Dow dipped all of 3, advancers over decliners about 3-2 & NAZ gave back 4. The MLP index lost 2+ to the 253s & the REIT index fell 2+ to 371. Junk bond funds did little & Treasuries were flat in price. Oil slid back to the 63s & gold was about even at 1276 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Fed Beige Book reports slight-to-moderate growth
As the US & China work thru the final stages of trade negotiations, Chinese officials are identifying intl travel dates on Pres Trump's calendar that might offer potential for a summit off of US soil. One trip in particular that’s risen to the top of the list: Trump's expected visit to Japan at the end of May, putting him in the Asia-Pacific region around the time negotiations are expected to conclude. Neither the White House nor the Embassy of Japan would confirm the trip, in which Trump would be the first foreign leader received by Crown Prince Naruhito after he accedes to the throne on May 1. But leakers said it's one option being considered. An administration official acknowledged holding the summit in Asia is China's preference, though it remains unclear where the final location will be. Trump has said the summit could happen on either continent and & he expects a resolution by the end of May. “I would say we’ll know over the next four weeks,” Trump told reporters last week. “It may take two weeks after that to get it papered, but over the next fairly short period of time, we’re going to know.” While that timeline would put the target end date right around Trump's trip to Japan, Treasury Secretary Steve Mnuchin said talks would not be bound by an “arbitrary timeline,” & the South China Morning Post threw cold water on a deal being done by then.
China eyeing Trump’s late May Japan trip for potential Xi summi…
Gold fell for a 3rd straight session to settle at another low for the year, with prices finding little reason to make any significant moves on the back of a steady $ & mixed trading this week among US benchmark stock indices. Prices for the metal also barely budged in the immediate wake of the Federal Reserve's Beige Book. The snapshot of US economic conditions, released after gold futures settled, showed that economic activity expanded at a “slight-moderate” pace in Mar & early Apr. Gold for Jun delivery lost 40¢ to settle at $1276 an ounce after trading as high as $1282 during the session. The settlement marked the lowest finish for a most-active contract since Dec 26. Gold has moved lower this week as equity benchmarks in the US flirted with records & the 10-year Treasury note yield pushed higher. Rising yields can undercut demand for bullion because the commodity doesn't carry a coupon. Bond yields were little changed today as gold futures settled, but higher week to date. US stocks moved modestly lower for the session & were mixed so far for the week. Evidence of Chinese economic stabilization provided support to equities in Europe & Asia, fueling some risk-on sentiment. In today's economic data, market participants got a handle on a shrinking trade balance for Feb.
Gold falls for a third session, settles at a low for the year
Oil futures finished lower (down 29¢), pressured by uncertainty surrounding global crude production, despite data from a US gov report that revealed the first weekly decline in US crude stocks in a month. A report from China also revealed better-than-expected quarterly economic growth, easing concerns over a slowdown in energy demand. The EIA data also showed inventory declines of 1.2M barrels for gasoline & 400K barrels for distillates last week. Earlier, oil prices found support as data showed that China's economy, the world's 2nd largest, expanded by 6.4% over a year earlier in the three months ending in March. That matched the previous qtr for the weakest growth since 2009, but beat expectations of 6.3%. Oil had pulled back earlier this week after Russia's finance minister reportedly questioned his country’s participation in a production-cut deal led by OPEC that has been credited in part for a rally that has seen the US benchmark surge nearly 40% since the end of last year as Brent rose more than 30%. The deal is set to expire at the end of Jun & OPEC with its allies have scheduled their next official meetings for Jun 25-26. Renewed fighting in Libya has raised concerns about the durability of a pickup in oil exports by the country. Sanctions on Venezuela & the approaching expiration of US waivers for importers of Iranian oil have also contributed to supply jitters.
Oil ends lower amid global output uncertainty; U.S. supplies dip
Stocks were not able to get any traction & the popular indices were pretty much even today. US-China negotiations still need more work as talks are expected to last into May, at a minimum. And earnings have not been inspiring for investors. Dysfunctional DC is another drag. It may be hard to quantify, but it worries investors which is keeping them from bidding up stock prices.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Economic activity across the US expanded at a
slight-to-moderate pace in Mar & early Apr with tight labor
markets and moderate wage growth, according to the Federal Reserve's Beige Book. All
of the Fed's 12 districts reported slight-to-moderate gains in recent
months, the Fed said in its region-by-region roundup of anecdotal
information known as the Beige Book. The report, prepared by the Federal
Reserve Bank of St Louis, was based on information collected thru
Apr 8. Employment continued to increase
nationwide, with 9 districts reporting modest or moderate growth. The
employment increases were largely
concentrated in high-skilled jobs. 3 districts reported slight
growth. The labor markets remain tight, however,
restraining the rate of job growth. A majority of districts cited some
difficulties finding qualified workers for both technical &
professional positions. In fact, some firms were enticed to offer
bonuses & expanded benefits packages in order to woo new employees. Prices
have also risen modestly since the release of the last report in March
-- partially because of tariffs, freight costs & rising wages. The
Beige Book, released 8 times per year, precedes next week's 2-day
FOMC hearing, during which policymakers are
expected to vote to keep interest rates steady. During the Mar meeting, policymakers largely
approved a patient approach to monetary policy in the year ahead,
signaling there will be no rate hikes in 2019 unless the economy
improves. “With regard to the outlook for monetary policy beyond this meeting, a
majority of participants expected that the evolution of the economic
outlook and risks to the outlook would likely warrant leaving the target
range unchanged for the remainder of the year,” the minutes
said.
