Dow rebounded 163 from yesterday's loss, decliners slightly ahead of advancers & NAZ added 30, The MLP index lost another 2 to the 242s, a continuation of almost 2 months of selling (see below) & the REIT index fell 3 to the 328s. Junk bond funds did little & Treasuries were sold ahead of the Fed meeting. Oil shot up 1+ to the 63s & gold dropped 10 to 1307.
AMJ (Alerian MLP Index tracking fund)
Energy-related companies led a rise in US stocks as equity markets looked to shrug off weakness in technology. Gov bond yields increased as investors braced for higher US borrowing rates. Oil climbed to a 2-week high as output curbs by OPEC & its allies continued to deplete the remnants of a global supply surplus, helping to lift the shares of companies. Federal regulators ruled last week that master-limited partnerships can no longer receive a credit for income taxes they don't pay. Facebook (FB) fell for 2nd day as the Federal Trade Commission is probing the company over whether it violated terms of a consent decree over its use of personal data. The slide had helped to send the NAZ yesterday to its steepest loss in 6 weeks. Investors are struggling to rediscover their bullishness in the wake of the tech setbacks & with the Federal Reserve rate decision a day away. Reports that the White House plans to tariffs worth as much as $60B on Chinese products as part of a battle over safeguarding intellectual property added to the sense of caution. It would be the latest phase of Pres Trump's protectionist agenda & threatens to increase market fears of a trade war The UK currency gave up its gains after data showed the nation’s inflation rate fell more than expected in Feb. Russia's ruble steadied after six days of losses.
US tariffs on aluminum & steel imports will add Ks of jobs at domestic producers, offsetting labor losses in other industries, while economic growth will slow by a tiny percentage, according to the Coalition for a Prosperous America. The study is from the nonprofit organization, which has supported the administration's skepticism toward free trade. The group estimates Pres Trump's tariff on steel imports & tariffs on aluminum will add about 19K jobs, making job losses downstream & in other parts of the economy negligible. The impact would hit the economy by $1.4B, or 8/1000th of 1% of GDP, the organization said. “The tiny tiny decline in GDP is a result of these tariffs in the medium term,” Jeff Ferry, research director for the Coalition, said. “In the longer term, I would anticipate that the effect of tariffs are positive because a longer-run analysis shows what happens to steel and aluminum industries as a result: additional production, revenue, hiring and investment.” The study comes as many forecasts say the controversial import tariffs would largely hurt downstream sectors of the economy that use raw steel & aluminum to make consumer products such as automobiles & beverage cans.
Battles over priorities in a huge governmentwide spending bill are essentially settled, leaving a scaled-back plan for Pres Trump's border wall & a huge rail project that pits Trump against Capitol Hill's most powerful Demt as the top issues to be solved. A hoped-for agreement didn't materialize overnight but could be announced as early as today. The measure would provide major funding increases for the Pentagon, $80B over current limits, bringing the military budget to $700B & giving GOP defense hawks a long-sought victory. Domestic accounts would get a generous 10% increase on average as well, awarding Dems funding wins that eluded them during the Obama administration. Efforts to tackle politically charged immigration issues & rapidly rising health insurance premiums appeared to be faltering. Capitol Hill Democrats rejected a White House bid to extend protections for Dreamer immigrants in exchange for $25B in funding for a wall on the US-Mexico border. Dems appeared likely to yield on $1.6B in wall funding, Trump's official request for the 2018 budget year, but they were digging in against Trump's plans to hire hundreds of new immigration agents. A dispute over abortion seemed likely to scuttle a Senate GOP plan to provide $B in federal subsidies to insurers to help curb health insurance premium increases. House & Senate action is needed by midnight Fri to avert another gov shutdown. The bill would implement last month's budget agreement, adding $143B over limits set under a 2011 budget & debt pact that forced automatic budget cuts on annual agency appropriations. Coupled with last year's tax cuts, it heralds the return of $T budget deficits as soon as the budget year starting in Oct.
