Dow gained 211 (but 200 below ealier highs), advancers over decliners 3-1 & NAZ advanced 125. The MLP index fell 1+ to 125 & the REIT index rose 4+ to the 322s. Junk bond funds were higher & Treasuries rose in price. Oil slid back into the 23s & gold soared 40 to 1728 (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)
Costco's (COST) monthly sales fell for the first time since the recession, as stay-at home orders & social-distancing restrictions reduced shopper traffic & some parts of stores offered limited service. Comparable sales, those from stores & digital channels operating for at least 12 months, fell 0.5%, excluding the impact of gasoline & currency fluctuations, for the 4 weeks ended May 3. Including those items, sales fell 4.7% as low gas prices further pushed sales down. “April sales were negatively impacted by Covid-19,” said the company, one of the few retailers that still reports monthly sales. COST cited stay-at-home orders, social-distancing restrictions & some mandatory closures for the lower traffic & sales, as well as scaled-back service in areas such as the food court & optical department. Collectively, the negative impact of Covid-19 & low gas prices reduced comparable sales by around 12%. Excluding the impact of gas prices, optical, travel, the food court, hearing aids, photo & currency fluctuations, sales rose 8.6%. The Apr results marked the first monthly decline since 2009. Many retailers deemed nonessential by local govs have closed & furloughed workers. For those deemed essential, staying open has brought its own set of challenges. Open retailers experienced a massive sales surge early in the US outbreak, as shoppers flocked to stores to stock up on cleaning supplies & food in late Feb & early Mar. Comparable sales rose 12.1% in Feb, boosted by coronavirus-fueled panic buying. In Mar, that growth cooled slightly, with sales slowing during the 2nd ½ of the month as the company reduced store hours & restricted sales of certain products deemed nonessential by some regulators. Mar comparable sales rose 9.6%. While coronavirus hit sales in Apr, “we did see week-to-week improvement in sales and traffic for all four weeks,” the company said. Some of its stores are returning to regular opening hours as more states open & people return to work. Over the past month shoppers continued to favor food & household goods, while buying less luggage, apparel & jewelry. The stock dropepd 3.89.
If you would like to learn more about COST, click on this link:
club.ino.com/trend/analysis/stock/COST?a_aid=CD3289&a_bid=6ae5b6f7
Pres Trump will give an update next week on how trade relations are progressing between the US & China amidst the coronavirus pandemic. The pres has had some tough talk about China & its role in the coronavirus outbreak which started in Wuhan, China. Trade negotiators from the US & China will hold a phone call reportedly as early as next week. Chinese Vice Premier Liu He & US Trade Representative Robert Lighthizer will be involved. Trump will have details on the first phase of the deal that was signed earlier this year. Yesterday, the pres said that China is buying a lot of farm products. "They were going to buy $50 billion worth, the most they ever bought was 15 or 16 and now they are going to 50," said Trump. " $250 billion overall, that's never happened. No president has ever talked about that." "We're watching the deal very closely. They understand. They have a deal and hopefully they are going to keep it," added Trump. "They may or they may not, we'll see." Trump signed a first phase of a multibillion-dollar trade deal with China in Jan. That part involved cutting some US tariffs on Chinese goods in exchange for more purchases of American farm, energy & manufactured goods. The US did keep some tariffs in place to maintain leverage over China for a Phase 2 trade deal.
Hilton Worldwide (HLT) turned a profit in Q1, with the COVID-19 pandemic not significantly hurting its business until Mar. The hotel operator's EPS plunged 89% from a year ago to 6¢. Adjusted EPS was 74¢ on revenue of $1.92B, outstripping estimates of 55¢ & $1.91B, respectively. “We are currently experiencing unprecedented times as a result of the COVID-19 pandemic, and our No. 1 priority remains protecting the safety and security of our guests, team members and owners,” CEO Christopher Nassetta said. “We have also taken precautionary measures to protect our business, including securing our liquidity position.” The hotel operator had $1.8B cash at the end of Q1 after borrowing the remaining $1.75B from its credit facility as a precautionary measure. HLT took further action to bolster its balance sheet at the start of Q2, selling $1B of Hilton Honors points & raising $1B by issuing senior notes. Q1 occupancy fell by 14 percentage points to 56%. That was the main driver of revenue per available room plunging 23% from the year prior to $76.16. The company suspended both its share repurchase program & quarterly div on Mar 26. The stock went up 1.09.
If you would like to learn more about HLT, click on this link:
club.ino.com/trend/analysis/stock/HLT?a_aid=CD3289&a_bid=6ae5b6f7
Gold ended higher, following losses in the last 2 sessions, finding support as the latest weekly climb in US jobless claims fed investor concerns about the economic impact of efforts to contain the COVID-19 pandemic. Almost 3.2M applied for unemployment benefits last week after the coronavirus cost them their jobs. The number of initial jobless claims processed in the week ended May 2 was less than ½ the crisis peak of 6.9M at the end of Mar. Still, some 33M new claims have been filed in 7 weeks. The report comes ahead of the monthly employment report from the Labor Dept which is expected to be gloomy. Jun gold rose $37 (2.2%) to settle at $1725 an ounce. Gold lost more than 1% yesterday as the $ strengthened & the reopening of some economies around the world appeared to dent demand for the haven metal. Today, the Bank of England left interest rates unchanged at 0.1% & held its quantitative easing program steady, though a scenario published by the central bank shows the UK economy falling 14% this year. Aggressive monetary policy easing by major central banks has offered support to gold as nations around the world move to stem the effects of the pandemic on their economies.
