Dow slid back 3 looking for direction, decliners over advancers almost 2-1 & NAZ rose 87. The MLP index fell 3+ to the 126s & the REIT index gave back 2+, falling to 321. Junk bond funds hardly budged & Treasuries were sold. Oil was off 1+ to the 23s after its recent rally & gold dropped 21 to 1689.
AMJ (Alerian MLP Index tracking fund)
White House economic adviser Kevin Hassett said that a preliminary report indicating US employers slashed roughly 20M jobs amid the coronavirus-pandemic "might be even a little bit low." "If you look at the initial claims for unemployment insurance, they are north of 30 million now," Hassett said. "Given the sort of technicalities about when they calculate unemployment rates, then that can help you figure out what jobs numbers are going to look like. 20 million might be even a little bit low." Private employers slashed 20.2M jobs in Apr as the coronavirus-induced lockdown ravaged the US economy, according to the ADP National Employment Report released today. It was the largest decline on record since the survey started in 2002. "These numbers, bad as they are, would have been a heck of a lot worse probably if you didn't see the [Paycheck Protection Program] loans coming," Hassett said, referring to the program overseen by the Small Business Administration.
St Louis Federal Reserve Pres James Bullard said that the Apr jobs report being released on Fri will likely be one of the worst in American history. “But that’s kind of expected because you’re using the unemployment insurance program to provide pandemic relief,” Bullard said. “That’s exactly what we want to do.” Bullard's comments came minutes before ADP reported that private payrolls shed more than 20M jobs in Apr as employers slashed worker positions amid widespread shutdowns & forced gov closures to help contain the spread of the coronavirus. The decline totaled 20.2M & represented by far the worst loss in the survey’s 18-year history. Despite the eye-watering number, the 20.2M wasn’t as bad as the 22M than the forecast. But investors await the Labor Dep's key jobs report on Fri, when expectations are for the unemployment rate to have rocketed to 16% in Apr, from 4.4% in Mar. The forecast calls for nonfarm payrolls to have declined by 21M last month. Should the unemployment rate rise by the expected 11.6 percentage points, it will surpass the prior record increase of 1.3 percentage points from 1949. The decline in nonfarm payrolls in Apr will almost certainly set a new record since the prior one-month record drop was almost 2M in 1945, according to data at the Bureau of Labor Statistics. The decline in nonfarm payrolls last month will likely triple the total jobs lost over 2 years during the last recession. “The unemployment rate is going to be extremely high,” Bullard added. “We think 20% isn’t unlikely, could even be higher than that. You’ve also got this PPP program, which has encouraged firms to keep their workers on their payrolls even though they’re not doing that much business.” “It’s not surprising. It’s a pandemic. It’s a shutdown situation,” he continued, adding that he long maintained that the main impact from the crisis would be in Q2. “We’re going to see crazy ADP numbers today and the jobs report will probably be one of the worst ever on Friday,” he said. Bullard, one of the Fed's more optimistic voices, said he thinks the US economy may return to speedy growth in Q3. “In the third quarter, it’ll be a transition quarter, but I would expect relatively rapid growth,” he added. “And then, hopefully by the time we get to the fourth quarter, we’ll be finishing up this process.” He said he wouldn't be surprised to see the US unemployment rate to decline back to single digits by the end of 2020 as the economy recovers from the sharp Q2 pullback.
Fed’s James Bullard says the jobs report on Friday will be one of the worst ever
General Motors (GM) eked out a profit during the first 3 months of the year despite the coronavirus slowing business to a standstill during the final weeks of Q1. The automaker had EPS of 17¢, as net revenue fell 6.2% from a year ago to $32.7B & pandemic costs reached $1.4B. Adjusted EPS of 62¢ topped the 30¢ that was expected. “We are focused on preserving liquidity and taking the right actions today to make the company stronger and more competitive in the long term as we navigate through these unprecedented times,” Dhivya Suryadevara said. The automaker plans to restart the majority of its manufacturing on May 18 -- 2 months after announcing a temporary stoppage due to COVID-19. US sales fell 7% year-over-year, but demand for full-sized pickups remained strong, climbing 27%. Sales from GM's 2 joint ventures in China fell 43% amid a sharp drop in Feb before starting to pick back up in Mar. GM ended Q1 with $33.4B of automotive liquidity, including a drawdown of about $16 B from its revolving credit facilities. The automaker said it would wind down most operations in Australia & New Zealand & reached a deal to sell a plant in Thailand. GM reiterated it remains "committed to an all-electric future." The stock went up 99¢.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
Apr data is coming in & it's grim. It will remain that way for most of May & probably longer. Investors will have to deal with it which can bring on more selling.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 23.42 | -1.14 | -4.6% |
| GC=F | Gold | 1,688.20 | - 22.40 | -1.3% |
White House economic adviser Kevin Hassett said that a preliminary report indicating US employers slashed roughly 20M jobs amid the coronavirus-pandemic "might be even a little bit low." "If you look at the initial claims for unemployment insurance, they are north of 30 million now," Hassett said. "Given the sort of technicalities about when they calculate unemployment rates, then that can help you figure out what jobs numbers are going to look like. 20 million might be even a little bit low." Private employers slashed 20.2M jobs in Apr as the coronavirus-induced lockdown ravaged the US economy, according to the ADP National Employment Report released today. It was the largest decline on record since the survey started in 2002. "These numbers, bad as they are, would have been a heck of a lot worse probably if you didn't see the [Paycheck Protection Program] loans coming," Hassett said, referring to the program overseen by the Small Business Administration.
