Dow advanced 232 (near session highs & over 34K), advancers and decliners were about even & NAZ added 31. The MLP index was flattish in the 179s & the REIT index rose 2+ to 430 (record territory). Junk bond funds were little changed & Treasuries continued weak, bringing higher yields. Oil went up 1+ to the 65s & gold was off 1 to 1772 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Ford (F) expects a global semiconductor
shortage could ease this summer but may not be fully resolved until
2022, as the automaker reported a strong Q1 profit but said
the shortage may slash Q2 by ½. The ongoing chip shortage will cost it about $2.5B & about 1.1M units of lost production in 2021. The #2 US automaker handily beat the profit estimate for the
qtr, with EPS of 81¢, compared with the consensus 21¢. In last year's Q1,
the company lost 50¢ a share. CEO Jim Farley said: "There are more
whitewater moments ahead for us that we have to navigate. The
semiconductor shortage and the impact to production will get worse
before it gets better. In fact, we believe our second quarter will be
the trough for this year." CFO John Lawler said Ford's outlook was driven
largely by a factory fire suffered by Japanese chipmaker Renesas. The
flow of chips from Renesas is expected to be restored in Jul, but the
global shortage of automotive semiconductors may not be fully resolved
until next year. The company said the chip shortage will slash full-year earnings before interest and taxes to $5.5-$6.5B. In Feb, Lawler said the company was on course to earn $8-9B in adjusted EBIT. Overseas, Ford reported revenue in Europe up 13% to $7.1B & $341M in pre-tax profit, reversing a year-ago loss. Revenue
climbed 39% to $800M in China, where Ford narrowed its loss to
$15M, compared with a loss of $241M a year earlier. Revenue in the qtr increased to $36.2B, from $34.3B a year earlier. The stock fell 1.19.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F?a_aid=CD3289&a_bid=6ae5b6f7
Ford posts profit, says chip shortage to slash Q2 output by 50%
Gold futures ended lower for a 3rd-straight session, as Treasury yields moved up following data showing strong Q1 growth in the US economy. The US economy charged ahead since the start of the year, with GDP, the official scorecard for the US economy, climbing at a 6.4% annual pace in Q1. Against that backdrop, US yields climbed, with the 10-year rate up nearly 3 basis points at 1.65%. Higher yields raise the opportunity cost of holding nonyielding assets like gold. Gold's moves today also followed dovish remarks yesterday by Federal Reserve Chair Jerome Powell. The Fed stuck to its strategy of helping the US economy with ultra-low interest rates. Gold for Jun lost $5 to settle at $1768 an ounce. Global gold demand in Q1 dropped from a year ago on the back of a more than 70% year-over-year decline in gold investments, according to a report from the World Gold Council (WFC). The WGC said total world gold demand for the qrr was at 815.7 metric tons, down 23% compared with the first qtr of 2020, though it was “on a par” with Q4-2020.
Gold down a third session as Treasury yields move up after U.S. GDP reading
Caterpillar (CAT), a Dow stock, reported results that blew past estimates for its Q1. EPS was
$2.77, up from $1.98
in the year-earlier qtr. Adjusted EPS came to $2.87,
well ahead of the $1.94 estimate. Sales rose to $11.9B
from $10.6B a year ago, also ahead of the $10.9B forecast. "The increase was due to higher sales volume driven by higher
end-user demand and the impact from changes in dealer inventories," the
company said in a statement. "Dealers increased their inventories more
during the first quarter of 2021 than during the first quarter of 2020." But the stock dropped 4.72.
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Caterpillar shares jump 3% premarket as earnings blow past estimates
Oil futures finished higher for a 3rd straight gain, boosted by optimism over the summer demand outlook, despite surging COVID cases in India. The US economy charged ahead in the first, 3 months of the year, with GDP, the official scorecard for the US economy, rising at a 6.4% annual pace in Q1. Weekly jobless benefit claims, meanwhile, declined last week to 553K from a revised 566K a week earlier. West Texas Intermediate crude for Jun rose $1.15 (1.8%) to settle at $65.01 a barrel. That was the highest front-month contract settlement since Mar 15. Jun Brent crude climbed $1.29 (1.9%) at $68.56 a barrel, ahead of the contract's expiration at the end of tomorrow's session. Jul Brent, the most actively traded contract, rose $1.27 (1.9%) to $68.05 a barrel. The EIA report yesterday also showed strong implied US motor gasoline demand, which climbed by 67.5% over the past 4 weeks from the same period a year ago.
Oil extends win streak to third session on demand optimism
Dow Jones Industrials
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