Dow rose 137 (almost 300 below early highs), advancers over decliners 3-1 & NAZ went up 136. The MLP index climbed 2+ to the 211s & the REIT index went up 2 to the 429s. Junk bond funds drifted lower & Treasuries were sold taking yields higher. Oil added 1 to 115 & gold gained 5 to 1819.
AMJ (Alerian MLP index tracking fund)
Americans ramped up their spending at retail stores in Apr, a sign that consumers are still weathering the inflationary storm even as prices continue to hover near a 40-year high. Retail sales, a measure of how much consumers spent on a number of everyday goods, including cars, food & gasoline, rose 0.9% in Apr from the prior month, the Commerce Dept said . That was in line with expectations, but it marked a noted slowdown from the upwardly revised 1.4% gain in Mar. Core retail sales, which exclude automobiles, gasoline, building materials & food services & are most closely correlated with the consumer spending aspect of the nation's GDP, rose 1% in Apr. The advance – which is not adjusted for inflation, meaning that consumers may be spending the same but getting less bang for their buck – was led by a burst in spending at bars & restaurants as well as on vehicles, clothing, furniture & electronics. Receipts at gas stations actually dropped last month as prices at the pump briefly fell from highs recorded in Mar. However, gas prices have since notched a new record, climbing to a national average of $4.52 per gallon, up from $3.04 one year ago. The data comes as consumers face the worst inflation spike in decades The gov reported last week that the consumer price index climbed 8.3% in Apr from the previous year, close to a 4-decade high. The reading was much higher than expected & underscores that inflationary pressures in the economy remain strong. Rising inflation is eating away at strong wage gains that American workers have seen in recent months: Real average hourly earnings decreased 0.1% in Apr from the previous month, as the inflation increase eroded the 0.3% total wage gain, according to the Labor Dept. On an annual basis, real earnings actually dropped 2.6% in Apr.
April retail sales rise 0.9%, even as consumers confront sky-high inflation
Walmart (WMT), a Dow stock & Dividend Aristocrat, cut its full-year profit forecast, signaling a bigger knock to the retail giant's profit margins from surging costs of everything from fuel to labor. The
company has fared better than most rivals in maintaining inventory
levels due to its massive scale & negotiating power with suppliers,
but costs have soared as it expedited shipments & chartered cargo
ships to get products on shelves. Net income attributable to the company slumped nearly 25% to $2.0B in Q1. "U.S.
inflation levels, particularly in food and fuel, created more pressure
on margin mix and operating costs than we expected," CEO Doug McMillon said. The company expects fiscal 2023 EPS to fall
about 1%, compared to its previous forecast of a mid-single digit
increase. Total revenue for Q1 rose 2.4%
to $141.57B, beating the estimate for $139B. The stock dropped 14.18 to the 134s.
If you would like to learn more about WMT click on this link:
club.ino.com/trend/analysis/stockWMTa_aid=CD3289&a_bid=6ae5b6f
Walmart cuts full-year profit forecast as fuel, labor costs spike
Home Depot (HD), a Dow stock, raised its full-year outlook & reported strong quarterly earnings,
fueled by the company's strongest Q1 sales on record, an
early signal that the retailer is so far weathering inflation. Execs said they haven't seen shoppers trading down in the face of higher prices & don't expect them to start. For
the fiscal year, the retailer is now expecting sales growth of about 3% & EPS in the mid-single digits. The company
previously forecast "slightly positive" sales growth & EPS in the low-single digits. Analysts were expecting revenue
growth of 1.8% & EPS growth of 3.6% for fiscal 2022. HD reported fiscal Q1 net
income of $4.2B & EPS of $4.09, up from $4.15B &
$3.86 EPS a year earlier. The forecast called for EPS of $3.68. Net sales rose 3.8% to $38.9B, topping expectations of $36.7B. Same-store sales increased 2.2% in the qtr. US
same-store sales rose 1.7%, despite domestic same-store sales declines
in Mar & Apr as the company faced tougher comparisons against last
year’s stimulus-check sales boost & an earlier spring. A year ago,
the company reported US same-store sales growth of 29.9%. “The
strong performance in the quarter is even more impressive given the
robust performance we were comparing against last year,” CEO Ted Decker
said. “We believe that the medium-to-longer term underpinnings of demand for home improvement have never been stronger,” Decker added. The stock fell 2.01,
If you would like to learn more about HD click on this link:
club.ino.com/trend/analysis/stockHDa_aid=CD3289&a_bid=6ae5b6f
Home Depot raises full-year outlook after earnings beat, record Q1 sales
Dow Jones Industrials
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