Dow dropped 218, decliners over advancers better than 2-1 but NAZ gained 45. The MLP index fell 3+ to the 126s & the REIT index was off 4+ to the 318s. Junk bond funds were little changed & Treasuries remained weak. Oil declined in the 24s after a 5 day rise & gold declined 18 to 1692 (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)
Wendy;s (WEN), lowered its current-qtr div to 5¢ on the COVID-19 crisis, & reported more than 50% decline in Q1 profit, hurt by investments in its breakfast launch. The restaurant chain reported flat quarterly US same-store sales for Q1, as strong demand for its latest breakfast menu offset limited earnings from delivery & take aways while diners stayed at home under lockdowns. Same-store sales declined 25% for the week ended Apr 12 & fell 2% in the week ended May 3 during the current qtr. EPS fell to 6¢ from 14¢. The stock rose 1.40.
If you would like to learn more about WEN, click on this link:
club.ino.com/trend/analysis/stock/WEN?a_aid=CD3289&a_bid=6ae5b6f7
CVS Health (CVS) Q1 profit spiked 41% from a year ago as same-store sales surged during the COVID-19 pandemic. The integrated pharmacy health care provider had EPS of $1.53, as revenue increased 8.3% to $66.8B. Adjusted EPS was $1.91, easily beating the $1.63 estimate. “We have a presence in communities across the country and interact with one in three Americans every year,” CEO Larry Merlo said. “We have a leading consumer brand with a diversified portfolio of essential health care businesses.” Total sales at stores open at least a year rose 9% while pharmacy revenue jumped 9.3% & front store sales -- which include over-the-counter medications & general merchandise such as candy & bath soap -- climbed 8%. COVID-19, which has infected 1.2M Americans, caused customers to stock up on 90-day prescriptions & refill their medications in preparation for "stay-at-home" orders. As a result, the number of prescriptions filled rose 8.2% from the year prior. CVS waived copays for COVID-19 diagnostic tests for all insured customers. The company held its full-year 2020 earnings target at $7.04-7.17 despite uncertainty about how the coronavirus will affect its business. The stock declined 80¢.
If you would like to learn more about CVS, click on this link:
club.ino.com/trend/analysis/stock/CVS?a_aid=CD3289&a_bid=6ae5b6f7
Walt Disney (DIS), a Dow stock, profit dove more than 90% in Q2, an example of the drastic effects on the company from the COVID-19 pandemic, which execs said cost the media giant more than $1B in profit just in its theme-parks division. Fiscal Q2 was 26¢ on sales of $18.01B, up from $14.9B in the year-ago qtr, which included only a few days of results from the $71B acquisition of Fox assets. In that qtr, though, profit was more than $5B, with a boost from the acquisition of a controlling interest in Hulu. After adjusting for restructuring charges & other effects, EPS was 60¢, down from $1.61 in the year-ago qtr. The forecast called for adjusted EPS of 91¢ on sales of $18.06B, but those numbers have been slashed in recent weeks as the coronavirus has spread across the globe & DIS has closed its theme parks & ceased movie production. As of the end of Jan, analysts expected adjusted EPS of $1.40 on sales of $19.5B. “While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” said Bob Chapek, who took over as chief executive of DIS from Robert Iger during the qtr. While Chapek now sits in the CEO chair, Iger — who has taken on the role of exec chairman— was the first to speak & sounded a similar refrain of resilience & a future rebound. “As someone who has been around for a while and led this company through some really tough days over the last 15 years, including economic downturns, natural disasters and other unforeseen events, I have absolute confidence in our ability to get through this challenging period and recover successfully,” Iger said. Execs provided little clarity about near-term financial effects, though, beyond saying that the direct-to-consumer segment would record an operating loss of more than $1B in fiscal Q3. CFO Christine McCarthy said that DIS will not pay a semiannual div that would have been expected in Jul, saving approximately $1.6B. The stock slid back 18¢.
