Dow roared 704 (near the highs), advancers over decliners an impressive 6-1 & NAZ climbed 116. The MLP index went up 7+ to 112 & the REIT index gained 11 to the 335s. Junk bond funds rose & Treasuries drifted lower. Oil sank to about 18 (another mult year low) & gold fell 36 to 1695 (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)
Pres chief economic adviser Larry Kudlow urged Congress to pass the next round of coronavirus emergency &, one day after a $349B loan program for small businesses ran out of money. Reps want to approve an additional $250M for the Paycheck Protection Program, which provides loans at ultra-low interest rates to businesses with fewer than 500 employees to incentivize them to keep staff on payroll, but Dems have blocked the measure, calling for changes to the program as well as more funding for hospitals & state & local govs. If at least 75% of the money goes to keep employees on the payroll, the federal gov will forgive the loans. “Come on, 13.5 percent of the workforce is unemployed," Kudlow said. "It’s not because of what they’ve done, it’s not because of bad business decisions, it’s not because workers are slacking off. They’re not. It’s because of the coronavirus. So what is the Congress waiting for? Let’s get going. This thing should be done in a couple of hours and a voice vote today.” Lawmakers from both houses are working from their home states as a result of the outbreak & are unlikely to return to DC until at least early May. But in public comments yesterday, neither party leader signaled they would concede ground on the next aid package. House Minority Leader Kevin McCarthy told reporters that Congress could include additional funding for hospitals & state & local govs in later legislation, urging approval for the small-business funds immediately. The evaporation of the program's funds comes at a critical time: New figures released by the Labor Dept yesterday revealed that in the 4-week period thru Apr 11, 22M Americans filed for first-time unemployment benefits, a stunning sign of the colossal economic damage inflicted by the virus outbreak. Before the pandemic, the largest number of Americans to seek jobless aid in a 3-week stretch was 2.7M in 1982. "I don’t have much hair up here. If I did, I’d be scratching my hair," Kudlow said. "I can’t imagine why Congress isn’t replenishing this small loan program. It’s absolutely fantastic. Now’s the time." The small-business program has seen strong demand since launching 2 weeks ago, approving 1.6M loans that depleted the fund. Yesterday, the Small Business Administration said it was no longer accepting applications.
Procter & Gamble (PG), a Dow stock & Dividend Aristocrat, beat expectations for profit as consumers stocked up on everything from diapers & detergents to toilet rolls amid sweeping lockdowns around the world to curb the spread of coronavirus. PG, which sells its product in more than 180 countries, recorded sales growth in 3 of its 5 units. The company expects to pay over $7.5B in divs & repurchase $7-8B in shares in fiscal 2020. Sales at its health care unit rose 7%, while fabric & home care unit sales rose 8%. The baby & feminine products business logged a 6% rise in sales. Beauty & grooming were the 2 segments where sales fell. Many of the products, including Bounty paper towels, Charmin toilet paper, Pampers diapers & Tampax tampons, have been in demand across US supermarkets in the past few weeks. For fiscal Q3, net sales rose 5% to $17.2B as consumers stocked up during the last few weeks of the qtr in the US. The forecast called for sales of $17.46B. Excluding one-time items, EPS was $1.17, beating estimates by 4¢. EPS attributable to the company rose to $1.12 from $1.04 a year earlier. The company, however, cut its full-year sales growth target to 3-4% from its prior forecast of 4%-5% to account for currency fluctuation. The stock went up 3.16.
