Morning 5-20

Retail Earnings:

  • Lowe’s shares soar after same-store sales surge 11.2%(CNBC)
  • Earnings per share: $1.77, adjusted vs. $1.32 expected
  • Revenue: $19.68 billionvs. $18.32 billion expected
  • Same-store sales: up 11.2% vs. 3.3% expected

Target

 digital sales, or online sales +141%  fueled first-quarter gains, but the big-box retailer’s earnings results Wednesday showed it paid a hefty price for that growth as labor costs rose and sales of higher-margin items like apparel dropped….Shares were up less than 1% in premarket trading.

News:

  • Growing chatter of negative Policy rates in U.K. what was once a murmur is moving to a shout as U.K sold Bonds with negative yields for the first time
  • In The U.S. Foreigners hold the smallest proportion of treasuries since 2002 as Central banks sell treasuries to raise dollars(BBG)
  • Silver prices are +14% last 4 days and +52% from March lows (WSJ)
  • U.S. China find an old topic to argue about… Taiwan!
  • Airline Company’s starting to see people book more flights calling it a possible inflection point (WSJ)
  • Facebook will allow some workers back Into office on July 6th and is unveiling a new “shops” product which could increase companies ad revenue  Stock +2%(BBG)
  • Both JPM and GS saying Central banks may have to ramp up QE to offset the Increase in Government supply of Debt(BBG)
  • (Bloomberg) — The Samsung S&P GSCI Crude Oil ER FuturesETF said it has appointed several new clearing brokers and will resume the creation of shares on May 21, according to a filing

Markets:

 Risk On  Spoos, Nasdaq Dow  all + >1%  European stocks Mixed, Cac unchanged, Dax +.25%  Italy’s MIB -.5%  Continued optimism about reopening country to blame for  strength…2965  level in Spoos again in play need a close above it to gives bulls a bit more confidence… No economic releases today so sentiment and headlines will drive flows…. Crude higher so far today Yesterday’s API oil data leaned bullish the above oil comments also provide a bid. dollar just a touch lower treasuries sideways awaiting the first 20 year bond auction in a few decades… Gold A touch higher plenty of experts calling a top in gold thus the large amount of shorts in product thus   plenty of fuel if rally can continue.

Virus News

Brazil recorded its largest single-day jump in coronavirus cases and deaths on Tuesday, reported Reuters, citing the latest data by the health ministry. The country reported an increase of 17,408 cases to bring its tally to 271,628, the report said. Brazil now has the third-highest number of cumulative cases globally behind the U.S. and Russia, according to data compiled by Johns Hopkins University…. Trump considering a travel Ban…..The coronavirus pandemic could cost the global economy $82 trillion over five years, a Cambridge study warns. The cost projections are based on 2019 gross domestic product volumes which stood at $69.2 trillion for the world’s 19 leading economies.

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