Dow fell 132, decliners over advancers about 3-1 & NAZ went up 58. The MLP index was off 1+ to 126 & the REIT index fell 5+ to 354. Junk bond funds hardly budged & Treasuries were s little lower. Oil slid lower in the 39s & gold jumped 19 to 1989 as it closes in on 2K.
AMJ (Alerian MLP Index tracking fund)
The Trump administration is reportedly open to cutting a coronavirus stimulus deal with Dems that leaves out Senate Reps legislation intended to protect businesses from pandemic-related lawsuits. Although the White House has maintained that liability protections for employers is a top priority in the next round of virus aid, officials have signaled a willingness to sign off on a deal that does not include those legal protections, according to leakers. That puts the White House at odds with Senate Majority Leader Mitch McConnell, who has said repeatedly that no relief bill will be passed without it. The liability shield would not just apply to private businesses, but to schools, hospitals & nonprofits. The protection would make it so that workers & consumers could only sue businesses for damages if they can prove they were "grossly negligent" in actions that led them to being infected by COVID-19. "No bill will be put on the Senate floor that does not have liability protections," McConnell told reporters. Dems have opposed those measures. House Speaker Nancy Pelosi argued this week that a liability shield would fail to make businesses & employers responsible for the safety of their workplace while at the same time removing any fear of repercussions if a worker got sick. "What they're saying to essential workers, 'You have to go to work because you're essential. We've placed no responsibility on your employer to make that workplace safe,'" Pelosi said. "'And if you get sick, you have no recourse because we've given the employer protection.'"
Caterpillar (CAT), a Dow stock, profit fell 70% as the economic slowdown caused by COVID-19 slashed demand. The heavy-equipment manufacturer had adjusted EPS of $1.03, as revenue slid 31% from a year ago to $10B. The forecast called for EPS of 64¢ on revenue of $9.69B. “In the second quarter, our employees and dealers remained dedicated to providing the essential products and services the world needs under very challenging conditions,” CEO Jim Umpleby said. "We will adjust production as conditions warrant and are prepared to respond quickly to any positive or negative changes in customer demand." CAT, a bellwether of the global economy, saw sales in all 3 of its main business segments decline. Construction sales fell 37% from a year ago to $4.05B, a decline exacerbated by stiffer competition in China. Mining revenue was off 35%, at $1.83B, while energy & transportation revenue slid 24% to $4.15B. CAT withdrew its guidance for the remainder of 2020 & has not yet provided an update due to the uncertainty caused by COVID-19. The stock dropped 6.13 (4%).
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Exxon Mobil (XOM), a Dow stock & Dividend Aristocrat, recorded its 2nd consecutive quarterly losee as lower oil & gas prices sapped production gains & the decimation in global travel crimped fuel demand amid the a coronavirus pandemic. The oil producer a Q2 loss of per share of 26¢, compared with EPS of 73¢ last year. On an adjusted base, it recorded a loss of 70¢ a share. A loss in Q1 was its first in 3 decades. The forecast called for a loss of 41¢ a share, or 61¢ a share on an adjusted basis. Revenue fell 53% to $32.6B from $69.1B in the year-ago period. Analysts were looking for $38.2B. Downstream earnings, which represents much of the company's operations after it pumps oil out of the ground, rose to $976M from $451M, driven by gains outside the US. Oil-equivalent production was 3.6M barrels a day, down 7% from the year-ago period. Capital & exploration expenditures fell nearly $2B from Q1 to $5.3B as the company moved to cut costs. "The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes," CEO Darren Woods said. "We responded decisively by reducing near-term spending and continuing work to improve efficiency by leveraging recent reorganizations." He added that the company doesn't plan to take on additional debt. "We have increased debt to a level we feel is appropriate to provide liquidity, given market uncertainties," Woods said. The stock was off 65¢.