If you would like to learn more about PG, click on this link:
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
Ford (F) expects to report a loss of $2B for Q1 as it deals with the fallout from the Covid-19 pandemic. The automaker earlier this week said it sees Q1 revenue of about $34B & adjusted losses before interest & taxes of $600M as it seeks to conserve cash. Analysts expected adjusted EPS of 2¢ on sales of $35.4B. The company is scheduled to report quarterly results on Apr 28. Ford last month withdrew its 2020 financial guidance as the outbreak worsened. The stock gained 18¢.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F?a_aid=CD3289&a_bid=6ae5b6f7
China's economy shrank for the first time since at least 1992 in Q1, as the coronavirus outbreak paralyzed production & spending, raising pressure on authorities to do more to stop mounting job losses. GDP fell 6.8% in Jan-Mar year-on-year, official data showed, larger than the 6.5% decline forecast & reversing a 6% expansion in Q4. The contraction is also the first in the world's 2nd-largest economy since at least 1992 when official quarterly GDP records started. While China has managed to get large parts of its economy up & running from a standstill in Feb, analysts say policymakers face an uphill battle to revive growth as the coronavirus pandemic ravages global demand. On a qtr-on-qutr basis, GDP fell 9.8% in Q1, the National Bureau of Statistics said, just off expectations for a 9.9% contraction, & compared with 1.5% growth in the previous qtr. Separate data showed China's industrial output falling by a less-than-expected 1.1% in Mar from a year earlier. Retail sales fell 15.8% in the same period & fixed asset investment shrank 16.1%. China's urban jobless rate was at 5.9% in Mar, down from 6.2% in Feb.
Fed’s Bullard proposes way to ‘end the crisis’: Pay all costs for companies developing tests
Gilead Sciences popped after details leaked of a closely watched clinical trial of the company's antiviral drug Remdesivir, showing what appears to be promising results in treating Covid-19. The University of Chicago's phase 3 drug trial found that most of its patients had “rapid recoveries in fever and respiratory symptoms” & were discharged in less than a week, a health-care publication reported. “The best news is that most of our patients have already been discharged, which is great. We’ve only had two patients perish,” University of Chicago infectious disease specialist Kathleen Mullane said. The stock rose 7.45 (10%).
If you would like to learn more about GILD, click on this link:
club.ino.com/trend/analysis/stock/GILD?a_aid=CD3289&a_bid=6ae5b6f7
Gilead stock pops 8% after report says coronavirus drug trial shows encouraging
Gold futures fell to post a loss of about 3% for the week. Optimism over a drug that shows potential to treat COVID-19 & the release of a plan to gradually reopen the US economy combined to dull demand for the haven metal. Jun gold lost $32 (1.9%) to settle at $1698 an ounce. Prices fell 3.1% for the week.
US benchmark oil futures dropped to mark another finish at their lowest in more than 18 years, tallying a loss of 20% for the week. Worries about rising US supplies, a potential record drop in demand & tight storage capacity fed oil's decline. May West Texas Intermediate oil fell $1.60 (8.1%) to settle at $18.27 a barrel, the lowest finish for a front-month contract since 2002. Prices lost 19.7% from the settlement on Apr 9.
Another exciting day for the stock market. The bulls were excited about a new treatment to control the virus & on plans to open the US economy. However there are no shortage of problems. For a starter, an additional money bill is needed to help small businesses is stuck in the DC swamp. For the week, the Dow went up 500 & is up about 6K above its recent lows. With so many dark clouds in the sky, that level of enthusiasm may not last.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Pres chief economic adviser Larry Kudlow urged Congress to pass the next round of coronavirus emergency &, one day after a $349B loan program for small businesses ran out of money. Reps want to approve an additional $250M for the Paycheck Protection Program, which provides loans at ultra-low interest rates to businesses with fewer than 500 employees to incentivize them to keep staff on payroll, but Dems have blocked the measure, calling for changes to the program as well as more funding for hospitals & state & local govs. If at least 75% of the money goes to keep employees on the payroll, the federal gov will forgive the loans. “Come on, 13.5 percent of the workforce is unemployed," Kudlow said. "It’s not because of what they’ve done, it’s not because of bad business decisions, it’s not because workers are slacking off. They’re not. It’s because of the coronavirus. So what is the Congress waiting for? Let’s get going. This thing should be done in a couple of hours and a voice vote today.” Lawmakers from both houses are working from their home states as a result of the outbreak & are unlikely to return to DC until at least early May. But in public comments yesterday, neither party leader signaled they would concede ground on the next aid package. House Minority Leader Kevin McCarthy told reporters that Congress could include additional funding for hospitals & state & local govs in later legislation, urging approval for the small-business funds immediately. The evaporation of the program's funds comes at a critical time: New figures released by the Labor Dept yesterday revealed that in the 4-week period thru Apr 11, 22M Americans filed for first-time unemployment benefits, a stunning sign of the colossal economic damage inflicted by the virus outbreak. Before the pandemic, the largest number of Americans to seek jobless aid in a 3-week stretch was 2.7M in 1982. "I don’t have much hair up here. If I did, I’d be scratching my hair," Kudlow said. "I can’t imagine why Congress isn’t replenishing this small loan program. It’s absolutely fantastic. Now’s the time." The small-business program has seen strong demand since launching 2 weeks ago, approving 1.6M loans that depleted the fund. Yesterday, the Small Business Administration said it was no longer accepting applications.
