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Pence Wealth Management Financial Markets Report


  • U.S. stocks were little changed at the open, after benchmark indexes climbed to all-time highs yesterday, as euro-area data showed slower-than-forecast inflation while American factory orders rose more than forecast.
    • The Dow and S&P 500 had closed at records on Monday; that was the benchmark S&P’s third consecutive record. 
  • U.S. autos sales tick up in May. GM, Chrysler, and Nissan reported higher-than-expected U.S. new car sales in May.
    •  Vehicle deliveries in the US may have risen 6.5 percent to 1.54 million in May, according to analysts.
    • GM’s May sales were up 12.6 percent to 284,694, well above the consensus estimate of 7 percent.
    • U.S. sales for Chrysler rose 17 percent to 194,421 vehicles in May, above analysts’ estimates. Sales of Chrysler’s Jeep SUV line jumped 58 percent to 70,203 vehicles in May from a year earlier.
    • Nissan U.S. sales rose 18.8 percent to a record 135,934, with double-digit gains at both its Nissan and Infiniti brands.
    • Chrysler expects the industry’s annual sales rate in May to finish at 16.9 million vehicles. GM projected the annual rate in May at 16.5 million.
  • Pilgrim’s Pride tops Tyson Foods’ offer for Hillshire.
    • Pilgrim’s Pride said it raised its offer to $55 per share in cash from $45.
    • Tyson Foods has offered $50 per share in cash for Hillshire.
    • Pilgrim’s Pride said its offer valued Hillshire at $7.7 billion, including debt. Tyson Foods’ offer values Hillshire at $6.8 billion, including $500 million in debt.
    • Some investors and analysts consider the Pinnacle deal unattractive because Hillshire would have to take on nearly $2.3 billion in debt.
  • AT&T raises full-year revenue outlook for second time.
    • AT&T now expects full-year revenue to increase 5 percent, compared with its prior forecast of 4 percent.
    • Net subscriber additions to the company’s wireless services are expected to exceed 800,000 in the second quarter.
    • The revised outlook doesn’t include the impact of DirecTV, which AT&T agreed to purchase last month for $48 billion. The acquisition of the biggest U.S. satellite-TV carrier is expected to close next year.
    • The company is spending $14 billion over three years to upgrade its network as part of a plan called Project VIP.
  • Facebook acquires mobile data plan firm Pryte.
    • Pryte is a Finnish company that aims to make it easier for mobile phone users in under-developed parts of the world to use wireless Internet apps. Facebook did not disclose financial terms of the deal.
    • Facebook is the world’s largest social network with 1.28 billion users and it is primarily interested in the team behind Pryte.
  • Apple announced the most comprehensive set of enhancements for developers since the company debuted its App Store nearly six years ago. 
    • Apple showed improved methods for customers to find apps to download, a new programming language to create apps more quickly, and tools so the programs can work seamlessly together.
    • Apple has one of the most dedicated software communities in the tech industry, with more than 9 million registered developers. Every year, Apple and rival Google show the latest software enhancements to thousands of prospective developers.
    • Apple also unwraps ‘Healthkit’ alongside Mac, iPhone features. Healthkit will pull together data such as blood pressure and weight now collected by a growing number of healthcare apps on the iPhone or iPad.
    • Apple also changed its policy to let software developers include virtual-currency transactions in their applications, paving the way for new forms of money like bitcoin to appear on iPhones and iPads.


  • U.S. factory orders increase for third straight month.
    •  New orders for manufactured goods increased 0.7 percent. March’s orders were revised to show a 1.5 percent increase instead of the previously reported 0.9 percent rise. 
    • Economists had forecast new orders received by factories gaining 0.5 percent.
    • Durable goods orders, manufactured products expected to last three years and more, rose 0.6 percent instead of the 0.8 percent gain reported last month.
    • Durable goods orders excluding transportation increased 0.3 percent instead of the previously reported 0.1 percent gain.
    • Orders for non-defense capital goods excluding aircraft – seen as a measure of business confidence and spending plans – fell 1.2 percent as reported last month.
  • Factory data points at second-quarter growth pick up.
    • The Institute for Supply Management (ISM) said on Monday its index of national factory activity increased to 55.4 in May from 54.9 in April. The ISM had earlier mistakenly reported the index fell to 53.2 in May.
    • There were gains in new orders, production and customer inventories, but factory job growth slowed.


  • Euro-area inflation slowed more than economists forecast in May.
    • The rate fell to 0.5 percent from 0.7 percent in April.
    • Energy prices stagnated in May, after declining 1.2 percent the previous month.
    • Prices of alcohol, food and tobacco rose 0.1 percent following a 0.7 percent gain in April. 
    • With ECB President Mario Draghi warning about the risk of a negative price spiral, the Governing Council is considering measures from negative interest rates to conditional liquidity for banks. 
    • Of 50 economists surveyed by Bloomberg News, 44 expect the Frankfurt-based ECB to become the first major central bank to take interest rates into negative territory by cutting its deposit rate.
  • U.K. house prices surpass 2007 peak to hit new record.
    •  Values increased 0.7 percent from April to an average 186,512 pounds ($312,000). Prices plunged about 15 percent over the following 12 months.


  • Maj. Edward White became the first U.S. astronaut to walk in space, during the Gemini 4 mission (1965)
  • The world’s worst oil spill occurred when an exploratory oil well, Ixtoc 1, blew out, spilling over 140 million gallons of oil into the Bay of Campeche off the coast of Mexico (1979)
  • Iran’s Ayatollah Khomeini died (1989)

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

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