Dow pulled back 288 (off earlier lows), decliners over advancers 3-1 & NAZ declined 25. The MLP index fell 3+ to the 134s & the REIT index fell 4+ to the 334s. Junk bond fujnds remained mixed & Treasuries crawled higher in price. Oil jumped 3+ to the 18s & gold fell 19 to 1594 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
US oil ompany ConocoPhillips (COP) said it would sharply reduce oil production in coming weeks, aiming to shut in 35% of its total output by Jun amid weak energy prices that led to a loss of $1.7B in Q1. The world's largest independent oil & gas producer, which reduced its 2020 production forecast 2 weeks ago, plans to curtail output by a further 40K barrels per day (bpd) in May & bring its total cuts to 460K bpd by Jun, lopping off more than a 3rd of what it pumped last year. The figure includes significant reductions in the company's Alaska oil & gas production. Crude prices have crashed in the past 6 weeks as the coronavirus outbreak hit demand & a price war broke out between Russia & Saudi Arabia, prompting companies to slash spending & curb output. The crash in crude prices led the company to report a Q1 loss as it took big hits from impairments and the falling value of its stake in Canadian producer (CVE). Conoco is currently the biggest shareholder of Cenovus, with a 17% stake & its unrealized loss on the stake was $1.69B during the qtr. Total realized price per barrel was $38.81 in the qtr compared with $50.59 a year earlier. COP posted a net loss per share of $1.60 in Q1 compared with a profit $1.60 per share a year earlier. Excluding items, EPS was 45¢ compared to the 23¢ estimate. Production, excluding Libya was 1.28M barrels of oil equivalent (BOE) per day, a drop of 40K BOE per day from the same period a year ago. The stock lost 8¢.
If you would like to learn more about COP, click on this link"
club.ino.com/trend/analysis/stock/COP?a_aid=CD3289&a_bid=6ae5b6f7
Amidst all of the uncertainty that the coronavirus pandemic has raised, Macy's CEO Jeff Gennette is sure of one thing: The retailer’s sales will be more “modest” for some time as it emerges from this crisis. “We are going to emerge out of this as a smaller company,” Gennette said. “We don’t really know what the ramp back looks like.” Macy's is, meantime, already planning to see lower volume this holiday season, in part because millions of Americans are now unemployed & without paychecks. Gennette also expects its hundreds of department stores & specialty shops, including Bloomingdale's & Bluemercury, to reopen in phases. It will open 68 locations Mon, in states including South Carolina & Georgia, where local lockdown restrictions have been loosened. It plans to have all of its locations reopened over the next 6-8 weeks, provided Covid-19 infection rates continue to taper off. It will be putting precautions in place such as limiting the number of open fitting rooms & mandating store workers wear cloth masks. “Social distancing will be the norm in all locations for the foreseeable future,” it said. Still, shoppers likely will not be back in droves. Gennette said Macy's is forecasting a “gradual sales recovery” at its stores. Ahead of the virus slamming the US economy & drastically changing the retail landscape, Macy's in Feb announced it planned to shut 125 locations over the next 3 years. The stock fell 20¢.
If you would like to learn more about Macy's, click on this link"
club.ino.com/trend/analysis/stock/M?a_aid=CD3289&a_bid=6ae5b6f7
Macy’s CEO says the retailer will emerge from the pandemic as a smaller company; shares fall
Gold futures settled lower in volatile trading, but posted a gain for the month with prices supported partly by growing physical demand & expectations that global central banks will be compelled to keep stimulus measures in place to dampen the impact of the COVID-19 pandemic. US inflation pressures eased in Mar. The closely watched personal consumption expenditure price gauge fell 0.3% in the month led by energy prices, pushing down the increase over the past year to 1.3% from 1.8%. Gold for Jun lost $19.20 (1.1%) to settle at $1694 an ounce. Prices for metals did get a bump after the Fed's policy actions on yesterday, which came about a ½-hour after the metal's settlement For the month, based on the most-active contracts, prices were up 6.1%, which was the largest monthly percentage rise since Aug 2019. Meanwhile, the ECB, which has taken a number of emergency measures since their last meeting in early Mar, including a €750B ($813B) Pandemic Emergency Purchase Program, left its interest rates unchanged today. ECB Pres Christine Lagarde said the eurozone economy could fall 5-12% this year. The meeting of eurozone monetary-policy makers came a day after the Federal Reserve held federal-funds rates at 0-0.25% & vowed to use its policy tools to limit the economic damage from the viral outbreak that has infected millions & claimed hundreds of thousands of lives globally. Total gold investment demand, which includes bars & coins & gold-backed exchange-traded fund investments, climbed 80% year-over-year to a 4-year high of 539 metric tons in Q1, the WGC said. That figure included inflows of 298 metric tons for gold-backed ETFs to record-high holdings of 3185 metric tons for the qtr. Total global Q1 demand, however, edged up by just 1% from the same period last year to 1084 metric tons. The GFMS team at Refinitiv reported that physical gold demand, including jewelry, industrial fabrication & bars & coins, fell 26% year-on-year in Q1 to 753 metric tons—the lowest level since 2009. Including exchange-traded fund flows, total global gold demand was up 2% at roughly 1070 metric tons for the qtr.
