Dow fell 300, decliners over advancers 3-1 & NAZ rose 29 (near 10K). The MLP index dropped 8 to the 162s & the REIT index was off 4+ to the 374s. Junk bond funds fluctuated after recent strength & Treasuries were being purchased. Oil advanced to 39 & gold climbed 14 to 1719 (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)
Job openings tumble to lowest level in more than 5 years
Macy's (M) said it is regaining customers at reopened stores much quicker than it expected, but that its recovery will be “gradual” from here. CFO Felicia Williams said the company does not expect sales trends to normalize until 2021 or possibly 2022. With the stores forced shut for much of its fiscal Q1 due to the coronavirus pandemic, sales are expected to fall 45% to $3B from $5.5B a year ago. It is also forecasting a quarterly net loss of $652M ($2.10 per share), compared with EPS of $136M (44¢ a share) in the prior year. Excluding one-time items, the company expects to lose $2.03 per share on an adjusted basis. Gross margins are, meantime, expected to take more of a hit during Q2 before trends reverse. CEO Gennette said that the company's quality real estate portfolio, including some of its distribution centers, helped it garner more confidence with its banks do this deal. “We were very pleased with how our bankers basically ... jumped on that, and our banks basically doubled their position, in many cases,” he added. According to Gennette, the company anticipates ending Q2 with a lean inventory position, setting it up well for H2. It expects Q1 inventories to amount to $4.9B, down from $5B a year ago. “The holiday season will be crucial, and the team is working now to get the right merchandise and assortment in place,” he commented. The stock dropped 68¢ to 8.87.
If you would like to learn more about Macy's, click on this link:
club.ino.com/trend/analysis/stock/M?a_aid=CD3289&a_bid=6ae5b6f7
Macy’s stock rally collapses, shares tumble after company warns ‘gradual’ recovery ahead
Gold prices settled higher as global equities staged a modest retreat after being buoyant for weeks on the back of the reopening of economies stricken by the coronavirus pandemic. Against that backdrop, Aug gold rose $16 (1%) to settle at $1721 an ounce, after finishing yesterday's session up 1.3%. Investors eyed weakness in the $, which precious metals are priced in, & a slide in yields of gov debt. A weaker $ can lift appetite for gold from buyers using other currencies and falling yields can boost the appeal of gold which doesn't offer a coupon.
Crude oil futures gave up earlier losses to finish higher, with expectations for a rebound in energy demand among the reasons for the late day turnaround. Prices had spent most of the session trading lower on the back of worries about compliance with a newly-extended pact between OPEC & its allies to cut production by nearly 10M barrels. In addition, Gulf producers may end their voluntary extra output cuts at the end of Jun & US producers may reverse output cuts as prices rise. West Texas Intermediate crude for Jul, the US benchmark, rose 75¢ (2%) to settle at $38.94 a barrel after trading as low as $37.07. Prices fell 3.4% yesterday. Global benchmark Brent oil for Aug tacked on 38¢ (0.9%) to $41.18 a barrel, following a 3.6% decline a day ago. OPEC+ reached an agreement over the weekend to extend a global production cut of 9.7M barrels per day by one month, thru Jul. Saudi Arabia, Kuwait & the UAE, however, are not intending to extend the extra cuts of 1.18M barrels per day that they are currently making on top of the OPEC+ target. The EIA raised its 2020 forecasts for West Texas Intermediate to $35.14, up nearly 17% from its May forecast. It also said Brent crude oil prices are likely to average $38.02 this year, up 11.4% from the previous view.
Oil prices recover losses to settle higher on bets the market may soon ‘find balance’
Comments by Macy's, brought a sense of reality to investors about the difficulty of an economic recovery. While it has already begun, it will involve a lot of stumbling & even some setbacks. The current stock market rally is assuming the best of all worlds. There was selling in the last hour & gold continues in demand, remaining elevated above 1700.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Job openings thru the first full month of the
coronavirus pandemic reached their lowest level in more than 5 years,
according to Labor Dept. As
companies shed record-breaking numbers of employees, the total vacancies
plunged to 5.05M in Apr, the lowest total since 2014,
the gov's Job Openings & Labor Turnover Survey (JOLTS) showed. That
was a M below the Mar level & represented a 28% tumble from
Feb's 7.3M. The forecast called for 5.75M. The
JOLTS report is a month behind the more closely followed nonfarm
payrolls report, which showed a decline of 20.5M jobs for Apr
but an increase of 2.5M in May.