If you would like to learn more about DIS, click on this link:
club.ino.com/trend/analysis/stock/DIS?a_aid=CD3289&a_bid=6ae5b6f7
Disney earnings plummet more than 90% as coronavirus wipes out more than $1 billion
Gold prices settled with a more than 1% loss as the $ strengthened & the reopening of some economies around the world reduced the need for safe haven bullion. Jun gold fell $22 (1.3%) to settle at $1688 an ounce after it edged down 0.2% yesterday. Assets traded in $s, like gold, often move inversely with the currency, as a stronger buck can make assets priced in the monetary unit more expensive to buyers using other currencies. Gold fell further even as investors digested a private-sector employment report from payment processor Automatic Data Processing showing 20.2M jobs were lost in Apr, as many businesses were forced to shutter in much of the US to slow the spread of the coronavirus.
Gold ends over 1% lower as the dollar firms and some U.S. states ease lockdown measures
The Treasury Dept said it will issue a new 20-year bond in an effort to fund the record level of gov borrowing needed to support the economy through the coronavirus pandemic. The dept announced plans to auction the first 20-year bond on May 20, with an initial offering of $20B. “Treasury’s borrowing needs have increased substantially as a result of the federal government’s response to the Covid-19 outbreak,” the Treasury said. As a result of the virus outbreak, the Treasury Dept is borrowing $2.99T in the current qtr alone, far more than it ever has before. The amount is 5 times more than the gov's previous record borrowing for a qtr of $569B in the midst of the last recession. Treasury said the record sum is needed to pay for nearly $3T in stimulus measures approved by the federal gov to insulate the US economy from the crisis & support tens of Ms of jobless workers with direct payments. The dept said it expects to shift more of its issuance of Treasuries to longer-term securities moving forward. “While the initial increases in financing related to the COVID-19 outbreak response were focused on Treasury bills, Treasury expects to begin to shift financing from bills to longer-dated tenors over the coming quarters,” Brian Smith, Treasury's assistant secretary for federal finance, said. “In light of the substantial increase in borrowing needs, Treasury plans to increase its long-term issuance as a prudent means of managing its maturity profile and limiting potential future issuance volatility,” he added.
Crude-oil futures settled lower, with the US benchmark snapping a 5-session streak of gains, pressured by concerns over tightening oil-storage capacity even though weekly crude inventories rose less than expected and domestic production declined. The build in weekly US crude inventories reported by the Energy Information Administration (EIA) was smaller than anticipated, while the Energy Dept continued to buy oil for the Strategic Petroleum Reserve (SPR). The EIA reported a rise of 1.7M barrels in the SPR to 638M barrels last week. West Texas Intermediate crude for Jun lost 57¢ (2.3%) to settle at $23.99 a barrel. Yesterday, WTI finished 21% higher, marking its highest close for a most-active contract since Apr 17, as investors keyed in on signs of slowdown in production & the ease of business lockdowns across the globe that suggested that demand might yet return as economies recover from the coronavirus pandemic. Global benchmark Jul Brent crude declined by $1.25 (4%) at $29.72 a barrel, following an almost 14% gain in the previous session. The EIA reported today that US crude inventories rose 4.6M barrels last week. The data, which excludes changes in the SPR, marked a 15th consecutive weekly rise, but was smaller than the increase of 7.1M barrels forecast. The American Petroleum Institute on yetersday reported a climb of 8.4M barrels in weekly crude stocks. Crude stocks at the Cushing, Okla, storage hub rose about 2M barrels for the week. Domestic crude production totaled 11.9M barrels a day, down 200K barrels per day, the EIA data showed.