Gold ends lower in volatile trading, posts a monthly gain of 6%
Oil futures finished 25% higher, paring their loss for the month as traders eyed the outlook for global crude supply, demand & storage capacity. The market found support for the session on the back of news that major oil companies have announced voluntary crude production cuts & amid signs that storage space for crude won’t run out as quickly as feared. Norway announced its first cut with production in 18 years, he said. News reports said the country would reduce output by 250K barrels per day in Jun & 134K barrels per day during H2. Royal Dutch Shell (RDS.A) said that it's cutting its Q1 div for the first time in 80 years, citing the collapse in oil & gas demand & prices. ConocoPhillips (COP) reported a loss for Q1 & announced a voluntary reduction of crude production by 420K barrels per day in Jun. West Texas Intermediate crude for Jun rose $3.78 (25%) to settle at $18.84 a barrel after a 22% surge yesterday. For the month, prices still lost 8%, from the front-month contract settlement on Mar 31. Global benchmark Jun Brent crude, which expired at the end of the session, added $2.73 (12%) at $25.27 a barrel with front-month contract prices ending the month 11.1% higher. The most-active Jul contract gained $2.25 (9.3%) to end the session at $26.48 a barrel. Oil has been hit by worries about oversupply by major producers amid the worst viral pandemic in more than century which has wrecked crude demand, while a dearth of places to store the commodity has served to further fuel its descent. Hope of treatments for COVID-19, with the anticipation that seized up economies will eventually restart, have helped to stabilize expectations for greater appetite for crude in the future. Pledged aid by central bank, including the Federal Reserve & the ECB, may also provide some support for oil bulls. However, a report from the International Energy Agency released offered a more sober picture of the oil outlook, describing the COVID-19 pandemic as the “biggest shock to the global energy system in more than seven decades.”
U.S. oil prices climb 25% to pare monthly loss to 8%
The Dow rose 2400 in Apr as investors are warming up to the economy & global markets reopening. However, the Dow is still down 4200 YTD. Oil finally sound some support this week as the supply-demand imbaance is showing some sign of improvement. However the rebound this month for stocks & commodities is still tentative. Economic improvement will come one step at a time. On the other side of the coin, demand for gold remains strong & it's not far from tis record highs around 1900 in 2011.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
US oil ompany ConocoPhillips (COP) said it would sharply reduce oil production in coming weeks, aiming to shut in 35% of its total output by Jun amid weak energy prices that led to a loss of $1.7B in Q1. The world's largest independent oil & gas producer, which reduced its 2020 production forecast 2 weeks ago, plans to curtail output by a further 40K barrels per day (bpd) in May & bring its total cuts to 460K bpd by Jun, lopping off more than a 3rd of what it pumped last year. The figure includes significant reductions in the company's Alaska oil & gas production. Crude prices have crashed in the past 6 weeks as the coronavirus outbreak hit demand & a price war broke out between Russia & Saudi Arabia, prompting companies to slash spending & curb output. The crash in crude prices led the company to report a Q1 loss as it took big hits from impairments and the falling value of its stake in Canadian producer (CVE). Conoco is currently the biggest shareholder of Cenovus, with a 17% stake & its unrealized loss on the stake was $1.69B during the qtr. Total realized price per barrel was $38.81 in the qtr compared with $50.59 a year earlier. COP posted a net loss per share of $1.60 in Q1 compared with a profit $1.60 per share a year earlier. Excluding items, EPS was 45¢ compared to the 23¢ estimate. Production, excluding Libya was 1.28M barrels of oil equivalent (BOE) per day, a drop of 40K BOE per day from the same period a year ago. The stock lost 8¢.
If you would like to learn more about COP, click on this link"
club.ino.com/trend/analysis/stock/COP?a_aid=CD3289&a_bid=6ae5b6f7
ConocoPhillips to sharply cut oil production as low prices hit earnings
Amidst all of the uncertainty that the coronavirus pandemic has raised, Macy's CEO Jeff Gennette is sure of one thing: The retailer’s sales will be more “modest” for some time as it emerges from this crisis. “We are going to emerge out of this as a smaller company,” Gennette said. “We don’t really know what the ramp back looks like.” Macy's is, meantime, already planning to see lower volume this holiday season, in part because millions of Americans are now unemployed & without paychecks. Gennette also expects its hundreds of department stores & specialty shops, including Bloomingdale's & Bluemercury, to reopen in phases. It will open 68 locations Mon, in states including South Carolina & Georgia, where local lockdown restrictions have been loosened. It plans to have all of its locations reopened over the next 6-8 weeks, provided Covid-19 infection rates continue to taper off. It will be putting precautions in place such as limiting the number of open fitting rooms & mandating store workers wear cloth masks. “Social distancing will be the norm in all locations for the foreseeable future,” it said. Still, shoppers likely will not be back in droves. Gennette said Macy's is forecasting a “gradual sales recovery” at its stores. Ahead of the virus slamming the US economy & drastically changing the retail landscape, Macy's in Feb announced it planned to shut 125 locations over the next 3 years. The stock fell 20¢.
