Dow rose 39 (near session lows), advancers over decliners 3-2 & NAZ was off a fraction. The MLP index went up 7+ to the 123s & the REIT index pulled back 3+ to the 318s. Junk bond funds were mixed & Treasuries crawled higher. Oil went up 3 to the 16s (more below) & gold added 14 to 1752.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
US new home sales plunged 15.4% in Mar as a winding down in the middle of the month due to the coronavirus began to rattle the housing market. The Commerce Dept reported that sales of new single-family homes dropped to a seasonally adjusted annual rate of 627K last month after sales had fallen 4.6% in Feb. The decline was expected, though economists say it will grow much worse as the country struggles with a shutdown that has thrown Ms of people out of work & disrupted wide swaths of the economy. The median price for a new home sold in Mar was $321K, down 2.6% from a median price of $330K in Feb. By region of the country, sales fell a sharp 41.5% in the Northeast & were down 38.5 in the West. Both of those regions had states that implemented stay-at-home orders sooner than other parts of the country. Sales fell 8.1% in the Midwest & were down a slight 0.8% in the South.
Eli Lilly (LLY) topped revenue expectations for Q1 as patient prescriptions amid the Covid-19 pandemic partially drove sales. The pharmaceutical company posted net income of $1.46B ($1.60 a share) compared with $4.24B ($4.31 a share) in the comparable qtr last year. LLY booked a $3.68B gain related to the disposition of Elanco last year. Adjusted EPS was $1.75, beating the $1.48 estimate. Sales rose 15% to $5.86B, ahead of the $5.49B expected. LLY had strong demand for key products such as Trulicity, Taltz & Emgality as well as an additional $250M due to buying patterns & prescription trends amid the pandemic. US sales rose 15% to $3.33B & revenue outside the US grew 15% to $2.53B. The company has said it was delaying most new study starts & pause enrollment in most ongoing study starts, in an effort to ease the burden on health-care facilities & allow physicians to focus on dealing with the pandemic. LLY earlier this month said it is testing baricitinib, a rheumatoid arthritis drug, for patients hospitalized with Covid-19. The stockrose 3.46.
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
Hershey (HSY) had EPS of $1.29. EPS, adjusted for non-recurring costs & asset impairment costs, were $1.63. The results did not meet expectations. The estimate for EPS called for $1.70. The chocolate bar & candy maker posted revenue of $2.04B in the period, which also fell short of forecasts for $2.08B. The stock dropped 6.39.
If you would like to learn more about HSY, click on this link:
club.ino.com/trend/analysis/stock/HSY?a_aid=CD3289&a_bid=6ae5b6f7
Oil jumped nearly 20%, accelerating its recent rally that eyed continued production cuts & rising US-Iranian tensions. West Texas Intermediate (WTI), the US benchmark, rose 20% ($2.72) to settle at $16.50 per barrel. WTI did close off the highest level of the day, however, after hitting $18.26 in early trading. Brent crude, the intl benchmark, traded 5% higher at $21.48 per barrel. Yesterday, WTI jumped 19%, one of its best days on record. In just 2 days, from the Tues settle at $11.57, compared to today's settle WTI has gained 43%. Given oil's more than 70% decline this year a smaller gain, of course, now accounts for a much larger percentage move. But oil's strength over the last 2 days has done little to dent crude’s enormous 75% loss this year as the coronavirus pandemic sapped about 1/3 of global demand. At the beginning of the year, WTI traded above $60. By Mon for the first time in history, WTI plunged into negative territory, as storage facilities filled up. The May contract was about to expire & therefore was thinly traded, but the move was nonetheless notable. As the Jun WTI contract nears expiration on May 19, some are warning that it could plunge in the same way that the May contract did. Traders say this will lead to natural shut-ins since there will soon be nowhere for oil to go.
