Dan Stewart's The Wall Street Shuffle - July 15, 2013

A NorAm Media Group Publication - Celebrating our 53rd Anniversary  Monday, July 15, 2013 What to Expect Heading Into Earnings by: Dan Stewart ...A red flag also went up late Friday in the refining sector. The crack spread may be narrowing putting a squeeze on refiners. Valero (VLO) warned after the bell stating EPS will around 85-95 cents, way under consensus of $1.27. They blamed higher costs - higher natural gas costs, compliance with the Renewable Fuel Standards, maintenance, etc.. as well as lower profit margins for heavy sour crude. Shares were down almost 5% after-hours Friday and will likely be under pressure today. Other refiners like Tesoro (TSO) also came under pressure. Again, refiners will continue to be under pressure. If you still own the refiners, it may be time to book some profits. It has been a nice, profitable ride. The whole point is I believe this earnings season will be more bifurcated and segmented by the different sectors. Interest rate sensitive sectors will have difficulty going forward, especially any business dependent upon mortgages... Read More      On Fed Doublespeak by: Michael Gayed Stocks in the U.S. rallied to new highs last week, undoing the taper scare as Bernanke reassured investors that low rates would remain in place for a prolonged period of time (hardly news), in what appears to have been a sharp about-face on monetary rhetoric. Specifically, the Fed Chairman brought up the very real deflationary pressures which have kept unemployment and growth depressed, arguing that in some ways "more accommodative" policy was needed. This contrasts sharply with the various other mixed messages Fed officials have been publicly giving over an end to QE. The bond market did not fully believe the Fed, however, given that inflation expectations remain muted, and longer duration Treasuries did not perform as one might expect. Equity investors continue to believe in the reflation story which continues to be driven more by faith than reality. Meanwhile, bearish sentiment has plummeted, and perspective on the "bull market" remains misguidedn... Read More      Fed mulls adjusting its tune to quell jittery markets (by lowering unemployment target) Investment managers say FED # 1 Risk to Equities U.S. Senators propose bill to ban big banks from trading - Good idea but likely never pass Banks Q2 Earnings Underway - Morgan Stanley Sees Earnings Beats From BofA, JPM, PNC, COF; Citi, Goldman Will Miss Loose Lips Sink Euro Bond Markets in Crisis: Cutting Research - An actual study of words used by ECB officials! What about fundamentals?! Breitburn Energy Partners: Negativity Is Overdone ADDRESS: 15303 North Dallas Parkway Suite 1030 Addison, TX 75001 Toll-Free: 855-REAL-WEALTH or (855-732-5932) Office: 972-687-7765 Direct: 214-708-4555 dstewart@noramassetmanagement.com Material contained in this newsletter is the property of NorAm Media Group, Inc. and all rights are reserved. Unsubscribe