Thursday, November 19, 2020

Markets edge lower as jobless claims data disappoint

Dow dropped 116, advancers modestly ahead of decliners & NAZ went up 53.  The MLP index was steady in the 131s & the REIT index 1 to the 369s.  Junk bond funds crawled higher & Treasuries were purchased.  Oil slid lower while remaining above 41 & gold sank 15 to 1858.

AMJ (Alerian MLP index tracking fund)

CL=FCrude Oil41.61
  -0.21-0.5%












GC=FGold   1,859.60
-14.30-0.8%










 

 




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The number of Americans applying for state unemployment benefits last week rose for the first time since the beginning of Oct, indicating that layoffs are still elevated as a surge in coronavirus cases threatens to derail the economy's recovery.  The latest jobless claims figures from the Labor Dept show that 742K workers sought aid last week, about 4 times the pre-crisis level.  Still, it's well below the peak of nearly 7M in late Mar, when states first implemented lockdown measures to curb the spread of COVID-19.  It's a slight uptick from last week's revised figure of 711K & well above the 707K new claims forecast.  Close to 67M Americans  roughly 40% of the nation's labor force have applied for aid since the coronavirus lockdowns began in mid-Mar.  The number of people who are continuing to receive unemployment benefits fell to 6.37M, a decline of about 429K from the previous week.  The decline suggests that employers are calling their workers back.  Still, some of the drop in continuing claims may represent workers who have used up the maximum number of payments available thru state unemployment programs (typically about 6 months) & are now receiving benefits through a separate federal program that extends the aid by 13 weeks.  Congress created the extra federal benefits earlier this year with the passage of the CARES Act.  There are still roughly 10M more out-of-work Americans than there were in Feb, before the pandemic hit.  The report comes as newly confirmed daily infections in the US have surged 80% over the past 2 weeks to the highest levels on record.  More states & cities are issuing new lockdown measures, including restricting indoor dining, closing gyms, reducing the hours or capacity of bars & other businesses & limiting the size of indoor gatherings.

Another 742,000 Americans filed for jobless benefits amid coronavirus surge

Macy's (M) reported a more than 20% drop in quarterly comparable & said it expects that to continue into the fall season, signaling a tough holiday season for the coronavirus-battered department store chain.  CEO Jeff Gennette said the company was keeping an eye on a new wave of COVID-19 cases across the US & the potential impact on its business.  The country has been regularly recording over 100K daily COVID-19 infections over the last 2 weeks, raising fears that the spiking numbers will keep people away from already sales-battered retail stores heading into the holidays.  Macy's expects its comparable sales of owned & licensed stores to fall by a low- to mid-20s percentage in the fall season.  Net sales fell to $3.99B from $5.17B in Q3, but beat the estimate for $3.86B.  The company posted an adjusted net loss per share of 19¢ compared with EPS of 7¢ a year earlier.  The forecast called for a loss of 79¢ per share. The stock was even.
If you would like to learn more about M, click on this link:
club.ino.com/trend/analysis/stock/M?a_aid=CD3289&a_bid=6ae5b6f7

Macy's reports 20% fall in comparable sales, eyes surging virus cases

Pharmaceutical company AstraZeneca (AZN) released data showing positive results from its Phase II COVID-19 vaccine trial, particularly among adults over 56 years old.  Oxford University, which partnered with AZN to develop the vaccine, said its Phase III trial results will be available by Christmas.  The phase II trial conducted between May 30 & Aug. 8 among 560 adults, including 240 adults who were 70 years old or older, found that an initial dose of the vaccine "was safe and well-tolerated with a lower reactogenicity profile in older adults than in younger adults," the results read.  The results were particularly encouraging because COVID-19 disproportionately affects older adults.  Immune responses to the vaccine were more similar across all age groups after a boost vaccine, or an extra dose of a vaccine after an earlier initial dose.  "The reason that we’re so delighted is that we’re seeing the immune responses look exactly the same, even in those who are over 70 years of age," Oxford Professor of Pediatric Infection & Immunity Dr Andrew Pollard said.  Adverse effects of the vaccine were limited & mild, & fewer adverse effects were recorded after a boost vaccine.  Phase II vaccine trials provide important preliminary data but don't prove whether they ultimately prevent people from getting sick.  Oxford & AZN are waiting for the results of phase III trials on thousands of people around the world to show whether their vaccine is safe & effective.  The stock lost 5¢.
If you would like to learn more about AZN, click on this link:
club.ino.com/trend/analysis/stock/AZN?a_aid=CD3289&a_bid=6ae5b6f7

AstraZeneca releases positive Phase 2 COVID-19 vaccine data, says Phase 3 data available by Christmas

Weekly jobless claims are holding under 1M with little hope for significant improvement over the short term.  Meanwhile the stimulus bill continues to be stuck in the mud.  However the news about vaccines & treatments for the virus are very encouraging.  Investors are watching these developments 

Dow Jones Industrials

 






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