Dow finished down 6, decliners over advancers 5-4 & NAZ added 33. The MLP index was fractionally higher to the 283s & the REIT index rebounded, up 1 to 430. Junk bond funds slid a little lower & Treasuries continue to be sold, bringing higher yields with the yield on the 10 year note still above 4.2%. Oil continued higher, up 1+ to the 72s & gold crawled up 20 to another record (more on both below).
Dow Jones Industrials
Walmart (WMT), a Dow stock & Dividend Aristocrat, announced that it will deliver prescription drugs from stores directly to customers as it competes with rivals like Amazon (AMZN). The retailer is joining a list of companies that have embraced the trend of delivering prescriptions directly to consumers that have become more reliant on e-commerce. Its service applies to both new prescriptions along with medication refills, according to the retailer. All medication, barring some exceptions, will be available for this service, too. Customers will be able to receive their deliveries in as soon as 30 minutes thru the company's express delivery option. The new pharmacy delivery service launched in 6 states – Arkansas, Missouri, New York, Nevada, South Carolina & Wisconsin – & is expected to be available in 49 states by the end of Jan. Its nearly 4600 store locations with pharmacies across the US enable it to deliver to more than 86% of households. "We understand that health care is not a one-size-fits-all solution. It’s hyper-local. Each community has unique needs. This new offering allows us to continue serving customers while also giving more time back to our pharmacies for high-touch health services," Kevin Host, senior VP of pharmacy at Walmart US, said. The company launched the service after receiving feedback from a significant number of customers who wanted to have their prescriptions delivered along with their groceries & other items they need in a single online order. The stock was up 1.36.
Walmart launches nationwide same-day prescription delivery
Target (TGT), a Dividend Aristocrat, is slashing prices on 2000 items this holiday season to gain an
edge over competitors during this critical shopping period. This marks
its 2nd round of price cuts, following a successful summer effort
that boosted sales despite cautious consumer spending. The retailer
said it will cut prices on its in-house & national brands, including
food & beverages, everyday essentials, holiday gifts & items to prep
the home for the holidays. The lower prices have already started
to take effect in stores across the country. The price cuts can also be
found online at Target.com & on the Target app. The
price cuts that can be found online & thru the Target app in
addition to in stores come ahead of the holiday shopping season. National Retail Federation (NRF) chief economist Jack Kleinhenz
projected that while household finances are stable, & there is
optimism about economic activity, consumers "will spend more cautiously." While TGT is promoting these cuts as a way to help shoppers save
on holiday preparations & gifts, it is aiming to mimic the success it
experienced over the summer when households proceeded "with measured
spending," according to Kleinhenz. CEO Brian Cornell said in Aug that the company reduced prices
on thousands of items in various markets over the summer, resulting in
an "acceleration" in unit & $ sales trends during the 3-month
period ending Jun 30. "We feel really good about the way the consumers reacted to the price investments we've made on those 5,000 frequently purchased items," Cornell added. The company's essentials & food & beverage categories saw growth in
traffic in the qtr, reflecting how "consumers are responding to our
offerings in an environment where they are focused on value," Cornell noted. The stock fell 1.66.
Target cutting prices on 2,000 items ahead of holiday shopping season
Boeing (BA), a Dow stock, has already braced investors for a rough quarterly report. Now, new CEO Kelly Ortberg
has the chance to share his vision for the troubled manufacturer, from a
potential strike-ending labor agreement to a slimmed-down future. When he takes the mic for his first earnings call as CEO tomorrow, more than 32K striking machinists will start voting on a new, sweetened contract proposal. Results of the labor vote are expected tomorrow night. Analysts
are cautiously optimistic that the new proposal, which requires a
simple majority of the vote, could pass, putting an end to the more than 5-week work stoppage that has halted most of the company's
production of airplanes & added to its cash burn of about $8B
in the first ½ of the year. BA last posted an annual profit in 2018. “I
think it’s going to be a tight vote,” Jon Holden, pres of the
Intl Association of Machinists & Aerospace Workers District
751, said. Investors, analysts & the public could get clues from Ortberg about
what BA will look like in the coming years as well as clearer
estimates on the company's production targets for the next year. The stock was off 10¢.
Boeing CEO to discuss company’s future while workers vote on contract
Gold climbed 1% to hit an all-time peak as factors including safe-haven demand, spurred by US election uncertainties & the Middle East war, combined with expectations of further monetary easing to amplify bullion's surge. Spot gold rose 0.9% to $2746 per ounce after hitting a record $2748 earlier in the session. US gold futures settled 0.8% higher at $2759. Bullion, considered a hedge against geopolitical & economic uncertainties, has gained over 33% this year, reaching multiple records. Lower interest rates also increase the appeal of holding gold. Geopolitical tensions remain the primary driver & 2 weeks out from the US election, the race seems to still be a dead heat, so a fair amount of political uncertainty is also driving safe haven interest in gold. From the technical point of view, the Relative Strength Index (RSI) for gold, currently at 74, suggests that gold prices moved into "overbought" territory.
Gold scales record peak as US election jitters drive safe-haven rush
Oil prices rose for the 2nd consecutive session, as traders downplayed hopes of a Middle East ceasefire & focused on a tightening global supply & demand balance. Brent crude futures for Dec were up $1.61 (2.2%) to $75.90 per barrel. US West Texas Intermediate futures for Nov, which expires after today's settlement, were up $1.54 (2.2%) at $72.10 a barrel. US Secretary of State Antony Blinken met Israeli Prime Minister Benjamin Netanyahu in the first big push for a Middle East ceasefire since Israel killed the leader of Hamas last week. The US hopes this will provide an opportunity for peace. But oil traders were not convinced this push will be much different from hiss previous 11 visits to the region since the war in Gaza erupted last year. Israel has so far shown no sign of relenting in its Gaza & Lebanon campaigns, while Iran-allied Hezbollah ruled out negotiations while fighting with Israel continues. Oil traders are also weighing implications for fuel demand from China's stimulus measures & a tightening global supply-demand balance.
Oil prices rise on China stimulus amid Mideast ceasefire push
Stocks are treading carefully despite growing doubts that the Federal Reserve will continue to cut rates aggressively, or even hold steady in Nov. Meanwhile, demand for gold continues strong from investors who are negative on the stock market.
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