Dow shot up 196, advancers over decliners about 5-2 & NAZ rose 65. The MLP index added 1+ to 261 & the REIT index rose 2+ to the 236s. Junk bond funds drifted lower & Treasuries were sold. Oil went up in the 71s (more below) & gold gained 8 to 1321.
AMJ (Alerian MLP index tracking fund)
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club.ino.com/trend/analysis/stock/LLY?a_aid=CD3289&a_bid=6ae5b6f7
The US took in $510B in receipts in Apr & spent $296B, leaving the Treasury with a record monthly surplus of $214B. The prior record, set in Apr 2001, was about $190B. Tax receipts poured in during Apr, when tax returns & certain taxpayers' quarterly estimated payments are due. Individual receipts climbed by $66B over last Apr, something the Congressional Budget Office has attributed to stronger-than-expected income growth in 2017, as well as “larger-than-anticipated payments for economic activity in 2018.” Spending rose in Apr as well, climbing 8% thanks to higher payments on Social Security & interest on the public debt. While the surplus helped gov coffers for the month, the longer-term trend is going the other way. The Treasury said the budget deficit for the fiscal year to date is running ahead of the year-ago period, at $385B compared to $344B. That rising tide of red ink jibes with higher deficits estimated by the CBO, which forecasts a shortfall of $804B for the current fiscal year, & even higher deficits later, spurred on by the tax-code overhaul passed last year.
Pres Trump said his historic summit with North Korean leader Kim Jong Un will take place Jun 12 in Singapore. It would be the first meeting ever for a sitting US president & the head of North Korea & a stunning turnaround in relations from last year, when the nations appeared to be on the brink of conflict. The pres revealed the date & location for the meeting in a tweet this AM. Trump's announcement came after weeks of hints & suggestions about when & where the 2 would meet. Hours before his announcement, Trump welcomed home 3 Americans who had been imprisoned by North Korea. Pyongyang released them to Sec of State Mike Pompeo earlier this week. Singapore is a Southeast Asia independent city-state about 4 times the size of DC.
President Trump's summit with North Korea leader Kim Jong Un will be held on June 12 in Singapore
AMJ (Alerian MLP index tracking fund)
Eli Lilly (LLY) will buy
Armo BioSciences (ARMO) for about $1.6B to expand its portfolio of
drugs that seeks to help body's immune system fight cancer as the
drugmaker chases its rivals in a lucrative market. The
offer of $50 per share in cash represents a premium of 68% to
ARMO's close yesterday. The deal, which comes 4 months after Armo went public, would give LLY access to the
smaller drug developer's lead immuno-oncology candidate, pegilodecakin. The
treatment is being evaluated in pancreatic cancer patients in a
late-stage study as well as in earlier stage trials for other forms of
cancer. Immuno-oncology is one of the faster growing areas
of cancer treatment. Last
month, LLY, which expressed interest in immuno-oncology deals,
appointed the director of Thoracic Medical Oncology at NYU's School of Medicine to lead its medical development in this
area. "As we develop our immuno-oncology
portfolio, Lilly will pursue medicines that use the body's immune system
in new ways to treat cancer," Levi Garraway, senior VP of
global development & medical affairs at Lilly Oncology said. Its drugs already in the market
include top-selling lung cancer drug Alimta, Cyramza for certain types
of cancers of the digestive tract & breast cancer drug Verzenio, among
others. The deal is expected to close by the end of Q2. The stock went up 1.59.
If you would like to learn more about LLY, click on this link:club.ino.com/trend/analysis/stock/LLY?a_aid=CD3289&a_bid=6ae5b6f7
Lilly to buy Armo Biosciences for $1.6B to bolster cancer pipeline
The US took in $510B in receipts in Apr & spent $296B, leaving the Treasury with a record monthly surplus of $214B. The prior record, set in Apr 2001, was about $190B. Tax receipts poured in during Apr, when tax returns & certain taxpayers' quarterly estimated payments are due. Individual receipts climbed by $66B over last Apr, something the Congressional Budget Office has attributed to stronger-than-expected income growth in 2017, as well as “larger-than-anticipated payments for economic activity in 2018.” Spending rose in Apr as well, climbing 8% thanks to higher payments on Social Security & interest on the public debt. While the surplus helped gov coffers for the month, the longer-term trend is going the other way. The Treasury said the budget deficit for the fiscal year to date is running ahead of the year-ago period, at $385B compared to $344B. That rising tide of red ink jibes with higher deficits estimated by the CBO, which forecasts a shortfall of $804B for the current fiscal year, & even higher deficits later, spurred on by the tax-code overhaul passed last year.
U.S. records largest-ever monthly budget surplus in April as individual tax receipts boom
Pres Trump said his historic summit with North Korean leader Kim Jong Un will take place Jun 12 in Singapore. It would be the first meeting ever for a sitting US president & the head of North Korea & a stunning turnaround in relations from last year, when the nations appeared to be on the brink of conflict. The pres revealed the date & location for the meeting in a tweet this AM. Trump's announcement came after weeks of hints & suggestions about when & where the 2 would meet. Hours before his announcement, Trump welcomed home 3 Americans who had been imprisoned by North Korea. Pyongyang released them to Sec of State Mike Pompeo earlier this week. Singapore is a Southeast Asia independent city-state about 4 times the size of DC.
President Trump's summit with North Korea leader Kim Jong Un will be held on June 12 in Singapore
Crude prices stabilized, giving up
early gains as investors took profit on a rally triggered by potential
disruption to oil flows from major exporter Iran in the face of US
sanctions. Losses, however, were limited as the
market contended with concerns about Venezuela's crude production
slipping further & with bullish drawdowns in US crude inventories. West Texas Intermediate (WTI) crude futures ended up 22¢ at $71.36 a barrel. Brent crude futures, the intl benchmark for oil prices, were up 19¢ at $77.40 a barrel. The US said on
Tues that it plans to impose new sanctions against Iran after
abandoning an agreement reached in late 2015 that curbed Tehran's
nuclear activities in exchange for removal of US & European
sanctions. Oil prices were on
track for their 4th consecutive quarterly gain, the longest such
stretch for more than 10 years, boosted largely in the past month by
fears of disruption in supplies from Iran, which pumps about 4%
of the world's oil & exports about 450K barrels per day (bpd) to
Europe & around 1.8M bpd to Asia. Sales to Europe are seen as the more likely to be reduced by the sanctions. Analysts had little hope that opposition to the US action would prevent sanctions from going ahead. European allies have said they remain committed to maintaining the
nuclear deal, with German Chancellor Merkel reiterating her support of
the accord today.
US crude ticks up 22 cents, settling at $71.36, as the market parses US nuclear deal exit
The Dow closed the session in the black YTD (barely), very encouraging sign to the bulls. In May, the Dow has risen 800 as a sense of calm has returned to the stock market. The key question is, How long will this last? North Korean tensions have improved but sanctions on Iran have brought more uncertainty to the middle east, a major source of oil. And huge trade issues show no sign of being solved quickly. Short-term the stock market is overbought, selling may be around the corner.
Dow Jones IndustrialsUS crude ticks up 22 cents, settling at $71.36, as the market parses US nuclear deal exit
The Dow closed the session in the black YTD (barely), very encouraging sign to the bulls. In May, the Dow has risen 800 as a sense of calm has returned to the stock market. The key question is, How long will this last? North Korean tensions have improved but sanctions on Iran have brought more uncertainty to the middle east, a major source of oil. And huge trade issues show no sign of being solved quickly. Short-term the stock market is overbought, selling may be around the corner.
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