Dow gained 72, advancers over decliners 2-1 & NAZ inched up 1. The MLP index rose fractionally to the 197s & the REIT index went up 1+ to the 446s. Junk bond funds crawled higher & Treasuries were sold, increasing Treasury yields. Oil climbed 1+ to the 76s (more below) & gold added 4 to 1776.
AMJ (Alerian MLP index tracking fund)
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The number of Americans filing for first-time unemployment benefits last week fell to the lowest level since the start of the COVID-19 pandemic. Data from the Labor Dept showed 364K
Americans filed for first-time jobless benefits last week, down from an upwardly revised 415K filings the week prior. The forecast called for a decline to 390K filings. Continuing
claims for the latest week, meanwhile, unexpectedly rose to
3.5M filings, up from the previous week's upwardly revised
3.44M. The forecast was expecting a decline to 3.38M
filings. The unexpected increase in continuing claims comes as
many states continue to pay an additional $300 per week in supplemental
benefits. At least 26 states, all with Rep governors, besides
Louisiana, have announced plans to terminate the additional payments
before they are scheduled to end in Sep. The mixed report
comes a day after ADP said private-sector job growth slowed last month,
setting the stage for tomorrow's Jun jobs report. The
report is expected to show the US economy added 706K jobs last
month as the unemployment rate fell to 5.6%. The economy gained 559K jobs in May while the
unemployment rate fell to 5.8%.
First-time jobless filings fall to lowest level since COVID-19 outbreak
Oil prices broke above $75 a barrel to
a near 3-year-high ahead of a decision from key producers on
production policy for H2. US West Texas Intermediate crude (WTI) for
Aug rose 3.2% ($2.33) to $75.82 a barrel, hitting its highest
level since 2018. The intl benchmark Brent crude for
Sep climbed 2% ($1.49), to $76.10 per barrel. The
WTI has climbed more than 50% on the year after starting 2021 at around
$48.5 per barrel. Demand has increased as people take to the roads amid
the economic reopening & a rebound in goods transportation & air
travel also have supported prices. Gasoline prices are jumping on
the back of a post-pandemic driving spree & $75 crude prices could
mean even higher prices at the pump. The current average price for a
gallon of unleaded gasoline is at $3.12 per gallon, compared to $2.18
per gallon a year ago.
U.S. crude oil prices top $75 a barrel, the highest since 2018
Walgreens Boot (WBA), a Dow stock & Dividend Aristocrat, raised its outlook for the year & laid out its strategy to drive growth, after a stronger-than-expected fiscal Q3. The
drugstore chain now anticipates about 10% growth in adjusted EPS for the year, due to its rebounding sales & the
boost it has gotten from Covid-19 shots. It had previously forecast
growth in the mid-to-high single digits. So far, the company said it has
administered more than 25M vaccines & begun offering walk-in & same-day appointments. The company is in the midst of a turnaround led by its new CEO, Roz Brewer. “This quarter’s results demonstrate continued momentum, and while
challenges lie ahead, we are in a strong position to grow and innovate
our core retail and pharmacy businesses for the future,” Brewer said. In the qtr, EPS was $1.38, compared with a net loss per share of $1.95 a year earlier. Excluding items, EPS was $1.51, higher than the $1.17 expected. Sales rose to $34.0B from $30.4B a year earlier, exceeding the $33.8B that was expected. Covid
vaccines — one of the company's bright spots — peaked in Q3, said Global CFO James Kehoe. He
said the company expects to administer around 7M Covid vaccines
in Q4, down from 17M in Q3. Same-store sales in the US rose by 6.4% compared with a year ago, when the company's sales were hit hard
by people largely staying at home during the pandemic. Prescriptions
filled in Q3 grew nearly 10% from the year-ago period,
including the lift from Covid vaccinations. The stock fell 3.20 (6%).
If you would like to learn more about WBA, click on this link:
club.ino.com/trend/analysis/stock/WBA?a_aid=CD3289&a_bid=6ae5b6f7
Walgreens swings to a profit, raises forecast as it looks to accelerate growth under new CEO
The start of a new month, & especially when it's a new qtr, can bring out buyers. But today they are being careful. Economic data for the US economy shows a strong recovery from a big decline last year. However dark clouds such as an uncertain infrastructure bill, rising inflation, a virus that does not to give up, among others, are dampening investor enthusiasm.Dow Jones Industrials
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