Dow dropped 220 (200 above early lows), decliners over advancers a big 6-1 & NAZ went up 11 (new record territory). The MLP index lost 7+ to the 162s & REIT index pulled back 6+ to the 372s, Junk bond funds drifted lower & Treasuries rose in price. Oil slid lower to 38 & gold rose 21 to 1726.
AMJ (Alerian MLP Index tracking fund)
A Minneapolis manufacturing company, whose plant burned amid civil unrest following George Floyd's death, is leaving the city after nearly 4 decades & taking dozens of jobs with it. The pres & owner of 7-Sigma, Kris Wyrobek, felt inclined to do so after he says he lost trust in public officials during the riots that plagued the city. "They don't care about my business," said Wyrobek said. "They didn't protect our people. We were all on our own." The company, which designs & manufactures polymer solutions & precision metal components, has been operating in south Minneapolis since 1987. The city will effectively lose 50 jobs when Wyrobek takes his business elsewhere, according to the outlet. Wyrobek isn't alone in his frustration. The city of Minneapolis says the looting & property damage have already caused at least $55M in destruction so far. The violence followed the death of Floyd. Although first-term Minneapolis Mayor Jacob Frey quickly expressed outrage & called for charges against the officer, he faced backlash for failing to quell the destruction. Gov Tim Walz — like Frey, a Dem — criticized the "abject failure" of the city's response & called on the National Guard at the mayor's request to help restore peace. "This was a Guard-sized crisis and demanded a Guard-sized response," Frey said. "And once we had the full presence of the National Guard — which by the way hasn't been deployed since World War II — there was a significantly different result." Frey is now asking for state & federal aid to help rebuild after the civil unrest. Until that happens, community members are pitching in to support Minneapolis neighborhoods.
Macy's (M) shares soared as the company released its preliminary financial results, saying it is regaining customers at reopened stores much quicker than it expected. 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 net earnings of $136M (44¢ per share) in the prior year. Excluding one-time items, the company is reporting a preliminary loss of $2.03 per share. As of Jun 1, Macy's had roughly 450 locations back up & running. This week, stores across New York City, including its flagship Bloomingdale's shop, are reopening to shoppers for curbside pickup. “Our reopened stores are performing better than anticipated,” CEO Jeff Gennette said. The company said it raised $4.5B in new financing to help it weather the Covid-19 crisis & now expects to have “sufficient liquidity” to address the needs of its business during this time of upheaval, including buying new inventory & repaying upcoming debt maturities. It was reported in Apr that Macy’s was considering the financing as a way to relieve the pressure from having all of its stores temporarily shut. According to Gennette, the company anticipates ending Q2 with a lean inventory position, setting it up well for H2. It is expecting Q1 inventories to amount to $4.9B, down from $5.5B 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. Macy's will report Q1 earnings on Jul 1. The stock fell 7¢ to 9.48.
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 shares up as company says reopened stores topping expectations
Tiffany’s (TIF) said its jewelry business is rebounding in China after the coronavirus pandemic & its merger with French luxury retailer LVMH is clearing regulatory hurdles. Same-store sales were down about 44% in the fiscal Q1 as the pandemic shuttered shopping malls & stores across the globe. Yet CEO Alessandro Bogliolo pointed to China as “indicative that a robust recovery is underway.” TIF swung to a net loss 53¢ a share from EPS of $1.03 a year ago. Revenue fell 45% to $555.5M. The forecast was expecting EPS of 3¢ on sales of $701M, but the coronavirus pandemic has made comparisons with estimates difficult to make. LVMH owns high-end companies from champagne brand, Dom Perignon, to handbag company, Louis Vuitton. The luxury goods group agreed to buy TIF in Nov for $16.2B. The coronavirus pandemic, however, threw the deal into doubt. As stores temporarily shuttered & many sales evaporated, LVMH CEO Bernard Arnault looked to lower the price of buying the US jewelry chain, according to leakers. The jeweler may face headwinds in the months ahead. As the risk of Covid-19 continues & the public waits for a vaccine, people are throwing fewer parties & skipping events where they'd typically wear a pair of earrings or show off a shiny new bracelet. Many couples have put weddings on hold. Bogliolo said that the company, along with other retailers, has been battered by the pandemic, but added that its brand is strong. The company's focus on expanding sales in China, investing in its websites & expanding its jewelry collection prior to the pandemic has made it more resilient. And, the merger recently got regulatory approval to move forward with the deal from antitrust officials in Russia & Mexico. CFO Mark Erceg said TIF has “ample cash on hand” & is in compliance with debt covenants, as of Apr 30. It amended some of its debt agreements & pulled back on capital spending to as it navigates uncertain times. The stock rose 2.63.
If you would like to learn more about TIF click on this link:
club.ino.com/trend/analysis/stock/TIF?a_aid=CD3289&a_bid=6ae5b6f7
Tiffany says same-store sales fell 44%, LVMH deal clearing regulatory hurdles
Stocks have had a spectacular run since mid Mar. The economic recovery is moving along, but it is & will be a choppy pattern. The Dow is still is up a staggering 50% off recent lows {shown below).