If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7
Strong earnings from tech stocks are driving NAZ higher. However the rest of the market is sliding lower on gloomy earnings reports & a failure for those guys in DC to pass a stimulus bill. The gold bugs are finding it easy to make their case for buying gold & they hope to take it over 2K by next week.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 39.94 | +0.02 | +0.1% |
| GC=F | Gold | 1,987.30 | +20.50 | +1.0% |
The Trump administration is reportedly open to cutting a coronavirus stimulus deal with Dems that leaves out Senate Reps legislation intended to protect businesses from pandemic-related lawsuits. Although the White House has maintained that liability protections for employers is a top priority in the next round of virus aid, officials have signaled a willingness to sign off on a deal that does not include those legal protections, according to leakers. That puts the White House at odds with Senate Majority Leader Mitch McConnell, who has said repeatedly that no relief bill will be passed without it. The liability shield would not just apply to private businesses, but to schools, hospitals & nonprofits. The protection would make it so that workers & consumers could only sue businesses for damages if they can prove they were "grossly negligent" in actions that led them to being infected by COVID-19. "No bill will be put on the Senate floor that does not have liability protections," McConnell told reporters. Dems have opposed those measures. House Speaker Nancy Pelosi argued this week that a liability shield would fail to make businesses & employers responsible for the safety of their workplace while at the same time removing any fear of repercussions if a worker got sick. "What they're saying to essential workers, 'You have to go to work because you're essential. We've placed no responsibility on your employer to make that workplace safe,'" Pelosi said. "'And if you get sick, you have no recourse because we've given the employer protection.'"
White House reportedly willing to strike relief deal without these biz protections
Caterpillar (CAT), a Dow stock, profit fell 70% as the economic slowdown caused by COVID-19 slashed demand. The heavy-equipment manufacturer had adjusted EPS of $1.03, as revenue slid 31% from a year ago to $10B. The forecast called for EPS of 64¢ on revenue of $9.69B. “In the second quarter, our employees and dealers remained dedicated to providing the essential products and services the world needs under very challenging conditions,” CEO Jim Umpleby said. "We will adjust production as conditions warrant and are prepared to respond quickly to any positive or negative changes in customer demand." CAT, a bellwether of the global economy, saw sales in all 3 of its main business segments decline. Construction sales fell 37% from a year ago to $4.05B, a decline exacerbated by stiffer competition in China. Mining revenue was off 35%, at $1.83B, while energy & transportation revenue slid 24% to $4.15B. CAT withdrew its guidance for the remainder of 2020 & has not yet provided an update due to the uncertainty caused by COVID-19. The stock dropped 6.13 (4%).
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Caterpillar sales sag 31% in coronavirus slowdown
Exxon Mobil (XOM), a Dow stock & Dividend Aristocrat, recorded its 2nd consecutive quarterly losee as lower oil & gas prices sapped production gains & the decimation in global travel crimped fuel demand amid the a coronavirus pandemic. The oil producer a Q2 loss of per share of 26¢, compared with EPS of 73¢ last year. On an adjusted base, it recorded a loss of 70¢ a share. A loss in Q1 was its first in 3 decades. The forecast called for a loss of 41¢ a share, or 61¢ a share on an adjusted basis. Revenue fell 53% to $32.6B from $69.1B in the year-ago period. Analysts were looking for $38.2B. Downstream earnings, which represents much of the company's operations after it pumps oil out of the ground, rose to $976M from $451M, driven by gains outside the US. Oil-equivalent production was 3.6M barrels a day, down 7% from the year-ago period. Capital & exploration expenditures fell nearly $2B from Q1 to $5.3B as the company moved to cut costs. "The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes," CEO Darren Woods said. "We responded decisively by reducing near-term spending and continuing work to improve efficiency by leveraging recent reorganizations." He added that the company doesn't plan to take on additional debt. "We have increased debt to a level we feel is appropriate to provide liquidity, given market uncertainties," Woods said. The stock was off 65¢.
If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7
Exxon Mobil Posts second consecutive quarterly loss
Strong earnings from tech stocks are driving NAZ higher. However the rest of the market is sliding lower on gloomy earnings reports & a failure for those guys in DC to pass a stimulus bill. The gold bugs are finding it easy to make their case for buying gold & they hope to take it over 2K by next week.
Dow Jones Industrials
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