Dow shot up 506, advancers over decliners a huge 8-1 & NAZ jumped 249. The MLP index went up 3+ to the 219s & the REIT index added 3+ to the 437s. Junk bond funds were bid higher along with stocks & Treasuries saw a little selling. Oil gained 3+ to 114 & gold was off 2 to 1844.
AMJ (Alerian MLP index tracking fund)
The US economic contraction to start the year was worse than
expected as weak business & private investment failed to offset strong
consumer spending, the Commerce Dept reported. Q1 GDP declined at a 1.5% annual pace, according to the 2nd estimate from the Bureau of Economic Analysis. That was worse than the 1.3% estimate & a writedown from the initially reported 1.4%. Downward
revisions for both private inventory & residential investment offset
an upward change in consumer spending. A swelling trade deficit also
subtracted from the GDP total. The pullback in GDP represented the
worst qtr since the pandemic-scarred Q2 of 2020 in which the US
fell into a recession spurred by a gov-imposed economic shutdown
to battle Covid-19. GDP plummeted 31.2% in that qtr. Economists
largely expect the US to rebound in Q2 as some of the
factors holding back growth early in the year subside. A surge in the
omicron variant slowed activity & the Russian attack on Ukraine
aggravated supply chain issues that had contributed to a 40-year high
in inflation. A survey shows a median expectation of 3.3% growth in Q2;
the Atlanta Fed's GDPNow
tracker also points to a rebound, but at a more subdued 1.8% pace. One
factor helping to propel growth is a resilient consumer fighting
thru inflation than accelerated 8.3%
from a year ago in Apr. Consumer
spending as gauged by personal consumption expenditures increased 3.1%,
better than the first estimate of 2.7%. That has come as the labor
market has continued to be strong & wages are increasing rapidly,
though still below the pace of inflation. Initial jobless claims for
last week totaled 210K, a decrease from the previous 218K, the Labor Dept reported. Continuing
claims, after holding around their lowest level since 1969, edged
higher to nearly 1.35M.
First-quarter GDP declined 1.5%, worse than thought; jobless claims edge lower
Macy's (M) reported fiscal Q1 profits & sales ahead of expectations, as shoppers returned to malls to shop for new outfits,
luggage & luxury goods in spite of decades-high inflation that has
threatened to curtail consumption. The department store chain reaffirmed its fiscal 2022 sales outlook & raised its profit guidance, expecting stronger credit card revenue
for the remainder of the year. The retailer still expects 2022 revenue to be flat to up 1% compared
with 2021 levels, which would be $24.46-$24.7B. It now projects EPS, on an adjusted basis, of $4.53-4.95 per share, up from a prior estimate of $4.13-4.52. “While
macroeconomic pressures on consumer spending increased during the
quarter, our customers continued to shop,” CEO Jeff
Gennette said. He added that the company saw a shift
among consumers back into stores & toward clothing for special
occasions such as women's dresses & tailored men's items. For the 3-month period ended Apr 30, Macy's reported EPS of 98¢, compared with 32¢ a year earlier. Excluding one-time items, EPS was $1.08, topping expectations for adjusted EPS of 82¢. Revenue grew nearly 14% to $5.35B from $4.71B in the year-ago period, also topping the forecast. Gennette said that
high-income consumers have so far been less impacted by inflation,
lifting sales of more expensive goods at Macy's Bloomingdale's business. The stock rose 3.17 (16%).
If you would like to learn more about Macy's click on this link:
club.ino.com/trend/analysis/stock/Ma_aid=CD3289&a_bid=6ae5b6f
Macy’s stock surges as company raises 2022 profit outlook
Secretary of State Antony Blinken is set to describe China as the “most serious long-term challenge to the intl order,” even as the world grapples with Russia's war in Ukraine. “China is the only country with both the intent to reshape the international order – and, increasingly, the economic, diplomatic, military, and technological power to do it,” “Beijing’s vision would move us away from the universal values that have sustained so much of the world’s progress over the past 75 years,” Blinken is set to say in his speech. The speech which will outline the Biden administration’s policy toward China comes as the US warns Beijing to not help Moscow blunt global sanctions for the Kremlin's invasion of Ukraine. It also follows a Biden administration effort to walk back his comment that the US was willing to use its military to defend Taiwan, which angered Beijing. The top US diplomat is expected to acknowledge that the US & China will have a pivotal role to play in the global economy & the fight against climate change in one of the most “complex and consequential relationships” the US has with any country. As the world's 2 largest economies will have to deal with each other “for the foreseeable future,” the US wants to avoid “conflict or a new Cold War,” he is set to say. “We don’t seek to block China from its role as a major power, nor to stop China – or any country – from growing their economy or advancing the interests of their people,” Blinken is expected to say.
Blinken to say China is a long-term challenge, but U.S. does not want a Cold War
Dow Jones Industrials
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