Oil futures settle lower on storage capacity concerns, despite a smaller-than-expected rise in U.S. crude supplies
Techs were strong, taking the NAZ higher. However most of the market was lower wiith sellling in the last hour. Tomoorrow will bring the current report on jobless claims & that will not be cheery, although the data will probably show improvement over last week's numbers. Fri brings the new jobs data & the unemployment rate for Apr which is expected to be cheerless. Selling in the last hour took the Dow into the red for this week.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Wendy;s (WEN), lowered its current-qtr div to 5¢ on the COVID-19 crisis, & reported more than 50% decline in Q1 profit, hurt by investments in its breakfast launch. The restaurant chain reported flat quarterly US same-store sales for Q1, as strong demand for its latest breakfast menu offset limited earnings from delivery & take aways while diners stayed at home under lockdowns. Same-store sales declined 25% for the week ended Apr 12 & fell 2% in the week ended May 3 during the current qtr. EPS fell to 6¢ from 14¢. The stock rose 1.40.
If you would like to learn more about WEN, click on this link:
club.ino.com/trend/analysis/stock/WEN?a_aid=CD3289&a_bid=6ae5b6f7
Wendy's profit down 50% in coronavirus pandemic
CVS Health (CVS) Q1 profit spiked 41% from a year ago as same-store sales surged during the COVID-19 pandemic. The integrated pharmacy health care provider had EPS of $1.53, as revenue increased 8.3% to $66.8B. Adjusted EPS was $1.91, easily beating the $1.63 estimate. “We have a presence in communities across the country and interact with one in three Americans every year,” CEO Larry Merlo said. “We have a leading consumer brand with a diversified portfolio of essential health care businesses.” Total sales at stores open at least a year rose 9% while pharmacy revenue jumped 9.3% & front store sales -- which include over-the-counter medications & general merchandise such as candy & bath soap -- climbed 8%. COVID-19, which has infected 1.2M Americans, caused customers to stock up on 90-day prescriptions & refill their medications in preparation for "stay-at-home" orders. As a result, the number of prescriptions filled rose 8.2% from the year prior. CVS waived copays for COVID-19 diagnostic tests for all insured customers. The company held its full-year 2020 earnings target at $7.04-7.17 despite uncertainty about how the coronavirus will affect its business. The stock declined 80¢.
If you would like to learn more about CVS, click on this link:
club.ino.com/trend/analysis/stock/CVS?a_aid=CD3289&a_bid=6ae5b6f7
CVS Health profit spikes as coronavirus drives sales surge
Walt Disney (DIS), a Dow stock, profit dove more than 90% in Q2, an example of the drastic effects on the company from the COVID-19 pandemic, which execs said cost the media giant more than $1B in profit just in its theme-parks division. Fiscal Q2 was 26¢ on sales of $18.01B, up from $14.9B in the year-ago qtr, which included only a few days of results from the $71B acquisition of Fox assets. In that qtr, though, profit was more than $5B, with a boost from the acquisition of a controlling interest in Hulu. After adjusting for restructuring charges & other effects, EPS was 60¢, down from $1.61 in the year-ago qtr. The forecast called for adjusted EPS of 91¢ on sales of $18.06B, but those numbers have been slashed in recent weeks as the coronavirus has spread across the globe & DIS has closed its theme parks & ceased movie production. As of the end of Jan, analysts expected adjusted EPS of $1.40 on sales of $19.5B. “While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” said Bob Chapek, who took over as chief executive of DIS from Robert Iger during the qtr. While Chapek now sits in the CEO chair, Iger — who has taken on the role of exec chairman— was the first to speak & sounded a similar refrain of resilience & a future rebound. “As someone who has been around for a while and led this company through some really tough days over the last 15 years, including economic downturns, natural disasters and other unforeseen events, I have absolute confidence in our ability to get through this challenging period and recover successfully,” Iger said. Execs provided little clarity about near-term financial effects, though, beyond saying that the direct-to-consumer segment would record an operating loss of more than $1B in fiscal Q3. CFO Christine McCarthy said that DIS will not pay a semiannual div that would have been expected in Jul, saving approximately $1.6B. The stock slid back 18¢.