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 37.72 | -0.47 | -1.2% |
| GC=F | Gold | 1,725.80 | +20.70 | +1.2% |
A Minneapolis manufacturing company, whose plant burned amid civil unrest following George Floyd's death, is leaving the city after nearly 4 decades & taking dozens of jobs with it. The pres & owner of 7-Sigma, Kris Wyrobek, felt inclined to do so after he says he lost trust in public officials during the riots that plagued the city. "They don't care about my business," said Wyrobek said. "They didn't protect our people. We were all on our own." The company, which designs & manufactures polymer solutions & precision metal components, has been operating in south Minneapolis since 1987. The city will effectively lose 50 jobs when Wyrobek takes his business elsewhere, according to the outlet. Wyrobek isn't alone in his frustration. The city of Minneapolis says the looting & property damage have already caused at least $55M in destruction so far. The violence followed the death of Floyd. Although first-term Minneapolis Mayor Jacob Frey quickly expressed outrage & called for charges against the officer, he faced backlash for failing to quell the destruction. Gov Tim Walz — like Frey, a Dem — criticized the "abject failure" of the city's response & called on the National Guard at the mayor's request to help restore peace. "This was a Guard-sized crisis and demanded a Guard-sized response," Frey said. "And once we had the full presence of the National Guard — which by the way hasn't been deployed since World War II — there was a significantly different result." Frey is now asking for state & federal aid to help rebuild after the civil unrest. Until that happens, community members are pitching in to support Minneapolis neighborhoods.
Manufacturing company in Minneapolis since 1987 leaving city after violent protests
Macy's (M) shares soared as the company released its preliminary financial results, saying it is regaining customers at reopened stores much quicker than it expected. 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 net earnings of $136M (44¢ per share) in the prior year. Excluding one-time items, the company is reporting a preliminary loss of $2.03 per share. As of Jun 1, Macy's had roughly 450 locations back up & running. This week, stores across New York City, including its flagship Bloomingdale's shop, are reopening to shoppers for curbside pickup. “Our reopened stores are performing better than anticipated,” CEO Jeff Gennette said. The company said it raised $4.5B in new financing to help it weather the Covid-19 crisis & now expects to have “sufficient liquidity” to address the needs of its business during this time of upheaval, including buying new inventory & repaying upcoming debt maturities. It was reported in Apr that Macy’s was considering the financing as a way to relieve the pressure from having all of its stores temporarily shut. According to Gennette, the company anticipates ending Q2 with a lean inventory position, setting it up well for H2. It is expecting Q1 inventories to amount to $4.9B, down from $5.5B 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. Macy's will report Q1 earnings on Jul 1. The stock fell 7¢ to 9.48.
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 shares up as company says reopened stores topping expectations
Tiffany’s (TIF) said its jewelry business is rebounding in China after the coronavirus pandemic & its merger with French luxury retailer LVMH is clearing regulatory hurdles. Same-store sales were down about 44% in the fiscal Q1 as the pandemic shuttered shopping malls & stores across the globe. Yet CEO Alessandro Bogliolo pointed to China as “indicative that a robust recovery is underway.” TIF swung to a net loss 53¢ a share from EPS of $1.03 a year ago. Revenue fell 45% to $555.5M. The forecast was expecting EPS of 3¢ on sales of $701M, but the coronavirus pandemic has made comparisons with estimates difficult to make. LVMH owns high-end companies from champagne brand, Dom Perignon, to handbag company, Louis Vuitton. The luxury goods group agreed to buy TIF in Nov for $16.2B. The coronavirus pandemic, however, threw the deal into doubt. As stores temporarily shuttered & many sales evaporated, LVMH CEO Bernard Arnault looked to lower the price of buying the US jewelry chain, according to leakers. The jeweler may face headwinds in the months ahead. As the risk of Covid-19 continues & the public waits for a vaccine, people are throwing fewer parties & skipping events where they'd typically wear a pair of earrings or show off a shiny new bracelet. Many couples have put weddings on hold. Bogliolo said that the company, along with other retailers, has been battered by the pandemic, but added that its brand is strong. The company's focus on expanding sales in China, investing in its websites & expanding its jewelry collection prior to the pandemic has made it more resilient. And, the merger recently got regulatory approval to move forward with the deal from antitrust officials in Russia & Mexico. CFO Mark Erceg said TIF has “ample cash on hand” & is in compliance with debt covenants, as of Apr 30. It amended some of its debt agreements & pulled back on capital spending to as it navigates uncertain times. The stock rose 2.63.
If you would like to learn more about TIF click on this link:
club.ino.com/trend/analysis/stock/TIF?a_aid=CD3289&a_bid=6ae5b6f7
Tiffany says same-store sales fell 44%, LVMH deal clearing regulatory hurdles
Stocks have had a spectacular run since mid Mar. The economic recovery is moving along, but it is & will be a choppy pattern. The Dow is still is up a staggering 50% off recent lows {shown below).
Dow Jones Industrials
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