(PBR172) CEO Gary Rodkin announces intent to retire after 9 years at end of company’s fiscal year in May, 2015. Click here for the ConAgra press release.
Microsoft(PBR35) announces Nokia 130 mobile phone with music & video for $25. Click here for the Microsoft press release.
Liberty Interactive(PBR232) announces record & distribution date and symbol information for spin-off of Liberty TripAdvisor. Click here for the Liberty Interactive press release.
Blackstone Group(PBR374) & its founders buy France/UK based independent wholesale autoparts distributor Alliance Automotive Group from Weinberg Capital Partners. Click here for the Blackstone Group press release.
Puerto Rico based Popular(PBR753) Community Bank sells its 12 branch Chicago area operations to First Midwest Bancorp(NASDAQ: FMBI). Click here for the Popular press release.
Arthur J Gallagher(PBR649) has acquired managing general agent & wholesale insurance broker Cowles & Connell. Click here for the AJG press release.
Arthur J Gallagher(PBR649) has acquired Eastern Caribbean based full service insurance broker & risk management firm Minvielle & Chastanet. Click here for the AJG press release.
The Dover Corp(PBR296) OPW unit to acquire Australian based manufacturer of bulk liquid handling & storage solutions in petroleum, aviation, & chemicals market firm Liquip International. Click here for the Dover Corp press release.
Friday, August 8:
Stock Exchanges Recap for the Week:
DJIA closes at 16,553.93, +0.37% over last Friday, -0.06% MTD, -1.62% QTD, -0.14% YTD.
NASDAQ closes at 4,370.90, +0.42% over last Friday, +0.03% MTD, -0.85% QTD, +4.65% YTD.
SPX closes at 1,931.59, +0.33% over last Friday, +1.26% MTD, -1.46% QTD, +4.50% YTD.
Arthur J Gallagher(PBR649) has acquired national travel insurance company Trip Mate, terms not disclosed. Click here for the AJG press release.
The US Dept of Labor reports nonfarm business sector labor increased at a 2.5% annual rate in the 2nd quarter, hours increased 2.7%, output up 5.2%. Click here for the USDOL press release.
The US Dept of Commerce reports that wholesale trade inventories for June were at $533.5 billion, sales at $454.4 billion. Click here for the USDOC press release.
Thursday, August 7:
Bemis Co(PBR467) elects Bill Austen to be President/CEO immediately, Henry Theisen becomes Executive Chairman until he retires in 2015. Click here for the Bemis press release.
Wendy’s(PBR773) franchised 418 US units, contributed to positive results in 2nd quarter report, will franchise all 135 Canadian locations. Click here for the Wendy’s press release.
Facebook(327) buying security technology company PrivateCore. Click here for the PrivateCore press release.
The Cliffs Natural Resources(PBR422) board announces the election of Lourenco Goncalves as its new Chairman/President/CEO. Click here for the CNR press release.
ABM Industries(PBR485) expands HVAC & energy solutions in N. California with acquisition of Airco Commercial Services, terms not disclosed. Click here for the ABM press release.
The US Dept of Commerce releases prototype estimates of Personal Consumption Expenditures by State, 1997-2012. Click here for the USDOC press release.
The US Dept of Labor reports 2013 labor productivity up in 39 of 54 industries, output up in 43, hrs up in 34, unit labor costs fall in 39. Click here for the USDOL press release.
The Federal Reserve Board reports total US consumer credit used increased by $17.3 billion in June. Click here for the FRB press release.
The US Dept of Labor reports 12 month percent changes in private industry salaries & wages, January 2007-June 2014. Click here for the USDOL press release.
Freddie Mac reports average 30 year fixed mortgage rate on 08/07/14 was 4.14%, with 0.7 fees & points. Click here for the Freddie Mac press release.
Wednesday, August 6:
Sprint(PBR161) names Marcelo Claure as its next President/CEO, effective 08/11/14. Click here for the Sprint press release.
AIG(PBR41) to acquire UK based Ageas Protective Life from Belgium based Ageas Group for $305 million. Click here for the AIG press release.
