Dow fell 92 (above early lows), decliners over advancers 4-3 & NAZ gave back 84. The MLP index hardly budged at 130 & the REIT index was off 1+ to the 345s. Junk bond funds fluctuated & Treasuries slid lower in price. Oil was steady at 41 & gold rose 8 to 1898 (new record territory).
AMJ (Alerian MLP Index tracking fund)
Nearly ½ of Americans whose families experienced a layoff during the coronavirus pandemic now believe those jobs are lost forever, a new poll shows, as temporary cutbacks give way to shuttered businesses, bankruptcies & lasting payroll cuts. It's a sharp change after initial optimism the jobs would return. In Apr, 78% of those in households with a job loss thought they'd be temporary. Now, 47% think that lost job is definitely or probably not coming back, according to the latest poll from The Associated Press-NORC Center for Public Affairs Research. That translates into roughly 10M workers who will need to find a new employer, if not a new occupation. The poll is the latest sign the solid hiring of May & Jun, as some states lifted stay-at-home orders & the economy began to recover, may wane as the year goes on. Adding to the challenge: many students will begin the school-year online, making it harder for parents to take jobs outside their homes. The economy's recovery has shown signs of stalling amid a resurgence of the coronavirus. The number of laid-off workers seeking jobless benefits rose last week for the first time since Mar, while the number of U.S. infections shot past 4M — with many more cases undetected. The poll shows that 72% of Americans would rather have restrictions in place in their communities to stop the spread of COVID-19 than remove them in an effort to help the economy. Just 27% want to prioritize the economy over efforts to stop the outbreak. About 9 in 10 Dems prioritize stopping the virus, while Reps are more evenly divided — 46% focus on stopping the spread, while 53% say the economy is the bigger priority. Overall, about ½ of Americans say they or someone in their household has lost some kind of income over the course of the pandemic. That includes 27% who say someone has been laid off, 33% been scheduled for fewer hours, 24% taken unpaid time off & 29% had wages or salaries reduced. 18% of those who lost a household job now say it has come back, while another 34% still expect it to return. The poll finds that 38% of Americans think the national economy is good. That's about the same as in Jun & up from 29% in May but far below the 67% who felt that way in Jan.
American Express (AXP), a Dow stock, profit plummeted 85% in the 3 months thru Jun as customers slashed spending while holed up in their homes during COVID-19 lockdowns. The financial services company had EPS of 29¢ as revenue fell 29% to $7.68B. The forecast was for a loss of 11¢ on revenue of $8.15B. “While our second-quarter results reflect the challenges of the current environment, we remain confident that our strategy for navigating this period of uncertainty is the right one,” CEO Stephen Squeri said. “Spending volumes, which declined to their lowest point this quarter in April, gradually improved in May and June, with small businesses being the most resilient.” AXP set aside $1.6B for losses, about double from $861M a year ago, due to the uncertain macroeconomic outlook presented by COVID-19. Consolidated expenses fell 29% from a year ago to $5.5B amid lower spending and a drop in usage of travel-related benefits. Profit from the global consumer group fell 40% to $527M while global commercial services lost $60M after turning a profit of $561M a year ago. Meanwhile, profit at the global merchant and network services division fell to $66M from $564M last year. The stock fell 1.22.
If you would like to learn more about AXP, click on this link:
club.ino.com/trend/analysis/stock/AXP?a_aid=CD3289&a_bid=6ae5b6f7
Pres Trump said that phase one of the US-China trade deal means much less to him now despite China stepping up agriculture purchases in recent weeks. “The trade deal means less to me now than it did when I made it," Trump said. "They are setting records. Yesterday was a record corn day, they purchased more corn than any order ever and that went on for two or three days. And soybeans and all, but it just mean much less to me. Can you understand that? It just means much less to me.” China bought a single-day record 1.76M metric tons of corn on Jul 14 & has bought 6.1M metric tons of soybeans this year as of Jul 16, according to USDA data. Trump signed phase one of the trade deal on Jan 15, but America's relationship with China has deteriorated since then due to tensions over the coronavirus, Beijing's curtailing of political freedoms in Hong Kong & China's detention of Uighur Muslims in the Xinjiang province. This week, the state department ordered the shutdown of the Chinese consulate in Houston. Secretary of State Mike Pompeo called it "a hub of spying and IP theft." But Cai Wei, the Chinese consul general in Houston, said that China is protesting the closure order & that his office is still open. Pompeo blasted China in a speech, calling for a shift in relations between the 2 superpowers. "If we want to have a free 21st century, and not the Chinese century of which Xi Jinping dreams, the old paradigm of blind engagement with China simply won't get it done," he said. Phase 1 of the trade deal was supposed to be a watershed moment for Trump, as he had been promising it since the 2016 campaign trail. But it doesn't look like phase 1 will be fulfilled, & the pres has thrown cold water on the idea of phase 2. "I'm not interested right now in talking to China," Trump said. "We made a great trade deal. But as soon as the deal was done, the ink wasn't even dry, and they hit us with the plague."
