Dow rose 281 (but below session highs), advancers over decliners 6-1 & NAZ gained 62. The MLP index added 3+ to 102 & the REIT index soared 17 to the 346s. Junk bond funds continued ini demand & Treasuries found buyers again. Oil dropped 1+ to the 23s after OPEC+ could not agree to production cuts & gold soared 48 to 1532 (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)
Federal Reserve Chair Jerome Powell said he thinks there can be a "robust" economic rebound from the coronavirus pandemic, even as increasingly strict containment measures force American life to come to a grinding halt. Powell said policymakers at the central bank are committed to using the full scope of their vast powers to support the flow of cash to businesses, households & state & local govs by opening new lending facilities & holding interest rates near zero until the crisis begins to recede. “We will continue to use these powers forcefully, proactively, and aggressively until we are confident that we are solidly on the road to recovery,” he added. Powell's comments came the same morning that the Fed announced a new $2.3T financing initiative aimed at supporting businesses of all sizes, as well as state & local govs. “At the Fed, we are doing all we can to help shepherd the economy through this difficult time,” Powell said. “When the spread of the virus is under control, businesses will reopen, and people will come back to work. There is every reason to believe that the economic rebound, when it comes, can be robust.” Still, Powell stressed the limits of the Fed's powers, directing Americans seeking immediate relief to the $2.2T CARES Act signed by Pres Trump at the end of Mar. In addition to including a one-time cash payment of up to $1200 for individuals who earn less than $99K, it broadened unemployment benefits by up to $600 per week for up to 4 months. He also seemingly called on Congress & Trump to take additional action to address the economic fallout from the virus, which has all but paralyzed business in the country. "I would see that as more likely than not to be needed," he said. The Labor Dept's weekly jobless claims report released today contained more grim news for the economy. Last week, 6.6M Americans filed for unemployment benefits, bringing the number of applications for the last 3 weeks to more than 16M, a stunning sign of the damage inflicted by the virus. Economists have forecast a sharp contraction in GDP in Q2, including Powell, who acknowledged that it will be a "very weak" period of growth. Still, he observed that prior to the pandemic, the economy -- which had been in the midst of a record 11-year expansion -- was healthy. “We entered this turbulent period on a strong economic footing and that should help support the recovery,” he continued.
Oil prices have tumbled into negative territory as Russia & Saudi Arabia have yet to announce a production-cut agreement has been reached. Brent crude oil, the intl benchmark, fell 0.9% to $32.86 a barrel while West Texas Intermediate (WTI), the US benchmark, plunged 5.8% to $23.63. The energy components had gained 11% & 13%, respectively, in the moments after reports of a deal surfaced. The pact between the 2 sides, which are holding a virtual meeting due to travel & distancing restrictions amid the COVID-19 pandemic, would be one component of a broader effort to cut production by up to 20M barrels per day. Other major oil exporters had yet to agree to reductions. WTI crude had previously plunged 60% from its Jan 6 peak as the price war between Russia & Saudi Arabia exacerbated a supply glut while the COVID-19 pandemic crushed demand. Saudi Arabia said last month it would increase production in Apr to 12.3M barrels a day after pumping out 9.7M barrels in Mar. The move followed Russia's refusal to agree to a production cut. A report said that Russia would now reduce its production by 2M barrels a day & Saudi Arabia would lower its output by 4M barrels from Apr. A virtual meeting of energy ministers from the world’s 20 largest economies is slated for Fri to "foster global dialog and cooperation to ensure stable energy markets and enable a stronger global economy,” according to a statement from the G20.
