Dow rose 40 (helped by a 3+ point advance at McDonald's (MCD)), advancers over decliners 5-4 & NAZ inched up pennies. The MLP index declined 1+ to the 282s & the REIT index bounced back 1+ to 350. Junk bond funds were mixed & Treasuries hardly budged in price. Oil pulled back (more below) & gold was little changed at 1289.
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![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.44510032150661494)
Senators could unveil as early as tonight a bipartisan package to help stabilize Obamacare's individual insurance markets. Rep Senator Lamar Alexander told reporters that he & his Dem colleague Patty Murray are close to an agreement that could be made public today. Alexander & Murray had been working on a small bill to fund subsidies for insurers to lower health costs, & to provide states with flexibility to implement Obamacare until the now-failed effort to repeal it gained steam briefly. It's unclear whether their bipartisan effort will eventually be able to gain necessary support. Pres Trump & House Speaker Paul Ryan have both indicated they wouldn’t support such a bill. Alexander said the real issue now is securing the backing of leaders from both parties & enough senators to move forward. “It’s not a matter of just whether Senator Murray and I can agree,” he said. “It’s a matter of whether she and I can find consensus among Republicans and Democrats that we believe can enacted into a result. She and I might be able to come to an agreement tonight. But that won’t do the job.” Senate Minority Leader Chuck Schumer was optimistic that the senators were “on the verge” of a deal. “I would hope it is a great start on bipartisanship” on other issues that are coming up, Schumer said.
Senators Close to Unveiling Bipartisan ACA Stabilization Deal
US Q2 growth was revised up slightly without altering the bigger picture of a consumer- driven economy that also got a healthy contribution from business spending during the period, Commerce Dept data showed. GDP rose at a 3.1% annualized rate from prior qtr (est. 3%); revised upward from Q2 estimate of 3%. Consumer spending, biggest part of the economy, grew at unrevised 3.3% rate (est. 3.3%). GDP revision reflects adjustments on farm inventories, health spending; sales of motor vehicles & parts revised down. The 3rd & final reading on Q2 growth precedes what will likely be significant storm-related distortions in Q3, with hurricanes Harvey & Irma seen depressing growth before rebuilding efforts help boost GDP in the months ahead. The latest release on GDP in the Apr-Jun period shows American consumers, which account for almost 70% of the economy, remain the primary growth engine, backed by a strong job market, contained inflation & low borrowing costs. The rate of expansion was the fastest since Q1-2015, & while it's above the administration's 3% goal, most economists expect the pace to slow. A strengthening trend in equipment spending bodes well for continued increases in business investment during H2. Policy changes around tax reform could also spur further capital spending.
U.S. Second-Quarter Growth Revised Upward to 3.1% Annual Pace
The Senate passed a bill that would avoid a partial shutdown of federal aviation programs & provide tax relief for hurricane victims. The House passed the bill earlier in the day with provisions that would have expanded the private flood insurance provisions, just hours before members planned to leave town for the weekend. The Senate stripped the flood insurance provisions from the bill, then passed the revised measure on a voice vote & sent it back to the House. There are procedures House Rep leaders can use to pass the revised measure without a full, in-person vote. The legislative back-&-forth comes 2 days before the end of the federal budget year, when authority for the Federal Aviation Administration & several health programs included in the bill are due to expire. If the FAA's authority were to expire, it would still continue to operate the nation's air traffic system & controllers would work without pay. But some of the agency's other work, possibly including efforts to restore hurricane-damaged radar & other navigational aids in the Caribbean, would come to a halt. The bill also includes 5 tax relief provisions for victims of Hurricanes Harvey, Irma & Maria. Money from 401(k) or other retirement accounts could be withdrawn without penalty for storm-related expenses, for example. Another provision would lift limits on charitable tax deductions for people making hurricane-related donations. The House bill was passed on a vote of 268-155, mostly along party lines.
Oil prices slipped, backing off from recent gains that were spurred by tension around northern Iraq following the Kurdistan region's vote in favor of independence. Crude has risen sharply in the last 2½ weeks as traders anticipated renewed demand from US refiners who were resuming operations after shutdowns due to Hurricane Harvey. Major world oil producers have also indicated that they will stick with output cuts to limit supply. US crude has gained 9% in 14 trading days, with Brent up 7% in that time. Both benchmarks are near overbought levels, based on an index of relative strength, which measures the speed & magnitude of price movements. US crude fell 72¢ to $51.42 a barrel today. Iraqi Kurdistan voted overwhelmingly in favor of independence on Mon, prompting Turkish Pres Tayyip Erdogan to say he could use force to prevent the formation of an independent Kurdish state & might close the oil "tap." Turkey promised today to deal only with the Iraqi gov on crude, "restricting oil export" operations to Baghdad, the office of Iraqi Prime Minister said.
Oil prices drop, back further off recent gains
The stuck in the mud Senate, less popular than Putin, shows signs of life before the gov fiscal year ends Sat evening. If it can pass ACA legislation, that will give a signal that tax reform has a chance to become law. Today & tomorrow are also the closing days of Q3 in the stock market, making it hard to get much meaning from stock swings. Mon trading will be more important. The popular averages are flirting with record highs with the Dow up an enormous 4K+ since the election.
