Dow edged down 18, advancers over decliners 5-4 & NAZ rose 32. The MLP index went up 2+ to the 151s & the REIT index lost 3+ to the 355s. Junk bond funds hardly budged in price & Treasuries were being purchased. Oil climbed higher in the 38s & gold fell 7 to 1728.
AMJ (Alerian MLP Index tracking fund)
Weekly jobless claims stayed above 1M for the 13th consecutive week as the coronavirus pandemic continued to hammer the US economy. First-time claims totaled 1.5M last week, higher than the 1.3M that was expected. The gov report's total was 58K lower than the previous week's 1.566M, which was revised up by 24K. The elevated claims number persists even as all states have reopened to varying degrees & nonfarm payrolls grew by 2.5M in May. Before the coronavirus, the record for a single week was 695K in 1982. Continuing claims (those who have been receiving unemployment benefits for at least 2 weeks) nudged lower to 20.5M, a decline of 62K from the previous week. In addition to the standard filings, 760K claims were filed under the Pandemic Unemployment Assistance program, an increase of more than 65K, according to unadjusted numbers. The total of those receiving benefits was 29.1M as of May 30, the most recent week for which data was available. That was a decrease of 375K from the previous week. Numbers not adjusted for seasonality showed 1.43M claims, a decline of 128K (8.2%). Some economists are watching that number more closely as seasonal factors are playing less of a role due to the unusual nature of the coronavirus-related work stoppages. Florida (-26K) & Oklahoma (-20K) showed sizable drops from the previous week, according to unadjusted numbers. But Texas showed the biggest gain, with 4K. Extended unemployment benefits that are providing many workers $600 above what they normally would receive are scheduled to run out at the end of Jul. Congress is working on an extension of the program put into place as the pandemic hit. Fed Chair Jerome Powell on yesterday urged Congress to extend the benefits though he did not recommend anything specific.
Jobless claims total 1.5 million, worse than expected as economic pain persists
Some parts of the U.S. are ‘on the cusp of losing control’ of coronavirus, Dr. Scott Gottlieb says
Delta Air Lines (DAL) plans to continue adding flights throughout the summer but executives remain cautious about expanding service after the peak summer season. The carrier expects to add 1K flights a day in Jul & a similar number in Aug, CEO Ed Bastian. Its Aug domestic capacity would still be down 55-60% from normal levels, he added. DAL earlier this month said its capacity in its Q2 was down 85% from a year ago. After adding flights, DAL plans to “take a pause, & we’ll see how demand looks post-Labor Day before we decide to add further domestic flights back,” Bastian said. Air travel has been ticking higher as the peak late-spring & summer travel season gets into full swing but the impact of the coronavirus pandemic has been deep & demand is a fraction of normal levels. An average of 415K people were screened at US airports in the first 16 days of Jun, according to the Transportation Security Administration. That's close to 4 times the number screened in the same period of Apr, at the depths of the demand crisis, but down more than 83% from the same period a year ago. DAL aims to eliminate its cash burn by the end of 2020, which he estimated at $30M a day in Jun, down from $100M a day in Mar. It has cut operating costs by 55% in Q2. The airline has raised more than $14B since the start of Mar, excluding federal coronavirus relief, & is on track to have more than $10B in liquidity by the end of the year, according to Bastian. He said that about 500 of its 90K employees have contracted Covid-19, & while most have recovered, 10 have died. The stock fell 48¢.
If you would like to learn more about DAL, click on this link:
club.ino.com/trend/analysis/stock/DAL?a_aid=CD3289&a_bid=6ae5b6f7
Delta expects to add more flights in August but cautious on post-summer travel
The jobless claims reports remains dreary. The weekly number was a little over 0.2M for a few years & now it's 1.5M. A lot of healing will be needed before the US economy is back to full strength. Meanwhile the fight against coronavirus is unclear with mixed results. NY with the epicenter in Apr has shown dramatic improvement while other big population states are experiencing upticks in cases. The Dow is back where it was in early Jun around 26K while NAZ is pushing to 10K again,
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 38.47 | +0.51 | +1.3% |
| GC=F | Gold | 1,725.00 | -10.60 | -0.6% |
Weekly jobless claims stayed above 1M for the 13th consecutive week as the coronavirus pandemic continued to hammer the US economy. First-time claims totaled 1.5M last week, higher than the 1.3M that was expected. The gov report's total was 58K lower than the previous week's 1.566M, which was revised up by 24K. The elevated claims number persists even as all states have reopened to varying degrees & nonfarm payrolls grew by 2.5M in May. Before the coronavirus, the record for a single week was 695K in 1982. Continuing claims (those who have been receiving unemployment benefits for at least 2 weeks) nudged lower to 20.5M, a decline of 62K from the previous week. In addition to the standard filings, 760K claims were filed under the Pandemic Unemployment Assistance program, an increase of more than 65K, according to unadjusted numbers. The total of those receiving benefits was 29.1M as of May 30, the most recent week for which data was available. That was a decrease of 375K from the previous week. Numbers not adjusted for seasonality showed 1.43M claims, a decline of 128K (8.2%). Some economists are watching that number more closely as seasonal factors are playing less of a role due to the unusual nature of the coronavirus-related work stoppages. Florida (-26K) & Oklahoma (-20K) showed sizable drops from the previous week, according to unadjusted numbers. But Texas showed the biggest gain, with 4K. Extended unemployment benefits that are providing many workers $600 above what they normally would receive are scheduled to run out at the end of Jul. Congress is working on an extension of the program put into place as the pandemic hit. Fed Chair Jerome Powell on yesterday urged Congress to extend the benefits though he did not recommend anything specific.
