Dow rose 377 to session highs after falling 450 at the opening, decliners over advancers 4-3 & NAZ gained 80. The MLP index rose 1 to the 124s & the REIT index crawled up 1 to 304. Junk bond funds edged lower & Treasuries went up in price. Oil shot up 2+ to the 27s & gold soared 23 to 1739 (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 Trump said he believes the US would have a coronavirus vaccine by the end of 2020. "I think we're going to have a vaccine by the end of the year," Trump said. "I think distribution will take place almost simultaneously because we geared up the military, and you'll see that tomorrow." There are more than 1.4M confirmed cases of COVID-19 in the US. Companies including Moderna (MRNA) & Pfizer (PFE), a Dow stock, are working on developing a vaccine, although experts warn the process could take years. PFE is optimistic about its chances & began human testing of an experimental coronavirus vaccine in the US in May. PFE says such a vaccine could be ready for US distribution by the end of the year if proven safe & effective. PFE stock rose 87¢.
If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Cisco (CSCO), a Dow stock, beat quarterly estimates for revenue & profit as COVID-19 lockdowns globally boosted demand for its remote-work tools & networking equipment. The health crisis has forced many businesses to go completely online, with many companies increasing the use of video conferencing & virtual private network software, including CSCO's Webex & AnyConnect. The surge in internet activity has also increased the usage of networking equipment that the company sells. “The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster speed and greater scale than ever before,” CEO Chuck Robbins said. The network gear maker said it expects fiscal Q4 revenue to drop 8.5-11.5% from a year earlier to $11.5-$11.9B. The forecast called for revenue of $11.8B. CSCO reported an 8% drop in fiscal Q3 revenue to $12B, but narrowly beat the estimate of $11.7B. Excluding items, EPS was 79¢, topping expectations of 69¢. CSCO stock went up 1.90.
If you would like to learn more about CSCO, click on this link:
club.ino.com/trend/analysis/stock/CSCO?a_aid=CD3289&a_bid=6ae5b6f7
Gold futures climbed to their highest finish in 3 weeks as investors digested an economic report on the US labor market, which highlights a growing sense of the challenge the economy may face in recovering from the COVID-19 pandemic. US unemployment data showed that those seeking jobless benefits rose 2.98M last week. The forecast called for 2.7M, but indicates that applications for unemployment compensation peaked at a seasonally adjusted 6.9M in late Mar & has fallen steadily over the past month. Gold had found support from comments from Federal Reserve Chair Jerome Powell who on described the path forward for the domestic economy from the deadly pathogen as uncertain, though the central-bank boss appeared to reject the idea of pushing its policy interest rate, which stand at 0%-0.25%, to subzero levels, which would support bullion prices. Gold for Jun rose $24 (1.4%) to settle at $1740, after rising 0.6% yesterday. That was the highest settlement for a most-active contract since Apr 23. Gold bears may take some heart in the number of US unemployment claims decelerating, which could take some of the shine off the metal. However, gold bulls are still upbeat on the outlook for the metal, as many investors view the current environment as analogous or worse than the 2007-08 financial crisis, which rocked global markets.
Oil futures rose sharply, lifting US prices to their highest in nearly 6 weeks, on the back of recent pledges by major oil producers to cut output, as the International Energy Agency (IEA) pointed to a tightening of the supply picture later in the year. The move for prices comes a day after US gov data showed a surprise weekly fall in domestic crude supplies, the first in 16 weeks, as well as declines in total crude production. West Texas Intermediate crude for Jun rose $2.27 (9%) to settle at $27.56 a barrel. That was the highest front-month contract finish sin Apr 3. Jul Brent crude, the global benchmark, added $1.94 (6.7%) at $31.13 a barrel. In a monthly report, the IEA said the COVID-19 lockdowns will continue to sharply curtail crude demand in May, while producers implement the largest monthly production cut on record. The IEA said world demand for crude will drop by 21.5M barrels a day this month, while crude-producing nations & companies slash output by a “spectacular” 12M barrels a day. A gradual pickup in demand as lockdowns ease & sharp reductions in output mean the outlook for crude has “improved somewhat” since Apr. For 2020, the IEA now looks for global crude demand to fall by 8.6M barrels a day versus its Apr forecast for a fall of 9.3M barrels a day. Crude-oil prices ended lower yesterday, with downbeat remarks on the economic outlook from Federal Reserve Chair Jerome Powell blamed for damping demand expectations. At the same time, data from the Energy Information Administration showed the first drop in US crude inventories since mid-Jan, including a decline in supplies at Cushing, Oklahoma, the delivery hub for Nymex futures. Dwindling storage capacity in Cushing was blamed in large part for driving the expiring May WTI contract into negative territory for the first time in history last month. The COVID-19 pandemic has destroyed demand for crude, contributing to a global glut. The EIA report had also revealed a bigger-than-expected weekly decrease in US gasoline stockpiles and a smaller-than-expected rise in distillate supplies.
