1) The local economies of oil country are being hit hard by the shale oil bust as royalties from oil pumped have shrank to near insignificance. While the oil bust has erased tens of thousands of jobs, while drying up local tax revenues, it has also greatly reduced the inflow of money to local economies from the royalties being paid out. There are about 12 million U.S. mineral owners collecting royalties for oil and gas extracted from their land. Royalties range from 12.5% to 25% of the value of gas and oil pumped, with the average oil land owner collecting about $500 dollars a month.
2) The coronavirus pandemic is causing more economic troubles with increased prices at supermarkets. The virus caused unprecedented demand, the shutdown of some food manufacturing facilities and the need for more labor to assemble orders for pickup and delivery are adding to costs of the grocery business. Since supermarket’s get all their money from the checkout lanes, this translates into higher grocery prices. Some say the grocery business will never be the same again. Furthermore, with demand driven so high by the pandemic, stores have no need to offer incentives and sales. This demand has been felt up the supply chain further increasing cost. One note, the pickup and delivery business of groceries has been catapulted ahead bringing automation to the grocery business closer.
3) The New York Stock Exchange has started a phased reopening of its trading floor, having been closed for two months because of the pandemic crisis. The NYSE has been limited to all electronic trading since March 23 in a measure to prevent the spread of the virus. But there will be fewer floor brokers, and they will wear face masks and do social distancing. Nevertheless, many brokers will continue to do their jobs remotely with electronics, and stay away from the trading floor. Another example of how American business has been changed by the need to keep people spaced apart, even isolated in order to halt the spread of the virus.
4) Stock market closings for – 26 MAY 20:
Dow 24,995.11 up 529.95
Nasdaq 9,340.22 up 15.63
S&P 500 2,991.77 up 36.32
10 Year Yield: up at 0.70%
Oil: up at $34.18