Senate adjourns after Democrats block McConnell's bid to add $250 billion in small business aid
Treasury Secretary Steve Mnuchin said that he believed it was possible that the US could open back up next month. “I think as soon as the president feels comfortable with the medical issues,” Mnuchin said. The Treasury secretary said that the administration was doing “everything necessary that American companies and American workers can be open for business and that they have the liquidity that they need to operate their business in the interim.” The comments came after the Federal Reserve announced new moves designed to get another $2.3T of financing for businesses & municipalities. The US economy remains effectively halted amid gov efforts to stop the spread of the coronavirus. Pres Trump said last month that he hoped that Americans would be able to pack churches by Easter, though the administration later released guidelines calling for social distancing to continue at least thru the end of Apr. Trump declined to provide a date for a reopening during a White House briefing yesterday. Trump is already stepping up efforts to reopen the economy. The pres is planning to create a 2nd task force designed to focus on the response to the economic devastation that COVID-19 has wrought. But experts have cautioned that the reopening process could be a long one.
Treasury Secretary Mnuchin says US could be open for business in May
Gold futures rallied to settle at their highest level in 7½ years, getting a boost as the $ declined on the back of the Federal Reserve's new lending plans which aim to support the hit to the economy from the coronavirus pandemic. The Federal Reserve set up new loan programs & bolstered existing ones in an effort to provide $2.3T to boost the economy. Jun gold rose a whoipping $68 (4.1%) to settle at $1752 an ounce after trading as high as $1754. It marked the highest most-active contract settlement since 2012. For the holiday-shortened week, the precious commodity rose roughly 7%. The Fed is trying to “provide as much relief and stability as we can” during this period where Americans are staying at home to stop the spread of the pandemic, said Fed Chair Jerome Powell. Data on US jobless claims revealed a climb, up 6.6M in the first week of Apr—bringing total job losses in less than a month to 16.8M. Gold prices gained yesterday after minutes from the Federal Reserve's Mar 3 & Mar 15 meetings showed that Fed staff’s worst-case scenario was that an economic recovery wouldn't take hold until next year.
Gold ends at highest since October 2012 as dollar declines on the back of the Fed’s new lending plans
Starbucks (SBUX) said that fiscal Q2 earnings will be chopped roughly in ½ from a year ago due to the spread of COVID-19 in China & then the company revealed that it expects adjusted EPS of 28-32¢ for Q2, down from 60¢ in 2019. "These estimates reflect the impact of lost sales for the period as well as incremental expenses for partner wages and benefits, store operations and other activities related to the COVID-19 outbreak," the company disclosed. "This includes inventory write-offs, honoring supplier obligations, store safety-related items, asset impairments and preliminary estimates of certain government stimulus program benefits." Analysts expect EPS of 39¢, down from 66¢ at the end of 2019. The company also rescinded its annual guidance. SBUX expects to report Q2 earnings in full on Apr 28. The stock went up 2.31.
If you would like to learnmoreabout SBUX, click on this link:
club.ino.com/trend/analysis/stock/SBUX?a_aid=CD3289&a_bid=6ae5b6f7
Stocks started the day with buyers in command, but sellers returned in the PM encouraged by the news from OPEC+ about a lack of production cuts, driving the Dow down to a modest gain. However buyers returned in the last hour even though there will be a 3 day holiday for US stocks & commodities. The Dow finished the week with a gain of 2600 & is up 5K from its recent lows. News is getting better on fighting the virus but short term economic data remains gloomy, to say the least. As noted before, high yield junk bond funds & REITS have rallied from their recent lows. Classic safe have gold remains in strong demand by investors with worries about the economy. Next week looks ot be another wild week for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Federal Reserve Chair Jerome Powell said he thinks there can be a "robust" economic rebound from the coronavirus pandemic, even as increasingly strict containment measures force American life to come to a grinding halt. Powell said policymakers at the central bank are committed to using the full scope of their vast powers to support the flow of cash to businesses, households & state & local govs by opening new lending facilities & holding interest rates near zero until the crisis begins to recede. “We will continue to use these powers forcefully, proactively, and aggressively until we are confident that we are solidly on the road to recovery,” he added. Powell's comments came the same morning that the Fed announced a new $2.3T financing initiative aimed at supporting businesses of all sizes, as well as state & local govs. “At the Fed, we are doing all we can to help shepherd the economy through this difficult time,” Powell said. “When the spread of the virus is under control, businesses will reopen, and people will come back to work. There is every reason to believe that the economic rebound, when it comes, can be robust.” Still, Powell stressed the limits of the Fed's powers, directing Americans seeking immediate relief to the $2.2T CARES Act signed by Pres Trump at the end of Mar. In addition to including a one-time cash payment of up to $1200 for individuals who earn less than $99K, it broadened unemployment benefits by up to $600 per week for up to 4 months. He also seemingly called on Congress & Trump to take additional action to address the economic fallout from the virus, which has all but paralyzed business in the country. "I would see that as more likely than not to be needed," he said. The Labor Dept's weekly jobless claims report released today contained more grim news for the economy. Last week, 6.6M Americans filed for unemployment benefits, bringing the number of applications for the last 3 weeks to more than 16M, a stunning sign of the damage inflicted by the virus. Economists have forecast a sharp contraction in GDP in Q2, including Powell, who acknowledged that it will be a "very weak" period of growth. Still, he observed that prior to the pandemic, the economy -- which had been in the midst of a record 11-year expansion -- was healthy. “We entered this turbulent period on a strong economic footing and that should help support the recovery,” he continued.
