Dow dropped 39 (off session lows), decliners over advancers about 3-2 but NAZ rose 32. The MLP index was fractionally lower to the 148s & the REIT index fell 5 to the 354s. Junk bond funds dipped lower & Treasuries remained in demand. Oil gained about 1 to the 38s & gold slid back 4 to 1731 (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)
McDonald’s (MCD), a Dow stock & Dividend Aristocrat, restaurants expect to hire approximately 260K this summer as its locations begin reopening their dining rooms amid coronavirus restrictions. The fast food giant says it has enacted nearly 50 new safety features including "wellness and temperature checks, social distancing floor stickers, [and] protective barriers at order points" to keep customers & employees from spreading germs. “We are excited to welcome new employees to our McFamily, and we want candidates and their families to know we have one goal – to keep our people safe,” MCD USA Pres Joe Erlinger said. “Our local business owners are proud to help their communities and provide employment and educational opportunities to hundreds of thousands of people this summer.” The hiring news comes after a report that MCD has set aside $40M in restaurant aid for owners dealing with the financial impact of COVID-19 lockdowns. The stock fell 1.30.
If you would like o learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
Union Pacific (UNP) CEO Lance Fritz told said that the railroad operator has reasons to be positive about its business as the US economy recovers from its coronavirus-driven halt. “Across our markets, we’re seeing a few signs of optimism,” Fritz added. He singled out the following areas: automotive, housing and grain, the last of which is related to the US-China trade deal. “I’m seeing it a little bit in construction of things like road projects and rock,” added Fritz. The coronavirus pandemic & corresponding public health response sent shock waves across the globe, pushing the US economy into a recession ;as business activity was sharply curtailed. But one area that saw an increase in activity was online shopping. “Our parcel business is up strong double digits right now,” he said. “We are seeing the e-commerce demand flow through to our rail business.” UNP quarterly results posting quarterly operating revenues that were down 3% compared with the same period a year earlier. It also projected a 25% decline in carload volumes for the current qtr, compared with Q2-2019. Due to that decrease, Fritz said, UNP has had to furlough employees in roles such as train operators & car maintenance. In an effort to share the burden across the company, management employees are required to take one unpaid week of absence per month for May, Jun, Jul & Aug. Execs & the board have taken a 25% pay cut. “The whole idea was to make sure we maintain the flexibility to have the workforce we need when the economy comes back, but be prudent and react to be down 25% on volume,” Fritz said. However, Fritz also was optimistic about the benefits of the new US-Mexico-Canada trade agreement, which is set to go into effect Jul 1. The trade pact, a priority of the Trump administration, makes several adjustments to the North American Free Trade Agreement. “For us, it means the supply linkage between the U.S. economy, the Mexican economy and the Canadian economy are going to continue to grow and become more and more powerful,” Fritz added. “We as a trading bloc are going to be much more competitive globally. It’s just a home run.” The stock was off 32¢.
If you would like o learn more about UNP, click on this link:
club.ino.com/trend/analysis/stock/UNP?a_aid=CD3289&a_bid=6ae5b6f7
Union Pacific CEO sees ‘signs of optimism’ in multiple markets as economy recovers
The US economy is not on a clear path to recovery, a top central banker said despite some welcome surprises in economic data. “I definitely don’t think we’re out of the woods,” said St Louis Fed Pres James Bullard. He said he thought the economy was past the initial peak of the health crisis & hoped that Apr will be the very worst month for the economy. “Many things can happen, with many twists and turns,” Bullard added. “We do have some depression risk, even thought that’s not my base case,” he added. Bullard said the end of Sep would be “an important check point” for where the economy is in the crisis. By then most of the easiest & simplest adaptations will have been made by firms & households. Bullard said public policy going forward should not just assume there will be a vaccine because that is not a fait accomplis. “I want to caution all of us against relying too much on promises of a vaccine or a therapeutic to control the disease,” Bullard added, calling a vaccine “a tough scientific problem.” “I hope it does happen, but I think we should assume it will not happen and describe a future where we can cope with the disease going forward,” said Bullard, who is not a voting member of the Fed's interest-rate committee this year. The St Louis Fed pres suggested ubiquitous testing was one solution to help the economy adapt. The other policy is “risk-based stay-at-home” where older Americans would take different actions to lower their risk of getting the disease.
Fed’s Bullard says economy not out of the woods
Gold futures ended lower, finding haven-related interest in short supply as investors eye moves in the $ & in global equities, setting prices up for a loss on the week. The metal pared some of its earlier declines after a report on weekly jobless claims showed that the number of Americans seeking unemployment benefits in the latest week held nearly steady at 1.5M, while the number of workers unemployed remains elevated, despite the US economy showing signs of recovery from the COVID-19 pandemic. The level of new weekly jobless claims fell below 2M in recent weeks from a peak of 6.9M in late Mar, according to the Labor Dept. The recent level still is well above the highest week on record before this year of 695K in 1982. Risk appetite may be waning, as the number of new coronavirus cases rises in at least 9 states, prompting concerns about possibly re-implementing lockdowns to limit the spread. Against that backdrop, Aug gold fell $4 (0.3%) to settle at $1731 ounce. Gold futures have been trading in a $1670-1770 range for 2 months despite a sharp fall in that time for the $. Week to date, prices were down 0.4%. Precious metals have benefited from monetary efforts by central banks to contain the damage wrought by the viral outbreak that has infected about 8M globally. The Bank of England today said it was expanding its asset purchases to stimulate its economy by £100B ($125B) to £745B.
