Dow lost 29, decliners barely ahead of advancers & NAZ slid back 1. The MLP index was fractionally lower to 280 (call that even) & the REIT index climbed 2 to the 357s. Junk bond funds was off a tad & Treasuries were bid higher. Oil was off pennies & gold climbed an impressive 10 to 1349.
AMJ (Alerian MLP Index tracking fund)
The ECB opted to keep its stimulus settings unchanged for now as officials started cautiously sketching out the future of their quantitative-easing program. Policy makers maintained asset purchases at €60B ($72B) a month until Dec & reiterated their pledge to increase the size or duration if the economy worsens. They left interest rates unchanged & repeated that they expect borrowing costs to stay at present levels until well past the end of net asset buying. Draghi had for months put off any official discussion over the path of QE beyond 2017, amid concerns over low inflation & the potential market disruption at any hint of an exit. That changed this week; Governing Council members were presented with documents exploring scenarios including different combinations for the volume & length of asset purchases. The ECB will have spent almost €2.3T on debt by the end of the year & the currency bloc's broadening recovery has spurred calls for monetary support to be pared back. The challenge is to provide assurance that the process, whenever it starts, will be gradual & the next policy meeting is scheduled for Oct 26.
ECB Keeps Stimulus Unchanged
Jobless claims surged last week by the most since 2012 as tens of thousands of Texans displaced by Hurricane Harvey filed applications to collect benefits, according to Labor Dept data. Initial jobless claims increased by 62K to seasonally adjusted 298K (est. 245K). Applications filed in Texas surged by an unadjusted 52K from the previous week to 64K. Continuing claims in US fell by 5K to 1.94M in the latest week. The jump in claims was the biggest since superstorm Sandy slammed into the Northeast & pushed the overall level of filings to the highest level since 2015. The results are among the first to show that Harvey will cause swings in broader economic data. Employment may be depressed initially until rebuilding & recovery efforts in flooded areas around Houston take hold. Prior to the storm, the claims figures had been consistent with an improving labor market picture. A shortage of qualified workers is making companies reluctant to dismiss employees, which has kept the underlying trend in applications for unemployment benefits near the lowest level in more than 4 decades. Recent reports on manufacturing & services highlighted solid demand for labor, helping underpin consumer spending, the biggest part of the economy. The 4-week average of initial claims, a less-volatile measure than the weekly figure, rose to 250K from 237K. Unemployment rate among people eligible for benefits held at 1.4%, where it’s been since the week ended Apr 1.
U.S. Jobless Claims Soar by Most Since 2012 on Hurricane Harvey
Treasury Sec Steve Mnuchin said that Pres Trump's deal with Dems on Hurricane Harvey aid & the debt limit clears the way for tax reform. “We have the funding for Harvey, we are focused on tax reform, that’s going to be the big priority for the next 90 days. We are going to work with the two committees on that and get that down to the floor so we can have a bill passed for the president to sign,” Mnuchin said Despite a packed congressional agenda & just a few short months until the end of the legislative year, Mnuchin said tax reform is still “viable” in 2017. “There’s a lot that’s done. The major blueprint has been outlined. It’s going to go to the committees, the committees will add to different parts of this, but we have a path to get this done this year,” he added. And yet, divisions within the Rep Party could further delay reform as the Freedom Caucus will reportedly announce their own tax plan within the next couple of days. But Mnuchin said he was planning to meet with members today & anticipates no intent on a separate plan. “There’s one plan, it will be debated. The committees can add what they want and it will go through. So this is something that the members will have the opportunity to make changes, but we are very optimistic about getting tax reform done,” he said.
