Dow was off 54, decliners over advancers 4-3 & NAZ lost 41. The MLP index rose 1+ to the 272s & the REIT index were a tad lower in the 339s. Junk bond funds slid lower & Treasuries fell, bringing the yield on the 10 Treasury up 2 basis points to 3.2%. Oil declined in the 69s & gold inched up 1 to 1228.
AMJ (Alerian MLP Index tracking fund)
The number of Americans filing applications for new unemployment benefits fell last week, indicative of a tight labor market in which employers are reluctant to lay off workers. Initial jobless claims, a proxy for layoffs across the US, decreased 5K to a seasonally adjusted 210K, the Labor Dept said. The latest data offer the first glimpse of the impact of Hurricane Michael, which made landfall in Florida on Oct 10, on jobless claims. The early figures show claims in Florida, not adjusted for seasonality, fell last week. The number of people filing for unemployment benefits could grow in coming weeks as those who lost their jobs due to the storm are able to file for benefits. Jobless claims touched the lowest level since 1969 early last month before edging slightly higher after Hurricane Florence made landfall in North Carolina. Some workers displaced by the storm were eligible to seek unemployment benefits. The 4-week moving average of claims, a more stable measure, rose by 2K to 212K last week. More broadly, claims data shows that in a tight labor market employers are very hesitant to dismiss workers. The unemployment rate last month fell to 3.7%, also the lowest reading since 1969, & workers, particularly lower earners, are starting to see modestly higher raises. The number of claims workers made for longer than a week decreased to 1,640K in the latest week, marking the lowest level for this figure since 1973. Continuing claims are reported with a one-week lag.
US jobless claims dropped last week
An index made up of leading economic indicators rose for the 12th straight time Sep. The Conference Board's Leading Economic Index for the US increased by 0.5% last month, in line with what was expected. The gain takes into account building permits, the ISM index of new orders & stock prices. "The US LEI improved further in September, suggesting the US business cycle remains on a strong growth trajectory heading into 2019," the Conference Board said. "However, the LEI's growth has slowed somewhat in recent months, suggesting the economy may be facing capacity constraints and increasingly tight labor markets." It noted economic growth could top 3.5% in H2, but "unless the momentum in housing, orders and stock prices accelerates, that pace is unlikely to be sustained in 2019." The US housing market has been under pressure lately as interest rates rise to multiyear highs. The Commerce Dept said yesterday housing starts fell 5.3% last month, more than expected.
Leading indicators rise for 12th straight month in September
Chinese stocks fell sharply as heavy selling in the energy sector & worries about the levels of borrowing in the stock market added to broader concerns over growth & the global sell-off in equities. The Shanghai Composite index closed down 2.9% at 2486, after hitting its lowest point since Nov 2014. The blue-chip CSI300 index was down 2.4%. More than 637B shares worth 4.44T yuan ($639B) were pledged for loans as of Oct 12, according to calculations based on data from the China Securities Depository & Clearing Co.(CSDC). Chinese stocks have fared worse than other stock markets in Asia this year, particularly in recent weeks as global equities bear the brunt of a simmering US-Sino trade war & the prospect of further policy tightening by the US Federal Reserve. There was barely any palpable relief on news that the US Treasury Dept had refrained from naming China a currency manipulator in its semi-annual report released yesterday. Instead, minutes from the Fed's Sep 25-26 meeting, which showed every Fed policymaker backed raising interest rates last month, warnings from China's premier that the economy faces increasing downward pressure, & worries ahead of GDP data Beijing is due to release tomorrow weighed on markets. The yuan ended domestic trading at its weakest close against the $ since Jan 2017. So far this year, the Shanghai stock index is down 24.8% & the CSI300 has fallen 24.5%. Shanghai stocks have declined 11.9% this month. Energy stocks were led lower by falling energy prices. CSI's sub-index tracking energy stocks was down 4.9%. The CSI 300 financial sector sub-index was lower by 2.1%, the consumer staples sector down 2.2%, the real estate index off 1.8% & healthcare sub-index 3.9% lower. The across-the-board decline came after a brief bounce-back yesterday. Hong Kong's stock market, reopening after a holiday yesterday, closed flat today. Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.6%, while Japan's Nikkei index closed down 0.8%. China's smaller Shenzhen index ended down 2.7% & the start-up board ChiNext Composite index was weaker by 2.2%.
China stocks plunge amid heavy selling in the energy sector and growing worries about the economy
Stocks opened lower but the Dow had recouped 100 from the early decline. Higher interest rates are making traders nervous. News about relative weakness in the Chinese economy adds to negative thinking. Oct continues to be a tough month for stocks with the Dow down 1K although it is up about 1K YTD thanks to the rise in early Jan.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 68.95 | -0.80 | -1.2% |
| GC=F | Gold | 1,226.10 | -1.30 | -0.1% |
Stocks fell with investors digesting the
latest economic data and content of the Federal Reserve's latest meeting
minutes. Yesterday, the Fed's minutes for
its Sep meeting showed all policymakers agreed to raise key
interest rates for a 3rd time in 2018 with many open to further hikes.
