Dow shot up 187, advancers over decliners 5-2 & NAZ rocketed ahead 130. The MLP index was fractionally higher to the 211s & the REIT index gained 1+ to the 417s. Junk bond funds (stock funds with high yields) inched higher & Treasuries continued weak. Oil rose in the 55s & gold lost 8 to 1568 (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)
An annual congressional report says the US budget deficit is likely to burst thru the symbolic $1T barrier this year despite a healthy economy. The Congressional Budget Office (CBO) report follows a burst of new spending last year & the repeal in Dec of several taxes used to help finance Obamacare. Those have combined to deepen the gov deficit spiral well on into the future, with T$ deficits likely for as far as the eye can see. The annual CBO update of the gov's economic & fiscal health estimates a $1T deficit for the ongoing fiscal year, which would bring the red ink above $1T for the first time since 2012, when former Pres Obama capped 4 consecutive years of $1T-plus budget deficits. But Obama's deficits came as the US economy recovered from the deep recession of 2007-2009. The return of T$ deficit now comes as the economy is humming on all cylinders, with the CBO predicting that the jobless rate nationwide will average below 4% thru at least 2022 & the growth rate is predicted to hit average 2.2% this year. “The economy's performance makes the large and growing deficit all the more noteworthy,” said CBO Director Phillip Swagel. “Changes in fiscal policy must be made to address the budget situation, because our debt is growing on an unsustainable path.” The gov reported a $984B deficit for the 2019 budget year.
Pfizer (PFE), a Dow stock, reported lower quarterly sales as the company lost US market exclusivity for its blockbuster pain drug Lyrica in 2019. The drugmaker posted $12.7B in Q4 sales, meeting expectations versus $13.98B last year. Sales in its Upjohn unit, which includes Lyrica & Viagra, declined 32% to $2.16B. The Upjohn business is combining with Mylan, forming a new pharmaceutical company to be called Viatris. The combination is expected to close in mid-2020. To offset the effect of declining sales of its off-patent drugs, PFE has been reshaping itself, betting its laboratories can develop new drugs that will boost sales & jettisoning both slower-growing businesses selling drugs facing generic competition & consumer products. Sales in the biopharmaceutical segment rose 7% to $10.53B, driven by gains in key drugs such as the blood thinner Eliquis & breast-cancer drug Ibrance. EPS resulted in a net loss 6¢, compared with a loss of 7¢ in the year-ago period. Excluding one-time items, the company reported earnings of 55¢, missing the 58¢ expected. The company spent $2.82B on research & development in the qtr, up 15% from the same period a year earlier. For 2020, PFE targets adjusted EPS of $2.82-2.92 a share on revenue of $48.5-50.5B. Reflecting Upjohn's coming combination with Mylan, PFE sees adjusted EPS of $2.25-2.35 on revenue of $40.7-42.3B. The stock dropped 2.02 after its earnings report.
If you would like to learn mmore about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
US health officials are fast-tracking work on a coronavirus vaccine, hoping to start an early-stage trial within the next 3 months, the Trump administration said. That timeline is optimistic & a phase 1 trial does not mean “you have a vaccine that’s ready for deployment,” said Dr Anthony Fauci, director of the National Institute of Allergy & Infectious Diseases, an agency within the Dept of Health & Human Services. It could take a year or more before a vaccine is ready for sale to the public, he said. The World Health Organization is sending a delegation of researchers & other health experts to China to help combat the coronavirus outbreak. WHO Director-General Tedros Adhanom Ghebreyesus met with Chinese Pres Xi Jinping in Beijing today. The 2 were joined by top officials from the WHO & the Chinese gov to discuss how best to contain a fast-spreading & deadly virus in Wuhan & other cities & provinces.
Coronavirus live updates: US raises travel warning to China, expands airport screenings
Gold futures ended with a loss, as investor worries over the spread of China's coronavirus abated somewhat & prices consolidated, a day after prices rose to a more than 6-year high. Some upbeat economic data also put pressure on haven demand for gold. The US consumer confidence index climbed to a 5-month high of 131.6 in Jan from a revised 128.2 in the prior month. Earlier, separate data showed orders for durable goods surged 2.4% in Dec, thanks to military purchases, while business investment in the civilian part of the economy declined again. The data come ahead of the Federal Reserve’s monetary policy announcement due tomorrow. Gold for Feb delivery fell $7.60 (0.5%) to settle at $1569. Gold yesterday saw the highest close for a most-active contract since 2013.