Oil rallies more than 40% in two days as it comes back from record lows
Target (TGT), a Dividend Aristocrat, CEO Brian Cornell said the retailer has benefited from a surge in online shopping, but warned it will have lower profits this qtr due to higher costs. Cornell said the trend of shoppers avoiding trips to stores has worked in the discount retailer's favor, & it expects to emerge from the coronavirus pandemic in a strong position. He said investments in online shopping options & its workforce will lead to “market share gains that I think will benefit the brand for years to come.” He added that higher labor costs, the sale of more low-margin items & write-downs of inventory in apparel & accessories because of a drop in sales will weigh on profits. TGT has watched customers shop & behave differently as the world around them changes. Initially, he said customers stocked up on household essentials, food & medications. As they heard they would shelter at home, he said TGT saw a spike in supplies needed to work & attend school remotely & games to help them stay entertained. In recent weeks, he added, customers have listened to gov & public health officials, & are starting to shop while wearing face masks. The stock fell 2.93.
If you would like to learn more about TGT, click on this link:
club.ino.com/trend/analysis/stock/TGT?a_aid=CD3289&a_bid=6ae5b6f7
Target’s shares tumble as retailer says first-quarter profits will be hurt by higher costs
Merkel says ‘things will remain hard for a very long time’ as pandemic is still at the beginning
Stocks absorbed the bad news on unemployment claims in the AM, but negative news on a new drug for cononavirus brought sellers back in the PM. The selling took the Dow near breakeven, then buyers returned to give it a modest gain for the day. Uncertainty continues to be high. Easing restrictions on the economy is not going well. Additionally, that will only affect a few states. Oil is trying to find traction & that looks to be difficult. Meanwhile gold may to be heading for its record closing high of 1891 in 2011.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
US new home sales plunged 15.4% in Mar as a winding down in the middle of the month due to the coronavirus began to rattle the housing market. The Commerce Dept reported that sales of new single-family homes dropped to a seasonally adjusted annual rate of 627K last month after sales had fallen 4.6% in Feb. The decline was expected, though economists say it will grow much worse as the country struggles with a shutdown that has thrown Ms of people out of work & disrupted wide swaths of the economy. The median price for a new home sold in Mar was $321K, down 2.6% from a median price of $330K in Feb. By region of the country, sales fell a sharp 41.5% in the Northeast & were down 38.5 in the West. Both of those regions had states that implemented stay-at-home orders sooner than other parts of the country. Sales fell 8.1% in the Midwest & were down a slight 0.8% in the South.
New home sales drop in coronavirus pandemic, falling 15% in March
Eli Lilly (LLY) topped revenue expectations for Q1 as patient prescriptions amid the Covid-19 pandemic partially drove sales. The pharmaceutical company posted net income of $1.46B ($1.60 a share) compared with $4.24B ($4.31 a share) in the comparable qtr last year. LLY booked a $3.68B gain related to the disposition of Elanco last year. Adjusted EPS was $1.75, beating the $1.48 estimate. Sales rose 15% to $5.86B, ahead of the $5.49B expected. LLY had strong demand for key products such as Trulicity, Taltz & Emgality as well as an additional $250M due to buying patterns & prescription trends amid the pandemic. US sales rose 15% to $3.33B & revenue outside the US grew 15% to $2.53B. The company has said it was delaying most new study starts & pause enrollment in most ongoing study starts, in an effort to ease the burden on health-care facilities & allow physicians to focus on dealing with the pandemic. LLY earlier this month said it is testing baricitinib, a rheumatoid arthritis drug, for patients hospitalized with Covid-19. The stockrose 3.46.
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
Eli Lilly beats first-quarter expectations, driven by prescriptions amid coronavirus pandemic
Hershey (HSY) had EPS of $1.29. EPS, adjusted for non-recurring costs & asset impairment costs, were $1.63. The results did not meet expectations. The estimate for EPS called for $1.70. The chocolate bar & candy maker posted revenue of $2.04B in the period, which also fell short of forecasts for $2.08B. The stock dropped 6.39.