The stock market is jittery with growing tensions between the US & China. The NAZ with its dependence on tech stocks is suffering more than the Dow. Meanwhile the US economy is sputtering as states have mixed results opening up their economies. The Dow stays near 26K where it has been since early Jun.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 40.92 | -0.15 | -0.4% |
| GC=F | Gold | 1,898.00 | +8.00 | +0.4% |
Nearly ½ of Americans whose families experienced a layoff during the coronavirus pandemic now believe those jobs are lost forever, a new poll shows, as temporary cutbacks give way to shuttered businesses, bankruptcies & lasting payroll cuts. It's a sharp change after initial optimism the jobs would return. In Apr, 78% of those in households with a job loss thought they'd be temporary. Now, 47% think that lost job is definitely or probably not coming back, according to the latest poll from The Associated Press-NORC Center for Public Affairs Research. That translates into roughly 10M workers who will need to find a new employer, if not a new occupation. The poll is the latest sign the solid hiring of May & Jun, as some states lifted stay-at-home orders & the economy began to recover, may wane as the year goes on. Adding to the challenge: many students will begin the school-year online, making it harder for parents to take jobs outside their homes. The economy's recovery has shown signs of stalling amid a resurgence of the coronavirus. The number of laid-off workers seeking jobless benefits rose last week for the first time since Mar, while the number of U.S. infections shot past 4M — with many more cases undetected. The poll shows that 72% of Americans would rather have restrictions in place in their communities to stop the spread of COVID-19 than remove them in an effort to help the economy. Just 27% want to prioritize the economy over efforts to stop the outbreak. About 9 in 10 Dems prioritize stopping the virus, while Reps are more evenly divided — 46% focus on stopping the spread, while 53% say the economy is the bigger priority. Overall, about ½ of Americans say they or someone in their household has lost some kind of income over the course of the pandemic. That includes 27% who say someone has been laid off, 33% been scheduled for fewer hours, 24% taken unpaid time off & 29% had wages or salaries reduced. 18% of those who lost a household job now say it has come back, while another 34% still expect it to return. The poll finds that 38% of Americans think the national economy is good. That's about the same as in Jun & up from 29% in May but far below the 67% who felt that way in Jan.
Optimism fades jobs lost to virus will return, poll finds
American Express (AXP), a Dow stock, profit plummeted 85% in the 3 months thru Jun as customers slashed spending while holed up in their homes during COVID-19 lockdowns. The financial services company had EPS of 29¢ as revenue fell 29% to $7.68B. The forecast was for a loss of 11¢ on revenue of $8.15B. “While our second-quarter results reflect the challenges of the current environment, we remain confident that our strategy for navigating this period of uncertainty is the right one,” CEO Stephen Squeri said. “Spending volumes, which declined to their lowest point this quarter in April, gradually improved in May and June, with small businesses being the most resilient.” AXP set aside $1.6B for losses, about double from $861M a year ago, due to the uncertain macroeconomic outlook presented by COVID-19. Consolidated expenses fell 29% from a year ago to $5.5B amid lower spending and a drop in usage of travel-related benefits. Profit from the global consumer group fell 40% to $527M while global commercial services lost $60M after turning a profit of $561M a year ago. Meanwhile, profit at the global merchant and network services division fell to $66M from $564M last year. The stock fell 1.22.
If you would like to learn more about AXP, click on this link:
club.ino.com/trend/analysis/stock/AXP?a_aid=CD3289&a_bid=6ae5b6f7
American Express profit plunges 85% as coronavirus zaps spending
Pres Trump said that phase one of the US-China trade deal means much less to him now despite China stepping up agriculture purchases in recent weeks. “The trade deal means less to me now than it did when I made it," Trump said. "They are setting records. Yesterday was a record corn day, they purchased more corn than any order ever and that went on for two or three days. And soybeans and all, but it just mean much less to me. Can you understand that? It just means much less to me.” China bought a single-day record 1.76M metric tons of corn on Jul 14 & has bought 6.1M metric tons of soybeans this year as of Jul 16, according to USDA data. Trump signed phase one of the trade deal on Jan 15, but America's relationship with China has deteriorated since then due to tensions over the coronavirus, Beijing's curtailing of political freedoms in Hong Kong & China's detention of Uighur Muslims in the Xinjiang province. This week, the state department ordered the shutdown of the Chinese consulate in Houston. Secretary of State Mike Pompeo called it "a hub of spying and IP theft." But Cai Wei, the Chinese consul general in Houston, said that China is protesting the closure order & that his office is still open. Pompeo blasted China in a speech, calling for a shift in relations between the 2 superpowers. "If we want to have a free 21st century, and not the Chinese century of which Xi Jinping dreams, the old paradigm of blind engagement with China simply won't get it done," he said. Phase 1 of the trade deal was supposed to be a watershed moment for Trump, as he had been promising it since the 2016 campaign trail. But it doesn't look like phase 1 will be fulfilled, & the pres has thrown cold water on the idea of phase 2. "I'm not interested right now in talking to China," Trump said. "We made a great trade deal. But as soon as the deal was done, the ink wasn't even dry, and they hit us with the plague."
Trump says U.S.-China 'trade deal means less to me now' than when he signed it
The stock market is jittery with growing tensions between the US & China. The NAZ with its dependence on tech stocks is suffering more than the Dow. Meanwhile the US economy is sputtering as states have mixed results opening up their economies. The Dow stays near 26K where it has been since early Jun.
Dow Jones Industrials
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