Dow lost 54 (but above session lows), decliners over advancers about 3-2 & NAZ fell 20. The MLP index rebounded 4+ to the still depressed 203s & the REIT index sank 5 to the 401s. Junk bond funds slid lower & Treasuries continued weak. Oil jumped up 1+ to the 58s & gold fell 9 to 1464 (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)
House Speaker Nancy Pelosi hinted that the UA-Mexico-Canada Agreement may not come up for a vote before the end of the year during her weekly press conference. Passage of the USMCA is a priority for the Trump administration, which promised to buoy the US economy by improving a variety of intl trade deals, including replacing the North American Free Trade Agreement. "We don't want NAFTA with sugar on top," Pelosi said, stressing the importance of workers' rights for all countries involved. Even if there is an agreement on USMCA today, there may not be enough time to set a ratification vote this year, Pelosi said. She added that commerce cannot be separated from the environment "even though this administration is in denial about that." Pelosi insisted this remains a priority for Congress last week. "I'd like to see us get it done this year, I mean, that would be my goal," Pelosi told reporters, adding that she wants the USMCA to "be a template for future trade agreements." Leaders from the 3 countries negotiating the deal signed as a precursor to their legislatures ratifying it. Mexico ratified the deal in Jun, while Canada appears on track to ratify the deal in its new parliament.
Congress approved the Hong Kong Human Rights & Democracy Act even as US & Chinese officials try to nail down a "phase one" trade deal amid an ongoing tariff battle. A Chinese Commerce Ministry official dismissed speculation that trade talks would falter because of the legislation as "rumors." Ministry spokesman Gao Feng said he had no new information to release but added that China was committed to working toward an agreement. "China is willing to address core concerns together with the U.S. on a basis of equality and mutual respect, and to work to conclude our discussions on the first phase" of a trade deal, Gao told reporters. Sen Marco Rubio said in introducing the bill that it would send a message of support to the Hong Kong people who have protested for basic freedoms in the face of Chinese gov oppression. The Senate passed the resolution today & the House approved it yesterday with only 1 no vote.
Sales of previously owned homes rose in Oct after a decline in the previous month, with gains concentrated in mid & high-priced homes, a sign limited inventory is posing challenges for sales of homes priced at the low end. Existing-home sales rose 1.9% in Oct from the previous month to a seasonally adjusted annual rate of 5.46M, the National Association of Realtors said. The forecast called for sales increasing 1.5% last month.
Gold futures moved lower to mark the lowest settlement in over a week, as traders eyed prospects for a US-China trade deal, which may lower geopolitical risk. Dec gold fell $10.60 (0.7%) to settle at $1463 an ounce, after ending a dime lower yesterday. The most-active contract settled at its lowest since Nov 13. Week to date, prices for gold traded down 0.3%. Hopes for a US- China trade deal were bolstered by reports China's chief trade negotiator Liu He has invited his US counterparts for more talks. Gold's losses were restrained after the Conference Board's index of leading indicators fell for a 3rd straight month, adding more evidence of slowing economy. Weekly jobless claims, meanwhile, were little changed at 227K, reflecting an employment market that remains healthy.
Gold prices decline to lowest finish in just over a week
Oil prices registered their highest settlement in about 2 months, finding support from a report that OPEC & its allies are likely to extend production cuts as well as renewed optimism around US-China trade talks. OPEC & its allies, including Russia, are likely to agree to extend crude production cuts until mid-2020 when they meet next month, according to OPEC sources. An existing agreement on output curbs runs thru Mar 2020. OPEC & its allies will meet on Dec 5-6 in Vienna. West Texas Intermediate crude for Jan delivery rose $1.57 (2.8%) to settle at $58.58 a barrel, while Jan Brent crude, the global benchmark, went up $1.57 (2.5%) to $63.97 a barrel. Both front-month benchmark crude contracts posted a 2nd straight climb & marked their highest settlements since Sep 23. Support for oil was also found after a report that China's top trade negotiator invited his US counterparts to a new round of face-to-face talks. But news reports yesterday said negotiations had stalled.