If you would like to learn more about HSY, click on this link:
club.ino.com/trend/analysis/stock/HSY?a_aid=CD3289&a_bid=6ae5b6f7
Hershey posts 1Q earnings miss
Oil jumped nearly 20%, accelerating its recent rally that eyed continued production cuts & rising US-Iranian tensions. West Texas Intermediate (WTI), the US benchmark, rose 20% ($2.72) to settle at $16.50 per barrel. WTI did close off the highest level of the day, however, after hitting $18.26 in early trading. Brent crude, the intl benchmark, traded 5% higher at $21.48 per barrel. Yesterday, WTI jumped 19%, one of its best days on record. In just 2 days, from the Tues settle at $11.57, compared to today's settle WTI has gained 43%. Given oil's more than 70% decline this year a smaller gain, of course, now accounts for a much larger percentage move. But oil's strength over the last 2 days has done little to dent crude’s enormous 75% loss this year as the coronavirus pandemic sapped about 1/3 of global demand. At the beginning of the year, WTI traded above $60. By Mon for the first time in history, WTI plunged into negative territory, as storage facilities filled up. The May contract was about to expire & therefore was thinly traded, but the move was nonetheless notable. As the Jun WTI contract nears expiration on May 19, some are warning that it could plunge in the same way that the May contract did. Traders say this will lead to natural shut-ins since there will soon be nowhere for oil to go.
Oil rallies more than 40% in two days as it comes back from record lows
Target (TGT), a Dividend Aristocrat, CEO Brian Cornell said the retailer has benefited from a surge in online shopping, but warned it will have lower profits this qtr due to higher costs. Cornell said the trend of shoppers avoiding trips to stores has worked in the discount retailer's favor, & it expects to emerge from the coronavirus pandemic in a strong position. He said investments in online shopping options & its workforce will lead to “market share gains that I think will benefit the brand for years to come.” He added that higher labor costs, the sale of more low-margin items & write-downs of inventory in apparel & accessories because of a drop in sales will weigh on profits. TGT has watched customers shop & behave differently as the world around them changes. Initially, he said customers stocked up on household essentials, food & medications. As they heard they would shelter at home, he said TGT saw a spike in supplies needed to work & attend school remotely & games to help them stay entertained. In recent weeks, he added, customers have listened to gov & public health officials, & are starting to shop while wearing face masks. The stock fell 2.93.
If you would like to learn more about TGT, click on this link:
club.ino.com/trend/analysis/stock/TGT?a_aid=CD3289&a_bid=6ae5b6f7
Target’s shares tumble as retailer says first-quarter profits will be hurt by higher costs
German Chancellor Angela Merkel said the end of the coronavirus pandemic is not yet in sight & that we will have to live with the virus “for a long time.” Speaking
to Germany’s Parliament, Merkel said “we
are not living in the final phase of the pandemic, but still at the
beginning.” “We
have won time,” Merkel said adding
that this had been used to bolster Germany's health-care system. Germany
cautiously started to lift its lockdown restrictions at the start of
the week, with smaller retailers of under 800 square meters allowed to
reopen on Mon, as long as hygiene & social-distancing measures could be maintained. Larger car dealerships, bike shops & book shops have also been allowed to open their doors. Merkel's
comments reflected much caution in the gov, however, & a desire to lift the lockdown slowly. Germany's economy is expected
to contract 7% in 2020, according to the IMF's Apr outlook, before rebounding to expand 5.2% in 2021. “Things will remain very hard for a long time,” Merkel also told lawmakers. Germany has over 150K reported cases of the coronavirus, according
to data from Johns Hopkins University, but has seen a far lower death
rate, currently at 5315, compared to other European countries. The
number of cases among younger people, widespread testing, contact
tracing & a recently modernized health-care system are reportedly
factors behind the relatively low number of deaths. Germany’s
fatality data is far lower than Italy's number of deaths, of just over
25K, or Spain which has reported 21K deaths.
Merkel says ‘things will remain hard for a very long time’ as pandemic is still at the beginning
Stocks absorbed the bad news on unemployment claims in the AM, but negative news on a new drug for cononavirus brought sellers back in the PM. The selling took the Dow near breakeven, then buyers returned to give it a modest gain for the day. Uncertainty continues to be high. Easing restrictions on the economy is not going well. Additionally, that will only affect a few states. Oil is trying to find traction & that looks to be difficult. Meanwhile gold may to be heading for its record closing high of 1891 in 2011.
Dow Jones Industrials
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