Morning 5-19

Let us Start with Some earnings…

    Walmart shares rose nearly 4% after the retailer said its e-commerce sales grew significantly as customers bought groceries, cleaning items and other essentials online during the pandemic.    The big-box retailer’s e-commerce sales in the U.S. shot up by 74% and its same-store sales grew by 10% in the first quarter. (CNBC)… To keep up with demand, it hired 200,000 employees to help clean stores, stock shelves and fulfill online orders

   Shares of Home Depot fell about 2% during Tuesday’s premarket trading after the company missed earnings expectations in the first quarter thanks to higher coronavirus-related costs. For the quarter, the company earned $2.08 per share, which was below the $2.27 analysts had been expecting. Same-store sales jumped 6.4%, beating consensus estimates of a 4.4% rise. Revenue came in at $28.26 billion, which was also higher than the expected $27.54 billion. The company said that coronavirus-related expenses – such as increasing paid time off for hourly employees – totaled $640 million, or 60 cents per share(CNBC)

News and headlines:

 the Franco/German push for a €500bn recovery fund sponsoring grants for regions hit hardest by the Covid-19 crisis. That looks set to cast a long shadow over European markets for the days to come, although more details, and more analysis, is required. (ITC markets) …. US President Trump’s threat to withdraw funding for the World Health Organization unless it commits to “major substantive improvements in the next 30 days”, The text of the Federal Reserve chairman’s testimony which he will present before the Senate Banking Committee today was released, with little impact on broader markets. (IFR News) …. U.S. businesses are doubling down on China… From Popeyes to Walmart, Tesla to Exxon Mobil, companies are betting that the country’s long-term growth potential still outweighs the mounting case against further expansion — including geopolitical tensions and slowing growth. While the pandemic has spurred businesses to rethink supply chains to reduce dependency on China, companies that are producing in China for Chinese customers are bulking up their local presence, the Wall Street Journal reports. (Pro Farmer) …. Corona virus overwhelming the Brazilian health Care system (WSJ)… Treasury has spent small portion of aid… The Treasury Department has spent only $37.5 billion thus far of a $500 billion pool of funds Congress provided to help struggling businesses, including airlines, during the pandemic, according to a congressional watchdog panel’s report. (WSJ)

Markets:

 Spoos did trade above the all important 2965 level overnight but since failed to maintain gains. A close above this level is all important for the bulls. Currently Spoos down 10 handles, Nasdaq, Stoxx 50 unchanged giving back most overnight gains, Bonds and bunds bouncing a bit after  yesterdays Collapse  and Run up to almost 2 month high in  yields Dollar continues to sag  but still inside a multi week range, we need to see a break out one way another  Yen trading a bit lower as the BOJ called an Emergency meeting for Thursday to discuss some new lending measures. Mnuchin and Powell not expected to cause much of a stir in markets, Tomorrow Treasury Auctions the 20-year bond for the first time in a few decades??  curious to see market reaction and pricing.

Virus news:

BN) Covid Patients Testing Positive After Recovery Aren’t Infectious                                                          
                                                                
Scientists from the Korean Centers for Disease Control and     
Prevention studied 285 Covid-19 survivors who had tested       
positive for the coronavirus after their illness had apparently
resolved, as indicated by a previous negative test result. The 
so-called re-positive patients were not found to have spread any
lingering infection, and virus samples collected from them could
not be grown in culture, indicating the patients were shedding 
non-infectious or dead virus particles.

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