Arthur J Gallagher(PBR649) acquires employee benefits Denver based Denman Consulting Services, no terms disclosed. Click here for the AJG press release.
VMWare(PBR453) authorizes up to $1 billion through 2016 for stock repurchase program. Click here for the VMWare press release.
The US Dept of Commerce reports June exports were $195.90B, imports $237.40B, deficit $41.50B, down from $44.70B in May. Click here for the USDOC press release.
The US Dept of Labor reports 250+ employee companies did 68% of the net job growth during 4th qtr 2013, companies with 1-49 & 50-249 employees did 16% each. Click here for the USDOL press release.
The US Dept of Labor reports that the 2013 national average for people holding more than 1 job was 4.9%, varies by state. Click here for the USDOL press release.
Tuesday, August 5:
21st Century Fox(PBR97) withdraws Time Warner(PBR92) offer, authorizes $6 billion share repurchase program. Click here for the Fox press release.
Gannett(PBR457) to create 2 public companies from spinoff of publishing business & a broadcasting/digital business. Will also acquire remaining interest in Cars.com for $1.8 billion. Click here for the Gannett press release.
The Institute for Supply Management reports that the July non-manufacturing activity index was up 4.9% over June to 62.4%, 60th consecutive month of growth. Click here for the ISM press release.
The Mortgage Bankers Association reports its mortgage availability index increased slightly by 0.5% in July from 115.8 in June. Click here for the MBA press release.
Monday, August 4:
CBRE Group(PBR348) acquires Germany based project management services 100 person Preuss, no terms provided. Click here for the CBRE press release.
CIT Group(PBR608) completes acquisition of small/medium sized businesses financing 250 employee Direct Capital. Click here for the CIT press release.
CBRE Group(PBR348) has acquired affilliate commercial real estate firm CBRE Louisville, terms not disclosed. Click here for the CBRE press release.
ITT Educational(PBR1030) CEO Kevin Modany resigns as chairman & member of the board, to resign as CEO effective 02/04/15. Click here for the ITT Educational press release.
Dana Holding(PBR368) announces additional $400 million stock repurchase program by end of 2015, adds to $1 billion already authorized. Click here for the Dana Holding press release.
Friday, August 1:
Click here for the The PBR1000 July 2014 Breaking News Recap! blog post.
Stock Exchanges Recap for the Week:
DJIA closes at 16,493.37, -2.75% over last Friday, -0.42% MTD, -1.98% QTD, -0.50% YTD. NASDAQ closes at 4,352.64, -2.18% over last Friday, -0.39% MTD, -1.26% QTD, +4.22% YTD. SPX closes at 1,925.15, -2.69% over last Friday, -2.69% over last Friday, -0.29% MTD, -1.79% QTD, +4.15% YTD.
US Dept of Labor reports 209,000 new jobs in July, unemployment at 6.2%. Click here for the USDOL press release.
Allergan(PBR392) files lawsuit in federal court against Valeant & Pershing Square for violations of federal securities laws. Click here for the Allergan press release.
Ashland(PBR331) completes its sale of Ashland Water Technologies for $1.8 billion. Click here for the Ashland press release.
Brunswick(PBR572) acquires Bell Industries’ $40 million revs/2013 parts & accessories distributor Recreational Products Group. Click here for the Brunswick press release.
ITT Educational(PBR1030) files SEC Form 8 regarding new credit facilty to be secured by mortgages by 09/28/14. Click here for the ITT Educational press release.
Calumet Specialty Products(PBR443) has acquired privately held Oilfield Solutions for $30 million. Click here for the Calumet press release.
Harsco Corp(PBR686) welcomes F. Nicholas Grasberger as its new President/CEO, David Everitt becomes Non-Executive Chairman.
SVP/CFO Robert Gudbranson officially adds titles Interim President/CEO of Invacare(PBR1017) as additional responsibilities.
The Institute for Supply Management reports that the production manufacturing index for July was 57.1%, up 1.8% in June, indicating continued expansion for 14 months. Click here for the ISM press release.
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