Dow rose 29, advancers slightly ahead of decliners & NAZ lost 3. The MLP index fell 3+ to the 366s & the REIT index rebounded 3+ to the 349s. Junk bond funds slid back & there was buying in Treasuries. Oil lost 1+ to the 47s & gold went up to 1297 (an almost 3 month high).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.4204390558234228)
Treasury Sec Steve Mnuchin & Senate Majority Leader Mitch McConnell predicted Congress will raise the debt limit in time to prevent an unprecedented default. “We’re going to get the debt ceiling passed,” Mnuchin said today, downplaying the idea that the Treasury’s debt-ceiling deadline could pass without action & said payments can’t be prioritized without disruption. “Everybody understands, this is not a Republican issue, this is not a Democrat issue. We need to be able to pay our debts.” McConnell went further, saying there is “zero chance -- no chance -- we won’t raise the debt ceiling. No chance.” Mnuchin reiterated that he will run out of authority to stay under the limit late next month & his priority when Congress returns in early Sep is ensuring it’s lifted. “The first thing I look forward to working with the leader in Congress on is raising the debt limit,” Mnuchin added. “As I have indicated prior to this, come the end of September, my magic, super Treasury powers will run out, and we need to raise the debt limit. And it is my strong preference that there is a clean raise of the debt limit.” A number of House conservatives have demanded significant spending cuts in return for lifting the debt ceiling, with some suggesting that the consequences of hitting the debt limit don't have to be severe. Mnuchin pushed back on that idea, saying that the federal gov can't pick and choose which of its creditors get paid. “I know people have talked about this concept of prioritization,” Mnuchin said. “This is not about any of the debts should get paid, but not other debts,” he said, adding: “This is about having a clean debt ceiling so that we can maintain the best credit, the reserve currency, and be focused on what we should be focusing on -- so many other really important issues for the economy.”
McConnell and Mnuchin Predict Congress Will Raise the Debt Ceiling
Johnson & Johnson (JNJ), a Dow stock & Dividend Aristocrat, was ordered by a California jury to pay $417M to a woman who claimed she developed ovarian cancer after using the on this company's talc-based products like Johnson's Baby Powder for feminine hygiene. The Los Angeles Superior Court jury verdict in favor of California resident Eva Echeverria was the largest to date in lawsuits alleging JNJ failed to adequately warn consumers about the cancer risks of talc-based products. The stock went up 82¢. If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
Nike (NKE), a Dow stock, is coming under some pressure, with its stock down once again. This as it was downgraded to a hold from a buy over concern that there's been increased competition in the US, & that has been putting some of the growth & the margins at risk as NKE has lost market share to Adidas (AG). The stock lost 1.34. If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/NKE?a_aid=CD3289&a_bid=6ae5b6f7
US workers see little hope for higher paychecks, & while they are increasingly searching for new jobs, they expect fewer offers to fall into their laps, according to a NY Federal Reserve survey. The first-of-its-kind NY Fed study, to be published 3 times per year, paints a gloomy picture of workers' aspirations. Even though the unemployment rate, at 4.4%, is near a 16-year low after more than 8 years of economic recovery, national measures of wages have shown only modest growth. Respondents said in Jul that the lowest annual salary they would accept in a new job would be $58K, down from $60K only 4 months earlier. This measure has declined since Nov, with most of the changes coming from older & higher-income Americans. Asked what salary they expected in job offers over the next 4 months, the average response declined to $51K from $55K when the last survey was taken in Mar. The survey, conducted since early 2014 but published for the first time, also showed 22.7% of respondents searched for a job in the last 4 weeks, up from 19.4% in the previous report. Young people accounted for most of the increase. The respondents saw a 22% likelihood of receiving at least one job offer in the next 4 months, down from an average response of 25% 8 months ago.