Oil futures ended higher, finding support as OPEC is reportedly considering an extension to its cuts in crude production, a day after prices ended at a more than 3-month low on fears China's coronavirus outbreak could dent global demand for crude. A report said that OPEC wants to extend their current oil-output cuts until at least Jun. The group also reportedly raised the possibility of deeper cut if oil demand in China is significantly curtailed by the coronavirus. OPEC & its allies, which include Russia, reached an agreement in Dec to reduce output from Jan-Mar of this year by 1.7M barrels a day from Oct 2018 levels. Against that backdrop, West Texas Intermediate crude for Mar delivery rose 34¢ (0.6%) to settle at $53.48 a barrel, while Mar Brent crude added 19¢ (0.3%) to $59.51 a barrel. Both grades ended Mon at their lowest level since Oct as investors sold assets perceived as risky, including most commodities & equities, amid worries over the spread of the viral outbreak. Fears the epidemic could slow global economic growth & dent demand had served to amplify unease over the supply-and-demand balance. WTI, the US benchmark, has tumbled more than 12% so far in Jan, which would mark its biggest loss for the first month of the year since 1991. Brent is off roughly 10% month to date. Chinese authorities today said deaths from the viral disease rose by 25 to at least 106, while the number of confirmed cases in China rose to 4515. China’s already weakening economy is set to take another hit with businesses across the country remaining shut for an extended public holiday & tourism grinding to a halt, as authorities struggle to contain the pneumonia-like coronavirus that has spread across the nation, the South China Morning Post reported.
Gold retreats from a more than 6-year high as traders assess China virus outbreak
Investors have recovered their bullish sentiment taking the stock market higher today. As expected, gold & Treasuries were sold. The virus represents a big unknown for future business around the globe, but it looks like economic will be limited. The Dow is up 200 in Jan, still a good start for the new year.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
An annual congressional report says the US budget deficit is likely to burst thru the symbolic $1T barrier this year despite a healthy economy. The Congressional Budget Office (CBO) report follows a burst of new spending last year & the repeal in Dec of several taxes used to help finance Obamacare. Those have combined to deepen the gov deficit spiral well on into the future, with T$ deficits likely for as far as the eye can see. The annual CBO update of the gov's economic & fiscal health estimates a $1T deficit for the ongoing fiscal year, which would bring the red ink above $1T for the first time since 2012, when former Pres Obama capped 4 consecutive years of $1T-plus budget deficits. But Obama's deficits came as the US economy recovered from the deep recession of 2007-2009. The return of T$ deficit now comes as the economy is humming on all cylinders, with the CBO predicting that the jobless rate nationwide will average below 4% thru at least 2022 & the growth rate is predicted to hit average 2.2% this year. “The economy's performance makes the large and growing deficit all the more noteworthy,” said CBO Director Phillip Swagel. “Changes in fiscal policy must be made to address the budget situation, because our debt is growing on an unsustainable path.” The gov reported a $984B deficit for the 2019 budget year.
US budget deficit projected to break $1 trillion this year despite strong economy
Pfizer (PFE), a Dow stock, reported lower quarterly sales as the company lost US market exclusivity for its blockbuster pain drug Lyrica in 2019. The drugmaker posted $12.7B in Q4 sales, meeting expectations versus $13.98B last year. Sales in its Upjohn unit, which includes Lyrica & Viagra, declined 32% to $2.16B. The Upjohn business is combining with Mylan, forming a new pharmaceutical company to be called Viatris. The combination is expected to close in mid-2020. To offset the effect of declining sales of its off-patent drugs, PFE has been reshaping itself, betting its laboratories can develop new drugs that will boost sales & jettisoning both slower-growing businesses selling drugs facing generic competition & consumer products. Sales in the biopharmaceutical segment rose 7% to $10.53B, driven by gains in key drugs such as the blood thinner Eliquis & breast-cancer drug Ibrance. EPS resulted in a net loss 6¢, compared with a loss of 7¢ in the year-ago period. Excluding one-time items, the company reported earnings of 55¢, missing the 58¢ expected. The company spent $2.82B on research & development in the qtr, up 15% from the same period a year earlier. For 2020, PFE targets adjusted EPS of $2.82-2.92 a share on revenue of $48.5-50.5B. Reflecting Upjohn's coming combination with Mylan, PFE sees adjusted EPS of $2.25-2.35 on revenue of $40.7-42.3B. The stock dropped 2.02 after its earnings report.