The 2 surveys differ in that the payrolls count captures data thru
the 12th of the month while the JOLTS report measures activity
throughout the month. Total job separations fell sharply in Apr, from 14.6M in Mar to 9.9M as some parts of the economy began to reopen & workers were called back to their jobs. Hires totaled 3.5M,
led by trade, transportation & utilities at 993K, which included
688K retail jobs. Hospitality showed a surprisingly strong
hiring rate at 3.7%, representing 321K workers, compared to the
overall 2.7% rate. However, the industry also led the separations rate
at 23.3%, representing just over 2M workers. That compared to the
overall separations rate of 7.5%. Though it is lagged data , the
JOLTS report is followed closely by policymakers as it shows tightness
in the labor market. Up until a few months ago, the number of openings
far exceeded the available pool of workers. Now, though, the labor dynamics have changed as the economy grapples with a 13.3% unemployment rate & 21.5M Americans collecting unemployment benefits. May's payrolls report showed a swing
in the jobs market with a 2.5M increase & a fall from the 14.7%
unemployment level in Apr. The quits rate, a barometer for
workers' confidence that they can find a job elsewhere, tumbled to 1.4%,
which was last lower in 2010.
Job openings tumble to lowest level in more than 5 years
Macy's (M) said it is regaining customers at reopened stores much quicker than it expected, but that its recovery will be “gradual” from here. CFO Felicia Williams said the company does not expect sales trends to normalize until 2021 or possibly 2022. With the stores forced shut for much of its fiscal Q1 due to the coronavirus pandemic, sales are expected to fall 45% to $3B from $5.5B a year ago. It is also forecasting a quarterly net loss of $652M ($2.10 per share), compared with EPS of $136M (44¢ a share) in the prior year. Excluding one-time items, the company expects to lose $2.03 per share on an adjusted basis. Gross margins are, meantime, expected to take more of a hit during Q2 before trends reverse. CEO Gennette said that the company's quality real estate portfolio, including some of its distribution centers, helped it garner more confidence with its banks do this deal. “We were very pleased with how our bankers basically ... jumped on that, and our banks basically doubled their position, in many cases,” he added. According to Gennette, the company anticipates ending Q2 with a lean inventory position, setting it up well for H2. It expects Q1 inventories to amount to $4.9B, down from $5B a year ago. “The holiday season will be crucial, and the team is working now to get the right merchandise and assortment in place,” he commented. The stock dropped 68¢ to 8.87.
If you would like to learn more about Macy's, click on this link:
club.ino.com/trend/analysis/stock/M?a_aid=CD3289&a_bid=6ae5b6f7
Macy’s stock rally collapses, shares tumble after company warns ‘gradual’ recovery ahead
Gold prices settled higher as global equities staged a modest retreat after being buoyant for weeks on the back of the reopening of economies stricken by the coronavirus pandemic. Against that backdrop, Aug gold rose $16 (1%) to settle at $1721 an ounce, after finishing yesterday's session up 1.3%. Investors eyed weakness in the $, which precious metals are priced in, & a slide in yields of gov debt. A weaker $ can lift appetite for gold from buyers using other currencies and falling yields can boost the appeal of gold which doesn't offer a coupon.
Gold prices settle 1% higher amid global equity pullback
Crude oil futures gave up earlier losses to finish higher, with expectations for a rebound in energy demand among the reasons for the late day turnaround. Prices had spent most of the session trading lower on the back of worries about compliance with a newly-extended pact between OPEC & its allies to cut production by nearly 10M barrels. In addition, Gulf producers may end their voluntary extra output cuts at the end of Jun & US producers may reverse output cuts as prices rise. West Texas Intermediate crude for Jul, the US benchmark, rose 75¢ (2%) to settle at $38.94 a barrel after trading as low as $37.07. Prices fell 3.4% yesterday. Global benchmark Brent oil for Aug tacked on 38¢ (0.9%) to $41.18 a barrel, following a 3.6% decline a day ago. OPEC+ reached an agreement over the weekend to extend a global production cut of 9.7M barrels per day by one month, thru Jul. Saudi Arabia, Kuwait & the UAE, however, are not intending to extend the extra cuts of 1.18M barrels per day that they are currently making on top of the OPEC+ target. The EIA raised its 2020 forecasts for West Texas Intermediate to $35.14, up nearly 17% from its May forecast. It also said Brent crude oil prices are likely to average $38.02 this year, up 11.4% from the previous view.
Oil prices recover losses to settle higher on bets the market may soon ‘find balance’
Comments by Macy's, brought a sense of reality to investors about the difficulty of an economic recovery. While it has already begun, it will involve a lot of stumbling & even some setbacks. The current stock market rally is assuming the best of all worlds. There was selling in the last hour & gold continues in demand, remaining elevated above 1700.
Dow Jones Industrials
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