Sometimes a solar eclipse (especially like the total one today) can signal significant events. Perhaps we will learn more tomorrow. It might relate to Mnuchin's announcement about raising the debt ceiling. Meanwhile stocks are lumbering along, looking for direction. But there is always the possibility of major news coming from the pres. That's how he operates. And demand for gold continues to be strong.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury Sec Steve Mnuchin & Senate Majority Leader Mitch McConnell predicted Congress will raise the debt limit in time to prevent an unprecedented default. “We’re going to get the debt ceiling passed,” Mnuchin said today, downplaying the idea that the Treasury’s debt-ceiling deadline could pass without action & said payments can’t be prioritized without disruption. “Everybody understands, this is not a Republican issue, this is not a Democrat issue. We need to be able to pay our debts.” McConnell went further, saying there is “zero chance -- no chance -- we won’t raise the debt ceiling. No chance.” Mnuchin reiterated that he will run out of authority to stay under the limit late next month & his priority when Congress returns in early Sep is ensuring it’s lifted. “The first thing I look forward to working with the leader in Congress on is raising the debt limit,” Mnuchin added. “As I have indicated prior to this, come the end of September, my magic, super Treasury powers will run out, and we need to raise the debt limit. And it is my strong preference that there is a clean raise of the debt limit.” A number of House conservatives have demanded significant spending cuts in return for lifting the debt ceiling, with some suggesting that the consequences of hitting the debt limit don't have to be severe. Mnuchin pushed back on that idea, saying that the federal gov can't pick and choose which of its creditors get paid. “I know people have talked about this concept of prioritization,” Mnuchin said. “This is not about any of the debts should get paid, but not other debts,” he said, adding: “This is about having a clean debt ceiling so that we can maintain the best credit, the reserve currency, and be focused on what we should be focusing on -- so many other really important issues for the economy.”
McConnell and Mnuchin Predict Congress Will Raise the Debt Ceiling
Johnson & Johnson (JNJ), a Dow stock & Dividend Aristocrat, was ordered by a California jury to pay $417M to a woman who claimed she developed ovarian cancer after using the on this company's talc-based products like Johnson's Baby Powder for feminine hygiene. The Los Angeles Superior Court jury verdict in favor of California resident Eva Echeverria was the largest to date in lawsuits alleging JNJ failed to adequately warn consumers about the cancer risks of talc-based products. The stock went up 82¢. If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
J&J ordered to pay $417M in trial over talc cancer risks
Nike (NKE), a Dow stock, is coming under some pressure, with its stock down once again. This as it was downgraded to a hold from a buy over concern that there's been increased competition in the US, & that has been putting some of the growth & the margins at risk as NKE has lost market share to Adidas (AG). The stock lost 1.34. If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/NKE?a_aid=CD3289&a_bid=6ae5b6f7
Nike under pressure as it faces increased competition in the US
US workers see little hope for higher paychecks, & while they are increasingly searching for new jobs, they expect fewer offers to fall into their laps, according to a NY Federal Reserve survey. The first-of-its-kind NY Fed study, to be published 3 times per year, paints a gloomy picture of workers' aspirations. Even though the unemployment rate, at 4.4%, is near a 16-year low after more than 8 years of economic recovery, national measures of wages have shown only modest growth. Respondents said in Jul that the lowest annual salary they would accept in a new job would be $58K, down from $60K only 4 months earlier. This measure has declined since Nov, with most of the changes coming from older & higher-income Americans. Asked what salary they expected in job offers over the next 4 months, the average response declined to $51K from $55K when the last survey was taken in Mar. The survey, conducted since early 2014 but published for the first time, also showed 22.7% of respondents searched for a job in the last 4 weeks, up from 19.4% in the previous report. Young people accounted for most of the increase. The respondents saw a 22% likelihood of receiving at least one job offer in the next 4 months, down from an average response of 25% 8 months ago.
US workers have low hopes for higher pay: Fed survey
Sometimes a solar eclipse (especially like the total one today) can signal significant events. Perhaps we will learn more tomorrow. It might relate to Mnuchin's announcement about raising the debt ceiling. Meanwhile stocks are lumbering along, looking for direction. But there is always the possibility of major news coming from the pres. That's how he operates. And demand for gold continues to be strong.
Dow Jones Industrials
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