Dow dropped 174 from yesterday's record close, decliners over advances 2-1 & NAZ fell 25. The MLP index was off 1+ to 201 & the REIT index fluctuated in the 417s. Junk bond funds did little & Treasuries were bid higher. Oil was fractionally lower but remained above 50 & gold went up 2 to 1572.
AMJ (Alerian MLP Index tracking fund)
US hiring topped expectations in Jan, as the economy added 225K jobs, kicking off the decade on a stronger-than-expected note. It marks the 112th month of straight gains. Unemployment ticked up slightly to 3.6%, as more people were looking for work, the Labor Dept said. The labor force participation rate edged up slightly to 63.4% & average hourly earnings, meanwhile, rose by 7¢ over the past year to $28.44. Powered by an unseasonably warm winter, the first payroll number 2020 surged past the estimate of 160K. The unemployment rate was expected to holding steady from Dec's 3.5%, a ½-century low. Weather-sensitive industries led the way in job creation: Construction accounted for 44K positions, well above its 2019 average of 12K. Leisure & hospitality also padded the number, adding 36K jobs. Professional & business services increased by 21K, while transportation & warehousing grew by 28K. As the US continues the longest economic expansion on record, investors are looking at the Dept of Labor's monthly payroll & unemployment data for signs that the rapid job growth over the past 2 years is softening & leading way to an overall growth slowdown. The report contained a bad omen for manufacturing, which has been in a year-long rut: In Jan, the sector lost 12K jobs, most of which stemmed from motor vehicles & parts. There was another negative side, as well: Annual long-term revisions published by the Labor Dept showed that employers added 514K fewer jobs than first estimated as of Mar 2019, up slightly from the initial 500K that economists projected in Aug, the biggest revision in almost a decade.
Pres Trump's chief economic adviser Larry Kudlow, on the heels of the stronger-than-expected Jan jobs report, touted the strength of the US economy. "I think we're in very strong territory right now," Kudlow said, pointing to solid job creation, a seeming rebound in manufacturing after a 6-month slump, strong housing numbers & a 1K point boost in the stock market. US hiring topped expectations in Jan, as the economy added 225K jobs while unemployment ticked up slightly to 3.6%. It marked the 112th month of straight gains. Over the past 3 years, take-home pay (after taxes) has gone up by $5K, Kudlow said. "It's a blowout number," Kudlow added. "We've had a whole spate of good news for the month of January." Despite the healthy economic indicators & the "blue-collar boom," Kudlow said he "wouldn't mind" seeing officials at the Federal Reserve "be a little bolder" during their Mar policy-setting meeting. At their most recent meeting, policymakers at the central bank voted unanimously to hold interest rates steady, reaffirming its wait-&-see approach despite growing concerns about China's widening coronavirus outbreak. In their statement accompanying the decision, policymakers at the central bank cited low unemployment, solid job growth & inflation below their preferred 2% level as the reason for pressing pause on rates. The benchmark federal funds rate has been at 1.5-1.75% for the past few months. Traders are currently pricing in a 10% chance of a rate cut at the next meeting.
The Japanese Health Ministry confnirmed today 41 new cases of the new coronavirus on a quarantined cruise ship off the coast of Japan. The Diamond Princess cruise ship, which is operated by Carnival's Princess Cruises, is carrying about 3700 passengers & crew at the port of Yokohama. The company announced on Tues that it was quarantining the ship for 2 weeks after a previous guest, who didn't have any symptoms while aboard the ship, tested positive for the coronavirus on Sat — 6 days after leaving the Diamond Princess. The new cases bring the total to 61 cases out of 273 people who were suspected to be exposed to the virus and tested for it. The Ministry said all those who tested positive for the new coronavirus will be removed & transported to local hospitals. As of today, more than 31K cases of the new coronavirus have been reported in more than 2 dozen countries, resulting in at least 636 deaths, almost exclusively in China. Carnival's Princess Cruises confirmed the new cases in a blog post yesterday, adding that among the newly infected people, there is one from Argentina, 5 from Australia, 5 from Canada, 21 from Japan, one from the UK & 8 from the US. The company said this is the last batch of tests & the quarantine will end Feb 19. “Our team on board Diamond Princess, supported by our shoreside colleagues, is actively working to care for our guests to ensure their comfort and well-being,” Princess Cruises said. “These are such unusual circumstances so our team has activated new in-room entertainment offerings...” One of the passengers quarantined on the ship said that passengers are confined to their cabins for the quarantine.
