Dow fell 73, decliners ahead of advancers about 5-4 & NAZ sank 172. The MLP index fell 1+ to the 126s & the REIT index gave back 3+ to the 342s. Junk bond funds were little changed & Treasuries rose in price, taking the yield on the 10 year Treasury down to 0,6%. Oil slid below 40 & gold was off 4 to 1808.
AMJ (Alerian MLP Index tracking fund)
The number of Americans applying for unemployment benefits remained historically high last week, indicating that employers are continuing to slash jobs amid a coronavirus resurgence that's threatening the labor market's nascent recovery. The latest jobless claims figures from the Labor Dept, show that 1.3M workers sought jobless aid last week, pushing the total number since the shutdown began to more than 51M. The forecast called for 1.25M new claims. Continuing claims, the number of people receiving benefits after an initial week of aid, fell by 422K to about 17.3M, suggesting some companies are rehiring workers. The previous week's total was revised down by 302K. It's the 17th week in a row that jobless claims came in above 1M; before the pandemic, the record high was 695K set in 1982. The resurgence of COVID-19 infections & new shutdown measures in several US states, including Florida & California, has intensified fears that the economic recovery is stalling after the blockbuster Jun jobs report showed the nation's unemployment rate fell from 13.3% to 11.1% last month.
Johnson & Johnson's (JNJ), a Dow stock & Dividend Aristocrat, Q2 profit slid 35% from the same time last year as the coronavirus pandemic forced hospitals to postpone elective surgeries, hitting the company's medical device business hard. EPS was $1.36, a 34.6% drop from a year earlier as sales in its medical device unit fell. The decline in its medical device unit was partially offset by higher sales for its over-the-counter products such as Tylenol & its Listerine mouthwash. Tthe company beat expectations, reporting adjusted EPS of $1.67, higher than the $1.49 expected. The company generated $18.3B in revenue, higher than the $17.6B expected but a 10% decline from a year ago. The company raised its full-year guidance, expecting adjusted EPS of $7.75-7.95 from $7.50-7.90. It also raised its sales forecast to $79.9-81.4B from $77.5-80.5B. “Our second quarter results reflect the impact of COVID-19 and the enduring strength of our Pharmaceutical business, where we saw continued growth even in this environment,” CEO Alex Gorsky said. “Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives.” The stock fell 1.04.
If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
J&J’s profit slides 35% as coronavirus forces hospitals to forgo elective surgeries
U.S. retail sales pop more-than-expected in June
The Dow opened lower but buyers reduced the loss. Jobless claims are still running 6X where they were in the early part of 2020 Meanwhile the NAZ powered by tech stocks was hit with more selling (where it was 2 weeks ago) on worries over US-China trade relations. Earnings will be a major driver for stocks for the rest of Jul.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 40.79 | -0.41 | -1.00% |
| GC=F | Gold | 1,806.50 | -7.30 | -0.40% |
The number of Americans applying for unemployment benefits remained historically high last week, indicating that employers are continuing to slash jobs amid a coronavirus resurgence that's threatening the labor market's nascent recovery. The latest jobless claims figures from the Labor Dept, show that 1.3M workers sought jobless aid last week, pushing the total number since the shutdown began to more than 51M. The forecast called for 1.25M new claims. Continuing claims, the number of people receiving benefits after an initial week of aid, fell by 422K to about 17.3M, suggesting some companies are rehiring workers. The previous week's total was revised down by 302K. It's the 17th week in a row that jobless claims came in above 1M; before the pandemic, the record high was 695K set in 1982. The resurgence of COVID-19 infections & new shutdown measures in several US states, including Florida & California, has intensified fears that the economic recovery is stalling after the blockbuster Jun jobs report showed the nation's unemployment rate fell from 13.3% to 11.1% last month.
1.3M Americans filed for unemployment aid last week
Johnson & Johnson's (JNJ), a Dow stock & Dividend Aristocrat, Q2 profit slid 35% from the same time last year as the coronavirus pandemic forced hospitals to postpone elective surgeries, hitting the company's medical device business hard. EPS was $1.36, a 34.6% drop from a year earlier as sales in its medical device unit fell. The decline in its medical device unit was partially offset by higher sales for its over-the-counter products such as Tylenol & its Listerine mouthwash. Tthe company beat expectations, reporting adjusted EPS of $1.67, higher than the $1.49 expected. The company generated $18.3B in revenue, higher than the $17.6B expected but a 10% decline from a year ago. The company raised its full-year guidance, expecting adjusted EPS of $7.75-7.95 from $7.50-7.90. It also raised its sales forecast to $79.9-81.4B from $77.5-80.5B. “Our second quarter results reflect the impact of COVID-19 and the enduring strength of our Pharmaceutical business, where we saw continued growth even in this environment,” CEO Alex Gorsky said. “Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives.” The stock fell 1.04.
If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
J&J’s profit slides 35% as coronavirus forces hospitals to forgo elective surgeries
US retail sales increased more than expected in
Jun, but the budding economic recovery is being threatened by a
resurgence in new Covid-19 infections & high unemployment. The
Commerce Dept said retail sales rose 7.5% last month.
That was on top of the 18.2% jump in May, which was the biggest gain
since the gov started tracking the series in 1992. The forcast called for retail sales advancing 5% in Jun. Retail
sales have rebounded as businesses resumed operations after being
shuttered in mid-Mar in an effort to slow the spread of the
coronavirus. But new cases of the respiratory illness have exploded,
especially in the densely populated South & West, forcing some
authorities in these regions to either close businesses again or pause
reopenings. The uncertainty sparked by the spiraling Covid-19
cases is chipping at the recovery, which started in May, & could
worsen already astoundingly high unemployment. The economy had already
slipped into recession in Feb, before the coronavirus-related
shutdowns began in the US.
U.S. retail sales pop more-than-expected in June
The Dow opened lower but buyers reduced the loss. Jobless claims are still running 6X where they were in the early part of 2020 Meanwhile the NAZ powered by tech stocks was hit with more selling (where it was 2 weeks ago) on worries over US-China trade relations. Earnings will be a major driver for stocks for the rest of Jul.
Dow Jones Industrials
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