Friday, April 30, 2021

Markets slide as higher capital gains tax weighs on investors

Dow dropped 245, decliners over advancers 2-1 & NAZ fell 65.  The MLP indez was off 1+ to 179 & the REIT index stayed close to 430 (record territory).  Junk bond funds were mixed & Treasuries inched higher in price.  Oil was off 1+ to the 63s & gold went up 2 to 1770.

AMJ (Alerian MLP index tracking fund)

CL=FCrude Oil63.48
-1.53-2.4%












GC=FGold   1,767.70
-0.60-0.0%











 

 




3 Stocks You Should Own Right Now - Click Here!

McDonald's (MCD), a Dow stock & Dividend Aristocrat, reported $5.1B in sales for Q1, up 9% from last year.  Same-store sales jumped 13.6%, up from 2020, while global same-store sales increased 7.5%.   "We're maximizing our marketing in a culturally relevant way, committed to great-tasting customer favorites on our core menu and doubling down on digital, delivery and drive-thru to create a faster and easier customer experience," CEO Chris Kempczinskisaid.  A part of that seems to be from the hype surrounding the chicken sandwich.  MCD released its new iteration of the crispy sandwich in Feb made with a chicken filet, pickles & spicy pepper sauce served on a potato bun, giving customers the option to order it crispy, spicy or deluxe.  The crispy chicken sandwich has been a fast-food phenomenon.   The stock lost 25¢.
If you would like to learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7 

McDonald's sees sales boost from chicken sandwich amid COVID-19 rebound

Exxon (XOM), a Dow stock & Dividend Aristocrat, returned to profitability during Q1, beating top & bottom-line estimates, as the company recovers from the havoc wreaked on the energy sector by the coronavirus pandemic.  The oil giant posted EPS of 65¢, excluding items on $59.2B in revenue.  The forecast was for EPS of 59¢, on $54.6B in revenue.  In Q1 a year earlier, the company lost $610M as the impact of the coronavirus began to weigh.  Last qtr, the company posted a $20B loss, its 4th straight qtr of losses.  “The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply,” CEO Darren Woods said.  “Cash flow from operating activities during the quarter fully covered the dividend and capital investments.”  Its oil-equivalent production rose 3% qtr-over-qtr to 3.8M barrels per day.  The company said the winter storm that hammered the South cost the company $600M across its businesses.  The stock fell 1.11.
If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7

Exxon posts a profit, snapping four-quarter loss stre

After months of a steady climb in vaccinations, the US is experiencing its first true slowdown in the rate of daily shots, an indication that the nation is entering a new phase of its inoculation campaign.  More than ½ of American adults have now received at least one dose, a significant achievement, but getting the 2nd ½ vaccinated brings a different set of challenges than the first.   Vaccinations to date are likely made up largely of groups who most wanted the vaccine & have had greatest access to it, & continued progress is no longer about meeting demand for shots.  “We’ve gotten vaccinations to those most at risk and those most eager to get vaccinated as quickly as possible,” White House Covid czar Jeff Zients said, “and we will continue those efforts, but we know reaching other populations will take time and focus.”  The country is averaging 2.6M reported vaccinations per day over the past week, Centers for Disease Control & Prevention data shows, down from a peak of 3.4M reported shots per day on Apr 13.  That number is trending downward even with eligibility now open to all adults in every state. 

The threat of higher taxes on capital gains is beginning to sink in on investors.  Earnings are coming in fairly good.  The depression in oils is correcting with higher oil prices.  The Dow is up 900 in Apr & close to record territory, not bad to bad all considered.

 Dow Jones Industrials

 






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