Dow soared 260 (closing at the highs), advancers over declines about 2-1 & NAZ gained 139 The MLP index was little chaqged in the 113s & the REIT index went up 2+ to the 321s. Junk bonds funds drifted lower & Treasuries edged higher in price. Oil went up to the 17s & gold fell 4 to 1740 (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)
American Express (AXP), a Dow stock, Q1 profit plunged 76% from a year ago after the credit-card giant set side $2.6B to provide a cushion for losses caused by COVID-19. The financial-services provider earned $367M (41¢ a share) as revenue slipped 1% to $10.3B. Adjusted EPS was $1.98, topping estimates for $1.48. “The first two months of 2020 continued the strong momentum we have delivered over the past two years, but we’re now in a different world,” CEO Stephen Squeri said. “The deterioration in the economy due to COVID-19 impacts that began in the first quarter and accelerated in April has dramatically impacted our volumes.” The stock went up 72¢.
If you would like to learn more about AXP, click on this link:
club.ino.com/trend/analysis/stock/AXP?a_aid=CD3289&a_bid=6ae5b6f7
Pres Trump signed a $484B coronavirus relief package into as the politicos plan the next steps in its unprecedented attempt to rescue an economy & health-care system bludgeoned by the pandemic. The measure puts $370B into aid for small businesses trying to keep employees on the payroll as they temporarily shutter to try to slow Covid-19's spread. It grants $75B to hospitals struggling to cover costs during the crisis & $25B for efforts to ramp up testing for the disease. The package becomes the 4th passed by Congress to respond to the outbreak, with a total cost approaching $3T. As Covid-19 cases rise & sustained economic shutdowns keep Ms of Americans out of work, many in Congress predict lawmakers will have more work to do to buoy the country — even as Reps start to grow wary of the mammoth spending.
The legislation includes:
Trump signs $484 billion coronavirus bill to boost small business and hospitals
Gov Andrew Cuomo said that New York will report a $13.3B shortfall in revenue compared with its original forecast — representing a 14% decline in the state's projected receipts. The Empire State, which has been hit harder by the coronavirus pandemic than anywhere else in the US, currently forecasts $61B in total lost revenue between fiscal years 2021 & 2024, Cuomo added. “What you’re going to see is what we expected,” Cuomo said at a press conference, referring to the state's assessment of the virus' economic impact. The projections offer a glimpse into the devastating financial toll the virus has taken on New York. With nonessential businesses closed & residents ordered to stay in their homes as much as possible, the state's economy has virtually ground to a halt. New York's new forecasts show a severe decline in revenue, even when compared with past crises. After the 2008 financial collapse, for example, state tax revenues fell 14.5% over 2 years before starting to recover, according to data complied by the Pew Charitable Trusts. Cuomo said that before the coronavirus rolled through New York, the state economy was “growing at a very high rate,” gov spending was at “record lows” & taxes had been lowered compared with when he took office. “And then this economic tsunami hits, and you shut down all the businesses, everybody stays home, they’re not getting a paycheck, they feel economic anxiety,” Cuomo added. “The consequence to the state is, the revenue projections are way down.”
NY will suffer $13.3 billion revenue shortfall due to coronavirus, Cuomo says
Despite the easing of coronavirus lockdown measures in the country, Germans are seemingly reluctant to rush back to stores. The CEO of behavioral science consultancy Innovation Bubble, Simon Moore, said the coronavirus pandemic has shifted consumers’ mindsets from a “gain” to “maintain” mentality. Instead of seeking out ways to make the most of deals on goods, Moore explained that people were now more defensively minded because of the uncertainty created by the pandemic. On Mon, Germany allowed smaller retailers of under 800 square meters to re-open, as long as they abided by social distancing & hygiene measures. There have been 153K confirmed cases of the coronavirus in Germany & 5575 deaths, according to latest data from Johns Hopkins University. Larger businesses, such as car dealerships, bike & book shops were also allowed to re-open. This also included Swedish furniture superstore Ikea. In a report, Stefan Stukenborg, head of an Ikea branch on the outskirts of Cologne, said his store's re-opening “was very relaxed, there were no lines, there were no crowds.” Stefan Genth, CEO of the German retail federation Handelverband Deutschland, suggested this was likely to be the case for some time as consumer sentiment was at an “all-time low.” He added this was partly down to uncertainty in the jobs market, prompting people to be more frugal with spending. However, he also said guidelines about reducing the size of sales areas with barriers, for example, were inconsistent as they varied from state to state in Germany, which “unsettles” customers.