If you would like to learn more about DIS, click on this link:
club.ino.com/trend/analysis/stock/DIS?a_aid=CD3289&a_bid=6ae5b6f7
Disney earnings plummet more than 90% as coronavirus wipes out more than $1 billion
Gold prices settled with a more than 1% loss as the $ strengthened & the reopening of some economies around the world reduced the need for safe haven bullion. Jun gold fell $22 (1.3%) to settle at $1688 an ounce after it edged down 0.2% yesterday. Assets traded in $s, like gold, often move inversely with the currency, as a stronger buck can make assets priced in the monetary unit more expensive to buyers using other currencies. Gold fell further even as investors digested a private-sector employment report from payment processor Automatic Data Processing showing 20.2M jobs were lost in Apr, as many businesses were forced to shutter in much of the US to slow the spread of the coronavirus.
Gold ends over 1% lower as the dollar firms and some U.S. states ease lockdown measures
The Treasury Dept said it will issue a new 20-year bond in an effort to fund the record level of gov borrowing needed to support the economy through the coronavirus pandemic. The dept announced plans to auction the first 20-year bond on May 20, with an initial offering of $20B. “Treasury’s borrowing needs have increased substantially as a result of the federal government’s response to the Covid-19 outbreak,” the Treasury said. As a result of the virus outbreak, the Treasury Dept is borrowing $2.99T in the current qtr alone, far more than it ever has before. The amount is 5 times more than the gov's previous record borrowing for a qtr of $569B in the midst of the last recession. Treasury said the record sum is needed to pay for nearly $3T in stimulus measures approved by the federal gov to insulate the US economy from the crisis & support tens of Ms of jobless workers with direct payments. The dept said it expects to shift more of its issuance of Treasuries to longer-term securities moving forward. “While the initial increases in financing related to the COVID-19 outbreak response were focused on Treasury bills, Treasury expects to begin to shift financing from bills to longer-dated tenors over the coming quarters,” Brian Smith, Treasury's assistant secretary for federal finance, said. “In light of the substantial increase in borrowing needs, Treasury plans to increase its long-term issuance as a prudent means of managing its maturity profile and limiting potential future issuance volatility,” he added.
Treasury launches 20-year bond to help fund record government borrowing
Crude-oil futures settled lower, with the US benchmark snapping a 5-session streak of gains, pressured by concerns over tightening oil-storage capacity even though weekly crude inventories rose less than expected and domestic production declined. The build in weekly US crude inventories reported by the Energy Information Administration (EIA) was smaller than anticipated, while the Energy Dept continued to buy oil for the Strategic Petroleum Reserve (SPR). The EIA reported a rise of 1.7M barrels in the SPR to 638M barrels last week. West Texas Intermediate crude for Jun lost 57¢ (2.3%) to settle at $23.99 a barrel. Yesterday, WTI finished 21% higher, marking its highest close for a most-active contract since Apr 17, as investors keyed in on signs of slowdown in production & the ease of business lockdowns across the globe that suggested that demand might yet return as economies recover from the coronavirus pandemic. Global benchmark Jul Brent crude declined by $1.25 (4%) at $29.72 a barrel, following an almost 14% gain in the previous session. The EIA reported today that US crude inventories rose 4.6M barrels last week. The data, which excludes changes in the SPR, marked a 15th consecutive weekly rise, but was smaller than the increase of 7.1M barrels forecast. The American Petroleum Institute on yetersday reported a climb of 8.4M barrels in weekly crude stocks. Crude stocks at the Cushing, Okla, storage hub rose about 2M barrels for the week. Domestic crude production totaled 11.9M barrels a day, down 200K barrels per day, the EIA data showed.
Oil futures settle lower on storage capacity concerns, despite a smaller-than-expected rise in U.S. crude supplies
Techs were strong, taking the NAZ higher. However most of the market was lower wiith sellling in the last hour. Tomoorrow will bring the current report on jobless claims & that will not be cheery, although the data will probably show improvement over last week's numbers. Fri brings the new jobs data & the unemployment rate for Apr which is expected to be cheerless. Selling in the last hour took the Dow into the red for this week.
Dow Jones Industrials
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