Dow gave back 14, decliners slightly ahead of advancers & NAZ was fractionally lower. The MLP index rose 1 to the 248s. Junk bond funds inched higher & Treasuries found a little buying. Oil was flattish in the 53s & gold crawled up 1 to 1330.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Larry Kudlow, director of the National Economic Council, said that the US economy will continue to grow at a strong pace thru the rest of 2019 even if the US & China don't reach a trade deal. “The U.S. economy is very strong,” Kudlow said. “I think we’re in very good shape and I think we’ll maintain a 3% growth pace this year.” “That 3% number is not contingent on a China deal that might not be satisfactory for American economic interests,” Kudlow added. “What has changed is lower tax rates, massive deregulation, opening up the energy sector and various trade reforms.” Equity markets fell sharply in May after China & the US hiked tariffs on Bs of $s worth of each other's goods. Prior to that, officials on both sides indicated that progress was being made on the trade front. This led financial markets to price in a resolution to the US-China trade spat. Kudlow also shrugged off the release of weaker-than-expected economic data from last week. The US economy added just 75K jobs last month, the Labor Dept said, under the expected a gain of 180K jobs. Meanwhile, manufacturing activity in the US grew last month at its slowest pace since Oct 2016. “I wouldn’t put much stock in one month’s jobs number. There’s lots of other evidence” of a strong economy, Kudlow said, highlighting an upbeat NFIB small business survey & a record number of hirings in Apr.
Despite some recent disappointing jobs numbers recently, companies in Q3 are expected to hire at a pace not seen in 13 years, according to a survey from ManpowerGroup. Overall, 21% of employers say they’ll be adding to payrolls in the Jul-Sep period, the workforce solutions group said in its quarterly look at employment trends. That number is 2 percentage points better than the Apr-Jun period & 3 points above the level a year ago. Geographically, the Midwest reported its best outlook in 18 years, with 21% of companies saying they expect to add to employment rolls thanks to growth in leisure & hospitality & construction. The West had the strongest projections overall, with 22% forecasting growth, while the South reported 19% seeing an increase & 19% of Northeast companies expect to accelerate. Charlotte, North Carolina, looks to be the most active metro area, with a net 37% of companies planning to hire more. Grand Rapids, Michigan, was 2nd at 36% & Madison, Wisconsin, 3rd with 34%. NY was last among major metro areas, with just a net 8% of firms looking to add workers. Professional & business services is expected to be the most active industry, with a 28% growth rate, followed by leisure & hospitality (27%) & transportation & utilities (24%). The growth in hiring comes at a time when other jobs numbers haven’t been as encouraging. Nonfarm payrolls growth in May came in at 7%K, much less than economists had been projecting & part of an overall slowing trend that has seen monthly gains in 2019 average 164K compared with 223K a year ago. However, evidence remains that there is still substantial slack left in the market. Job openings continue to vastly outnumber the unemployed, with Apr showing a gap of more than 1.6M as companies continue to struggle to find workers with adequate training for the types of positions that are open. The skills gap is likely to remain an issue for the labor market, though employers have been shifting strategy to try to find the right hires. The unemployment rate also remains at 3.6%, its lowest level in nearly 50 years.
Hiring will reach the highest level in 13 years with big strength in the Midwest: Survey
Acting White House chief of staff Mick Mulvaney said he expects Pres Trump & Chinese Pres Xi Jinping will meet at a G-20 summit in Japan this month but that it won't resolve all US-China trade differences. "I do not see the president's meeting as a deal closer," said Mulvaney. But he added, "keep in mind, stranger things have happened." Trump predicted yesterday that a deal with China would work out as Beijing faces the pressure of US tariffs. The pres has said he would decide on extra tariffs on Chinese goods after the G-20, which will be held Jun 28-29 in Osaka.
Pres Trump vowed that, during his presidency, he will prevent China from ripping off the US. “Right now, China is paying us billions and billions of dollars. They never gave us 10 cents,” he told reporters. The pres said the administration's aggressive policy toward China's trade practices has tightened the trade gap between the world's 2 largest economies. “What we’ve done in the last two and a half years ... we picked up $14 trillion in net worth of the United States and China has gotten down probably by $20 trillion,” Trump added. “There’s a tremendous gap. When I came in that gap was getting very close.” Trump attacked the Obama administration for US trade policy on China, accusing his predecessors of allowing Beijing to trounce America economically. “China ate our country alive during Obama and Biden. They ate us alive,” Trump said. Trump has threatened to impose tariffs on an additional $300B worth of Chinese goods if Pres Xi Jinping fails to attend this month's G-20 summit in Japan. The pres also said China wants to come to a trade agreement with the US. “China is a major competitor, and right now China wants to make a great deal very badly,” he said. “And we’re either going to do a great deal with China or we’re not doing a deal at all.” Trump praised his relationship with Pres Xi & said he expects to meet with the Chinese leader at the G-20 summit. “We have a very good relationship. We had a deal with China and unless they go back to that deal, I have no interest,” he said.
