Dow rose 316 to a new record & closing near highs, decliners barely ahead of advancers & NAZ finished up 50. The MLP index did little in the 178s & the REIT index was fractionally higher in the 421s. Junk bond funds slid lower & Treasuries remained strong. Oil dropped 1 to the 64s & gold jumped 30 to 1814 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Kellogg (K) jumped after the
company topped earnings estimates & raised its full-year
outlook. Despite last year’s pantry stockpiling, net
sales rose 5.1% year over year to $3.6B. Strong demand for
its snacks helped drive sales growth. In North America,
Kellogg saw organic revenue of its snacking division rise 3.5%. “Snacking has not slowed down. In fact, snacking has sped up, so we believe in choice at Kellogg,” CEO Steve Cahillane said. Cahillane said the company is seeing bifurcated eating trends from
consumers. While some are trying to eat healthier by buying plant-based
products from Kellogg’s MorningStar Farms, others are turning to more
indulgent options. The stock shot up 4.41 (7%).
If you would like to learn more about Kellogg, click on this link:
club.ino.com/trend/analysis/stock/K?a_aid=CD3289&a_bid=6ae5b6f7
Kellogg CEO says snacking is speeding up, fueling company’s sales growth
India once again reported a record number of cases& fatalities as it faces a devastating 2nd wave of
Covid-19 infections that has pushed its health-care system to the brink
of collapse. Health ministry data showed there were 412K new
reported cases of infections over a 24-hour period, pushing the total
tally to over 21M — days after crossing the 20M mark on
Tues. India
also reported its highest daily death toll, with 3980 fatalities. But
media reports suggest that the death rate is being underreported. Prime Minister Narendra Modi's
gov is facing criticism for allowing large crowds to gather for
election rallies & religious festivals earlier this year as well as
for failing to anticipate or prepare for a 2nd wave. Cases started rising in Feb but the 2nd wave accelerated in
Apr. The resurgence overwhelmed hospitals which are struggling with
bed shortages as well as a limited supply of oxygen & medicines to
treat patients. The intl community has pledged to send medical
aid in the form of oxygen cylinders, concentrators & other medical
supplies. Some of those aid shipments have started arriving in India.
India’s worsening Covid crisis could spiral into a problem for the world
Since taking over the helm of General Motors (GM) in 2014, CEO Mary Barra has meticulously cut costs, slashed 64K jobs, exited unprofitable markets overseas & audaciously
pledged to make GM an all-electric auto company by 2035. Though
controversial at times, each of those decisions took GM one step closer
to where it is today: poised for growth in new markets. Barra's
GM looks vastly different from the one she inherited out of the
financial crisis. Leveraging its core business, GM is targeting Ts in future markets that stretch far beyond just selling cars & trucks. “This is just the beginning for the next generation of General Motors,” Barra told investors. “We are well on track with our plans to transform our company and lead the industry into the future.” Leading
much of the expansion is GM's global growth & innovation team. New
businesses from the team have included electric commercial vehicles,
auto insurance, military defense & expanding services of its connected
OnStar brand, with more new ventures on the way. The
automaker's innovation division has identified $1.3T in
new market opportunities that it believes complements its core business & it has a right to “win in,” execs said. That does not
include GM’s majority-owned autonomous vehicle unit Cruise, which could
be an $8T market in the future, or urban air mobility, which it predicts will be a more than $1T market of its own. GM's innovation team has about 20 initiatives in its pipeline that
target that $1.3T in potential new markets, according to Alan
Wexler, GM's senior VP of innovation & growth. The stock gained 1.07.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM is poised for growth as automaker targets trillions in new markets
Gold prices rallied, prompting the commodity to settle above the psychologically significant value of $1800 an ounce for the first time since Feb, as slipping bond yields & a slightly weaker $ offered some support. Jun gold rose $31 (1.8%) to settle at $1815 an ounce after trading as high as $1818. Prices for the most-active contract marked the highest finish since Feb 12. Yesterday, the precious metal bounced back from a Tues decline after Yellen clarified remarks that had been interpreted as advocating for raising interest rates to keep the economy from overheating. The 10-year Treasury note yield was lower at around 1.57%, while the $ was off 0.4% at 90.977. Commodity traders also parsed the Bank of England's vote that advocated for slowing the pace of continuing gov bond purchases “somewhat.” Global gold ETFs lost 18.3 metric tons in Apr, marking outflows for 5 of the past 6 months, according to the World Gold Council.
Gold prices top $1,800, settle at highest since February
Oil futures ended lower, with US prices down for a 2nd session, as investors weighed disappointing data on US gasoline usage & kept an eye on the impact of surging COVID-19 infections in India on oil demand. In India, the world's 3rd-largest oil importer, the number of new confirmed cases exceeded 400K for the 2nd time since the surge began last month. The 412K cases pushed India's tally to more than 21M. The Health Ministry also reported 3980 deaths in the last 24 hours, bringing the country's total to 230K. Experts believe the number of cases & deaths in India have both been undercounted. West Texas Intermediate crude for Jun fell 92¢ (1.4%) to settle at $64.71 a barrel. Jul Brent crude , the global benchmark, lost 87¢ (1.3%) to settle at $68.09 a barrel. The Energy Information Administration reported a much-larger-than-expected drop in crude inventories of 8M barrels. But oil prices struggled after the release of the data, which also showed gasoline supplies unexpectedly rose by 700K barrels.
Oil ends lower as traders focus on the oil and gasoline demand outlook
The Dow is putting in a stellar performance while tech stocks on the NAZ are lagging (where it was in Jan on the way up). Late day buying comes from bets on the jobs number tomorrow which.is expected to be very strong. Meanwhile market breadth is slightly negative & demand for safe haven gold is very strong!
Dow Jones Industrials
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