On Tuesday, Dean Foods Co (NYSE:DF)’s shares declined -1.03% to $17.36.
Dean Foods Co (DF) industry oversupply
Most protein price categories saw downward pressure, according to April’s Consumer Price Index (or CPI) released by the Bureau of Labor Statistics (or BLS). Dairy and associated products prices fell the most among all food categories, by 0.8% month-over-month. This was the fourth straight monthly decline.
Milk prices, the largest in the category, were down 1.2% in April contrast to March. On an annual basis, milk prices fell 6%, not seasonally adjusted. The prices of cheese and cheese products also declined in April and have been declining over the past few months.
2015 sees milk prices decline after 2014 highs
Milk prices reached record highs in 2014. But US dairy prices have been under pressure in 2015 due to higher production and declining exports. The higher US dollar has had a major impact on export sales. The ongoing Russia-Ukraine tensions of 2014 have also affected prices, since Russia banned imports of milk from several countries in reaction to Western sanctions. This created a supply glut and pressured prices.
Corporate impact
Lower milk prices affect the results of companies like Dean Foods (DF). DF stated 1Q15 results earlier this month that beat consensus Wall Street analysts’ earnings estimates primarily on lower dairy prices. It also upped guidance for the rest of the year.
Dean Foods Company, a food and beverage company processes and distributes milk, and other dairy and dairy case products in the United States. It manufactures, markets, and distributes dairy case products, counting fluid milk, ice cream, cultured dairy products, creamers, ice cream mix, and other dairy products; and produces and distributes juices, teas, and bottled water.
Zillow Group Inc (NASDAQ:Z)’s shares dropped -0.98% to $87.47.
Zillow Group Inc (Z) is presently 3.96 percent, up eighteen points from this time last week. The 30-year fixed mortgage rate rose to 3.98 percent on Friday, and then hovered there before settling at the current rate on Tuesday.
Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes presented daily to anonymous borrowers on the Zillow Mortgages site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.
The rate for a 15-year fixed home loan is presently 3.09 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.01 percent.
Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity raised by 2 percent from the week prior. Zillow combines loan requests made on Zillow Mortgages last week with the previous week’s Mortgage Bankers Association (MBA) Weekly Application Index to predict the MBA’s Weekly Application Index for purchase loans, which will be released tomorrow.
Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. It offers a portfolio of brands and products to assist people find vital information about homes, and connect with local professionals. The company product portfolio comprises Zillow, a real estate and rental marketplace dedicated to consumers with data, inspiration, and knowledge around the place they call home, and connecting them with the local professionals who can assist; and Trulia, a home shopping marketplace, focused on giving home buyers, sellers, and renters the information they need to make better decisions about where to live.
At the end of Tuesday’s trade, New Residential Investment Corp (NYSE:NRZ)‘s shares dipped -0.03% to $16.62.
New Residential Investment Corp (NRZ) declared the commencement of a public offering of 31,486,146 shares of its common stock. Of the total number of shares being offered, 27,935,389 shares are being offered by the Company and the majority of the remainder is being offered by an associate of FIG LLC (our Manager), which will acquire the shares through the exercise of outstanding options. The underwriters may offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
In connection with the offering, the Company intends to grant the underwriters an option for 30 days to purchase up to an additional 4,722,921 shares of common stock.
The Company intends to use its portion of the net proceeds from this offering for general corporate purposes, counting to make a variety of investments, which may comprise, but are not limited to, investments in Excess MSRs, servicer advances, real estate securities and real estate related loans. The Company will not receive any proceeds from the sale of the shares by the selling stockholders.
New Residential Investment Corp., a real estate investment trust (REIT), focuses on investing in and managing residential mortgage related assets. It operates through Servicing Related Assets, Residential Securities and Loans, and Other Investments segments. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, counting the basic fee component of the related MSRs.
E Commerce China Dangdang Inc (ADR) (NYSE:DANG), ended its Tuesday’s trading session with -0.4% loss, and closed at $8.64.
E Commerce China Dangdang Inc (ADR) (DANG) saw a big move last session, as the company’s shares fell by over 15% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent downtrend for DANG, as the stock is now down by over 6% in the past one-month time frame.
On May 28, Dangdang stated financial results for first quarter of 2015, in which the company incurred net loss of $9.7 million, which deteriorated from the year-ago quarter.
The company has seen a flat track record when it comes to current year estimate revisions over the past few weeks (0 enhances, 0 decreases), and the consensus for earnings hasn’t been in a trend either. This recent price action is discouraging, so make sure to keep a close watch on this firm in the near future, and especially on earnings estimates following the recent slump.
E-Commerce China Dangdang Inc. operates as a business-to-consumer e-commerce company in the People’s Republic of China. It primarily sells books, periodicals, electronic publications, consumer electronics, and audio-visual products through its Website dangdang.com.
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