All good things have to come to an end. The stock market had an excellent rally, but sellers took control of the market at midday. At the finish, the winning streak in Jun had come to an end. There has been a lot of optimism, but major questions remain on the trade front. Mexico has to deliver on its promises & the US-China deal requires a lot more work. For a starter, it's still unclear if there will be a meeting between the 2 world leaders this month. Meanwhile the Dow remains soooo close to a new record high.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Larry Kudlow, director of the National Economic Council, said that the US economy will continue to grow at a strong pace thru the rest of 2019 even if the US & China don't reach a trade deal. “The U.S. economy is very strong,” Kudlow said. “I think we’re in very good shape and I think we’ll maintain a 3% growth pace this year.” “That 3% number is not contingent on a China deal that might not be satisfactory for American economic interests,” Kudlow added. “What has changed is lower tax rates, massive deregulation, opening up the energy sector and various trade reforms.” Equity markets fell sharply in May after China & the US hiked tariffs on Bs of $s worth of each other's goods. Prior to that, officials on both sides indicated that progress was being made on the trade front. This led financial markets to price in a resolution to the US-China trade spat. Kudlow also shrugged off the release of weaker-than-expected economic data from last week. The US economy added just 75K jobs last month, the Labor Dept said, under the expected a gain of 180K jobs. Meanwhile, manufacturing activity in the US grew last month at its slowest pace since Oct 2016. “I wouldn’t put much stock in one month’s jobs number. There’s lots of other evidence” of a strong economy, Kudlow said, highlighting an upbeat NFIB small business survey & a record number of hirings in Apr.
Larry Kudlow says the US economy will maintain 3% pace even without a China trade deal
Despite some recent disappointing jobs numbers recently, companies in Q3 are expected to hire at a pace not seen in 13 years, according to a survey from ManpowerGroup. Overall, 21% of employers say they’ll be adding to payrolls in the Jul-Sep period, the workforce solutions group said in its quarterly look at employment trends. That number is 2 percentage points better than the Apr-Jun period & 3 points above the level a year ago. Geographically, the Midwest reported its best outlook in 18 years, with 21% of companies saying they expect to add to employment rolls thanks to growth in leisure & hospitality & construction. The West had the strongest projections overall, with 22% forecasting growth, while the South reported 19% seeing an increase & 19% of Northeast companies expect to accelerate. Charlotte, North Carolina, looks to be the most active metro area, with a net 37% of companies planning to hire more. Grand Rapids, Michigan, was 2nd at 36% & Madison, Wisconsin, 3rd with 34%. NY was last among major metro areas, with just a net 8% of firms looking to add workers. Professional & business services is expected to be the most active industry, with a 28% growth rate, followed by leisure & hospitality (27%) & transportation & utilities (24%). The growth in hiring comes at a time when other jobs numbers haven’t been as encouraging. Nonfarm payrolls growth in May came in at 7%K, much less than economists had been projecting & part of an overall slowing trend that has seen monthly gains in 2019 average 164K compared with 223K a year ago. However, evidence remains that there is still substantial slack left in the market. Job openings continue to vastly outnumber the unemployed, with Apr showing a gap of more than 1.6M as companies continue to struggle to find workers with adequate training for the types of positions that are open. The skills gap is likely to remain an issue for the labor market, though employers have been shifting strategy to try to find the right hires. The unemployment rate also remains at 3.6%, its lowest level in nearly 50 years.
Hiring will reach the highest level in 13 years with big strength in the Midwest: Survey
Acting White House chief of staff Mick Mulvaney said he expects Pres Trump & Chinese Pres Xi Jinping will meet at a G-20 summit in Japan this month but that it won't resolve all US-China trade differences. "I do not see the president's meeting as a deal closer," said Mulvaney. But he added, "keep in mind, stranger things have happened." Trump predicted yesterday that a deal with China would work out as Beijing faces the pressure of US tariffs. The pres has said he would decide on extra tariffs on Chinese goods after the G-20, which will be held Jun 28-29 in Osaka.
Mulvaney expects Trump-Xi meeting won't be a 'deal closer'
Pres Trump vowed that, during his presidency, he will prevent China from ripping off the US. “Right now, China is paying us billions and billions of dollars. They never gave us 10 cents,” he told reporters. The pres said the administration's aggressive policy toward China's trade practices has tightened the trade gap between the world's 2 largest economies. “What we’ve done in the last two and a half years ... we picked up $14 trillion in net worth of the United States and China has gotten down probably by $20 trillion,” Trump added. “There’s a tremendous gap. When I came in that gap was getting very close.” Trump attacked the Obama administration for US trade policy on China, accusing his predecessors of allowing Beijing to trounce America economically. “China ate our country alive during Obama and Biden. They ate us alive,” Trump said. Trump has threatened to impose tariffs on an additional $300B worth of Chinese goods if Pres Xi Jinping fails to attend this month's G-20 summit in Japan. The pres also said China wants to come to a trade agreement with the US. “China is a major competitor, and right now China wants to make a great deal very badly,” he said. “And we’re either going to do a great deal with China or we’re not doing a deal at all.” Trump praised his relationship with Pres Xi & said he expects to meet with the Chinese leader at the G-20 summit. “We have a very good relationship. We had a deal with China and unless they go back to that deal, I have no interest,” he said.
All good things have to come to an end. The stock market had an excellent rally, but sellers took control of the market at midday. At the finish, the winning streak in Jun had come to an end. There has been a lot of optimism, but major questions remain on the trade front. Mexico has to deliver on its promises & the US-China deal requires a lot more work. For a starter, it's still unclear if there will be a meeting between the 2 world leaders this month. Meanwhile the Dow remains soooo close to a new record high.
Dow Jones Industrials
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