No shortage of excitement in Sep. A whopper size hurricane is headed for Florida with another new one behind it. Enough on these nature disasters. Trump is trying to get Congress organized so it can pass important legislation this month. But that's still fuzzy. The ECB continues to postpone decisions on winding down stimulus. Uncertainty is on the rise as gold nears its highest levels in years. Stock investors should keep their eyes on the price of gold (negative bets on the stock market). The Dow is back to where it was about 6 weeks ago.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
The ECB opted to keep its stimulus settings unchanged for now as officials started cautiously sketching out the future of their quantitative-easing program. Policy makers maintained asset purchases at €60B ($72B) a month until Dec & reiterated their pledge to increase the size or duration if the economy worsens. They left interest rates unchanged & repeated that they expect borrowing costs to stay at present levels until well past the end of net asset buying. Draghi had for months put off any official discussion over the path of QE beyond 2017, amid concerns over low inflation & the potential market disruption at any hint of an exit. That changed this week; Governing Council members were presented with documents exploring scenarios including different combinations for the volume & length of asset purchases. The ECB will have spent almost €2.3T on debt by the end of the year & the currency bloc's broadening recovery has spurred calls for monetary support to be pared back. The challenge is to provide assurance that the process, whenever it starts, will be gradual & the next policy meeting is scheduled for Oct 26.
ECB Keeps Stimulus Unchanged
Jobless claims surged last week by the most since 2012 as tens of thousands of Texans displaced by Hurricane Harvey filed applications to collect benefits, according to Labor Dept data. Initial jobless claims increased by 62K to seasonally adjusted 298K (est. 245K). Applications filed in Texas surged by an unadjusted 52K from the previous week to 64K. Continuing claims in US fell by 5K to 1.94M in the latest week. The jump in claims was the biggest since superstorm Sandy slammed into the Northeast & pushed the overall level of filings to the highest level since 2015. The results are among the first to show that Harvey will cause swings in broader economic data. Employment may be depressed initially until rebuilding & recovery efforts in flooded areas around Houston take hold. Prior to the storm, the claims figures had been consistent with an improving labor market picture. A shortage of qualified workers is making companies reluctant to dismiss employees, which has kept the underlying trend in applications for unemployment benefits near the lowest level in more than 4 decades. Recent reports on manufacturing & services highlighted solid demand for labor, helping underpin consumer spending, the biggest part of the economy. The 4-week average of initial claims, a less-volatile measure than the weekly figure, rose to 250K from 237K. Unemployment rate among people eligible for benefits held at 1.4%, where it’s been since the week ended Apr 1.
U.S. Jobless Claims Soar by Most Since 2012 on Hurricane Harvey
Treasury Sec Steve Mnuchin said that Pres Trump's deal with Dems on Hurricane Harvey aid & the debt limit clears the way for tax reform. “We have the funding for Harvey, we are focused on tax reform, that’s going to be the big priority for the next 90 days. We are going to work with the two committees on that and get that down to the floor so we can have a bill passed for the president to sign,” Mnuchin said Despite a packed congressional agenda & just a few short months until the end of the legislative year, Mnuchin said tax reform is still “viable” in 2017. “There’s a lot that’s done. The major blueprint has been outlined. It’s going to go to the committees, the committees will add to different parts of this, but we have a path to get this done this year,” he added. And yet, divisions within the Rep Party could further delay reform as the Freedom Caucus will reportedly announce their own tax plan within the next couple of days. But Mnuchin said he was planning to meet with members today & anticipates no intent on a separate plan. “There’s one plan, it will be debated. The committees can add what they want and it will go through. So this is something that the members will have the opportunity to make changes, but we are very optimistic about getting tax reform done,” he said.
Mnuchin: Trump’s Democrat deal on Harvey, debt ceiling clears way for tax reform
No shortage of excitement in Sep. A whopper size hurricane is headed for Florida with another new one behind it. Enough on these nature disasters. Trump is trying to get Congress organized so it can pass important legislation this month. But that's still fuzzy. The ECB continues to postpone decisions on winding down stimulus. Uncertainty is on the rise as gold nears its highest levels in years. Stock investors should keep their eyes on the price of gold (negative bets on the stock market). The Dow is back to where it was about 6 weeks ago.
Dow Jones Industrials
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