Fed Beige Book reports slight-to-moderate growth
As the US & China work thru the final stages of trade negotiations, Chinese officials are identifying intl travel dates on Pres Trump's calendar that might offer potential for a summit off of US soil. One trip in particular that’s risen to the top of the list: Trump's expected visit to Japan at the end of May, putting him in the Asia-Pacific region around the time negotiations are expected to conclude. Neither the White House nor the Embassy of Japan would confirm the trip, in which Trump would be the first foreign leader received by Crown Prince Naruhito after he accedes to the throne on May 1. But leakers said it's one option being considered. An administration official acknowledged holding the summit in Asia is China's preference, though it remains unclear where the final location will be. Trump has said the summit could happen on either continent and & he expects a resolution by the end of May. “I would say we’ll know over the next four weeks,” Trump told reporters last week. “It may take two weeks after that to get it papered, but over the next fairly short period of time, we’re going to know.” While that timeline would put the target end date right around Trump's trip to Japan, Treasury Secretary Steve Mnuchin said talks would not be bound by an “arbitrary timeline,” & the South China Morning Post threw cold water on a deal being done by then.
China eyeing Trump’s late May Japan trip for potential Xi summi…
Gold fell for a 3rd straight session to settle at another low for the year, with prices finding little reason to make any significant moves on the back of a steady $ & mixed trading this week among US benchmark stock indices. Prices for the metal also barely budged in the immediate wake of the Federal Reserve's Beige Book. The snapshot of US economic conditions, released after gold futures settled, showed that economic activity expanded at a “slight-moderate” pace in Mar & early Apr. Gold for Jun delivery lost 40¢ to settle at $1276 an ounce after trading as high as $1282 during the session. The settlement marked the lowest finish for a most-active contract since Dec 26. Gold has moved lower this week as equity benchmarks in the US flirted with records & the 10-year Treasury note yield pushed higher. Rising yields can undercut demand for bullion because the commodity doesn't carry a coupon. Bond yields were little changed today as gold futures settled, but higher week to date. US stocks moved modestly lower for the session & were mixed so far for the week. Evidence of Chinese economic stabilization provided support to equities in Europe & Asia, fueling some risk-on sentiment. In today's economic data, market participants got a handle on a shrinking trade balance for Feb.
Gold falls for a third session, settles at a low for the year
Oil futures finished lower (down 29¢), pressured by uncertainty surrounding global crude production, despite data from a US gov report that revealed the first weekly decline in US crude stocks in a month. A report from China also revealed better-than-expected quarterly economic growth, easing concerns over a slowdown in energy demand. The EIA data also showed inventory declines of 1.2M barrels for gasoline & 400K barrels for distillates last week. Earlier, oil prices found support as data showed that China's economy, the world's 2nd largest, expanded by 6.4% over a year earlier in the three months ending in March. That matched the previous qtr for the weakest growth since 2009, but beat expectations of 6.3%. Oil had pulled back earlier this week after Russia's finance minister reportedly questioned his country’s participation in a production-cut deal led by OPEC that has been credited in part for a rally that has seen the US benchmark surge nearly 40% since the end of last year as Brent rose more than 30%. The deal is set to expire at the end of Jun & OPEC with its allies have scheduled their next official meetings for Jun 25-26. Renewed fighting in Libya has raised concerns about the durability of a pickup in oil exports by the country. Sanctions on Venezuela & the approaching expiration of US waivers for importers of Iranian oil have also contributed to supply jitters.
Oil ends lower amid global output uncertainty; U.S. supplies dip
Stocks were not able to get any traction & the popular indices were pretty much even today. US-China negotiations still need more work as talks are expected to last into May, at a minimum. And earnings have not been inspiring for investors. Dysfunctional DC is another drag. It may be hard to quantify, but it worries investors which is keeping them from bidding up stock prices.
Dow Jones Industrials
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