Dow fell 43 (well off early lows), decliners over advancers about 5-4 & NAZ lost 8. The MLP index added 1+ to the 255s & the REIT index recovered in the PM, falling 1 to the 392s. Junk bond funds were little changed & Treasuries dropped in price. Oil crawled higher in the 57s & gold tumbled 19 to 1401 (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)
Gold prices declined, sending prices lower for the week, as a stronger better-than-expected rise in Jun US jobs dulled expectations for interest-rate cuts & lifted the benchmark $ index to a more than 2-week high. Aug gold gave up $20.80 (1.5%) to settle at $1400 an ounce, after settling at $1420 an ounce on Wed, the highest for a most-active contract since May 14, 2013. Regular trading was shut on the Independence Day holiday. Today's losses prompted gold to post a loss of 1% for the week, on the heels of 2 consecutive weeks of gains. The US added 224K new jobs in Jun, easily beating the 170K forecast. Higher US interest rates can boost the $ & dull demand for $-denominated commodities, while lower interest rates can do the opposite. Today, the US Dollar Index was up 0.6% at 97.30 as gold futures settled, trading at its highest in more than 2 weeks. Concerns about the impact of sluggish economic growth across the globe & a market-rattling trade dispute between the US & China, have been the main drivers for haven investments, including government debt & precious metals. The Federal Reserve has cited the trade dispute & its impact on the domestic economy as a reason to consider lowering interest rates. Today, the yield on the 10-year German bond (bund) was at minus 0.362%, hovering at record lows for the benchmark European bond. Comparable US Treasury yields meanwhile, were up at 2.0384%. Lower yields for gov paper can underpin demand for gold, which doesn't offer a yield; conversely, as debt rates rise, investors must assess the benefits of havens like gold against the perceived safety of bonds.
US oil futures edged higher, but still marked their first weekly loss in 3 weeks as upbeat monthly US jobs data failed to ease worries about a slowdown in energy demand. Aug West Texas Intermediate oil rose 17¢ (0.3%) to settle at $57.51 a barrel. It was up for a 2nd straight session, but posted a weekly loss of about 1.6%, following 2 consecutive weeks of gains.
After the selling in the AM, the bulls returned & bought stocks. The Dow finished with a modest loss, 170 above early lows. Based on a classic definition, the jobs report was good & showed strength in the economy. Next week Powell will testify in Congress. It's doubtful he can add significant insights into moves by the Fed at month's end. They will watch new data including the goings on with tariff disputes. Meanwhile the averages are at or close to record highs while gold & Treasuries are also in demand by investors with negative thoughts.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
US officials proposed more products from Europe it may hit with tariffs in response to the ongoing trade dispute over aircraft subsidies. The 89 types of goods listed by the US Trade Representative Mon have an approximate
trade value of $4M. The proposed tariffs include
food products like pork, dairy, olives, fruit, coffee, pasta, Scotch &
Irish whiskey, as well as items like cast iron pipes & various copper
alloys. That list supplements $11B in goods the Trump administration threatened to impose new tariffs on in Apr. The dispute is related to subsidies the US said the EU provided to European planemaker Airbus & subsidies the EU said the US provided to American planemaker Boeing (BA), a Dow stock, both allegedly in violation of World Trade Organization rules. The WTO found last year that the EU had continued providing illegal subsidies to Airbus since 2011. But the trade organization also found earlier
this year that Washington state had provided BA with illegal tax
breaks. Tensions between the US & EU
escalated after Trump removed tariff exemptions on steel & aluminum
imports last year. European leaders responded by adding tariffs on
American products like motorcycles, bourbon & orange juice. Officials
have been negotiating about scaling back tariffs, but leaders on both
sides have also threatened to add new ones. In Apr, the EU released a
list of $20B in US products it said it may target with tariffs.
US proposes tariffs on another $4B in European goods
Gold prices declined, sending prices lower for the week, as a stronger better-than-expected rise in Jun US jobs dulled expectations for interest-rate cuts & lifted the benchmark $ index to a more than 2-week high. Aug gold gave up $20.80 (1.5%) to settle at $1400 an ounce, after settling at $1420 an ounce on Wed, the highest for a most-active contract since May 14, 2013. Regular trading was shut on the Independence Day holiday. Today's losses prompted gold to post a loss of 1% for the week, on the heels of 2 consecutive weeks of gains. The US added 224K new jobs in Jun, easily beating the 170K forecast. Higher US interest rates can boost the $ & dull demand for $-denominated commodities, while lower interest rates can do the opposite. Today, the US Dollar Index was up 0.6% at 97.30 as gold futures settled, trading at its highest in more than 2 weeks. Concerns about the impact of sluggish economic growth across the globe & a market-rattling trade dispute between the US & China, have been the main drivers for haven investments, including government debt & precious metals. The Federal Reserve has cited the trade dispute & its impact on the domestic economy as a reason to consider lowering interest rates. Today, the yield on the 10-year German bond (bund) was at minus 0.362%, hovering at record lows for the benchmark European bond. Comparable US Treasury yields meanwhile, were up at 2.0384%. Lower yields for gov paper can underpin demand for gold, which doesn't offer a yield; conversely, as debt rates rise, investors must assess the benefits of havens like gold against the perceived safety of bonds.
Gold prices drop, log a loss of 1% for the week
US oil futures edged higher, but still marked their first weekly loss in 3 weeks as upbeat monthly US jobs data failed to ease worries about a slowdown in energy demand. Aug West Texas Intermediate oil rose 17¢ (0.3%) to settle at $57.51 a barrel. It was up for a 2nd straight session, but posted a weekly loss of about 1.6%, following 2 consecutive weeks of gains.
U.S. oil prices edge higher, but still end lower for the week
After the selling in the AM, the bulls returned & bought stocks. The Dow finished with a modest loss, 170 above early lows. Based on a classic definition, the jobs report was good & showed strength in the economy. Next week Powell will testify in Congress. It's doubtful he can add significant insights into moves by the Fed at month's end. They will watch new data including the goings on with tariff disputes. Meanwhile the averages are at or close to record highs while gold & Treasuries are also in demand by investors with negative thoughts.
Dow Jones Industrials
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