Kudlow: 'What is Congress waiting for?'
Procter & Gamble (PG), a Dow stock & Dividend Aristocrat, beat expectations for profit as consumers stocked up on everything from diapers & detergents to toilet rolls amid sweeping lockdowns around the world to curb the spread of coronavirus. PG, which sells its product in more than 180 countries, recorded sales growth in 3 of its 5 units. The company expects to pay over $7.5B in divs & repurchase $7-8B in shares in fiscal 2020. Sales at its health care unit rose 7%, while fabric & home care unit sales rose 8%. The baby & feminine products business logged a 6% rise in sales. Beauty & grooming were the 2 segments where sales fell. Many of the products, including Bounty paper towels, Charmin toilet paper, Pampers diapers & Tampax tampons, have been in demand across US supermarkets in the past few weeks. For fiscal Q3, net sales rose 5% to $17.2B as consumers stocked up during the last few weeks of the qtr in the US. The forecast called for sales of $17.46B. Excluding one-time items, EPS was $1.17, beating estimates by 4¢. EPS attributable to the company rose to $1.12 from $1.04 a year earlier. The company, however, cut its full-year sales growth target to 3-4% from its prior forecast of 4%-5% to account for currency fluctuation. The stock went up 3.16.
If you would like to learn more about PG, click on this link:
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
P&G beats profit estimates as shoppers hoard toilet rolls, detergent
Ford (F) expects to report a loss of $2B for Q1 as it deals with the fallout from the Covid-19 pandemic. The automaker earlier this week said it sees Q1 revenue of about $34B & adjusted losses before interest & taxes of $600M as it seeks to conserve cash. Analysts expected adjusted EPS of 2¢ on sales of $35.4B. The company is scheduled to report quarterly results on Apr 28. Ford last month withdrew its 2020 financial guidance as the outbreak worsened. The stock gained 18¢.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F?a_aid=CD3289&a_bid=6ae5b6f7
Ford braces for massive quarterly loss after coronavirus fallout
China's economy shrank for the first time since at least 1992 in Q1, as the coronavirus outbreak paralyzed production & spending, raising pressure on authorities to do more to stop mounting job losses. GDP fell 6.8% in Jan-Mar year-on-year, official data showed, larger than the 6.5% decline forecast & reversing a 6% expansion in Q4. The contraction is also the first in the world's 2nd-largest economy since at least 1992 when official quarterly GDP records started. While China has managed to get large parts of its economy up & running from a standstill in Feb, analysts say policymakers face an uphill battle to revive growth as the coronavirus pandemic ravages global demand. On a qtr-on-qutr basis, GDP fell 9.8% in Q1, the National Bureau of Statistics said, just off expectations for a 9.9% contraction, & compared with 1.5% growth in the previous qtr. Separate data showed China's industrial output falling by a less-than-expected 1.1% in Mar from a year earlier. Retail sales fell 15.8% in the same period & fixed asset investment shrank 16.1%. China's urban jobless rate was at 5.9% in Mar, down from 6.2% in Feb.
