Dow dropped 200, decliners ahead of advancers 4-1 & NAZ jumped 54 to a new record above 10K. The MLP index lost 4+ to the 157s & the REIT index sank 9 to the 364s. Junk bond funds drifted lower & & Treasuries were in demand. Oil fell to the 38s following its recent run & gold was even at 1721.
AMJ (Alerian MLP Index tracking fund)
US consumer prices dropped in May for the 3rd straight month as the coronavirus quarantine pushed the American economy into a recession. The Labor Dept said that its consumer price index fell 0.1% last month after tumbling 0.8% in Apr & 0.4% in Mar. Excluding food & energy prices, which bounce around from month to month, core inflation fell 0.1%, tumbling for the 3rd consecutive month for the first time. The pandemic & the quarantines meant to contain it pushed the US economy into a severe recession in Feb, ending a record-breaking expansion that began in 2009. Weaker demand from customers pushes prices down. Over the past year, consumer prices are up 0.1% & core prices are up 1.2%. Gasoline prices dropped 3.5% in May, their 5th straight decrease, & are down 33.8% over the past year. Clothing prices fell 2.3%, 3rd straight drop, & are down 7.9% over the past year. Food prices rose 0.7% last month & the price of housing rose 0.2%. The Federal Reserve seeks to keep inflation running at a 2% annual pace. To prevent the economy from imploding completely, the Fed has slashed the short-term interest rate it controls to zero & poured Ts of $s into the financial system. It has signaled that it stands ready to do more but is not expected to take further action at its latest meeting, which ends in the PM.
Starbucks (SBUX) took a virus-related revenue hit potentially exceeding $3B in Q3. The brewer said in a regulatory filing that the virus outbreak also slashed its operating income to $2-2.2B as the virus raged. The company was forced to close its stores to customers, but continued to operate pick-up & other services in most locations. Currently 95% of US company-run stores are in operation at varying levels of service, just slightly lower than operations globally. SBUX provided a preliminary estimate for a Q3 adjusted loss of about 55-70¢ per share. The forecast calls for a loss of 16¢ per share. The stock fell 3.51.
If you would like to learn more about SBUX, click on this link:
club.ino.com/trend/analysis/stock/SBUX?a_aid=CD3289&a_bid=6ae5b6f7
Companies based in China are putting off plans for US listings as tensions between the world's top 2 economies rise, lawyers, bankers, accountants & regulators involved in what has been a major capital-raising route. The drop in interest, especially from those in the early stages of planning, is the result of a proposed US legislation that would make it harder for some Chinese firms to debut in America & mounting scrutiny following an accounting scandal at Chinese Starbucks rival Luckin Coffee. Chinese groups have raised $1.7B via IPOs in the US this year & are looking to raise about ½B more on US exchanges. In 2019, they raised $3.5B. Sino-US relations have nosedived in recent months with the countries, already at odds over trade, now butting heads over the COVID-19 pandemic & China's proposed national security law for Hong Kong. Inquiries about US listings have halved this year. Many companies that reported plans for US listings to China's securities regulator, marking an early stage in the process, are now targeting exchanges nearer to home.
At today's meeting of the Fed, little is expected with interest rates already at zero. But some diehards are hoping for excitement in an environment with unending problems. Meanwhile the NAZ tech is strong, taking the NAZ over the 10K level for the first time.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 37.99 | -0.95 | -2.4% |
| GC=F | Gold | 1,733.80 | +11.90 | +0.7% |
US consumer prices dropped in May for the 3rd straight month as the coronavirus quarantine pushed the American economy into a recession. The Labor Dept said that its consumer price index fell 0.1% last month after tumbling 0.8% in Apr & 0.4% in Mar. Excluding food & energy prices, which bounce around from month to month, core inflation fell 0.1%, tumbling for the 3rd consecutive month for the first time. The pandemic & the quarantines meant to contain it pushed the US economy into a severe recession in Feb, ending a record-breaking expansion that began in 2009. Weaker demand from customers pushes prices down. Over the past year, consumer prices are up 0.1% & core prices are up 1.2%. Gasoline prices dropped 3.5% in May, their 5th straight decrease, & are down 33.8% over the past year. Clothing prices fell 2.3%, 3rd straight drop, & are down 7.9% over the past year. Food prices rose 0.7% last month & the price of housing rose 0.2%. The Federal Reserve seeks to keep inflation running at a 2% annual pace. To prevent the economy from imploding completely, the Fed has slashed the short-term interest rate it controls to zero & poured Ts of $s into the financial system. It has signaled that it stands ready to do more but is not expected to take further action at its latest meeting, which ends in the PM.
May consumer prices fall 0.1%, the third consecutive month
Starbucks (SBUX) took a virus-related revenue hit potentially exceeding $3B in Q3. The brewer said in a regulatory filing that the virus outbreak also slashed its operating income to $2-2.2B as the virus raged. The company was forced to close its stores to customers, but continued to operate pick-up & other services in most locations. Currently 95% of US company-run stores are in operation at varying levels of service, just slightly lower than operations globally. SBUX provided a preliminary estimate for a Q3 adjusted loss of about 55-70¢ per share. The forecast calls for a loss of 16¢ per share. The stock fell 3.51.
If you would like to learn more about SBUX, click on this link:
club.ino.com/trend/analysis/stock/SBUX?a_aid=CD3289&a_bid=6ae5b6f7
Starbucks takes $3 billion hit to revenue during pandemic
Companies based in China are putting off plans for US listings as tensions between the world's top 2 economies rise, lawyers, bankers, accountants & regulators involved in what has been a major capital-raising route. The drop in interest, especially from those in the early stages of planning, is the result of a proposed US legislation that would make it harder for some Chinese firms to debut in America & mounting scrutiny following an accounting scandal at Chinese Starbucks rival Luckin Coffee. Chinese groups have raised $1.7B via IPOs in the US this year & are looking to raise about ½B more on US exchanges. In 2019, they raised $3.5B. Sino-US relations have nosedived in recent months with the countries, already at odds over trade, now butting heads over the COVID-19 pandemic & China's proposed national security law for Hong Kong. Inquiries about US listings have halved this year. Many companies that reported plans for US listings to China's securities regulator, marking an early stage in the process, are now targeting exchanges nearer to home.
Chinese companies put US listing plans on ice as tensions mount
At today's meeting of the Fed, little is expected with interest rates already at zero. But some diehards are hoping for excitement in an environment with unending problems. Meanwhile the NAZ tech is strong, taking the NAZ over the 10K level for the first time.
Dow Jones Industrials
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