If you would like to learn mmore about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Pfizer sales fall on loss of drug exclusivity
US health officials are fast-tracking work on a coronavirus vaccine, hoping to start an early-stage trial within the next 3 months, the Trump administration said. That timeline is optimistic & a phase 1 trial does not mean “you have a vaccine that’s ready for deployment,” said Dr Anthony Fauci, director of the National Institute of Allergy & Infectious Diseases, an agency within the Dept of Health & Human Services. It could take a year or more before a vaccine is ready for sale to the public, he said. The World Health Organization is sending a delegation of researchers & other health experts to China to help combat the coronavirus outbreak. WHO Director-General Tedros Adhanom Ghebreyesus met with Chinese Pres Xi Jinping in Beijing today. The 2 were joined by top officials from the WHO & the Chinese gov to discuss how best to contain a fast-spreading & deadly virus in Wuhan & other cities & provinces.
Coronavirus live updates: US raises travel warning to China, expands airport screenings
Gold futures ended with a loss, as investor worries over the spread of China's coronavirus abated somewhat & prices consolidated, a day after prices rose to a more than 6-year high. Some upbeat economic data also put pressure on haven demand for gold. The US consumer confidence index climbed to a 5-month high of 131.6 in Jan from a revised 128.2 in the prior month. Earlier, separate data showed orders for durable goods surged 2.4% in Dec, thanks to military purchases, while business investment in the civilian part of the economy declined again. The data come ahead of the Federal Reserve’s monetary policy announcement due tomorrow. Gold for Feb delivery fell $7.60 (0.5%) to settle at $1569. Gold yesterday saw the highest close for a most-active contract since 2013.
Gold retreats from a more than 6-year high as traders assess China virus outbreak
Oil futures ended higher, finding support as OPEC is reportedly considering an extension to its cuts in crude production, a day after prices ended at a more than 3-month low on fears China's coronavirus outbreak could dent global demand for crude. A report said that OPEC wants to extend their current oil-output cuts until at least Jun. The group also reportedly raised the possibility of deeper cut if oil demand in China is significantly curtailed by the coronavirus. OPEC & its allies, which include Russia, reached an agreement in Dec to reduce output from Jan-Mar of this year by 1.7M barrels a day from Oct 2018 levels. Against that backdrop, West Texas Intermediate crude for Mar delivery rose 34¢ (0.6%) to settle at $53.48 a barrel, while Mar Brent crude added 19¢ (0.3%) to $59.51 a barrel. Both grades ended Mon at their lowest level since Oct as investors sold assets perceived as risky, including most commodities & equities, amid worries over the spread of the viral outbreak. Fears the epidemic could slow global economic growth & dent demand had served to amplify unease over the supply-and-demand balance. WTI, the US benchmark, has tumbled more than 12% so far in Jan, which would mark its biggest loss for the first month of the year since 1991. Brent is off roughly 10% month to date. Chinese authorities today said deaths from the viral disease rose by 25 to at least 106, while the number of confirmed cases in China rose to 4515. China’s already weakening economy is set to take another hit with businesses across the country remaining shut for an extended public holiday & tourism grinding to a halt, as authorities struggle to contain the pneumonia-like coronavirus that has spread across the nation, the South China Morning Post reported.
Gold retreats from a more than 6-year high as traders assess China virus outbreak
Investors have recovered their bullish sentiment taking the stock market higher today. As expected, gold & Treasuries were sold. The virus represents a big unknown for future business around the globe, but it looks like economic will be limited. The Dow is up 200 in Jan, still a good start for the new year.
Dow Jones Industrials
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