Dow dropped 121, decliners over advancers about 2-1 & NAZ lost 15, The MLP index fell 1+ to 140 & the REIT index rose 2+ to 321. Junk bond funds were purchased & Treasuries were bid higher. Oil pulled back 1+ to the 32s after its recent rally & gold went up 13 to 1735.
AMJ (Alerian MLP Index tracking fund)
Deere's (DE) quarterly profit plunged 41% from a year ago as the COVID-19 pandemic disrupted operations in the final weeks of Mar. The heavy-equipment manufacturer had EPS of $2.11 as worldwide net sales fell 18% to $9.25B. The forecast was for EPS of $1.62 on revenue of $7.69B. “We’re confident the company will successfully manage the pandemic's effects and strengthen its position serving customers in the future,” CEO John May said The company took a number of actions to bolster its balance sheet, raising $4.5B thru medium- & long-term funding as well as cutting operating expenses & capital spending. DE had $8.9B cash at the end of Mar. Equipment sales, which made up 89% of total revenue, fell 20% year-over-year to $8.22B. Agriculture & turf sales fell 18% while construction & forestry sales slid 25%. DE recorded a $114M pretax writedown related to its minority stake in an equipment company in South Africa. Looking ahead, DE sees full-year 2020 net income of $1.6-2B, but warned the COVID-pandemic could "negatively affect" its results and future financial position. The stock went up 2.43.
If you would like to learn more about DE, click on this link:
club.ino.com/trend/analysis/stock/DE?a_aid=CD3289&a_bid=6ae5b6f7
Foot Locker (FL) said that it swung to a loss in Q1 & will temporarily suspend its cash div. The specialty athletic retailer reported a loss of 93¢ a share compared with EPS of $1.52 in the same period last year. Excluding items, FL had a loss of 67¢ per share for the qtr. The forecast called for a loss of 12¢ a share. Sales fell 43.4% to $1.12B. Inventories at the end of the qtr came to $1.46B, 20.4% higher than at the end of Q1 last year. During the qtr, the company opened 5 new stores, remodeled or relocated 9 & permanently closed 21. As of May 2, it said it operated 3113 stores in 27 countries around the world. The company said it would temporarily suspend its div beginning with the 2nd qtr payment & would evaluate the policy on a quarterly basis. The stock sank 3.65 (12%).
If you would like to learn more about FL, click on this link:
club.ino.com/trend/analysis/stock/FL?a_aid=CD3289&a_bid=6ae5b6f7
IBM (IBM), a Dow stock, is cutting an unspecified number of jobs, making it the first workforce reduction under new CEO Arvind Krishna. “IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,” IBM's Edward Barbini said. The company declined to comment on how many jobs are affected, though the cuts are believed to affect several thousand employees. IBM had more than 350K full-time employees as of the end of 2019. Due to the pandemic, the company will be offering subsidized medical coverage to its affected US employees thru Jun 2021. The job cuts were in the works for a while, the company said. In both its Q4-2019 & Q1-2020 earnings calls, IBM said it could take additional structural actions that could lead to cost savings. IBM also has retraining & education programs for employees to learn skills for new areas the company has targeted for growth, like cloud computing & artificial intelligence. Krishna took over as CEO in early Apr, as the company faced both the pandemic & an ongoing struggle with growth. Its share price is roughly the same as it was a decade ago, though its tech peers have seen rapid growth. The stock was off 71¢.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
IBM to cut jobs for first time under new CEO Arvind Krishna
US-China trade tensions are increasing, making traders nervous. Of course, earnings cuts keep coming as the Dow is near its highs for the last 2+ months. Going into a holiday weekend, traders might close out their positions in the PM.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 32.36 | -1.56 | -4.6% |
| GC=F | Gold | 1,734.50 | +12.60 | +0.7% |
Deere's (DE) quarterly profit plunged 41% from a year ago as the COVID-19 pandemic disrupted operations in the final weeks of Mar. The heavy-equipment manufacturer had EPS of $2.11 as worldwide net sales fell 18% to $9.25B. The forecast was for EPS of $1.62 on revenue of $7.69B. “We’re confident the company will successfully manage the pandemic's effects and strengthen its position serving customers in the future,” CEO John May said The company took a number of actions to bolster its balance sheet, raising $4.5B thru medium- & long-term funding as well as cutting operating expenses & capital spending. DE had $8.9B cash at the end of Mar. Equipment sales, which made up 89% of total revenue, fell 20% year-over-year to $8.22B. Agriculture & turf sales fell 18% while construction & forestry sales slid 25%. DE recorded a $114M pretax writedown related to its minority stake in an equipment company in South Africa. Looking ahead, DE sees full-year 2020 net income of $1.6-2B, but warned the COVID-pandemic could "negatively affect" its results and future financial position. The stock went up 2.43.
If you would like to learn more about DE, click on this link:
club.ino.com/trend/analysis/stock/DE?a_aid=CD3289&a_bid=6ae5b6f7
Deere profit plunges 41% amid coronavirus outbreak
Foot Locker (FL) said that it swung to a loss in Q1 & will temporarily suspend its cash div. The specialty athletic retailer reported a loss of 93¢ a share compared with EPS of $1.52 in the same period last year. Excluding items, FL had a loss of 67¢ per share for the qtr. The forecast called for a loss of 12¢ a share. Sales fell 43.4% to $1.12B. Inventories at the end of the qtr came to $1.46B, 20.4% higher than at the end of Q1 last year. During the qtr, the company opened 5 new stores, remodeled or relocated 9 & permanently closed 21. As of May 2, it said it operated 3113 stores in 27 countries around the world. The company said it would temporarily suspend its div beginning with the 2nd qtr payment & would evaluate the policy on a quarterly basis. The stock sank 3.65 (12%).
If you would like to learn more about FL, click on this link:
club.ino.com/trend/analysis/stock/FL?a_aid=CD3289&a_bid=6ae5b6f7
Foot Locker stumbles to $98 million loss
IBM (IBM), a Dow stock, is cutting an unspecified number of jobs, making it the first workforce reduction under new CEO Arvind Krishna. “IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,” IBM's Edward Barbini said. The company declined to comment on how many jobs are affected, though the cuts are believed to affect several thousand employees. IBM had more than 350K full-time employees as of the end of 2019. Due to the pandemic, the company will be offering subsidized medical coverage to its affected US employees thru Jun 2021. The job cuts were in the works for a while, the company said. In both its Q4-2019 & Q1-2020 earnings calls, IBM said it could take additional structural actions that could lead to cost savings. IBM also has retraining & education programs for employees to learn skills for new areas the company has targeted for growth, like cloud computing & artificial intelligence. Krishna took over as CEO in early Apr, as the company faced both the pandemic & an ongoing struggle with growth. Its share price is roughly the same as it was a decade ago, though its tech peers have seen rapid growth. The stock was off 71¢.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
IBM to cut jobs for first time under new CEO Arvind Krishna
US-China trade tensions are increasing, making traders nervous. Of course, earnings cuts keep coming as the Dow is near its highs for the last 2+ months. Going into a holiday weekend, traders might close out their positions in the PM.
Dow Jones Industrials
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