Dow was up 47, advancers over decliners about 2-1 & NAZ lost 20. The MLP index went up 2+ to the 284s & the REIT index gained 2+ to the 385s. Junk bond funds crawled higher & Treasuries had limited selling which raised yields slightly. Oil added 1+ to 83 & gold jumped 29 to 2241 (more on both below).
AMJ (Alerian MLP Index tracking fund)
, which is code-named "Redwood." It also faces the loss of access to $7500 per car federal tax credits on its Model 3 compact sedans, which no longer qualify for the credit due to non-compliance with newly-implemented eligibility restrictions for battery materials sourced from China. The stock dropped 4.06.
Tesla deliveries expected to slump on China competition, weak demand
US consumer sentiment rose unexpectedly in Mar to the highest in nearly 3 years thanks in part to growing confidence that inflation will keep softening. The University of Michigan's benchmark Consumer Sentiment Index rose to a final reading for the month of 79.4, the highest since Jul 2021, from Feb's 76.9. It topped consensus estimates of 76.5, which had been the same as the preliminary Mar estimate released 2 weeks ago. Consumer assessments of both current conditions & the economic outlook both improved from the Mar mid-month & Feb final readings. Expectations for inflation over a one-year horizon declined to 2.9% from 3.0% in Feb to match Jan's reading, which had been the lowest since Dec 2020. Over a 5-year horizon, consumers saw inflation easing to 2.8% from 2.9% last month.
US Consumer Sentiment Tops Estimates in March to Hit Nearly 3-Yr High, UMich Says
Walgreens (WBA) reported fiscal 2nd-qtr sales that beat expectations, but lowered the high end of its full-year adjusted earnings outlook in part due to a “challenging” retail environment in the US. The company also posted a steep net loss for the qtr as it recorded a hefty nearly $6B charge related to the decline in value of its investment in primary-care provider VillageMD. WBA has closed 140 VillageMD clinics amid financial woes for the business, which it sees as critical to its ongoing push to transform from a major drugstore chain into a large health-care company. But WBA does not believe the VillageMD charge “will have a significant impact on our financial position, or our ability to invest across businesses going forward,” WBA global CFO Manmohan Mahajan said. The company said it is confident it will meet its goal of saving $1B during fiscal 2024 thru its ongoing cost-cutting program. WBA has laid off employees, closed unprofitable stores & used artificial intelligence to make its supply chain more efficient, among other efforts. WBA narrowed its fiscal 2024 adjusted EPS guidance to $3.20 - $3.35. That compares with the company’s previous outlook of $3.20 - $3.50. The forecast called fort full-year adjusted EPS of $3.24. Its new guidance reflects the hurdles facing retailers in the US & an early wind-down of its sales-leaseback program. It also takes into account lower earnings due to the’ forward sale of shares of drug distributor Cencora, formerly known as AmerisourceBergen. The company reported a net loss of $6.85 per share for the qtr. That compares with EPS of 81¢ for the same period a year ago. The company booked sales of $37.05B in the qtr, a roughly 6% jump from the same period a year ago. The stock rose 69¢.
Walgreens tops quarterly revenue estimates, but narrows profit outlook
Gold futures closed at the 2nd record high in as many days as buying momentum continues even as the $ & treasury yields rise. Gold for Jun closed up $25 to settle at $2238 per ounce. The precious metal's record rise comes on expectations lower interest rates are on the way, with the Federal Reserve seen likely to cut interest rates 3 times this year for a total 75-basis points. Lower interest rates cut the carrying costs of owning gold, since it offers no interest. However the outlook could change tomorrow with the release of the Feb PCE Index data, the Fed's preferred inflation measure. The estimate expects the PCE index rose by an annualized 2.5% in Feb, up from a 2.4% rate a month earlier. However the core index, excluding volatile items, is expected to fall 0.3% from Jan, down from a rise of 0.4% that month. The $ also rose after the release of revised US GDP data for the 4th-qtr, pushing the growth in the economy up to 3.4% from the original 3.2% figure, showing the US economic growth continued to run hot despite interest rates at the highest in 23 years. The ICE dollar index was last seen up 0.12 points to 104.47. Treasury yields rose, normally bearish for gold, with the 2-year note last seen paying 4.632%, up 4.9 basis points, while the yield on the 10-year note was up 1.1 basis points to 4.205%.
Gold Rises to a Fresh Record as Buying Momentum Continues
WTI Crude Oil Closes Higher as Supplies Remain Tight on OPEC+ Cuts, Cutting Into Inventories
This was an outstanding qtr for stocks & gold. The Dow rocketed ahead over 2100 to new record & gold was up 139 to reach new records. The challenge will be to extend the outstanding rallies, especially for the stock market.
Dow Jones Industrials
