Dow advanced 267, advancers over decliners better than 2-1 & NAZ crawled up only 4. The MLP index added 1+ to the 188s & the REIT index was flattish in the 427s. Junk bond funds rose & Treasuries saw only limited buying. Oil rebounded 1+ to the 63s & gold was off 8 to 1873.
AMJ (Alerian MLP index tracking fund)
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Deere (DE) raised its full-year earnings forecast after a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine & construction equipment. The world's largest farm equipment manufacturer, however, expects
supply-chain pressures to intensify in the remainder of the year. The company is not alone. Rising demand coupled with Covid-19 disruptions has caused capacity constraints all along the supply chain,
leaving manufacturers short of the steel, plastics, microchips &
tires they need for their products. CEO John May said DE is working closely with key suppliers to secure the parts & components. DE said net income for 2021 would be $5.3-$5.7B, up from a previous forecast of $4.6-5.0B. DE expects industry sales of large agricultural equipment in the US & Canada - the company's biggest combined market - to grow by 25% this year compared with growth of 15-20% estimated in Feb. EPS
for fiscal Q2 came in at $5.68, much higher than $2.11 a year ago. Equipment sales rose 34% year-on-year to about $11B. DE stock jumped 11.82 (3%).
If you would like to learn more about DE, click on this link:
club.ino.com/trend/analysis/stock/DE?a_aid=CD3289&a_bid=6ae5b6f7
Deere raises forecast as profit more than doubles on equipment demand
Sales of existing homes dropped 2.7% in Apr from Mar to a seasonally adjusted annualized rate of 5.85M units, according to the National Association of Realtors. It was the 3rd straight month of declines. Sales were 33.9% higher than Apr 2020, but that comparison is an anomaly because the housing market & economy shut down at the start of the pandemic. Housing then rebounded strongly last summer. Sales were still 11% stronger than Apr 2019. “I would say it is hot, that is the one word description even with the sales decline,” said Lawrence Yun, chief economist for the Realtors. For every listing there are 5.1 offers & ½ of the homes are being sold above list price. The supply of homes for sale at the end of Apr was down 20%. There were 1.16M homes for sale, representing a 2.4-month supply at the current sales pace. High demand & rock-bottom supply continued to push prices higher. The median price of an existing home sold in Apr was $341K, an increase of 19% from Apr 2020. That is both the highest median price & the largest annual increase on record. Much of that large increase in the median price is due to the mix of homes that are selling. There is far more activity on the higher end of the market, where supply is more plentiful & very little activity on the low end, where the shortage is most severe.
April existing home sales drop, marking three straight months of declines
The US is reporting an average of fewer than 30K new Covid cases per day for the first time in nearly a year. The 7-day average of new infections is about 29K,
according to Johns Hopkins University. This marks the
first time the average has dipped below 30K since last Jun. Federal
data shows the country is reporting 1.8M daily vaccinations on
average over the past week, with 48% of the population having received
one shot or more. The country had reported fewer than 30K cases for 5 straight days through Wed, another milestone not seen since last summer. The US is seeing an average of 552 Covid deaths per day, according to Hopkins data, the lowest level since Jul. About 48% of the US population has received one shot of a vaccine or more, with 38% of the population fully vaccinated. Of those aged 18 & older, 60.5% are at least partially vaccinated.
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