Germans aren’t shopping despite stores being open — experts explain why
New orders for key US-made capital goods unexpectedly rose in Mar, but the gains are not likely to be sustainable amid the novel coronavirus outbreak, which has abruptly shut down the economy & contributed to a collapse in crude oil prices. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, edged up 0.1% last month, the Commerce Dept said. Data for Feb was up to show capital goods orders falling 0.8% instead of dropping 0.9% as previously reported. The forecast core called for capital goods orders plunging 6.0% in Mar. US durable goods orders sank 14.4% in the month, compared with expectations for an 11.9% drop. Durable goods orders rose 1.2% a month earlier.
US core capital goods orders unexpectedly rise in March, while durable goods orders plunge
Gold futures gave up earlier gains to finish lower, but posted their 4th weekly gain in 5 weeks as investors weighed demand for the haven metal against a backdrop of muted trading in US gov bond yields, a more stable consumer sentiment reading & mixed trading in the stock market. US economic data failed to provide a lift to gold prices. Orders for durable goods sank 14.4% in Mar. The steep drop in bookings last month was the 2nd biggest ever since the gov began keeping track in the early 1990s. Consumer sentiment, however, appeared to stabilize toward the end of Apr following the biggest decline ever. The final reading of the consumer sentiment survey in Apr edged up to 71.8 from an initial 71, the Univ of Mich. Gold for Jun fell $9 (0.6%) to settle at $1735 an ounce. For the week, the yellow metal saw a roughly 2.2% gain, which marked its 4th weekly rise in 5 weeks. Prices settled yesterday at their highest since Apr 14.
Gold ends lower, but tallies a gain of more than 2% for the week
Oil futures finished higher for a 3rd straight session, but US prices posted a record weekly loss of more than 32%, as commodity investors attempted to take stock of a historic collapse in prices that cast a spotlight on problems of oversupply & dwindling storage in the energy complex. After the now-expired May Nymex contract on Mon fell into negative territory for the first time ever, meaning that sellers had to pay buyers to take crude off their hands, market participants have been struggling to manage the unprecedented volatility. Jun West Texas Intermediate crude, the US benchmark grade, gained 44¢ (2.7%) to settle at $16.94 a barrel, but the contract traded as low as $15.64 in the overnight session. Yesterday, WTI surged nearly 20%. Gains today marked a 3rd straight advance for the international & US grade oils—the longest such streak of gains since a similar stretch ended Mar 25. Despite those outsize gains, WTI still saw a 32% decline for the week, based on the Jun contract. That was the biggest weekly percentage loss on record. Jun Brent crude, the intl benchmark, rose 11¢ (0.5%) at $21.44 a barrel after gaining 5% yesterday. For the week, Jun Brent declined 24%. Some producers in the US are cutting production while other participants have said they would aim to cut output ahead of a May 1 deadline to enact global reductions under a historic pact forged by OPEC & allies including Russia, a group collectively known as OPEC+.