Stocks are having a very muted recovery. The Dow has a nice advance but 8 stocks are lower & market breadth is negative. FB remains under fire, down another 4+ & that storm is not going away soon. Selling pressure affects the overall stock market. Nervousness about the FED meeting is also keeping buyers away & the threat of a gov shutdown is one more negative for investors. The Dow continues to fluctuate around 25K, where it has been for weeks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 63.20 | +1.14 | +1.8% |
| GC=F | Gold | 1,308.70 | -9.10 | -0.7% |
Energy-related companies led a rise in US stocks as equity markets looked to shrug off weakness in technology. Gov bond yields increased as investors braced for higher US borrowing rates. Oil climbed to a 2-week high as output curbs by OPEC & its allies continued to deplete the remnants of a global supply surplus, helping to lift the shares of companies. Federal regulators ruled last week that master-limited partnerships can no longer receive a credit for income taxes they don't pay. Facebook (FB) fell for 2nd day as the Federal Trade Commission is probing the company over whether it violated terms of a consent decree over its use of personal data. The slide had helped to send the NAZ yesterday to its steepest loss in 6 weeks. Investors are struggling to rediscover their bullishness in the wake of the tech setbacks & with the Federal Reserve rate decision a day away. Reports that the White House plans to tariffs worth as much as $60B on Chinese products as part of a battle over safeguarding intellectual property added to the sense of caution. It would be the latest phase of Pres Trump's protectionist agenda & threatens to increase market fears of a trade war The UK currency gave up its gains after data showed the nation’s inflation rate fell more than expected in Feb. Russia's ruble steadied after six days of losses.
Stocks Recover From Tech Selloff; Yields Rise: Markets Wrap
US tariffs on aluminum & steel imports will add Ks of jobs at domestic producers, offsetting labor losses in other industries, while economic growth will slow by a tiny percentage, according to the Coalition for a Prosperous America. The study is from the nonprofit organization, which has supported the administration's skepticism toward free trade. The group estimates Pres Trump's tariff on steel imports & tariffs on aluminum will add about 19K jobs, making job losses downstream & in other parts of the economy negligible. The impact would hit the economy by $1.4B, or 8/1000th of 1% of GDP, the organization said. “The tiny tiny decline in GDP is a result of these tariffs in the medium term,” Jeff Ferry, research director for the Coalition, said. “In the longer term, I would anticipate that the effect of tariffs are positive because a longer-run analysis shows what happens to steel and aluminum industries as a result: additional production, revenue, hiring and investment.” The study comes as many forecasts say the controversial import tariffs would largely hurt downstream sectors of the economy that use raw steel & aluminum to make consumer products such as automobiles & beverage cans.
U.S. Tariffs May Add 19,000 Steel and Aluminum Jobs, Study Says
Battles over priorities in a huge governmentwide spending bill are essentially settled, leaving a scaled-back plan for Pres Trump's border wall & a huge rail project that pits Trump against Capitol Hill's most powerful Demt as the top issues to be solved. A hoped-for agreement didn't materialize overnight but could be announced as early as today. The measure would provide major funding increases for the Pentagon, $80B over current limits, bringing the military budget to $700B & giving GOP defense hawks a long-sought victory. Domestic accounts would get a generous 10% increase on average as well, awarding Dems funding wins that eluded them during the Obama administration. Efforts to tackle politically charged immigration issues & rapidly rising health insurance premiums appeared to be faltering. Capitol Hill Democrats rejected a White House bid to extend protections for Dreamer immigrants in exchange for $25B in funding for a wall on the US-Mexico border. Dems appeared likely to yield on $1.6B in wall funding, Trump's official request for the 2018 budget year, but they were digging in against Trump's plans to hire hundreds of new immigration agents. A dispute over abortion seemed likely to scuttle a Senate GOP plan to provide $B in federal subsidies to insurers to help curb health insurance premium increases. House & Senate action is needed by midnight Fri to avert another gov shutdown. The bill would implement last month's budget agreement, adding $143B over limits set under a 2011 budget & debt pact that forced automatic budget cuts on annual agency appropriations. Coupled with last year's tax cuts, it heralds the return of $T budget deficits as soon as the budget year starting in Oct.
Battles over priorities in US budget bill are nearly settled
Stocks are having a very muted recovery. The Dow has a nice advance but 8 stocks are lower & market breadth is negative. FB remains under fire, down another 4+ & that storm is not going away soon. Selling pressure affects the overall stock market. Nervousness about the FED meeting is also keeping buyers away & the threat of a gov shutdown is one more negative for investors. The Dow continues to fluctuate around 25K, where it has been for weeks.
Dow Jones Industrials
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