Dow was off 12, advancers over decliners 5-2 & NAZ dropped 91. The MLP index went up 1+ to the 126s & the REIT index went up 5+ to 337. Junk bond funds were little changed & Treasuries rose in price. Oil drifted lower to 12 & gold gave back 9 to 1714.
AMJ (Alerian MLP Index tracking fund)
Caterpillar (CAT), a Dow stock, reported declining profit & revenue amid weak demand from the miners & construction companies that use its equipment and warned the outlook for the rest of 2020 is uncertain due to the COVID-19 pandemic. The equipment maker had EPS of $1.98 as revenue fell 21% year-over-year to $10.6B. The forecast called for EPS of $1.69 on $10.92B in revenue. “We have taken decisive actions to enhance our strong financial position, while continuing to execute our strategy for profitable growth,” CEO Jim Umpleby said. “Caterpillar has faced and overcome many challenges in our 95-year history,” he added. “Our goal is to emerge from the pandemic an even stronger company.” CAT withdrew its 2020 financial guidance last month due to uncertainty caused by COVID-19 & did not provide an update. The stock dropped 38¢.
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Pepsico (PEP), a Dividend Aristocrat, had EPS of 96¢, in its fiscal Q1, down from $1 in the year-earlier period. Revenue rose to $13.9B from $12.9B. The forecast called for EPS of $1.03 & revenue of $13.2B "Despite a strong first quarter, there is still a great deal of uncertainty that exists in relation to COVID-19, including how geographies, retail channels & consumer behaviors will evolve over time," the company said. "Due to this uncertainty, the company's previous financial outlook regarding fiscal year 2020 is no longer applicable." The company is still expecting to return $7.5B to shareholders in fiscal 2020, split between divs of $5.5B & share buybacks of $2B. The stock rose 1.68.
If you would like to learn more about PEP, click on this link:
club.ino.com/trend/analysis/stock/PEP?a_aid=CD3289&a_bid=6ae5b6f7
The economy could take 1-2 years to rebound to full strength & the Federal Reserve & Congress, having already committed historic sums to fight the coronavirus pandemic, will have to commit Ts more, according to respondents to the CNBC Fed Survey. With the Federal Reserve’s balance sheet already at an unprecedented $6.45T, the 36 respondents see it rising on average to $9.8T. The additional Ts, respondents expect, will be added by the end of the current qtr. Congress, having already committed about $2.5T, is seen putting in an additional $2T. Despite the tsunami of relief, respondents still see the unemployment rate rising to a peak of 19%, hitting that level in Aug 2020. It’s expected to decline only gradually, falling to 11% by Dec & to 7% by the end of 2021. That would leave it at about double the rate before the crisis took hold. A 33% plurality believes the economy won't be fully restored until Q2-2022. But 19% believe it will be back by year end & another 19% believe it can happen earlier than that, highlighting a wide range of views about the speed & strength of a recovery. On average, respondents see GDP falling by 24% this qtr, followed by a rebound of 4.7% in Q3 & another strong qtr in the 4th. But it won't be enough to make back the losses in H1. For the full year, GDP is forecast to decline by 5%.
The US economy will take until 2022 to fully recover: CNBC survey
Investors are encouraged to see the first steps in opening up the economy although there was selling after a strong opening. But it's going slowly & only affects a small portion of the country. Meanwhile, earnings reports will be coming & they, by in large, should be grim. Negative thoughts are out there, but seeing the actual dreary numbers can have an influence on investors. Times are tough, but so far the stock market is holding up fairly well.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 12.85 | +0.07 | +0.6% |
| GC=F | Gold | 1,714.60 | -9.20 | -0.5% |
Caterpillar (CAT), a Dow stock, reported declining profit & revenue amid weak demand from the miners & construction companies that use its equipment and warned the outlook for the rest of 2020 is uncertain due to the COVID-19 pandemic. The equipment maker had EPS of $1.98 as revenue fell 21% year-over-year to $10.6B. The forecast called for EPS of $1.69 on $10.92B in revenue. “We have taken decisive actions to enhance our strong financial position, while continuing to execute our strategy for profitable growth,” CEO Jim Umpleby said. “Caterpillar has faced and overcome many challenges in our 95-year history,” he added. “Our goal is to emerge from the pandemic an even stronger company.” CAT withdrew its 2020 financial guidance last month due to uncertainty caused by COVID-19 & did not provide an update. The stock dropped 38¢.
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Caterpillar sales slide 21% amid coronavirus fallout
Pepsico (PEP), a Dividend Aristocrat, had EPS of 96¢, in its fiscal Q1, down from $1 in the year-earlier period. Revenue rose to $13.9B from $12.9B. The forecast called for EPS of $1.03 & revenue of $13.2B "Despite a strong first quarter, there is still a great deal of uncertainty that exists in relation to COVID-19, including how geographies, retail channels & consumer behaviors will evolve over time," the company said. "Due to this uncertainty, the company's previous financial outlook regarding fiscal year 2020 is no longer applicable." The company is still expecting to return $7.5B to shareholders in fiscal 2020, split between divs of $5.5B & share buybacks of $2B. The stock rose 1.68.
If you would like to learn more about PEP, click on this link:
club.ino.com/trend/analysis/stock/PEP?a_aid=CD3289&a_bid=6ae5b6f7
Pepsi loses fizz as coronavirus hits restaurant customers
The economy could take 1-2 years to rebound to full strength & the Federal Reserve & Congress, having already committed historic sums to fight the coronavirus pandemic, will have to commit Ts more, according to respondents to the CNBC Fed Survey. With the Federal Reserve’s balance sheet already at an unprecedented $6.45T, the 36 respondents see it rising on average to $9.8T. The additional Ts, respondents expect, will be added by the end of the current qtr. Congress, having already committed about $2.5T, is seen putting in an additional $2T. Despite the tsunami of relief, respondents still see the unemployment rate rising to a peak of 19%, hitting that level in Aug 2020. It’s expected to decline only gradually, falling to 11% by Dec & to 7% by the end of 2021. That would leave it at about double the rate before the crisis took hold. A 33% plurality believes the economy won't be fully restored until Q2-2022. But 19% believe it will be back by year end & another 19% believe it can happen earlier than that, highlighting a wide range of views about the speed & strength of a recovery. On average, respondents see GDP falling by 24% this qtr, followed by a rebound of 4.7% in Q3 & another strong qtr in the 4th. But it won't be enough to make back the losses in H1. For the full year, GDP is forecast to decline by 5%.
The US economy will take until 2022 to fully recover: CNBC survey
Investors are encouraged to see the first steps in opening up the economy although there was selling after a strong opening. But it's going slowly & only affects a small portion of the country. Meanwhile, earnings reports will be coming & they, by in large, should be grim. Negative thoughts are out there, but seeing the actual dreary numbers can have an influence on investors. Times are tough, but so far the stock market is holding up fairly well.
Dow Jones Industrials
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