A US-China deal is less clear after Trump signed legislation backing Hong Kong protesters. For the moment, that trade deal is stuck in the mud. The fate of the USMCA trade deal looks gloomy. That represents a solid plus for the US economy & putting it on a long term hold is very disappointing. The Dow topped 28K this week, then fell modestly in each of the last 3 days. Fri is shaping up as a gloomy day for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
House Speaker Nancy Pelosi hinted that the UA-Mexico-Canada Agreement may not come up for a vote before the end of the year during her weekly press conference. Passage of the USMCA is a priority for the Trump administration, which promised to buoy the US economy by improving a variety of intl trade deals, including replacing the North American Free Trade Agreement. "We don't want NAFTA with sugar on top," Pelosi said, stressing the importance of workers' rights for all countries involved. Even if there is an agreement on USMCA today, there may not be enough time to set a ratification vote this year, Pelosi said. She added that commerce cannot be separated from the environment "even though this administration is in denial about that." Pelosi insisted this remains a priority for Congress last week. "I'd like to see us get it done this year, I mean, that would be my goal," Pelosi told reporters, adding that she wants the USMCA to "be a template for future trade agreements." Leaders from the 3 countries negotiating the deal signed as a precursor to their legislatures ratifying it. Mexico ratified the deal in Jun, while Canada appears on track to ratify the deal in its new parliament.
Pelosi hints at bleak future for signature Trump trade deal
Congress approved the Hong Kong Human Rights & Democracy Act even as US & Chinese officials try to nail down a "phase one" trade deal amid an ongoing tariff battle. A Chinese Commerce Ministry official dismissed speculation that trade talks would falter because of the legislation as "rumors." Ministry spokesman Gao Feng said he had no new information to release but added that China was committed to working toward an agreement. "China is willing to address core concerns together with the U.S. on a basis of equality and mutual respect, and to work to conclude our discussions on the first phase" of a trade deal, Gao told reporters. Sen Marco Rubio said in introducing the bill that it would send a message of support to the Hong Kong people who have protested for basic freedoms in the face of Chinese gov oppression. The Senate passed the resolution today & the House approved it yesterday with only 1 no vote.
Trump expected to sign Hong Kong human rights bill opposed by China
Sales of previously owned homes rose in Oct after a decline in the previous month, with gains concentrated in mid & high-priced homes, a sign limited inventory is posing challenges for sales of homes priced at the low end. Existing-home sales rose 1.9% in Oct from the previous month to a seasonally adjusted annual rate of 5.46M, the National Association of Realtors said. The forecast called for sales increasing 1.5% last month.
U.S. Existing-Home Sales Increased 1.9% in October
Gold futures moved lower to mark the lowest settlement in over a week, as traders eyed prospects for a US-China trade deal, which may lower geopolitical risk. Dec gold fell $10.60 (0.7%) to settle at $1463 an ounce, after ending a dime lower yesterday. The most-active contract settled at its lowest since Nov 13. Week to date, prices for gold traded down 0.3%. Hopes for a US- China trade deal were bolstered by reports China's chief trade negotiator Liu He has invited his US counterparts for more talks. Gold's losses were restrained after the Conference Board's index of leading indicators fell for a 3rd straight month, adding more evidence of slowing economy. Weekly jobless claims, meanwhile, were little changed at 227K, reflecting an employment market that remains healthy.
Gold prices decline to lowest finish in just over a week
Oil prices registered their highest settlement in about 2 months, finding support from a report that OPEC & its allies are likely to extend production cuts as well as renewed optimism around US-China trade talks. OPEC & its allies, including Russia, are likely to agree to extend crude production cuts until mid-2020 when they meet next month, according to OPEC sources. An existing agreement on output curbs runs thru Mar 2020. OPEC & its allies will meet on Dec 5-6 in Vienna. West Texas Intermediate crude for Jan delivery rose $1.57 (2.8%) to settle at $58.58 a barrel, while Jan Brent crude, the global benchmark, went up $1.57 (2.5%) to $63.97 a barrel. Both front-month benchmark crude contracts posted a 2nd straight climb & marked their highest settlements since Sep 23. Support for oil was also found after a report that China's top trade negotiator invited his US counterparts to a new round of face-to-face talks. But news reports yesterday said negotiations had stalled.
Oil settles at 2-month high, buoyed by talk of potential extension to OPEC output cuts
A US-China deal is less clear after Trump signed legislation backing Hong Kong protesters. For the moment, that trade deal is stuck in the mud. The fate of the USMCA trade deal looks gloomy. That represents a solid plus for the US economy & putting it on a long term hold is very disappointing. The Dow topped 28K this week, then fell modestly in each of the last 3 days. Fri is shaping up as a gloomy day for stocks.
Dow Jones Industrials
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