New coronavirus cases surge as 3,700 remain quarantined on ship in Japan
The chart below shows the Dow has had a good run in Feb. Now it's resting & that's in order. The jobs data looks good while the coronavirus story drags on. That needs to be watched because it can become a major problem for global business, &, in turn, the stock market.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 50.32 | -0.63 | -1.2% |
| GC=F | Gold | 1,576.60 | +6.60 | +0.4% |
US hiring topped expectations in Jan, as the economy added 225K jobs, kicking off the decade on a stronger-than-expected note. It marks the 112th month of straight gains. Unemployment ticked up slightly to 3.6%, as more people were looking for work, the Labor Dept said. The labor force participation rate edged up slightly to 63.4% & average hourly earnings, meanwhile, rose by 7¢ over the past year to $28.44. Powered by an unseasonably warm winter, the first payroll number 2020 surged past the estimate of 160K. The unemployment rate was expected to holding steady from Dec's 3.5%, a ½-century low. Weather-sensitive industries led the way in job creation: Construction accounted for 44K positions, well above its 2019 average of 12K. Leisure & hospitality also padded the number, adding 36K jobs. Professional & business services increased by 21K, while transportation & warehousing grew by 28K. As the US continues the longest economic expansion on record, investors are looking at the Dept of Labor's monthly payroll & unemployment data for signs that the rapid job growth over the past 2 years is softening & leading way to an overall growth slowdown. The report contained a bad omen for manufacturing, which has been in a year-long rut: In Jan, the sector lost 12K jobs, most of which stemmed from motor vehicles & parts. There was another negative side, as well: Annual long-term revisions published by the Labor Dept showed that employers added 514K fewer jobs than first estimated as of Mar 2019, up slightly from the initial 500K that economists projected in Aug, the biggest revision in almost a decade.
US economy adds 225,000 jobs in January, surging past expectations
Pres Trump's chief economic adviser Larry Kudlow, on the heels of the stronger-than-expected Jan jobs report, touted the strength of the US economy. "I think we're in very strong territory right now," Kudlow said, pointing to solid job creation, a seeming rebound in manufacturing after a 6-month slump, strong housing numbers & a 1K point boost in the stock market. US hiring topped expectations in Jan, as the economy added 225K jobs while unemployment ticked up slightly to 3.6%. It marked the 112th month of straight gains. Over the past 3 years, take-home pay (after taxes) has gone up by $5K, Kudlow said. "It's a blowout number," Kudlow added. "We've had a whole spate of good news for the month of January." Despite the healthy economic indicators & the "blue-collar boom," Kudlow said he "wouldn't mind" seeing officials at the Federal Reserve "be a little bolder" during their Mar policy-setting meeting. At their most recent meeting, policymakers at the central bank voted unanimously to hold interest rates steady, reaffirming its wait-&-see approach despite growing concerns about China's widening coronavirus outbreak. In their statement accompanying the decision, policymakers at the central bank cited low unemployment, solid job growth & inflation below their preferred 2% level as the reason for pressing pause on rates. The benchmark federal funds rate has been at 1.5-1.75% for the past few months. Traders are currently pricing in a 10% chance of a rate cut at the next meeting.
Larry Kudlow touts US economy, cheers on 'spate of good news'
The Japanese Health Ministry confnirmed today 41 new cases of the new coronavirus on a quarantined cruise ship off the coast of Japan. The Diamond Princess cruise ship, which is operated by Carnival's Princess Cruises, is carrying about 3700 passengers & crew at the port of Yokohama. The company announced on Tues that it was quarantining the ship for 2 weeks after a previous guest, who didn't have any symptoms while aboard the ship, tested positive for the coronavirus on Sat — 6 days after leaving the Diamond Princess. The new cases bring the total to 61 cases out of 273 people who were suspected to be exposed to the virus and tested for it. The Ministry said all those who tested positive for the new coronavirus will be removed & transported to local hospitals. As of today, more than 31K cases of the new coronavirus have been reported in more than 2 dozen countries, resulting in at least 636 deaths, almost exclusively in China. Carnival's Princess Cruises confirmed the new cases in a blog post yesterday, adding that among the newly infected people, there is one from Argentina, 5 from Australia, 5 from Canada, 21 from Japan, one from the UK & 8 from the US. The company said this is the last batch of tests & the quarantine will end Feb 19. “Our team on board Diamond Princess, supported by our shoreside colleagues, is actively working to care for our guests to ensure their comfort and well-being,” Princess Cruises said. “These are such unusual circumstances so our team has activated new in-room entertainment offerings...” One of the passengers quarantined on the ship said that passengers are confined to their cabins for the quarantine.
New coronavirus cases surge as 3,700 remain quarantined on ship in Japan
The chart below shows the Dow has had a good run in Feb. Now it's resting & that's in order. The jobs data looks good while the coronavirus story drags on. That needs to be watched because it can become a major problem for global business, &, in turn, the stock market.
Dow Jones Industrials
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