Gold settles higher after two-session decline
Crude oil futures gave up earlier gains, with downbeat comments from Federal Reserve officials on economic activity & some doubts over producer compliance with the OPEC+ output-cut agreement prompting prices to settle lower. Prices had spent much of the session trading higher, buoyed by Saudi Arabia's decision to lift prices to help stabilize values, while data showed China's appetite for the commodity picked up in Apr compared with prior months. 3 Federal Reserve district bank presidents said today that they don't expect a quick rebound in economic activity even as states ease COVID-19 lockdown measures. “I think...for the country the short-term outlook is really bleak,” Minneapolis Fed Pres Neel Kashkari said. West Texas Intermediate (WTI) crude for Jun fell 44¢ (1.8%) to $23.55 a barrel after trading as high as $26.74. It settled 2.3% lower yesterday to snap a 5-session streak of gains. Global benchmark Jul Brent crude lost 26¢ (0.9%) at $29.46 a barrel following a 4% decline in the prior session. Oil prices, however, had spent much of today's session trading higher, before giving up those gains shortly ahead of the WTI & Brent priced settlements. Saudi Arabia, the most influential member of OPC, is raising crude prices for its customers world-wide.
Oil prices finish lower as worries about demand resurface
Revolving credit, like credit cards, fell at a 30.9% annual rate in Mar. Nonrevolving credit, typically auto & student loans, rose 6%. The data does not include mortgage loans. Weaker income growth & rapid job loss kept consumers from using credit in Mar. Total retail sales fell a record 8.7% in Mar as the economy was shut down to stop the spread of coronavirus. A Fed survey of senior loan officers reported tightening lending standards & weakening demand for credit cards & auto loans. How consumers react as states start to reopen will be key to how the economy recovers.
Consumer borrowing drops in March as households shy away from using credit cards
Selling in the PM trimmed a substantial advance in the AM. Additionally, demand by negative thinking investors was significant for gold & Treasuries. Before the open tomorrow, jobs & unemployment data will be released which will drive the stock market.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Costco's (COST) monthly sales fell for the first time since the recession, as stay-at home orders & social-distancing restrictions reduced shopper traffic & some parts of stores offered limited service. Comparable sales, those from stores & digital channels operating for at least 12 months, fell 0.5%, excluding the impact of gasoline & currency fluctuations, for the 4 weeks ended May 3. Including those items, sales fell 4.7% as low gas prices further pushed sales down. “April sales were negatively impacted by Covid-19,” said the company, one of the few retailers that still reports monthly sales. COST cited stay-at-home orders, social-distancing restrictions & some mandatory closures for the lower traffic & sales, as well as scaled-back service in areas such as the food court & optical department. Collectively, the negative impact of Covid-19 & low gas prices reduced comparable sales by around 12%. Excluding the impact of gas prices, optical, travel, the food court, hearing aids, photo & currency fluctuations, sales rose 8.6%. The Apr results marked the first monthly decline since 2009. Many retailers deemed nonessential by local govs have closed & furloughed workers. For those deemed essential, staying open has brought its own set of challenges. Open retailers experienced a massive sales surge early in the US outbreak, as shoppers flocked to stores to stock up on cleaning supplies & food in late Feb & early Mar. Comparable sales rose 12.1% in Feb, boosted by coronavirus-fueled panic buying. In Mar, that growth cooled slightly, with sales slowing during the 2nd ½ of the month as the company reduced store hours & restricted sales of certain products deemed nonessential by some regulators. Mar comparable sales rose 9.6%. While coronavirus hit sales in Apr, “we did see week-to-week improvement in sales and traffic for all four weeks,” the company said. Some of its stores are returning to regular opening hours as more states open & people return to work. Over the past month shoppers continued to favor food & household goods, while buying less luggage, apparel & jewelry. The stock dropepd 3.89.