Powell expects 'robust' economic recovery
Oil prices have tumbled into negative territory as Russia & Saudi Arabia have yet to announce a production-cut agreement has been reached. Brent crude oil, the intl benchmark, fell 0.9% to $32.86 a barrel while West Texas Intermediate (WTI), the US benchmark, plunged 5.8% to $23.63. The energy components had gained 11% & 13%, respectively, in the moments after reports of a deal surfaced. The pact between the 2 sides, which are holding a virtual meeting due to travel & distancing restrictions amid the COVID-19 pandemic, would be one component of a broader effort to cut production by up to 20M barrels per day. Other major oil exporters had yet to agree to reductions. WTI crude had previously plunged 60% from its Jan 6 peak as the price war between Russia & Saudi Arabia exacerbated a supply glut while the COVID-19 pandemic crushed demand. Saudi Arabia said last month it would increase production in Apr to 12.3M barrels a day after pumping out 9.7M barrels in Mar. The move followed Russia's refusal to agree to a production cut. A report said that Russia would now reduce its production by 2M barrels a day & Saudi Arabia would lower its output by 4M barrels from Apr. A virtual meeting of energy ministers from the world’s 20 largest economies is slated for Fri to "foster global dialog and cooperation to ensure stable energy markets and enable a stronger global economy,” according to a statement from the G20.
Oil plunges as Saudi Arabia, Russia output deal remains elusive
Senate Dems blocked a Rep
push to unanimously pass a bill to put $250B more into a loan
program for small businesses devastated by the coronavirus pandemic. With only a few senators in the Capitol, Senate Majority Leader Mitch McConnell tried to approve the measure by a unanimous vote. Sen Ben Cardin, D-Md., objected to the request, stalling the legislation. Speaking
on the Senate floor, McConnell said he was not “talking about changing
any policy language” the parties negotiated last month as part of an
unprecedented $2T emergency spending package. He urged Dems
not to “block emergency aid you do not even oppose just because you
want something more” — tweaks to the small business aid program & more
emergency funding for hospitals & states, a proposal Dem
leaders outlined yesterday. After Cardin rejected the measure, he
called McConnell's move to pass the funding a “political stunt.” He
pushed for provisions including money for Small Business Administration
disaster assistance grants so that people who do not already have a
banking relationship can receive the aid. Sen Chris Van Hollen, D-Md., then tried to unanimously pass a
Dem amendment. McConnell blocked it, & the Senate adjourned
until Mon after a roughly 30-minute pro forma session. It is unclear if Reps & Dems will try to reach
agreement on emergency legislation to pass in the coming days. House
Speaker Nancy Pelosi has
indicated she could try to pass a Dem bill tomorrow — which
Reps can likely block with most representatives out of DC. Pelosi said Treasury Secretary Steve Mnuchin
called on Tues & “asked for a quarter of a trillion dollars in 48
hours, with no data” to justify why it was needed.” She echoed Cardin in
calling McConnell's move a “stunt.” “Let’s negotiate on the timing, the amount and the rest,” Pelosi said of emergency aid.
