Dow dropped 36, decliners over advancers 3-2 & NAZ gained 45 to another record. The MLP index lost 1 to the 133s & the REIT index fell+ to the 356s. Junk bond funds drifted lower & Treasuries were bid higher. Oil was lower in the 42s & gold added 7 to 2006.
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 42.27 | | -0.62 | -1.5% |
| GC=F | Gold | 1,986.70 | -12.00 | -0.6% |
Walmart (WMT), a Dow stock & Dividend Aristocrat, profit spiked 79% in the 3 months thru Jun as more Americans ordered goods online while riding out the COVID-19 pandemic from home. The big-box retailer had adjusted EPS of $1.56, topping the $1.25 estimate. Total revenue rose 5.4% to $137.7B, beating the $135.48B forecast. “I want to give a big thank you to our associates for their tireless
efforts during these unprecedented times,” CEO Doug McMillon said. “We also appreciate the trust and confidence of our
customers.” E-commerce revenue spiked 97% from a year ago while
sales at US stores open at least a year rose 9.3%, boosted by general
merchandise & food. General merchandise sales were helped
by the $1200 stimulus checks handed out by the gov. The average US ticket increased by 27% while the number of transactions fell by 14%. WMT spent $1.5N on COVID-19-related expenses. The company has not provided guidance since withdrawing its outlook in the first qtr due to uncertainty caused by COVID-19. The stock fell 1.57. If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3290&a_bid=6ae5b6f7
Walmart profit surges as coronavirus boosts online shopping sales
Treasury Secretary Steve Mnuchin criticized top Dems for what he categorized as stubborn tactics & refusal to discuss any “reasonable deal” to provide relief to American consumers & businesses afflicted by the Covid-19 pandemic. Traders had hoped that Mnuchin would support reports published yesterday that Senate Reps are planning to introduce a “skinny,” $1T coronavirus relief bill in an effort to ease the stalemate. But the Treasury secretary failed to offer much in the way of optimism on talks with Dems. “The good news is despite Congress not acting, because Pelosi and Schumer aren’t willing to sit down and strike a reasonable deal, the president moved forward with the [executive order] to help people who are still unemployed,” Mnuchin added. He & White White chief of staff Mark Meadows have led Rep efforts to draft the next coronavirus relief bill. But discussions with House Speaker Nancy Pelosi & Senate Minority Leader Chuck Schumer have been at a standstill for weeks. Dems, who favor a $3T relief package, argue that White House negotiators fail to appreciate the severity of the economic downturn & the ongoing struggle of the Ms of Americans who’ve lost their jobs as a result of the virus. Reps, citing recent improvements in economic data, counter that a smaller relief bill is both more appropriate & fiscally responsible.
Treasury Secretary Mnuchin says Democrats are unwilling to strike a ‘reasonable’ relief deal
When the
coronavirus pandemic began earlier this year, Home Depot (HD),a Dow stock, like many other stores throughout
the US, expected a downturn in traffic. Instead, many Americans stuck
at home & saving money turned their attention to painting, building,
fixing & decorating. HD has experienced a surge in foot
traffic, far exceeding growth projections from the previous year. Since
Apr, daily foot traffic to its stores has hovered around 35% above
2019 based on data from 25M cellphones each day. While
many stores were forced to accelerate their shift online, HD
mostly stayed open, boosting sales as foot traffic increased. Even as the US economy froze due to restrictions put in place to curb the spread of the
coronavirus, HD's comparable sales rose 6.4% in fiscal Q1, more than double what the growth was in the same
period a year ago. The scramble to adapt to the pandemic has forced company execs to reevaluate business models. In Jul, CEO craig Menear said that the company's pre-pandemic ways of thinking no longer apply. “All
of the historical benchmarks that we’ve used to think about the
business and what the growth in the business would be, like GDP and housing … none of that has a correlation anymore,” Menear said. The
momentum though has started to stagnate as the summer winds down &
the virus rebounds in parts of America. Additionally, some retail
analysts expect consumer spending to decrease as delivery companies
raise their fees & unemployment benefits end for Ms of
Americans. The stock dropped 3.52. If you would like to learn more about HD, click on this link:
club.ino.com/trend/analysis/stock/HD?a_aid=CD3290&a_bid=6ae5b6f7
Home Depot sees sales boost as Americans take up do-it-yourself projects during pandemic
The latest word is the the Reps are coming up with another proposal for a stimulus bill. Stocks sold off in early trading on a gloomy prospect for relief, but hopes have risen in the last hour. Hope springs eternal by investors.
Dow Jones Industrials
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