Trump adviser's grim warning about April's record-breaking job loss report
St Louis Federal Reserve Pres James Bullard said that the Apr jobs report being released on Fri will likely be one of the worst in American history. “But that’s kind of expected because you’re using the unemployment insurance program to provide pandemic relief,” Bullard said. “That’s exactly what we want to do.” Bullard's comments came minutes before ADP reported that private payrolls shed more than 20M jobs in Apr as employers slashed worker positions amid widespread shutdowns & forced gov closures to help contain the spread of the coronavirus. The decline totaled 20.2M & represented by far the worst loss in the survey’s 18-year history. Despite the eye-watering number, the 20.2M wasn’t as bad as the 22M than the forecast. But investors await the Labor Dep's key jobs report on Fri, when expectations are for the unemployment rate to have rocketed to 16% in Apr, from 4.4% in Mar. The forecast calls for nonfarm payrolls to have declined by 21M last month. Should the unemployment rate rise by the expected 11.6 percentage points, it will surpass the prior record increase of 1.3 percentage points from 1949. The decline in nonfarm payrolls in Apr will almost certainly set a new record since the prior one-month record drop was almost 2M in 1945, according to data at the Bureau of Labor Statistics. The decline in nonfarm payrolls last month will likely triple the total jobs lost over 2 years during the last recession. “The unemployment rate is going to be extremely high,” Bullard added. “We think 20% isn’t unlikely, could even be higher than that. You’ve also got this PPP program, which has encouraged firms to keep their workers on their payrolls even though they’re not doing that much business.” “It’s not surprising. It’s a pandemic. It’s a shutdown situation,” he continued, adding that he long maintained that the main impact from the crisis would be in Q2. “We’re going to see crazy ADP numbers today and the jobs report will probably be one of the worst ever on Friday,” he said. Bullard, one of the Fed's more optimistic voices, said he thinks the US economy may return to speedy growth in Q3. “In the third quarter, it’ll be a transition quarter, but I would expect relatively rapid growth,” he added. “And then, hopefully by the time we get to the fourth quarter, we’ll be finishing up this process.” He said he wouldn't be surprised to see the US unemployment rate to decline back to single digits by the end of 2020 as the economy recovers from the sharp Q2 pullback.
Fed’s James Bullard says the jobs report on Friday will be one of the worst ever
General Motors (GM) eked out a profit during the first 3 months of the year despite the coronavirus slowing business to a standstill during the final weeks of Q1. The automaker had EPS of 17¢, as net revenue fell 6.2% from a year ago to $32.7B & pandemic costs reached $1.4B. Adjusted EPS of 62¢ topped the 30¢ that was expected. “We are focused on preserving liquidity and taking the right actions today to make the company stronger and more competitive in the long term as we navigate through these unprecedented times,” Dhivya Suryadevara said. The automaker plans to restart the majority of its manufacturing on May 18 -- 2 months after announcing a temporary stoppage due to COVID-19. US sales fell 7% year-over-year, but demand for full-sized pickups remained strong, climbing 27%. Sales from GM's 2 joint ventures in China fell 43% amid a sharp drop in Feb before starting to pick back up in Mar. GM ended Q1 with $33.4B of automotive liquidity, including a drawdown of about $16 B from its revolving credit facilities. The automaker said it would wind down most operations in Australia & New Zealand & reached a deal to sell a plant in Thailand. GM reiterated it remains "committed to an all-electric future." The stock went up 99¢.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
General Motors ekes out profit, plans to restart most production on this date
Apr data is coming in & it's grim. It will remain that way for most of May & probably longer. Investors will have to deal with it which can bring on more selling.
Dow Jones Industrials
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