If you would like to learn more about Macy's, click on this link"
club.ino.com/trend/analysis/stock/M?a_aid=CD3289&a_bid=6ae5b6f7
Macy’s CEO says the retailer will emerge from the pandemic as a smaller company; shares fall
Gold futures settled lower in volatile trading, but posted a gain for the month with prices supported partly by growing physical demand & expectations that global central banks will be compelled to keep stimulus measures in place to dampen the impact of the COVID-19 pandemic. US inflation pressures eased in Mar. The closely watched personal consumption expenditure price gauge fell 0.3% in the month led by energy prices, pushing down the increase over the past year to 1.3% from 1.8%. Gold for Jun lost $19.20 (1.1%) to settle at $1694 an ounce. Prices for metals did get a bump after the Fed's policy actions on yesterday, which came about a ½-hour after the metal's settlement For the month, based on the most-active contracts, prices were up 6.1%, which was the largest monthly percentage rise since Aug 2019. Meanwhile, the ECB, which has taken a number of emergency measures since their last meeting in early Mar, including a €750B ($813B) Pandemic Emergency Purchase Program, left its interest rates unchanged today. ECB Pres Christine Lagarde said the eurozone economy could fall 5-12% this year. The meeting of eurozone monetary-policy makers came a day after the Federal Reserve held federal-funds rates at 0-0.25% & vowed to use its policy tools to limit the economic damage from the viral outbreak that has infected millions & claimed hundreds of thousands of lives globally. Total gold investment demand, which includes bars & coins & gold-backed exchange-traded fund investments, climbed 80% year-over-year to a 4-year high of 539 metric tons in Q1, the WGC said. That figure included inflows of 298 metric tons for gold-backed ETFs to record-high holdings of 3185 metric tons for the qtr. Total global Q1 demand, however, edged up by just 1% from the same period last year to 1084 metric tons. The GFMS team at Refinitiv reported that physical gold demand, including jewelry, industrial fabrication & bars & coins, fell 26% year-on-year in Q1 to 753 metric tons—the lowest level since 2009. Including exchange-traded fund flows, total global gold demand was up 2% at roughly 1070 metric tons for the qtr.
Gold ends lower in volatile trading, posts a monthly gain of 6%
Oil futures finished 25% higher, paring their loss for the month as traders eyed the outlook for global crude supply, demand & storage capacity. The market found support for the session on the back of news that major oil companies have announced voluntary crude production cuts & amid signs that storage space for crude won’t run out as quickly as feared. Norway announced its first cut with production in 18 years, he said. News reports said the country would reduce output by 250K barrels per day in Jun & 134K barrels per day during H2. Royal Dutch Shell (RDS.A) said that it's cutting its Q1 div for the first time in 80 years, citing the collapse in oil & gas demand & prices. ConocoPhillips (COP) reported a loss for Q1 & announced a voluntary reduction of crude production by 420K barrels per day in Jun. West Texas Intermediate crude for Jun rose $3.78 (25%) to settle at $18.84 a barrel after a 22% surge yesterday. For the month, prices still lost 8%, from the front-month contract settlement on Mar 31. Global benchmark Jun Brent crude, which expired at the end of the session, added $2.73 (12%) at $25.27 a barrel with front-month contract prices ending the month 11.1% higher. The most-active Jul contract gained $2.25 (9.3%) to end the session at $26.48 a barrel. Oil has been hit by worries about oversupply by major producers amid the worst viral pandemic in more than century which has wrecked crude demand, while a dearth of places to store the commodity has served to further fuel its descent. Hope of treatments for COVID-19, with the anticipation that seized up economies will eventually restart, have helped to stabilize expectations for greater appetite for crude in the future. Pledged aid by central bank, including the Federal Reserve & the ECB, may also provide some support for oil bulls. However, a report from the International Energy Agency released offered a more sober picture of the oil outlook, describing the COVID-19 pandemic as the “biggest shock to the global energy system in more than seven decades.”
U.S. oil prices climb 25% to pare monthly loss to 8%
The Dow rose 2400 in Apr as investors are warming up to the economy & global markets reopening. However, the Dow is still down 4200 YTD. Oil finally sound some support this week as the supply-demand imbaance is showing some sign of improvement. However the rebound this month for stocks & commodities is still tentative. Economic improvement will come one step at a time. On the other side of the coin, demand for gold remains strong & it's not far from tis record highs around 1900 in 2011.
Dow Jones Industrials
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