Oil futures mark a third straight gain, but post a record 32% weekly drop
Throwing money around gets the attention of investors. Trump approved more spending & stocks were bid higher. The Dow was off about 500 for the week, but it has had an excellent recovery from the lows in late Mar. Extending that rally will be a tough challenge for the bulls given all the negative economic news coming out. This weekend will give a first glimpse of what opening the economy will be like.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
American Express (AXP), a Dow stock, Q1 profit plunged 76% from a year ago after the credit-card giant set side $2.6B to provide a cushion for losses caused by COVID-19. The financial-services provider earned $367M (41¢ a share) as revenue slipped 1% to $10.3B. Adjusted EPS was $1.98, topping estimates for $1.48. “The first two months of 2020 continued the strong momentum we have delivered over the past two years, but we’re now in a different world,” CEO Stephen Squeri said. “The deterioration in the economy due to COVID-19 impacts that began in the first quarter and accelerated in April has dramatically impacted our volumes.” The stock went up 72¢.
If you would like to learn more about AXP, click on this link:
club.ino.com/trend/analysis/stock/AXP?a_aid=CD3289&a_bid=6ae5b6f7
American Express profit sinks 76%
Pres Trump signed a $484B coronavirus relief package into as the politicos plan the next steps in its unprecedented attempt to rescue an economy & health-care system bludgeoned by the pandemic. The measure puts $370B into aid for small businesses trying to keep employees on the payroll as they temporarily shutter to try to slow Covid-19's spread. It grants $75B to hospitals struggling to cover costs during the crisis & $25B for efforts to ramp up testing for the disease. The package becomes the 4th passed by Congress to respond to the outbreak, with a total cost approaching $3T. As Covid-19 cases rise & sustained economic shutdowns keep Ms of Americans out of work, many in Congress predict lawmakers will have more work to do to buoy the country — even as Reps start to grow wary of the mammoth spending.
The legislation includes:
- $310B in new funds for the Paycheck Protection Program, which provides small business loans that can be forgiven if used for wages, benefits, rent & utilities. $60B is set aside for small lenders.
- $60B for Small Business Administration disaster assistance loans & grants.
- $75B in grants to hospitals dealing with a flood of patients.
- $25B to bolster coronavirus testing, a key part of efforts to reopen the economy.
Trump signs $484 billion coronavirus bill to boost small business and hospitals
Gov Andrew Cuomo said that New York will report a $13.3B shortfall in revenue compared with its original forecast — representing a 14% decline in the state's projected receipts. The Empire State, which has been hit harder by the coronavirus pandemic than anywhere else in the US, currently forecasts $61B in total lost revenue between fiscal years 2021 & 2024, Cuomo added. “What you’re going to see is what we expected,” Cuomo said at a press conference, referring to the state's assessment of the virus' economic impact. The projections offer a glimpse into the devastating financial toll the virus has taken on New York. With nonessential businesses closed & residents ordered to stay in their homes as much as possible, the state's economy has virtually ground to a halt. New York's new forecasts show a severe decline in revenue, even when compared with past crises. After the 2008 financial collapse, for example, state tax revenues fell 14.5% over 2 years before starting to recover, according to data complied by the Pew Charitable Trusts. Cuomo said that before the coronavirus rolled through New York, the state economy was “growing at a very high rate,” gov spending was at “record lows” & taxes had been lowered compared with when he took office. “And then this economic tsunami hits, and you shut down all the businesses, everybody stays home, they’re not getting a paycheck, they feel economic anxiety,” Cuomo added. “The consequence to the state is, the revenue projections are way down.”
NY will suffer $13.3 billion revenue shortfall due to coronavirus, Cuomo says
Despite the easing of coronavirus lockdown measures in the country, Germans are seemingly reluctant to rush back to stores. The CEO of behavioral science consultancy Innovation Bubble, Simon Moore, said the coronavirus pandemic has shifted consumers’ mindsets from a “gain” to “maintain” mentality. Instead of seeking out ways to make the most of deals on goods, Moore explained that people were now more defensively minded because of the uncertainty created by the pandemic. On Mon, Germany allowed smaller retailers of under 800 square meters to re-open, as long as they abided by social distancing & hygiene measures. There have been 153K confirmed cases of the coronavirus in Germany & 5575 deaths, according to latest data from Johns Hopkins University. Larger businesses, such as car dealerships, bike & book shops were also allowed to re-open. This also included Swedish furniture superstore Ikea. In a report, Stefan Stukenborg, head of an Ikea branch on the outskirts of Cologne, said his store's re-opening “was very relaxed, there were no lines, there were no crowds.” Stefan Genth, CEO of the German retail federation Handelverband Deutschland, suggested this was likely to be the case for some time as consumer sentiment was at an “all-time low.” He added this was partly down to uncertainty in the jobs market, prompting people to be more frugal with spending. However, he also said guidelines about reducing the size of sales areas with barriers, for example, were inconsistent as they varied from state to state in Germany, which “unsettles” customers.