Senate adjourns after Democrats block McConnell's bid to add $250 billion in small business aid
Treasury Secretary Steve Mnuchin said that he believed it was possible that the US could open back up next month. “I think as soon as the president feels comfortable with the medical issues,” Mnuchin said. The Treasury secretary said that the administration was doing “everything necessary that American companies and American workers can be open for business and that they have the liquidity that they need to operate their business in the interim.” The comments came after the Federal Reserve announced new moves designed to get another $2.3T of financing for businesses & municipalities. The US economy remains effectively halted amid gov efforts to stop the spread of the coronavirus. Pres Trump said last month that he hoped that Americans would be able to pack churches by Easter, though the administration later released guidelines calling for social distancing to continue at least thru the end of Apr. Trump declined to provide a date for a reopening during a White House briefing yesterday. Trump is already stepping up efforts to reopen the economy. The pres is planning to create a 2nd task force designed to focus on the response to the economic devastation that COVID-19 has wrought. But experts have cautioned that the reopening process could be a long one.
Treasury Secretary Mnuchin says US could be open for business in May
Gold futures rallied to settle at their highest level in 7½ years, getting a boost as the $ declined on the back of the Federal Reserve's new lending plans which aim to support the hit to the economy from the coronavirus pandemic. The Federal Reserve set up new loan programs & bolstered existing ones in an effort to provide $2.3T to boost the economy. Jun gold rose a whoipping $68 (4.1%) to settle at $1752 an ounce after trading as high as $1754. It marked the highest most-active contract settlement since 2012. For the holiday-shortened week, the precious commodity rose roughly 7%. The Fed is trying to “provide as much relief and stability as we can” during this period where Americans are staying at home to stop the spread of the pandemic, said Fed Chair Jerome Powell. Data on US jobless claims revealed a climb, up 6.6M in the first week of Apr—bringing total job losses in less than a month to 16.8M. Gold prices gained yesterday after minutes from the Federal Reserve's Mar 3 & Mar 15 meetings showed that Fed staff’s worst-case scenario was that an economic recovery wouldn't take hold until next year.
Gold ends at highest since October 2012 as dollar declines on the back of the Fed’s new lending plans
Starbucks (SBUX) said that fiscal Q2 earnings will be chopped roughly in ½ from a year ago due to the spread of COVID-19 in China & then the company revealed that it expects adjusted EPS of 28-32¢ for Q2, down from 60¢ in 2019. "These estimates reflect the impact of lost sales for the period as well as incremental expenses for partner wages and benefits, store operations and other activities related to the COVID-19 outbreak," the company disclosed. "This includes inventory write-offs, honoring supplier obligations, store safety-related items, asset impairments and preliminary estimates of certain government stimulus program benefits." Analysts expect EPS of 39¢, down from 66¢ at the end of 2019. The company also rescinded its annual guidance. SBUX expects to report Q2 earnings in full on Apr 28. The stock went up 2.31.
If you would like to learnmoreabout SBUX, click on this link:
club.ino.com/trend/analysis/stock/SBUX?a_aid=CD3289&a_bid=6ae5b6f7
Starbucks says earnings cut roughly in half due to coronavirus effects in second quarter
Stocks started the day with buyers in command, but sellers returned in the PM encouraged by the news from OPEC+ about a lack of production cuts, driving the Dow down to a modest gain. However buyers returned in the last hour even though there will be a 3 day holiday for US stocks & commodities. The Dow finished the week with a gain of 2600 & is up 5K from its recent lows. News is getting better on fighting the virus but short term economic data remains gloomy, to say the least. As noted before, high yield junk bond funds & REITS have rallied from their recent lows. Classic safe have gold remains in strong demand by investors with worries about the economy. Next week looks ot be another wild week for stocks.
Dow Jones Industrials
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