Dow shot up 529 but could quite hold above 25K, advancers over decliners 6-1 & NAZ rose 15. The MLP index rose 3 to 146 & the REIT index gained 11+ to 335. Junk bond funds were bid higher & Treasuries remained weak. Oil went up to the 34s & gold sold off 30 to 1704 (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)
White House chief economic adviser Larry Kudlow said that Pres Trump wants to see the US economy reopen as fast as possible from the coronavirus lockdown, but stressed that stay-at-home guidelines need to be rolled back in a "safe way." "The president has certainly noted it, and he wants to see the economy reopen as rapidly as possible, but it's got to be done in a safe way," Kudlow said. "It's hard for me to make a judgment." These comments come on the heels of a report that found states opening most slowly are big states run by Dems that represent roughly 1/3 of the nation's economy. It's been close to 10 weeks since the Dem govs of California, New York, New Jersey & Illinois ordered all nonessential businesses in their states to close to mitigate the spread of COVID-19. As a result of the severe restrictions, job losses in these states have been especially severe. Kudlow said he's spoken with NY Gov Andrew Cuomo & NJ Gov Phil Murphy, both Dems, about their economies reopening. NY is the epicenter of the coronavirus outbreak in the US. "The level of cooperation has been good. And that's very positive. And they've acknowledged that," he said. "So yeah, I'd like to see them open up as fast as possible, but it's gotta be done safely." Nearly 2/3 of leisure & hospitality jobs in NY & NJ & about ½ in California & Illinois disappeared between Feb & Apr,, compared to about 43% in Florida (one of the first states to lock down & among the first to reopen). Similarly, 4% of construction workers in Florida lost their jobs compared to 41% in NY, 27% in NJ, 17% in California & 11% in Illinois. "Eventually there will likely be business foreclosures, evictions and bankruptcies, which will reduce property values and in turn government tax revenue," the report said. "California, New York, Illinois and New Jersey make up 30% of the national economy, so their business carnage will affect farmers, meat processors, truckers, manufacturers and suppliers nationwide." Every state has started to navigate reopening their economies, although the level of openness varies drastically across the nation.
New home sales rose in April, defying expectations of huge drop, as prices fall
Gold futures ended lower as global equities rallied, in response to the lifting of business lockdowns as the coronavirus pandemic recedes, along with encouraging reports of progress toward a COVID-19 vaccine, dulling the yellow metal's haven appeal. Gold for Jun fell $30 (1.7%) to settle at $1705 an ounce. Analysts said some underlying support comes from rising US-China tensions. Beijing yesterday denounced a US move to expand an entity list of Chinese companies which are restricted from doing business with US firms for alleged human rights abuses in the Xinjian Uighur Autonomous region. That comes after White House national security adviser Robert O'Brien warned Sun that the US is likely to sanction China if it goes ahead with plans for new national security laws in Hong Kong, where protests have reignited.
Gold ends lower as stock market rallies on lockdowns easing, vaccine hopes
Oil futures finished higher with continued cuts in crude production & a pickup in demand, as pandemic-related lockdowns ease around the world, boosting US prices by more than 3%. Among signs of falling crude production in the US, oil-field services firm Baker Hughes on Fri reported a 10th straight weekly decline in the number of US oil rigs. West Texas Intermediate crude for Jul rose $1.10 (3.3%) from Fri to settle at $34.35 a barrel. Jul Brent crude, the global benchmark, added 64¢ (1.8%) from Mon to end at $36.17. Remarks yesterday by Russia's energy minister, Alexander Novak, also were supportive. Novak said the global oil market was on track to balance by Jun or Jul. Meanwhile, some analysts said optimism over easing lockdowns & news of progress toward a vaccine were lifting overall appetite for risk assets. WTI broke a 6-day winning streak on Fri but finished that week nearly 13% higher. US markets were closed yesterday for the Memorial Day holiday. Brent crude rose yesterday.