Jobless claims total 1.5 million, worse than expected as economic pain persists
As new coronavirus cases surge in several states
across the American South & West, the hardest-hit areas are now “on
the cusp of losing control,” former Food & Drug Administration
Commissioner Dr Scott Gottlieb said. The coronavirus continues to infect about 20K in the US everyday, though
that national figure masks what's occurring locally as the virus is
driven down in cities like New York that were first hit & finds new
communities to infect. “The
question is ‘can we keep this from getting out of control.’ This is a
virus that wants to infect a very large portion of the population,”
Gottlieb said.
“They’re on the cusp of losing control of those outbreaks in certain
parts of those states. Arizona, Houston, Austin, parts of Florida
certainly look very concerning right now.” Cases have been
gradually increasing roughly since Memorial Day weekend in a number of
states, including Arizona, Texas, Florida, Alabama, Arkansas & others.
In Arizona, some hospitals are approaching capacity. Yesterday, the
state reported 85% of hospital beds are already in use, a record high
for the state. “These are outbreaks. We’re seeing doubling times
now falling under 10 days,” Gottlieb added. “These are on the cusp of
getting out of control. I think these states still have a week or two to
take actions to try to get these under control.” State officials have put forward a number of reasons for the increase
in cases. Some have pointed to increased testing, though in Arizona &
some other states the % of people tested who test positive has
risen along with the number of confirmed cases. Texas Gov. Greg Abbott acknowledged earlier this week
that the virus is likely spreading among young people who aren't taking
precautions like social distancing & mask wearing. He added, however,
that known clusters in prisons & hiccups in local data reporting are
also responsible for the uptick in Texas’ Covid-19 cases &
hospitalizations. “We
expected cases to go up as we reengaged in social activity, but it’s
gone up more than we predicted,” Gottlieb said. “Certain states have
been slower to reopen. Other states have been much more aggressive. The
states that were aggressive are the states where we’re seeing these
outbreaks right now.” Local & state officials should be
considering targeted containment measures in response to these
outbreaks, Gottlieb added. That might include rolling back some
previously aggressive reopening steps such as allowing bars to reopen at
50% capacity in Texas, he said. Health officials have more
tools to combat outbreaks now than they did a couple months ago.
Gottlieb said more widespread testing & early-stage contact tracing
infrastructure should help officials identify the sources of infection & guide interventions. Gottlieb said he's still concerned about “the lack of political will”
for officials to continue to implement proven interventions like social
distancing & mask wearing. “I’m more concerned than I was three
weeks ago heading into the fall,” he said. “Unless we get comfortable
taking some common sense measures, where we can, some limited measures,
we’re going to be stuck with a lot more spread.”
Some parts of the U.S. are ‘on the cusp of losing control’ of coronavirus, Dr. Scott Gottlieb says
Delta Air Lines (DAL) plans to continue adding flights throughout the summer but executives remain cautious about expanding service after the peak summer season. The carrier expects to add 1K flights a day in Jul & a similar number in Aug, CEO Ed Bastian. Its Aug domestic capacity would still be down 55-60% from normal levels, he added. DAL earlier this month said its capacity in its Q2 was down 85% from a year ago. After adding flights, DAL plans to “take a pause, & we’ll see how demand looks post-Labor Day before we decide to add further domestic flights back,” Bastian said. Air travel has been ticking higher as the peak late-spring & summer travel season gets into full swing but the impact of the coronavirus pandemic has been deep & demand is a fraction of normal levels. An average of 415K people were screened at US airports in the first 16 days of Jun, according to the Transportation Security Administration. That's close to 4 times the number screened in the same period of Apr, at the depths of the demand crisis, but down more than 83% from the same period a year ago. DAL aims to eliminate its cash burn by the end of 2020, which he estimated at $30M a day in Jun, down from $100M a day in Mar. It has cut operating costs by 55% in Q2. The airline has raised more than $14B since the start of Mar, excluding federal coronavirus relief, & is on track to have more than $10B in liquidity by the end of the year, according to Bastian. He said that about 500 of its 90K employees have contracted Covid-19, & while most have recovered, 10 have died. The stock fell 48¢.
If you would like to learn more about DAL, click on this link:
club.ino.com/trend/analysis/stock/DAL?a_aid=CD3289&a_bid=6ae5b6f7
Delta expects to add more flights in August but cautious on post-summer travel
The jobless claims reports remains dreary. The weekly number was a little over 0.2M for a few years & now it's 1.5M. A lot of healing will be needed before the US economy is back to full strength. Meanwhile the fight against coronavirus is unclear with mixed results. NY with the epicenter in Apr has shown dramatic improvement while other big population states are experiencing upticks in cases. The Dow is back where it was in early Jun around 26K while NAZ is pushing to 10K again,
Dow Jones Industrials
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