Dow crawled up 7, advancers over decliners almost 2-1 & NAZ gained 47. The MLP index added 4+ to the 269s & the REIT index fell 1 to the 338s. Junk bond funds declined & Treasuries slid lower again. Oil climbed in the 71s & gold lost 2 to 1289.
AMJ (Alerian MLP Index tracking fund)
US stocks down despite big Walmart first-quarter earnings
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart tops expectations, sees big boost in international sales
US household debt edges up to $13.21T in 1Q: N.Y. Fed
Stocks began the day in the red, but buyers returned to bid prices higher. Earnings report were not greeted with excitement, hard to figure out what is stimulating the buying. The Dow is still stuck in the 24Ks where it has been for much of this year..
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 71.97 | +0.48 | +0.7% |
| GC=F | Gold | 1,289.00 | -2.50 | -0.2% |
Stocks declined, with the technology
sector under pressure following Cisco's (CSCO, a Dow stock) tepid outlook, which
overshadowed Walmart (WMT, another Dow stock & Dividend Aristocrat) reporting surprisingly strong Q1
earnings. WMT reported an adjusted Q1
EPS of $1.14, topping the estimate for $1.12. Revenue of
$122.7B, also beat the estimate for $120.5B. WMT, the
world's biggest retailer, reported a EPS of $1.00, on revenue of
$117.5B in the same period last year. CSCO shares were under pressure after the company reported positive earnings, but a disappointing sales outlook. Meanwhile, Brent crude hit $80 a barrel for the first time since Nov 2014 & US crude broke above $72.
US stocks down despite big Walmart first-quarter earnings
Dow component WMT surpassed expectations in Q1, as the company saw a big boost in intl sales
while unveiling some details on how its purchase of Flipkart will
impact its finances. Adjusted Q1 of $1.14, topped the estimate
for $1.12 & revenue of $122.7B, also beat the estimate for $120.5B. Same-store sales were up 2.6% (2.3% excluding fuel) while its intl sales jumped 12% to $30.3B. WMT reported this week that Lord &
Taylor's flagship store is teaming up with Walmart.com to sell more than
125 premium brands. WMT announced earlier
this month that it was paying $16B for majority control of
India's online retailer, Flipkart. The deal is its largest ever. The investment in Flipkart
will negatively impact its 2019 EPS by about 25-30¢ if the deal closes at the end of Q2. The company also noted that it had recently reached agreements to divest its banking operations in Canada & Chile. The stock fell 69¢.
If you would like to learn more about WMT, click on this link:club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart tops expectations, sees big boost in international sales
US household debt grew by $63B (0.5%) to $13.21T in Q1, driven largely by the
increase in mortgage balances, a NY Federal Reserve quarterly
report showed. The amount
of mortgage balances rose by $57B in Q1 to $8.94T. Families, however, paid down their home equity
loans, which fell by $8B to $436B. "Although household debt has been
growing for five years, its growth has been slow relative to earlier
periods, as mortgage debt has continued to be relatively flat," NY Fed
analysts wrote. Overall tight lending standards have likely contributed to the modest increase in mortgage debt. Meanwhile, the US housing sector has continued
to its recovery since the global credit crisis a decade ago. However, the housing recovery & its impact have been uneven across age groups & between homeowners & renters. "In
particular, the factors that determine housing wealth are not evenly
spread across the population, and those relationships have changed since
the pre-financial crisis housing boom," NY Fed's director of research said.
US household debt edges up to $13.21T in 1Q: N.Y. Fed
New applications for US jobless benefits
increased more than expected last week, but the number of Americans on
unemployment rolls fell to its lowest level since 1973, pointing to
diminishing labor market slack. Initial claims
for state unemployment benefits rose 11K to a seasonally adjusted
222K for the latest week, the Labor Dept said. Claims data for the prior week was unrevised. The forecast called for claims rising to 215K. The labor market is viewed as being close
to or at full employment, with the jobless rate near a 17 year low
of 3.9%. The unemployment rate is within striking distance of the
Federal Reserve's forecast of 3.8% by the end of this year. The 4-week moving average of initial claims,
viewed as a better measure of labor market trends as it irons out
week-to-week volatility, fell 2K to 213K last week, the lowest
level since 1969. The claims data covered the survey period for the nonfarm payrolls portion of May's employment report. The 4-week average of claims fell 18K between the Apr & May
survey periods, suggesting solid job growth. Nonfarm payrolls increased 164K jobs in Apr after rising by 135K in Mar. Job gains are
slowing as employers struggle to find skilled workers. There were a record 6.6M unfilled jobs in Mar. The
claims report also showed the number receiving benefits after
an initial week of aid declined 87K to 1.71M in the latest week, the lowest level since 1973. The 4-week moving
average of the continuing claims dropped 39K to 1.77M, also the lowest level since 1973.
US weekly jobless claims rise; unemployment rolls smallest in 45 years
Stocks began the day in the red, but buyers returned to bid prices higher. Earnings report were not greeted with excitement, hard to figure out what is stimulating the buying. The Dow is still stuck in the 24Ks where it has been for much of this year..
Dow Jones Industrials
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