Dow lost 144, decliners over advancers 4-3 & NAZ fell another 17. The MLP index was off 2 to the 268s. Junk bond fudns inched higher & Treasuries were flattish with yields at multi year highs. Oil dropped 1+ to 60 & gold fell another 4.
AMJ (Alerian MLP Index tracking fund)
The convulsions in US equity markets showed signs of abating, with indices bouncing back from yesterday's big losses, but stocks remain on track for their worst week in more than a year as interest-rate fears haunt investors. The S&P 500 opened higher after entering a correction the day before, while European & Asian markets dropped, capping a selloff that’s wiped more than $5T from global stocks since Jan. Treasury 10-year yields hovered near a 4-year high. The Stoxx Europe 600 Index headed for its worst week since 2016 & has erased almost ½ a year's gains. China's benchmark fell the most in almost 2 years earlier, while the MSCI World Index is set for its biggest weekly drop since 2011. A measure of US bond-market volatility soared, as core European bond yields dropped. Equity traders have yet to get comfortable with a jump in benchmark US 10-year yields to the highest in 4 years & worries over unwinding bets against volatility in stocks continue to cast a shadow over markets. The negative superlatives have piled up quickly: the S&P 500 has erased its gain for the year, closed at a 2-month low & is on track for its worst week since 2011. The Dow plunged more than 1000 points yesterday for the 2nd time in 4 days. Traders are now focusing on next week's US consumer-price data after a week in which the 10-year Treasury yield pushed as high as 2.88%. Equity investors took the signal to mean interest rates will rise as inflation gathers pace, denting earnings & consumer-spending power. Oil headed toward its worst week in more than a year as the global risk-asset rout further rankled investors already concerned over growing US supply. Gold declined along with most industrial metals.
U.S. Stocks Rebound; Treasuries Decline
Congress ended a brief gov shutdown hours ago by reaching a wide-ranging deal that is expected to push budget deficits into the $1T -a-year zone. The bill passed by a wide margin in the Senate & survived a rebellion of 67 conservative Reps in the House of Representatives thanks to the support of some Dems. Those conservatives were mainly angry about non-military spending increases. Pres Trump signed the measure into law hours ago, ending a gov shutdown that began just after midnight, when Congress was still debating the budget deal. It was the 2nd shutdown this year. Almost $300B in new spending included in the bill approved will ensure the annual budget deficit will exceed $1T in 2019, said the Committee for a Responsible Federal Budget, a private fiscal policy watchdog group in DC.
Walmart (WMT), a Dow stock & Dividend Aristocrat, is the latest company to return some of its expected tax benefit to workers. The retailer is raising its minimum wage by $1 to $11 an hour. WMT will also pay one time bonuses of up to $1K to some hourly workers. The company says the wage hike, which takes effect next month, will add $300M to expenses & a one-time charge of $400 M for the bonus payments. The stock dropped 1.67.
If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
With the Dow sliding lower again, this is shaping up as the worst week in 9 years & one of the worst in history. The chart below tells it all. Major damage has been done to the stock market rally & that will take time to repair. Time will be measured in months. Higher interest rates are here & more increases are on the way. But the strong US economy can handle it all. Patience is needed by most investors.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 60.42 | -0.73 | -1.2% |
| GC=F | Gold | 1,315.90 | -3.10 | -0.2% |
The convulsions in US equity markets showed signs of abating, with indices bouncing back from yesterday's big losses, but stocks remain on track for their worst week in more than a year as interest-rate fears haunt investors. The S&P 500 opened higher after entering a correction the day before, while European & Asian markets dropped, capping a selloff that’s wiped more than $5T from global stocks since Jan. Treasury 10-year yields hovered near a 4-year high. The Stoxx Europe 600 Index headed for its worst week since 2016 & has erased almost ½ a year's gains. China's benchmark fell the most in almost 2 years earlier, while the MSCI World Index is set for its biggest weekly drop since 2011. A measure of US bond-market volatility soared, as core European bond yields dropped. Equity traders have yet to get comfortable with a jump in benchmark US 10-year yields to the highest in 4 years & worries over unwinding bets against volatility in stocks continue to cast a shadow over markets. The negative superlatives have piled up quickly: the S&P 500 has erased its gain for the year, closed at a 2-month low & is on track for its worst week since 2011. The Dow plunged more than 1000 points yesterday for the 2nd time in 4 days. Traders are now focusing on next week's US consumer-price data after a week in which the 10-year Treasury yield pushed as high as 2.88%. Equity investors took the signal to mean interest rates will rise as inflation gathers pace, denting earnings & consumer-spending power. Oil headed toward its worst week in more than a year as the global risk-asset rout further rankled investors already concerned over growing US supply. Gold declined along with most industrial metals.
U.S. Stocks Rebound; Treasuries Decline
Congress ended a brief gov shutdown hours ago by reaching a wide-ranging deal that is expected to push budget deficits into the $1T -a-year zone. The bill passed by a wide margin in the Senate & survived a rebellion of 67 conservative Reps in the House of Representatives thanks to the support of some Dems. Those conservatives were mainly angry about non-military spending increases. Pres Trump signed the measure into law hours ago, ending a gov shutdown that began just after midnight, when Congress was still debating the budget deal. It was the 2nd shutdown this year. Almost $300B in new spending included in the bill approved will ensure the annual budget deficit will exceed $1T in 2019, said the Committee for a Responsible Federal Budget, a private fiscal policy watchdog group in DC.
Trump signs deal to end brief US shutdown, increase spending
Walmart (WMT), a Dow stock & Dividend Aristocrat, is the latest company to return some of its expected tax benefit to workers. The retailer is raising its minimum wage by $1 to $11 an hour. WMT will also pay one time bonuses of up to $1K to some hourly workers. The company says the wage hike, which takes effect next month, will add $300M to expenses & a one-time charge of $400 M for the bonus payments. The stock dropped 1.67.
If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart passing tax benefits onto US employees
With the Dow sliding lower again, this is shaping up as the worst week in 9 years & one of the worst in history. The chart below tells it all. Major damage has been done to the stock market rally & that will take time to repair. Time will be measured in months. Higher interest rates are here & more increases are on the way. But the strong US economy can handle it all. Patience is needed by most investors.
Dow Jones Industrials
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