If you would like to learn more about COST, click on this link:
club.ino.com/trend/analysis/stock/COST?a_aid=CD3289&a_bid=6ae5b6f7
Costco’s sales fall for first time in over a decade
Pres Trump will give an update next week on how trade relations are progressing between the US & China amidst the coronavirus pandemic. The pres has had some tough talk about China & its role in the coronavirus outbreak which started in Wuhan, China. Trade negotiators from the US & China will hold a phone call reportedly as early as next week. Chinese Vice Premier Liu He & US Trade Representative Robert Lighthizer will be involved. Trump will have details on the first phase of the deal that was signed earlier this year. Yesterday, the pres said that China is buying a lot of farm products. "They were going to buy $50 billion worth, the most they ever bought was 15 or 16 and now they are going to 50," said Trump. " $250 billion overall, that's never happened. No president has ever talked about that." "We're watching the deal very closely. They understand. They have a deal and hopefully they are going to keep it," added Trump. "They may or they may not, we'll see." Trump signed a first phase of a multibillion-dollar trade deal with China in Jan. That part involved cutting some US tariffs on Chinese goods in exchange for more purchases of American farm, energy & manufactured goods. The US did keep some tariffs in place to maintain leverage over China for a Phase 2 trade deal.
Trump to provide update on China trade deal next week
Hilton Worldwide (HLT) turned a profit in Q1, with the COVID-19 pandemic not significantly hurting its business until Mar. The hotel operator's EPS plunged 89% from a year ago to 6¢. Adjusted EPS was 74¢ on revenue of $1.92B, outstripping estimates of 55¢ & $1.91B, respectively. “We are currently experiencing unprecedented times as a result of the COVID-19 pandemic, and our No. 1 priority remains protecting the safety and security of our guests, team members and owners,” CEO Christopher Nassetta said. “We have also taken precautionary measures to protect our business, including securing our liquidity position.” The hotel operator had $1.8B cash at the end of Q1 after borrowing the remaining $1.75B from its credit facility as a precautionary measure. HLT took further action to bolster its balance sheet at the start of Q2, selling $1B of Hilton Honors points & raising $1B by issuing senior notes. Q1 occupancy fell by 14 percentage points to 56%. That was the main driver of revenue per available room plunging 23% from the year prior to $76.16. The company suspended both its share repurchase program & quarterly div on Mar 26. The stock went up 1.09.
If you would like to learn more about HLT, click on this link:
club.ino.com/trend/analysis/stock/HLT?a_aid=CD3289&a_bid=6ae5b6f7
Hilton scrapes out profit in early phase of coronavirus
Gold ended higher, following losses in the last 2 sessions, finding support as the latest weekly climb in US jobless claims fed investor concerns about the economic impact of efforts to contain the COVID-19 pandemic. Almost 3.2M applied for unemployment benefits last week after the coronavirus cost them their jobs. The number of initial jobless claims processed in the week ended May 2 was less than ½ the crisis peak of 6.9M at the end of Mar. Still, some 33M new claims have been filed in 7 weeks. The report comes ahead of the monthly employment report from the Labor Dept which is expected to be gloomy. Jun gold rose $37 (2.2%) to settle at $1725 an ounce. Gold lost more than 1% yesterday as the $ strengthened & the reopening of some economies around the world appeared to dent demand for the haven metal. Today, the Bank of England left interest rates unchanged at 0.1% & held its quantitative easing program steady, though a scenario published by the central bank shows the UK economy falling 14% this year. Aggressive monetary policy easing by major central banks has offered support to gold as nations around the world move to stem the effects of the pandemic on their economies.
Gold settles higher after two-session decline
Crude oil futures gave up earlier gains, with downbeat comments from Federal Reserve officials on economic activity & some doubts over producer compliance with the OPEC+ output-cut agreement prompting prices to settle lower. Prices had spent much of the session trading higher, buoyed by Saudi Arabia's decision to lift prices to help stabilize values, while data showed China's appetite for the commodity picked up in Apr compared with prior months. 3 Federal Reserve district bank presidents said today that they don't expect a quick rebound in economic activity even as states ease COVID-19 lockdown measures. “I think...for the country the short-term outlook is really bleak,” Minneapolis Fed Pres Neel Kashkari said. West Texas Intermediate (WTI) crude for Jun fell 44¢ (1.8%) to $23.55 a barrel after trading as high as $26.74. It settled 2.3% lower yesterday to snap a 5-session streak of gains. Global benchmark Jul Brent crude lost 26¢ (0.9%) at $29.46 a barrel following a 4% decline in the prior session. Oil prices, however, had spent much of today's session trading higher, before giving up those gains shortly ahead of the WTI & Brent priced settlements. Saudi Arabia, the most influential member of OPC, is raising crude prices for its customers world-wide.
Oil prices finish lower as worries about demand resurface
Revolving credit, like credit cards, fell at a 30.9% annual rate in Mar. Nonrevolving credit, typically auto & student loans, rose 6%. The data does not include mortgage loans. Weaker income growth & rapid job loss kept consumers from using credit in Mar. Total retail sales fell a record 8.7% in Mar as the economy was shut down to stop the spread of coronavirus. A Fed survey of senior loan officers reported tightening lending standards & weakening demand for credit cards & auto loans. How consumers react as states start to reopen will be key to how the economy recovers.
Consumer borrowing drops in March as households shy away from using credit cards
Selling in the PM trimmed a substantial advance in the AM. Additionally, demand by negative thinking investors was significant for gold & Treasuries. Before the open tomorrow, jobs & unemployment data will be released which will drive the stock market.
Dow Jones Industrials
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