Stocks finished the session lower, with the Dow retreating 91. Economic data released today included weekly
jobless claims. Initial claims dropped 5K to a seasonally adjusted
210K in the latest week, according to the Labor Dept (matching expectations). The 4-week moving average fell
to its lowest level since 1973. In
commodities, gold steadied following the Fed minutes. Stocks & gold
have been volatile amid concerns over rising Treasury rates.
Stocks lower on interest rate concerns
The number of Americans filing applications for new unemployment benefits fell last week, indicative of a tight labor market in which employers are reluctant to lay off workers. Initial jobless claims, a proxy for layoffs across the US, decreased 5K to a seasonally adjusted 210K, the Labor Dept said. The latest data offer the first glimpse of the impact of Hurricane Michael, which made landfall in Florida on Oct 10, on jobless claims. The early figures show claims in Florida, not adjusted for seasonality, fell last week. The number of people filing for unemployment benefits could grow in coming weeks as those who lost their jobs due to the storm are able to file for benefits. Jobless claims touched the lowest level since 1969 early last month before edging slightly higher after Hurricane Florence made landfall in North Carolina. Some workers displaced by the storm were eligible to seek unemployment benefits. The 4-week moving average of claims, a more stable measure, rose by 2K to 212K last week. More broadly, claims data shows that in a tight labor market employers are very hesitant to dismiss workers. The unemployment rate last month fell to 3.7%, also the lowest reading since 1969, & workers, particularly lower earners, are starting to see modestly higher raises. The number of claims workers made for longer than a week decreased to 1,640K in the latest week, marking the lowest level for this figure since 1973. Continuing claims are reported with a one-week lag.
US jobless claims dropped last week
An index made up of leading economic indicators rose for the 12th straight time Sep. The Conference Board's Leading Economic Index for the US increased by 0.5% last month, in line with what was expected. The gain takes into account building permits, the ISM index of new orders & stock prices. "The US LEI improved further in September, suggesting the US business cycle remains on a strong growth trajectory heading into 2019," the Conference Board said. "However, the LEI's growth has slowed somewhat in recent months, suggesting the economy may be facing capacity constraints and increasingly tight labor markets." It noted economic growth could top 3.5% in H2, but "unless the momentum in housing, orders and stock prices accelerates, that pace is unlikely to be sustained in 2019." The US housing market has been under pressure lately as interest rates rise to multiyear highs. The Commerce Dept said yesterday housing starts fell 5.3% last month, more than expected.
Leading indicators rise for 12th straight month in September
Chinese stocks fell sharply as heavy selling in the energy sector & worries about the levels of borrowing in the stock market added to broader concerns over growth & the global sell-off in equities. The Shanghai Composite index closed down 2.9% at 2486, after hitting its lowest point since Nov 2014. The blue-chip CSI300 index was down 2.4%. More than 637B shares worth 4.44T yuan ($639B) were pledged for loans as of Oct 12, according to calculations based on data from the China Securities Depository & Clearing Co.(CSDC). Chinese stocks have fared worse than other stock markets in Asia this year, particularly in recent weeks as global equities bear the brunt of a simmering US-Sino trade war & the prospect of further policy tightening by the US Federal Reserve. There was barely any palpable relief on news that the US Treasury Dept had refrained from naming China a currency manipulator in its semi-annual report released yesterday. Instead, minutes from the Fed's Sep 25-26 meeting, which showed every Fed policymaker backed raising interest rates last month, warnings from China's premier that the economy faces increasing downward pressure, & worries ahead of GDP data Beijing is due to release tomorrow weighed on markets. The yuan ended domestic trading at its weakest close against the $ since Jan 2017. So far this year, the Shanghai stock index is down 24.8% & the CSI300 has fallen 24.5%. Shanghai stocks have declined 11.9% this month. Energy stocks were led lower by falling energy prices. CSI's sub-index tracking energy stocks was down 4.9%. The CSI 300 financial sector sub-index was lower by 2.1%, the consumer staples sector down 2.2%, the real estate index off 1.8% & healthcare sub-index 3.9% lower. The across-the-board decline came after a brief bounce-back yesterday. Hong Kong's stock market, reopening after a holiday yesterday, closed flat today. Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.6%, while Japan's Nikkei index closed down 0.8%. China's smaller Shenzhen index ended down 2.7% & the start-up board ChiNext Composite index was weaker by 2.2%.
China stocks plunge amid heavy selling in the energy sector and growing worries about the economy
Stocks opened lower but the Dow had recouped 100 from the early decline. Higher interest rates are making traders nervous. News about relative weakness in the Chinese economy adds to negative thinking. Oct continues to be a tough month for stocks with the Dow down 1K although it is up about 1K YTD thanks to the rise in early Jan.
Dow Jones Industrials
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