Oil futures up sharply, with U.S. prices near a 6-week high
Even for these times, this was a very wild session. The Dow sank 450 at the opening on the dreary report for unemployment claims. Buyers returned in the PM, giving it a significant gain. Unemployment claims data show progress, with the number falling. But the total number will get a lot of attention, a reminder that more work is needed to repair the broken economy. There are concerns about trade relations with China & the inablility of Congress to come up with another relief bill. The oil market is recovering thanks to substantial production cuts. However the prices are still anemic, far below where they need to be for a healthy industry. Meanwhile gold is at a 7 year high & not far from the records reached around 1900 in 2011. Nervous investors are buying gold.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Pres Trump said he believes the US would have a coronavirus vaccine by the end of 2020. "I think we're going to have a vaccine by the end of the year," Trump said. "I think distribution will take place almost simultaneously because we geared up the military, and you'll see that tomorrow." There are more than 1.4M confirmed cases of COVID-19 in the US. Companies including Moderna (MRNA) & Pfizer (PFE), a Dow stock, are working on developing a vaccine, although experts warn the process could take years. PFE is optimistic about its chances & began human testing of an experimental coronavirus vaccine in the US in May. PFE says such a vaccine could be ready for US distribution by the end of the year if proven safe & effective. PFE stock rose 87¢.
If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Trump: Coronavirus vaccine could come by end of the year
Cisco (CSCO), a Dow stock, beat quarterly estimates for revenue & profit as COVID-19 lockdowns globally boosted demand for its remote-work tools & networking equipment. The health crisis has forced many businesses to go completely online, with many companies increasing the use of video conferencing & virtual private network software, including CSCO's Webex & AnyConnect. The surge in internet activity has also increased the usage of networking equipment that the company sells. “The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster speed and greater scale than ever before,” CEO Chuck Robbins said. The network gear maker said it expects fiscal Q4 revenue to drop 8.5-11.5% from a year earlier to $11.5-$11.9B. The forecast called for revenue of $11.8B. CSCO reported an 8% drop in fiscal Q3 revenue to $12B, but narrowly beat the estimate of $11.7B. Excluding items, EPS was 79¢, topping expectations of 69¢. CSCO stock went up 1.90.
If you would like to learn more about CSCO, click on this link:
club.ino.com/trend/analysis/stock/CSCO?a_aid=CD3289&a_bid=6ae5b6f7
Cisco profits jump on coronavirus-prompted work-from-home apps
Gold futures climbed to their highest finish in 3 weeks as investors digested an economic report on the US labor market, which highlights a growing sense of the challenge the economy may face in recovering from the COVID-19 pandemic. US unemployment data showed that those seeking jobless benefits rose 2.98M last week. The forecast called for 2.7M, but indicates that applications for unemployment compensation peaked at a seasonally adjusted 6.9M in late Mar & has fallen steadily over the past month. Gold had found support from comments from Federal Reserve Chair Jerome Powell who on described the path forward for the domestic economy from the deadly pathogen as uncertain, though the central-bank boss appeared to reject the idea of pushing its policy interest rate, which stand at 0%-0.25%, to subzero levels, which would support bullion prices. Gold for Jun rose $24 (1.4%) to settle at $1740, after rising 0.6% yesterday. That was the highest settlement for a most-active contract since Apr 23. Gold bears may take some heart in the number of US unemployment claims decelerating, which could take some of the shine off the metal. However, gold bulls are still upbeat on the outlook for the metal, as many investors view the current environment as analogous or worse than the 2007-08 financial crisis, which rocked global markets.
Gold prices end at 3-week high as investors weigh the outlook for the economy and interest rates
Oil futures rose sharply, lifting US prices to their highest in nearly 6 weeks, on the back of recent pledges by major oil producers to cut output, as the International Energy Agency (IEA) pointed to a tightening of the supply picture later in the year. The move for prices comes a day after US gov data showed a surprise weekly fall in domestic crude supplies, the first in 16 weeks, as well as declines in total crude production. West Texas Intermediate crude for Jun rose $2.27 (9%) to settle at $27.56 a barrel. That was the highest front-month contract finish sin Apr 3. Jul Brent crude, the global benchmark, added $1.94 (6.7%) at $31.13 a barrel. In a monthly report, the IEA said the COVID-19 lockdowns will continue to sharply curtail crude demand in May, while producers implement the largest monthly production cut on record. The IEA said world demand for crude will drop by 21.5M barrels a day this month, while crude-producing nations & companies slash output by a “spectacular” 12M barrels a day. A gradual pickup in demand as lockdowns ease & sharp reductions in output mean the outlook for crude has “improved somewhat” since Apr. For 2020, the IEA now looks for global crude demand to fall by 8.6M barrels a day versus its Apr forecast for a fall of 9.3M barrels a day. Crude-oil prices ended lower yesterday, with downbeat remarks on the economic outlook from Federal Reserve Chair Jerome Powell blamed for damping demand expectations. At the same time, data from the Energy Information Administration showed the first drop in US crude inventories since mid-Jan, including a decline in supplies at Cushing, Oklahoma, the delivery hub for Nymex futures. Dwindling storage capacity in Cushing was blamed in large part for driving the expiring May WTI contract into negative territory for the first time in history last month. The COVID-19 pandemic has destroyed demand for crude, contributing to a global glut. The EIA report had also revealed a bigger-than-expected weekly decrease in US gasoline stockpiles and a smaller-than-expected rise in distillate supplies.
Oil futures up sharply, with U.S. prices near a 6-week high
Even for these times, this was a very wild session. The Dow sank 450 at the opening on the dreary report for unemployment claims. Buyers returned in the PM, giving it a significant gain. Unemployment claims data show progress, with the number falling. But the total number will get a lot of attention, a reminder that more work is needed to repair the broken economy. There are concerns about trade relations with China & the inablility of Congress to come up with another relief bill. The oil market is recovering thanks to substantial production cuts. However the prices are still anemic, far below where they need to be for a healthy industry. Meanwhile gold is at a 7 year high & not far from the records reached around 1900 in 2011. Nervous investors are buying gold.
Dow Jones Industrials
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