Crude-oil prices finished higher after major producers at an OPEC-led meeting of the Joint Ministerial Monitoring Committee (JMMC) stressed the importance of full compliance with pledged production cuts & made moves to ensure that certain countries make up for failing to fully meet their reduction targets last month. The JMMC, which monitors compliance with OPEC output quotas, held its gathering via video-conference today, with technical difficulties preventing a livestream of the meeting. Earlier this month, OPEC & its allies (OPEC+) agreed to extend cuts of 9.7M barrels per day to Jul & monitor compliance to those reduction efforts monthly. The JMMC pegged its compliance with those production cuts at 87% in the month of May & reiterated the importance that all participating countries reach 100% of their pledged cuts & that they make up for any previous shortfalls in the upcoming months of Jul, Aug & Sep. The committee said Iraq and Kazakhstan have already submitted “compensations schedules,” & other “underperforming participants” will have until Jun 22 to submit their schedules for compensation. West Texas Intermediate crude for Jul, the US benchmark, climbed 88¢ (2.3%) to settle at $38.84 a barrel. Global benchmark Brent oil for Aug picked up 80¢ (2%) at $41.51 a barrel. Meanwhile, energy demand remains in question as several US states have seen a record number of new COVID-19 cases & a new outbreak in Beijing led the Chinese capital city to shut schools & cancel commercial flights.
Selling in the last 2 hours took the Dow into the red, although late day buying trimmed those losses. Fluctuations for NAZ were similar although late day buying brought it into the black (nearing 10K). Fears associated with the virus spreading are on the minds of traders. NY is doing well. New York new hospitalizations dropped every day for over 2 months, from a peak of almost 19K to 1358 yesterday. Again. they declined every single day. But other states with big populations (i.e. Florida & Texas) are seeing increases. That's troubling & the experts are struggling to figure out what that means. The latest information on US-China trade relations is modestly positive. For the last week the Dow has been largely flattish near 26K with high volatility (shown below).
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
McDonald’s (MCD), a Dow stock & Dividend Aristocrat, restaurants expect to hire approximately 260K this summer as its locations begin reopening their dining rooms amid coronavirus restrictions. The fast food giant says it has enacted nearly 50 new safety features including "wellness and temperature checks, social distancing floor stickers, [and] protective barriers at order points" to keep customers & employees from spreading germs. “We are excited to welcome new employees to our McFamily, and we want candidates and their families to know we have one goal – to keep our people safe,” MCD USA Pres Joe Erlinger said. “Our local business owners are proud to help their communities and provide employment and educational opportunities to hundreds of thousands of people this summer.” The hiring news comes after a report that MCD has set aside $40M in restaurant aid for owners dealing with the financial impact of COVID-19 lockdowns. The stock fell 1.30.
If you would like o learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
McDonald's to bring on 260,000 new workers this summer
Union Pacific (UNP) CEO Lance Fritz told said that the railroad operator has reasons to be positive about its business as the US economy recovers from its coronavirus-driven halt. “Across our markets, we’re seeing a few signs of optimism,” Fritz added. He singled out the following areas: automotive, housing and grain, the last of which is related to the US-China trade deal. “I’m seeing it a little bit in construction of things like road projects and rock,” added Fritz. The coronavirus pandemic & corresponding public health response sent shock waves across the globe, pushing the US economy into a recession ;as business activity was sharply curtailed. But one area that saw an increase in activity was online shopping. “Our parcel business is up strong double digits right now,” he said. “We are seeing the e-commerce demand flow through to our rail business.” UNP quarterly results posting quarterly operating revenues that were down 3% compared with the same period a year earlier. It also projected a 25% decline in carload volumes for the current qtr, compared with Q2-2019. Due to that decrease, Fritz said, UNP has had to furlough employees in roles such as train operators & car maintenance. In an effort to share the burden across the company, management employees are required to take one unpaid week of absence per month for May, Jun, Jul & Aug. Execs & the board have taken a 25% pay cut. “The whole idea was to make sure we maintain the flexibility to have the workforce we need when the economy comes back, but be prudent and react to be down 25% on volume,” Fritz said. However, Fritz also was optimistic about the benefits of the new US-Mexico-Canada trade agreement, which is set to go into effect Jul 1. The trade pact, a priority of the Trump administration, makes several adjustments to the North American Free Trade Agreement. “For us, it means the supply linkage between the U.S. economy, the Mexican economy and the Canadian economy are going to continue to grow and become more and more powerful,” Fritz added. “We as a trading bloc are going to be much more competitive globally. It’s just a home run.” The stock was off 32¢.