China posts first GDP decline on record as coronavirus cripples economy
St Louis Federal Reserve Pres James Bullard
proposed what he sees as the best economic solution to the coronavirus
crisis: Pay full costs for any firm that comes up with a test for the
virus that can assure the public that it's safe to resume activity. Doing
so, he said, would create a “gold rush” of testing that would
help offset the steep damage already done by the economic shutdown. “That would end the crisis,” he said. Bullard said addressing the economic slump brought on by the coronavirus
is critical since St Louis Fed economists see the unemployment rate
ranging from 10% on the low end all the way up to 42%, with a potential
50M US households impacted by social distancing measures. The
jobless rate for Mar was 4.4%, but more than 22M Americans have
since filed for unemployment benefits. Though Pres Trump yesterday rolled out a 3-phase program for restarting the economy, it is unclear when it will begin or how long it will take. An
ambitious testing regime would give people the confidence they need to
resume daily activities, including work, while also containing economic
incentives, Bullard said. “You could create this pop-up industry where
you’re essentially giving firms the chance to make quite a bit of profit
because their costs are going to be covered, so their marginal cost is
going to be zero,” he added. “So you drive the costs of these tests down
to zero. You’d be swimming in tests.” Looking at the current data, St Louis Fed economists have been among the most pessimistic, previously forecasting 47M job losses with an unemployment rate of 32%. However, Bullard also has said he sees a fairly sharp recovery after the initial damage. In
fact, he said the batch of economic data from Q2 should
largely be ignored when trying to figure out what the future will look
like. “The numbers coming out of the second quarter will not be
comparable to anything we’ve seen in U.S. macroeconomic history,” he
said. “We should sort of just write off the second quarter, think of it
as a very different episode and quit calculating annual growth rates and
comparing to other periods in the past, because it’s deceptive in
thinking about how the economy might be able to behave going forward.”
Fed’s Bullard proposes way to ‘end the crisis’: Pay all costs for companies developing tests
Gilead Sciences popped after details leaked of a closely watched clinical trial of the company's antiviral drug Remdesivir, showing what appears to be promising results in treating Covid-19. The University of Chicago's phase 3 drug trial found that most of its patients had “rapid recoveries in fever and respiratory symptoms” & were discharged in less than a week, a health-care publication reported. “The best news is that most of our patients have already been discharged, which is great. We’ve only had two patients perish,” University of Chicago infectious disease specialist Kathleen Mullane said. The stock rose 7.45 (10%).
If you would like to learn more about GILD, click on this link:
club.ino.com/trend/analysis/stock/GILD?a_aid=CD3289&a_bid=6ae5b6f7
Gilead stock pops 8% after report says coronavirus drug trial shows encouraging
Gold futures fell to post a loss of about 3% for the week. Optimism over a drug that shows potential to treat COVID-19 & the release of a plan to gradually reopen the US economy combined to dull demand for the haven metal. Jun gold lost $32 (1.9%) to settle at $1698 an ounce. Prices fell 3.1% for the week.
Gold futures post losses for the session and week
US benchmark oil futures dropped to mark another finish at their lowest in more than 18 years, tallying a loss of 20% for the week. Worries about rising US supplies, a potential record drop in demand & tight storage capacity fed oil's decline. May West Texas Intermediate oil fell $1.60 (8.1%) to settle at $18.27 a barrel, the lowest finish for a front-month contract since 2002. Prices lost 19.7% from the settlement on Apr 9.
U.S. oil futures settle at lowest since early 2002, down nearly 20% for the week
Another exciting day for the stock market. The bulls were excited about a new treatment to control the virus & on plans to open the US economy. However there are no shortage of problems. For a starter, an additional money bill is needed to help small businesses is stuck in the DC swamp. For the week, the Dow went up 500 & is up about 6K above its recent lows. With so many dark clouds in the sky, that level of enthusiasm may not last.
Dow Jones Industrials
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