Dow shot up 115, advancers over decliners 4-3 & NAZ added 14. The MLP index was off chump change in the 261s & the REIT index fell 2+ to the 346s. Junk bond funds fluctuated & Treasuries traded a little higher. Oil was little changed & gold lost 3 to 1275.
AMJ (Alerian MLP Index tracking fund)
Stock indices climbed amid a raft of robust earnings reports & ongoing speculation about the Fed's next leader. The € fell after the ECB met market expectations for reducing its bond purchase program. The S&P 500 rebounded from yesterday's drop as corp results topped estimates. Treasuries rose with the $, while oil fluctuated near $52 a barrel. The € fell & German bunds rose after the ECB said it will extend bond buying at €30B thru next Sep. There was no shortage of market catalysts as investors braced for one of the busiest days of the earnings season at the same time that political wrangling in DC persisted at a breakneck pace. Pres Trump continued to string out his decision on the next Fed leader, giving mixed signals on his preference. (Politico reported that Janet Yellen was out of the running to keep the post, citing one unnamed source.) Rep leaders sparred to move forward with the party's plan to cut taxes. The latest batch of corp results underscored strength in the American economy a day before investors get the first reading on GDP for Q3.
US jobless claims up less than expected as labor market tightens
Rep leaders scrambled to overcome pockets of resistance in order to muscle thru a GOP budget plan that would pave the way for a 10-year, $1.5T tax cut measure that's now the highest priority of Pres Trump & GOP allies. A close vote is assured amid opposition from hard-right Reps unhappy about deficits & lawmakers from NY & NJ who fear the subsequent tax bill would take away a deduction for state & local taxes that's especially valuable to their constituents. The underlying budget measure which abandons the Rep Party's longstanding battle to rein in deficits in favor of Trump's promise for "massive tax cuts." The House is moving to endorse without changes a plan the Senate passed last week. It drops proposed cuts to autopilot "mandatory" programs such as food stamps, though conservatives promise to take on spending cuts later. Dems united against the plan, charging that its tax cuts will pad the bank accounts of the wealthy & the balance sheets of corps, while delivering modest relief — or none at all — to middle-income taxpayers. Ways & Means Committee Chairman Kevin Brady says he'll schedule a panel debate & vote once the budget plan is safely passed, & much of the buzz in the Capitol concerned a flurry of horse trading as Reps struggled to find ways to raise revenues to help finance cuts to individual & corp tax rates. The goal is a full rewrite of the inefficient, loophole-laden tax code in hopes of lower rates for corps & other businesses & a spurt of economic growth.
House GOP moves to pass budget, start tax debate
AMJ (Alerian MLP Index tracking fund)
Stock indices climbed amid a raft of robust earnings reports & ongoing speculation about the Fed's next leader. The € fell after the ECB met market expectations for reducing its bond purchase program. The S&P 500 rebounded from yesterday's drop as corp results topped estimates. Treasuries rose with the $, while oil fluctuated near $52 a barrel. The € fell & German bunds rose after the ECB said it will extend bond buying at €30B thru next Sep. There was no shortage of market catalysts as investors braced for one of the busiest days of the earnings season at the same time that political wrangling in DC persisted at a breakneck pace. Pres Trump continued to string out his decision on the next Fed leader, giving mixed signals on his preference. (Politico reported that Janet Yellen was out of the running to keep the post, citing one unnamed source.) Rep leaders sparred to move forward with the party's plan to cut taxes. The latest batch of corp results underscored strength in the American economy a day before investors get the first reading on GDP for Q3.
U.S. Stocks Rise on Strong Earnings, Euro Falls: Markets
Wrap
The number of Americans filing for unemployment benefits increased less than expected last week, suggesting the labor market continued to tighten after recent hurricane-related disruptions. Initial claims for benefits increased 10K to a seasonally adjusted 233K for the latest week, the Labor Dept said. Claims fell to 223K in the prior week, which was the lowest level since 1973. The forecast called for claims rising to 235K. They have declined from an almost 3-year high of 298K hit at the start of Sep in the aftermath of Hurricanes Harvey & Irma. The impact of Harvey & Irma has largely dropped out of the data for the mainland US. But Irma & Hurricane Maria continue to impact claims for the Virgin Islands & Puerto Rico, now virtually isolated because of the destruction of infrastructure due to the storms. Last week marked the 138th straight week that claims remained below the 300K threshold, which is associated with a strong labor market. That is the longest such stretch since 1970, when the labor market was smaller. The 4-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 9K to 239K last week, suggesting a sharp rebound in job growth in Oct after nonfarm payrolls dropped by 33K jobs in Sep. The claims report also showed the number of people still receiving benefits after an initial week of aid declined 3K to 1.9M in the latest week, the lowest level since 1973. The 4-week moving average of continuing claims fell 4K to 1.9M, the lowest reading since 1974.
Rep leaders scrambled to overcome pockets of resistance in order to muscle thru a GOP budget plan that would pave the way for a 10-year, $1.5T tax cut measure that's now the highest priority of Pres Trump & GOP allies. A close vote is assured amid opposition from hard-right Reps unhappy about deficits & lawmakers from NY & NJ who fear the subsequent tax bill would take away a deduction for state & local taxes that's especially valuable to their constituents. The underlying budget measure which abandons the Rep Party's longstanding battle to rein in deficits in favor of Trump's promise for "massive tax cuts." The House is moving to endorse without changes a plan the Senate passed last week. It drops proposed cuts to autopilot "mandatory" programs such as food stamps, though conservatives promise to take on spending cuts later. Dems united against the plan, charging that its tax cuts will pad the bank accounts of the wealthy & the balance sheets of corps, while delivering modest relief — or none at all — to middle-income taxpayers. Ways & Means Committee Chairman Kevin Brady says he'll schedule a panel debate & vote once the budget plan is safely passed, & much of the buzz in the Capitol concerned a flurry of horse trading as Reps struggled to find ways to raise revenues to help finance cuts to individual & corp tax rates. The goal is a full rewrite of the inefficient, loophole-laden tax code in hopes of lower rates for corps & other businesses & a spurt of economic growth.
House GOP moves to pass budget, start tax debate
The rise in stock prices in not shared by all. The Dow is strong today, but NAZ & market breadth are only modestly higher. Earnings have been getting good grades, although expectation have not been very high. The goings on in DC are important. After all the wrangling, those guys are supposed to pass tax reform. But that is hard ot predict given daily news stories. The popular stock averages are flirting with record highs after a stellar advance in the last year, making the bulls happy.
Dow Jones Industrials
Dow Jones Industrials
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