Dow Jones Industrials
Dow Jones Industrials
Senators could unveil as early as tonight a bipartisan package to help stabilize Obamacare's individual insurance markets. Rep Senator Lamar Alexander told reporters that he & his Dem colleague Patty Murray are close to an agreement that could be made public today. Alexander & Murray had been working on a small bill to fund subsidies for insurers to lower health costs, & to provide states with flexibility to implement Obamacare until the now-failed effort to repeal it gained steam briefly. It's unclear whether their bipartisan effort will eventually be able to gain necessary support. Pres Trump & House Speaker Paul Ryan have both indicated they wouldn’t support such a bill. Alexander said the real issue now is securing the backing of leaders from both parties & enough senators to move forward. “It’s not a matter of just whether Senator Murray and I can agree,” he said. “It’s a matter of whether she and I can find consensus among Republicans and Democrats that we believe can enacted into a result. She and I might be able to come to an agreement tonight. But that won’t do the job.” Senate Minority Leader Chuck Schumer was optimistic that the senators were “on the verge” of a deal. “I would hope it is a great start on bipartisanship” on other issues that are coming up, Schumer said.
Senators Close to Unveiling Bipartisan ACA Stabilization Deal
US Q2 growth was revised up slightly without altering the bigger picture of a consumer- driven economy that also got a healthy contribution from business spending during the period, Commerce Dept data showed. GDP rose at a 3.1% annualized rate from prior qtr (est. 3%); revised upward from Q2 estimate of 3%. Consumer spending, biggest part of the economy, grew at unrevised 3.3% rate (est. 3.3%). GDP revision reflects adjustments on farm inventories, health spending; sales of motor vehicles & parts revised down. The 3rd & final reading on Q2 growth precedes what will likely be significant storm-related distortions in Q3, with hurricanes Harvey & Irma seen depressing growth before rebuilding efforts help boost GDP in the months ahead. The latest release on GDP in the Apr-Jun period shows American consumers, which account for almost 70% of the economy, remain the primary growth engine, backed by a strong job market, contained inflation & low borrowing costs. The rate of expansion was the fastest since Q1-2015, & while it's above the administration's 3% goal, most economists expect the pace to slow. A strengthening trend in equipment spending bodes well for continued increases in business investment during H2. Policy changes around tax reform could also spur further capital spending.
U.S. Second-Quarter Growth Revised Upward to 3.1% Annual Pace
The Senate passed a bill that would avoid a partial shutdown of federal aviation programs & provide tax relief for hurricane victims. The House passed the bill earlier in the day with provisions that would have expanded the private flood insurance provisions, just hours before members planned to leave town for the weekend. The Senate stripped the flood insurance provisions from the bill, then passed the revised measure on a voice vote & sent it back to the House. There are procedures House Rep leaders can use to pass the revised measure without a full, in-person vote. The legislative back-&-forth comes 2 days before the end of the federal budget year, when authority for the Federal Aviation Administration & several health programs included in the bill are due to expire. If the FAA's authority were to expire, it would still continue to operate the nation's air traffic system & controllers would work without pay. But some of the agency's other work, possibly including efforts to restore hurricane-damaged radar & other navigational aids in the Caribbean, would come to a halt. The bill also includes 5 tax relief provisions for victims of Hurricanes Harvey, Irma & Maria. Money from 401(k) or other retirement accounts could be withdrawn without penalty for storm-related expenses, for example. Another provision would lift limits on charitable tax deductions for people making hurricane-related donations. The House bill was passed on a vote of 268-155, mostly along party lines.
Senate passes up aviation, hurricane tax relief bill
Oil prices slipped, backing off from recent gains that were spurred by tension around northern Iraq following the Kurdistan region's vote in favor of independence. Crude has risen sharply in the last 2½ weeks as traders anticipated renewed demand from US refiners who were resuming operations after shutdowns due to Hurricane Harvey. Major world oil producers have also indicated that they will stick with output cuts to limit supply. US crude has gained 9% in 14 trading days, with Brent up 7% in that time. Both benchmarks are near overbought levels, based on an index of relative strength, which measures the speed & magnitude of price movements. US crude fell 72¢ to $51.42 a barrel today. Iraqi Kurdistan voted overwhelmingly in favor of independence on Mon, prompting Turkish Pres Tayyip Erdogan to say he could use force to prevent the formation of an independent Kurdish state & might close the oil "tap." Turkey promised today to deal only with the Iraqi gov on crude, "restricting oil export" operations to Baghdad, the office of Iraqi Prime Minister said.
Oil prices drop, back further off recent gains
The stuck in the mud Senate, less popular than Putin, shows signs of life before the gov fiscal year ends Sat evening. If it can pass ACA legislation, that will give a signal that tax reform has a chance to become law. Today & tomorrow are also the closing days of Q3 in the stock market, making it hard to get much meaning from stock swings. Mon trading will be more important. The popular averages are flirting with record highs with the Dow up an enormous 4K+ since the election.
Dow Jones Industrials
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