19May2020 Pre-Market Commentary: Wall Street Hovers Following Rally On Vaccine Hopes And Economies Reopening, DOW Down 13 Points, WTI Steady At 31.90, Gold At 1731

Here is the current market situation from CNN Money

European markets are lower today with shares in France off the most. The CAC 40 is down 0.86% while London’s FTSE 100 is off 0.57% and Germany’s DAX is lower by 0.43%.

Walmart sales surge at stores and online on coronavirus-led demand

Walmart Inc beat Wall Street expectations with its quarterly revenue and earnings on Tuesday and reported record U.S. online sales as stockpiling drove consumers to its stores and website during the coronavirus pandemic, sending its shares up 3%.

Fiat Chrysler’s loan request raises doubts about $6 billion dividend

Italy could look into Fiat Chrysler’s planned 5.5 billion euro ($6 billion) payout as part of its merger with Peugeot after the Italian-American carmaker asked for a 6.3 billion euro state-backed loan, a senior government source said.

Oil steady on signs of output cuts but demand concerns weigh

Oil prices were steady on Tuesday amid signs that producers are cutting output as promised while traders awaited more clarity on the demand picture as some countries ease out of lockdowns.

Trump awards deal to company to manufacture COVID-19 drugs in U.S.

U.S. President Donald Trump’s administration has awarded a $354 million contract to U.S.-based Phlow Corp to manufacture drugs being tested or used to fight the new coronavirus as well as some medicines that are in shortage.

Euro, Italian bonds cheer EU recovery fund plan

The euro and Italian government bonds continued on Tuesday to cheer German- and French-led plans for a 500 billion euro EU coronavirus recovery fund, though stock markets were suffering fatigue after their best day in months.

United Airlines says air travel demand improving

United Airlines Holdings Inc said on Tuesday it has seen a moderate improvement in demand for air travel so far in May in the United States and some international markets, as well as a reduction in cancellation rates.

Kohl’s online sales surge amid lockdown, reopens about half of its stores

Kohl’s Corp reported a surge in online sales in its coronavirus-hit first quarter on Tuesday and said it had reopened nearly half its stores as lockdowns eased across the United States, sending its shares around 5% higher.

‘All my dreams are shattered’: coronavirus crushes Asia’s garment industry

Zarchi Lwin pawned her only two gold bangles for $140 when the owner of the Myanmar factory where she sewed winter coats for British retailer Next Plc shut it down after orders dried up due to the coronavirus.

Factbox: Fashion brands cut orders with Asian garment makers

As stores closed across Europe and the United States in March and April in response to the new coronavirus, many fashion brands and retailers cancelled orders for clothes, bags, and shoes worth billions of dollars from Asian garment factories, forcing them to close and lay off hundreds of thousands of workers.

US Housing Starts, Permits Plunge To 5 Year Lows

US Housing Starts, Permits Plunge To 5 Year Lows Tyler Durden Tue, 05/19/2020 – 08:40

Having already collapsed in March, analysts expected further terrible weakness in both housing starts and building permits in April as the impact of lockdowns really escalated, and the data did indeed come in ugly.

Housing Starts fell 30.2% MoM in April (worse than the 26.0% drop expected and accelerating considerably from the 22.3% drop in March). This is a record drop.

Building Permits fell 20.8% MoM in April (better than the 25.9% expected)

S&P Futures Fail A Breakout Above 3,000 As Triple-Top Forms

S&P Futures Fail A Breakout Above 3,000 As Triple-Top Forms Tyler Durden Tue, 05/19/2020 – 08:19

US equity futures tried, and failed, to stage a major breakout into 3,000 overnight, with the E-mini rising as high as 2,976 ahead of the European open (on virtually zero volume), before paring all gains alongside a drop and European stocks as investors weighed the return of the trade war against positive coronavirus news, while disappointing results from Home Depot weighed on sentiment and not even a huge beat by Walmart managed to reverse the mood.

What is more concerning is that now that the S&P has tried, and failed, to break out above the 2950 resistance level, a triple-top appear has formed, which suggests that the most likely next move is a retest of the support.

Chinese Ambassador Says “Independent” WHO Investigation Is “A Joke”: Virus Updates

Chinese Ambassador Says “Independent” WHO Investigation Is “A Joke”: Virus Updates Tyler Durden Tue, 05/19/2020 – 08:07

Summary:

Chinese ambassador in Canberra says notion that WHO investigation satisfies Australia’s call for “independent” probe is “a joke”

Trump threatens to permanently pull funding and end membership of WHO

Brazil overtakes UK to become world’s 3rd-largest outbreak

India’s case total passes 100k

Navajo Nation now home to “biggest outbreak in the US” per CNN

Singapore plans to start phased reopening on June 2

Jerusalem’s Al-Aqsa mosque set to reopen after Eid

* * *

The big news on Tuesday is the meeting of the World Health Assembly, which is expected to back a WHO-sponsored inquiry into China’s handling of the early days of the coronavirus outbreak. Last night, President Trump delivered a threatening letter where the US warned it could permanently cut funding and even cancel its membership in the WHO.

Walmart Hits All Time High On Blowout Earnings From Coronavirus-Linked Stockpiling

Walmart Hits All Time High On Blowout Earnings From Coronavirus-Linked Stockpiling Tyler Durden Tue, 05/19/2020 – 07:55

Walmart reported blowout Q1 results, boosted not only by record high pickup and delivery as a result of the coronavirus pandemic, but also a 74% increase in online sales, as US consumers scrambled to stockpile products during the pandemic lockdown.

Walmart reported EPS of $1.18, beating expectations of $1.12, on Revenue of $134.622BN, also well above the $132.79BN expected, even as the company withdrew its full-year guidance due to the “significant uncertainty” surrounding the length and intensity of the coronavirus’s impact.

China and Pakistan’s all-weather friendship is in a terrible spot

China and Pakistan’s all-weather friendship is in a terrible spotReport claims government-to-government deals signed under CPEC unduly favoured Chinese firms.

India needs courts more than a vaccine

India needs courts more than a vaccineNot having a judicial system to resolve Covid disputes may save zombie firms more than agile ones.

Moody’s finds Sitharaman’s stimulus short

Moody’s finds Sitharaman’s stimulus shortMoody’s said the measures for the NBFC sector will fall short of solving the needs of the sector.

Capitol Report: Restaurant executives press Trump for more time to spend small-business-loan funds

Restaurant executives pressed President Donald Trump on Monday to extend a deadline for spending small-business loans to 24 weeks from the current eight weeks, as states around the country were gradually opening up from lockdowns imposed amid the coronavirus pandemic.

Mark Hulbert: Don’t even think of owning stocks unless you’re willing to buy and hold for at least 10 years

If you want a 95% probability of stocks outperforming bonds, you better plan on 20 years, writes Mark Hulbert.

Vanguard is still on top of fund flows, even after a not-so-hot April

Among big asset managers, Vanguard came in fourth in April in terms of net new fund flows, but is still on top over the past 12 months and in a class by itself in terms of AUM.