If you would like o learn more about UNP, click on this link:
club.ino.com/trend/analysis/stock/UNP?a_aid=CD3289&a_bid=6ae5b6f7
Union Pacific CEO sees ‘signs of optimism’ in multiple markets as economy recovers
The US economy is not on a clear path to recovery, a top central banker said despite some welcome surprises in economic data. “I definitely don’t think we’re out of the woods,” said St Louis Fed Pres James Bullard. He said he thought the economy was past the initial peak of the health crisis & hoped that Apr will be the very worst month for the economy. “Many things can happen, with many twists and turns,” Bullard added. “We do have some depression risk, even thought that’s not my base case,” he added. Bullard said the end of Sep would be “an important check point” for where the economy is in the crisis. By then most of the easiest & simplest adaptations will have been made by firms & households. Bullard said public policy going forward should not just assume there will be a vaccine because that is not a fait accomplis. “I want to caution all of us against relying too much on promises of a vaccine or a therapeutic to control the disease,” Bullard added, calling a vaccine “a tough scientific problem.” “I hope it does happen, but I think we should assume it will not happen and describe a future where we can cope with the disease going forward,” said Bullard, who is not a voting member of the Fed's interest-rate committee this year. The St Louis Fed pres suggested ubiquitous testing was one solution to help the economy adapt. The other policy is “risk-based stay-at-home” where older Americans would take different actions to lower their risk of getting the disease.
Fed’s Bullard says economy not out of the woods
Gold futures ended lower, finding haven-related interest in short supply as investors eye moves in the $ & in global equities, setting prices up for a loss on the week. The metal pared some of its earlier declines after a report on weekly jobless claims showed that the number of Americans seeking unemployment benefits in the latest week held nearly steady at 1.5M, while the number of workers unemployed remains elevated, despite the US economy showing signs of recovery from the COVID-19 pandemic. The level of new weekly jobless claims fell below 2M in recent weeks from a peak of 6.9M in late Mar, according to the Labor Dept. The recent level still is well above the highest week on record before this year of 695K in 1982. Risk appetite may be waning, as the number of new coronavirus cases rises in at least 9 states, prompting concerns about possibly re-implementing lockdowns to limit the spread. Against that backdrop, Aug gold fell $4 (0.3%) to settle at $1731 ounce. Gold futures have been trading in a $1670-1770 range for 2 months despite a sharp fall in that time for the $. Week to date, prices were down 0.4%. Precious metals have benefited from monetary efforts by central banks to contain the damage wrought by the viral outbreak that has infected about 8M globally. The Bank of England today said it was expanding its asset purchases to stimulate its economy by £100B ($125B) to £745B.
Gold prices end lower, building a week-to-date loss
Crude-oil prices finished higher after major producers at an OPEC-led meeting of the Joint Ministerial Monitoring Committee (JMMC) stressed the importance of full compliance with pledged production cuts & made moves to ensure that certain countries make up for failing to fully meet their reduction targets last month. The JMMC, which monitors compliance with OPEC output quotas, held its gathering via video-conference today, with technical difficulties preventing a livestream of the meeting. Earlier this month, OPEC & its allies (OPEC+) agreed to extend cuts of 9.7M barrels per day to Jul & monitor compliance to those reduction efforts monthly. The JMMC pegged its compliance with those production cuts at 87% in the month of May & reiterated the importance that all participating countries reach 100% of their pledged cuts & that they make up for any previous shortfalls in the upcoming months of Jul, Aug & Sep. The committee said Iraq and Kazakhstan have already submitted “compensations schedules,” & other “underperforming participants” will have until Jun 22 to submit their schedules for compensation. West Texas Intermediate crude for Jul, the US benchmark, climbed 88¢ (2.3%) to settle at $38.84 a barrel. Global benchmark Brent oil for Aug picked up 80¢ (2%) at $41.51 a barrel. Meanwhile, energy demand remains in question as several US states have seen a record number of new COVID-19 cases & a new outbreak in Beijing led the Chinese capital city to shut schools & cancel commercial flights.
Oil prices finish higher as OPEC+ looks to make up for missed output-cut targets
Selling in the last 2 hours took the Dow into the red, although late day buying trimmed those losses. Fluctuations for NAZ were similar although late day buying brought it into the black (nearing 10K). Fears associated with the virus spreading are on the minds of traders. NY is doing well. New York new hospitalizations dropped every day for over 2 months, from a peak of almost 19K to 1358 yesterday. Again. they declined every single day. But other states with big populations (i.e. Florida & Texas) are seeing increases. That's troubling & the experts are struggling to figure out what that means. The latest information on US-China trade relations is modestly positive. For the last week the Dow has been largely flattish near 26K with high volatility (shown below).
Dow Jones Industrials
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