Germans aren’t shopping despite stores being open — experts explain why
New orders for key US-made capital goods unexpectedly rose in Mar, but the gains are not likely to be sustainable amid the novel coronavirus outbreak, which has abruptly shut down the economy & contributed to a collapse in crude oil prices. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, edged up 0.1% last month, the Commerce Dept said. Data for Feb was up to show capital goods orders falling 0.8% instead of dropping 0.9% as previously reported. The forecast core called for capital goods orders plunging 6.0% in Mar. US durable goods orders sank 14.4% in the month, compared with expectations for an 11.9% drop. Durable goods orders rose 1.2% a month earlier.
US core capital goods orders unexpectedly rise in March, while durable goods orders plunge
Gold futures gave up earlier gains to finish lower, but posted their 4th weekly gain in 5 weeks as investors weighed demand for the haven metal against a backdrop of muted trading in US gov bond yields, a more stable consumer sentiment reading & mixed trading in the stock market. US economic data failed to provide a lift to gold prices. Orders for durable goods sank 14.4% in Mar. The steep drop in bookings last month was the 2nd biggest ever since the gov began keeping track in the early 1990s. Consumer sentiment, however, appeared to stabilize toward the end of Apr following the biggest decline ever. The final reading of the consumer sentiment survey in Apr edged up to 71.8 from an initial 71, the Univ of Mich. Gold for Jun fell $9 (0.6%) to settle at $1735 an ounce. For the week, the yellow metal saw a roughly 2.2% gain, which marked its 4th weekly rise in 5 weeks. Prices settled yesterday at their highest since Apr 14.
Gold ends lower, but tallies a gain of more than 2% for the week
Oil futures finished higher for a 3rd straight session, but US prices posted a record weekly loss of more than 32%, as commodity investors attempted to take stock of a historic collapse in prices that cast a spotlight on problems of oversupply & dwindling storage in the energy complex. After the now-expired May Nymex contract on Mon fell into negative territory for the first time ever, meaning that sellers had to pay buyers to take crude off their hands, market participants have been struggling to manage the unprecedented volatility. Jun West Texas Intermediate crude, the US benchmark grade, gained 44¢ (2.7%) to settle at $16.94 a barrel, but the contract traded as low as $15.64 in the overnight session. Yesterday, WTI surged nearly 20%. Gains today marked a 3rd straight advance for the international & US grade oils—the longest such streak of gains since a similar stretch ended Mar 25. Despite those outsize gains, WTI still saw a 32% decline for the week, based on the Jun contract. That was the biggest weekly percentage loss on record. Jun Brent crude, the intl benchmark, rose 11¢ (0.5%) at $21.44 a barrel after gaining 5% yesterday. For the week, Jun Brent declined 24%. Some producers in the US are cutting production while other participants have said they would aim to cut output ahead of a May 1 deadline to enact global reductions under a historic pact forged by OPEC & allies including Russia, a group collectively known as OPEC+.
Oil futures mark a third straight gain, but post a record 32% weekly drop
Throwing money around gets the attention of investors. Trump approved more spending & stocks were bid higher. The Dow was off about 500 for the week, but it has had an excellent recovery from the lows in late Mar. Extending that rally will be a tough challenge for the bulls given all the negative economic news coming out. This weekend will give a first glimpse of what opening the economy will be like.
Dow Jones Industrials
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