Dow went up 12 after a lower market opening, advancers over decliners 5-2 & NAZ rose 25. The MLP index added 1+ to the 145s & the REIT index gained 6+ to the 346s. Junk bond funds continued climbing & Treasuries were bid higher. Oil dropped to the 34s & gold was off 1 to 1750.
AMJ (Alerian MLP Index tracking fund)
Protests across U.S. prompt concerns over exacerbating coronavirus outbreak
CFOs more negative on economy, expect big coronavirus hit in 2020: Survey
U.S. manufacturing activity pulls off 11-year low
Selling dragged the Dow lower at the opening, but cautious buying lifted it modestly into the black. Current news events are getting the headlines, but economic news & US-China relations get more attention by the traders. So far, the Dow was able to remain close to its 2+ month highs. & the bulls like to see that.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 34.89 | -0.60 | -1.7% |
| GC=F | Gold | 1,745.50 | -6.20 | -0.4% |
As the US erupted in protest over the weekend in
response to the police killing of George Floyd, an unarmed black man,
health officials are warning that mass gatherings will likely exacerbate
the coronavirus outbreak in the most vulnerable communities. The
protests come as schools & businesses across the country have been
closed for months in a bid to keep people home & curb the spread of
the virus. The coronavirus has now infected more than 1.7M
across the US & killed 105K, according to Johns Hopkins
University data. While some states, including those hardest hit by
Covid-19 such as New York & New Jersey, have managed to drive the
outbreak into decline, Minnesota is expanding with
hospitalizations on the rise. City & state officials across the
country called for
protesters to get tested & continue to practice social
distancing. Maryland Gov Larry Hogan said that there’s “no question” the protests will lead to spread of the
virus, but that's the “next step” for officials after quelling the
protests & violence. “If you were out protesting last night, you
probably need to go get a Covid test this week,” Atlanta Mayor Keisha
Lance Bottoms said. “There is still a
pandemic in America that’s killing black and brown people at higher
numbers.” States have moved in recent weeks to ease restrictions meant to limit
the spread of the virus. Officials have shown particular willingness to
reopen beaches, parks & other outdoor sites and businesses as some
research indicates that the virus does not spread as easily outdoors.
Protests across U.S. prompt concerns over exacerbating coronavirus outbreak
Nearly ½ (48.8%) of leading CFOs surveyed in the latest CNBC Global CFO Council Survey say the
Covid-19 pandemic will have a “negative” impact on their companies in 2020, while another 39% say it will have a “very negative” impact. The
CFOs who responded to this qtr's survey have grown more certain
about the negative outlook for their businesses, & more downbeat about
the outlook for the global economy, in the 3 months since last
surveyed them. The CNBC Global CFO Council
represents some of the largest public & private companies in the
world, collectively managing more than $5T in market value
across a wide variety of sectors. In the Q1 survey, conducted in Mar,
30% of CFOs said it was “too early to know” the impact the pandemic
would have on their companies this year. Now only one of the 41 CFOs
surveyed says it’s too early to know, & just 2 think the impact will
be positive for their companies, leaving the overwhelming majority
facing down a very tough 2020. 41 of the 130 members of the
council responded to the survey, which was conducted from May 14–28 (15
from North America, 10 EMEA & 16 APAC). CFOs' outlook for the global economy has worsened since Mar as well. On average, CFOs rated the GDP outlook for every
region of the world as “declining,” with the exception of Brazil &
Latin America, which are viewed as “strongly declining.” Both regions
are currently global hot spots for new infections. Brazilian Pres
Jair Bolsonaro has been criticized for his response to the pandemic. That
is the first time since the survey began that any region
has been given the worst possible rating. The “declining” outlook for
the US economy is its worst ever. Fueling the downbeat view, a majority of CFOs report significant declines in demand for their companies' products or services. 54% of CFOs say their companies have seen a decrease in demand in
the US since Apr 1, with most of them calling it a “major decrease.”
CFOs more negative on economy, expect big coronavirus hit in 2020: Survey
US manufacturing activity eased off an 11-year
low in May, the strongest sign yet that the worst of the economic
downturn was behind as businesses reopen, though the recovery from the
Covid-19 crisis could take years because of high unemployment. The
Institute for Supply Management (ISM) said its index of
national factory activity rose to a reading of 43.1 last month from 41.5
in Apr, which was the lowest level since 2009. A reading below
50 indicates contraction in manufacturing, which accounts for 11% of the
US economy. The forecast called for the index rising to 43.0 in May. The
first increase in the ISM index since Jan mirrored improvements in
regional manufacturing surveys in May & suggested Apr was the nadir
for economic activity. At least 21.4M jobs were lost been Mar & Apr. The economy contracted at a 5% annualized rate in Q1, the worst performance since the 2007-09 recession. GDP is expected to decline at a rate as sharp as 40% in Q2, which would the biggest contraction in output since the depression on the 1930s. The ISM's forward-looking new
orders sub-index increased to a reading of 31.8 in May from 27.1 in
Apr, which was the lowest since 2008. The survey's measure of
order backlogs at factories rose to 38.2 last month after plummeting to
a reading of 37.8 in Apr. There was also a slight improvement
in the ISM's measure of factory employment, which advanced to a reading
of 32.1 in May after plunging to 27.5 in the prior month, which was the
lowest since 1949.
U.S. manufacturing activity pulls off 11-year low
Selling dragged the Dow lower at the opening, but cautious buying lifted it modestly into the black. Current news events are getting the headlines, but economic news & US-China relations get more attention by the traders. So far, the Dow was able to remain close to its 2+ month highs. & the bulls like to see that.
Dow Jones Industrials
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