Dow went up 89, advancers over decliners 5-2 & NAZ gained 91. The MLP index rose 1+ to the 221s & the REIT index added 1+ to the 358s. Junk bond funds crawled higher & Treasuries had limited buying taking yields lower. Oil recovered 1+ to the 69s & gold advanced 14 to 1996.
AMJ (Alerian MLP Index tracking fund)
Senate Majority Leader Chuck Schumer will attempt to fast-track a bill thru the Senate to raise the debt limit for 2 years & cap gov spending, as the US barrels towards a Jun 5 deadline to avert a debt default. "The Senate will stay in session until we send a bill avoiding default to President Biden's desk, we will keep working until the job is done," Schumer said. "Time is a luxury the Senate does not have if we want to prevent a default," he added. The Fiscal Responsibility Act was passed in the Rep majority House last night by a bipartisan majority, sending it to the Dem controlled Senate to take up the bill. In order to fast track a bill thru the chamber & vote on it before Mon, all 100 senators must agree to the plan & give their “unanimous consent” for the bill to bypass the notoriously slow Senate procedures. Herein lies the challenge. At least 3 senators, Rep Mike Lee, Rand Paul & Dem Tim Kaine, have indicated they have serious objections to specific parts of the bill. Kaine introduced an amendment that would strip the House bill of a last minute provision that all but guaranteed the approval of the Mountain Valley Pipeline, a controversial natural gas pipeline project thru West Virginia & Virginia. In a typical Senate process, these members would be expected to slow down Senate deliberations on a bill, propose amendments to it, try to get those amendments passed by a vote & added to the bill, & if they succeed, send the amended bill back to the House for another vote. But with just days to go before the Jun 5 deadline set by Treasury Secretary Janet Yellen at which point the US would likely be unable to meet its debt obligations, Schumer made it clear the bill could not move backward. “We can’t send anything back to the House,” he told reporters in the Capitol. “That would risk default, plain and simple.”
Schumer seeks to fast track debt ceiling bill through Senate
Hiring by US companies increased more than expected in May, pointing to a labor market that remains tight even in the face of higher interest rates, according to the ADP National Employment Report. Companies added 278K jobs last month, easily beating the 170K gain that was predicted & slightly below the revised 291K figure recorded last month. The report comes as the Federal Reserve wages the most aggressive fight since the 1980s to crush inflation & slow the labor market with a series of rapid interest rate increases. Fed policymakers have made it clear that they anticipate unemployment to climb as a result of higher borrowing costs, which could force consumers and& businesses to pull back on spending. In a potentially welcoming sign for the Fed as it tries to wrangle inflation under control, wages cooled at a faster pace in May. Annual pay rose 6.5% in May down from 6.7% in Apr. For workers who switched jobs, wages climbed 12.1%, down a full percentage point from the previous month. "This is the second month we've seen a full percentage point decline in pay growth for job changers," said Nela Richardson, chief economist at ADP. "Pay growth is slowing substantially, and wage-driven inflation may be less of a concern for the economy despite robust hiring." The distribution of job gains was "fragmented" in May, with the majority stemming from the leisure & hospitality industry, which added 208K new workers, & natural resources & mining, with a gain of 94K. The biggest losses, meanwhile, were concentrated in the manufacturing sector, which saw payrolls tumble by 48K. Financial activities also shed 35K positions, while education & health services cut 29K.
Private sector job growth surges in May, easily beating expectations
Macy's (M) slashed its full-year outlook & said it saw sales significantly weaken in Mar & sag even more in Apr. Q1 EPS was 56¢ adjusted vs 45¢ expected & revenue was $4.98B vs $5.04B expected. It expects sales of $22.8-23.2B for the year, down
from a previous forecast of $23.7-24.2B & anticipates comparable owned-plus-licensed sales will fall 6-7.5%
during the period, worse than its previous outlook of a 2-4%
decline. For the year, it expects adjusted EPS of
$2.70-3.20, a major reduction from the previous $3.67-4.11 a
share guidance. CEO Jeff Gennette said the retailer took a conservative stance for the rest of the year after seeing a spring pullback. He added that the company anticipates more markdowns of seasonal products &
plans to reduce merchandise orders as it prepares for the coming
qtrs. Gennette said the higher end of the guidance would
reflect the Mar & Apr trends continuing throughout the year, while
the lower range would mean consumer spending worsened. Weaker sales cut across its brands, including higher-end Bloomingdale's & beauty chain Bluemercury, he said. Gennette attributed the slower sales to
headlines about layoffs & the banking crisis. Those factors compounded
an already challenging economic environment, he said. The stock fell 7¢.
If you would like to learn more about Macy's, click on this link:
club.ino.com/trend/analysis/stock/M_aid=CD3289&a_bid=6aeoso5b6f7
Macy’s slashes its full-year outlook even as earnings beat
Dow had a slow start, but buyers have returned in the last hour, although purchasing is not robust. Macy's comments suggest the recession may have begun. Of course the fate of the debt ceiling bill is on the minds of everybody.
Dow Jones Industrials
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