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Afternoon Note

New Issue

By Charles Payne, CEO & Principal Analyst
5/6/2020 1:49 PM

The markets are mixed today with the Dow down but trying to turn, the S&P 500 relatively flat, and the Nasdaq continuing its trek higher, up over 1.15% to 8911. There are only 4 S&P 500 sectors in the green today, with Technology a clear leader.  Energy is one of the weakest sectors today after having been among the top performing in past few days.  Technology is the clear leader.

S&P 500 Index

+0.16%

 

Communication Services (XLC)

+0.50%

 

Consumer Discretionary (XLY)

+0.43%

 

Consumer Staples (XLP)

 

-0.52%

Energy (XLE)

 

-1.41%

Financials (XLF)

 

-1.33%

Health Care (XLV)

+0.15%

 

Industrials (XLI)

 

-0.63%

Materials (XLB)

 

-0.72%

Real Estate (XLRE)

 

-1.15%

Technology (XLK)

+1.41%

 

Utilities (XLU)

 

-2.04%

While decliners are outpacing advancers, there are more new 52-week highs, and overall breadth is positive on the Nasdaq.

Issues:

NYSE

NASDAQ

Advancing

1,087

1,450

Declining

1,817

1,661

52 Week High

19

48

52 Week Low

15

21

Advancing

675.03M

1.01B

Declining

1.76B

857.00M

 

Oil prices have retreated after being up for 5 consecutive session.  WTI is currently down 6% to about $23.10 a barrel.

The latest EIA inventory showed U.S. crude oil refinery inputs averaged 13.0 million barrels per day during the week ending May 1, 2020, which was 21,0000 barrels per day more than the previous week’s average. Refineries operated at 70.5% of their operable capacity last week.

Twenty Year Bond

The Treasury Department announced that for the first time since the 1980’s, it is introducing a 20-year bond. The initial offering will take place on May 20, when $20 billion will be up for auction.  The benchmark 10-year Treasury is up to .72%, the highest rate sine April 15.  The 30 year is trading at 1.41%.

Earnings

While concerns about meat shortages continue, Beyond Meant (BYND), the plant-based alternative to meat, is rocking, up 16%, after reporting earnings that beat on both the top and bottom line. 

Meanwhile, Wendy’s (WEN) shares are also having a nice day, up 6% after reporting that sales in its U.S. stores are beginning to turn. Last week, same store sales fell 2.1% after plunging in beginning of the month and in March.

Other companies performing well on the back of earnings:

 


Comments
Reading your book as well. Always appreciate your insight and accuracy.

Frank Hockeborn on 5/8/2020 8:34:24 AM
 

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