Oil finishes higher with supply cuts and pickup in demand lifting U.S. prices by more than 3%
Stocks began the day strong & never looked back until the last 15 mins when sellers took the Dow down about 170 from its highs. The Dow jumped up 1500 in the last 7 trading days with little economic news to support the rally. Opening up sounds good, but there are problems pointed out above. A new vaccine will take time to get approval. Then there are China trade tensions which have been fuzzy recently. Tomorrow should be an interesting day for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
White House chief economic adviser Larry Kudlow said that Pres Trump wants to see the US economy reopen as fast as possible from the coronavirus lockdown, but stressed that stay-at-home guidelines need to be rolled back in a "safe way." "The president has certainly noted it, and he wants to see the economy reopen as rapidly as possible, but it's got to be done in a safe way," Kudlow said. "It's hard for me to make a judgment." These comments come on the heels of a report that found states opening most slowly are big states run by Dems that represent roughly 1/3 of the nation's economy. It's been close to 10 weeks since the Dem govs of California, New York, New Jersey & Illinois ordered all nonessential businesses in their states to close to mitigate the spread of COVID-19. As a result of the severe restrictions, job losses in these states have been especially severe. Kudlow said he's spoken with NY Gov Andrew Cuomo & NJ Gov Phil Murphy, both Dems, about their economies reopening. NY is the epicenter of the coronavirus outbreak in the US. "The level of cooperation has been good. And that's very positive. And they've acknowledged that," he said. "So yeah, I'd like to see them open up as fast as possible, but it's gotta be done safely." Nearly 2/3 of leisure & hospitality jobs in NY & NJ & about ½ in California & Illinois disappeared between Feb & Apr,, compared to about 43% in Florida (one of the first states to lock down & among the first to reopen). Similarly, 4% of construction workers in Florida lost their jobs compared to 41% in NY, 27% in NJ, 17% in California & 11% in Illinois. "Eventually there will likely be business foreclosures, evictions and bankruptcies, which will reduce property values and in turn government tax revenue," the report said. "California, New York, Illinois and New Jersey make up 30% of the national economy, so their business carnage will affect farmers, meat processors, truckers, manufacturers and suppliers nationwide." Every state has started to navigate reopening their economies, although the level of openness varies drastically across the nation.
Kudlow says Trump wants US economy to reopen 'as rapidly as possible,' but in 'safe way'
In one of the brightest economic readings since the start of the coronavirus
pandemic, sales of newly built homes rose nearly 1% in Apr compared with Mar, according to the Census Bureau. While that may not seem like a lot, they were expected to fall 22%. Builders
have been reporting stronger demand lately, & sentiment popped back
in May after falling sharply in Apr, according to a monthly index from
the National Association of Home Builders. “The April data for
new home sales show the potential for housing to lead any recovery for
the overall economy,” said Dean Mon, chair of the NAHB. “Because the
housing industry entered this downturn underbuilt, there exists
considerable pent-up housing demand on the sidelines. The experience of
the virus mitigation has emphasized the importance of home for most
Americans.” Mortgage applications to purchase a home have also been rising steadily for more than a month. After
climbing sharply in Mar, mortgage rates fell back in Apr, giving
buyers more incentive. Builders were also offering more incentives, &,
it appears, lower prices. The median price of a newly built home
dropped 8.5% annually to $310K. Part of that price decline was
due to a shift in the mix of homes selling. Homes priced below $300K
sold the most, while those priced above $500K fell. “The
coronavirus pandemic has generated any number of nasty surprises over
the past few months, but the unexpected strength in April new home sales
may be the first pleasant surprise yet — and the clearest indicator so
far that housing, so unlike the last time around, will be a source of
relative strength during this downturn,” said Matthew Speakman, at Zillow. While
sales were still 6% lower in Apr, compared with Apr 2019, it seems
like the market for new homes may be faring better than the market for
existing homes, & there are several reasons for that. First &
foremost, there is a much larger supply of newly built homes available, a
6.3-month supply at the end of Apr. That compares to a 4.2-month
supply of existing homes for sale, according to the National Association
of Realtors. It was also much easier to show a newly built home
in Apr than an existing home. Buyers could walk thru new models or
look at various online plans, while most existing home sellers moved to
virtual touring only, not wanting strangers in their homes due to fears
of the coronavirus spreading. Buyers who have been stuck at home in quarantine may also be looking to flee the confined spaces of the city.
New home sales rose in April, defying expectations of huge drop, as prices fall
Gold futures ended lower as global equities rallied, in response to the lifting of business lockdowns as the coronavirus pandemic recedes, along with encouraging reports of progress toward a COVID-19 vaccine, dulling the yellow metal's haven appeal. Gold for Jun fell $30 (1.7%) to settle at $1705 an ounce. Analysts said some underlying support comes from rising US-China tensions. Beijing yesterday denounced a US move to expand an entity list of Chinese companies which are restricted from doing business with US firms for alleged human rights abuses in the Xinjian Uighur Autonomous region. That comes after White House national security adviser Robert O'Brien warned Sun that the US is likely to sanction China if it goes ahead with plans for new national security laws in Hong Kong, where protests have reignited.
Gold ends lower as stock market rallies on lockdowns easing, vaccine hopes
Oil futures finished higher with continued cuts in crude production & a pickup in demand, as pandemic-related lockdowns ease around the world, boosting US prices by more than 3%. Among signs of falling crude production in the US, oil-field services firm Baker Hughes on Fri reported a 10th straight weekly decline in the number of US oil rigs. West Texas Intermediate crude for Jul rose $1.10 (3.3%) from Fri to settle at $34.35 a barrel. Jul Brent crude, the global benchmark, added 64¢ (1.8%) from Mon to end at $36.17. Remarks yesterday by Russia's energy minister, Alexander Novak, also were supportive. Novak said the global oil market was on track to balance by Jun or Jul. Meanwhile, some analysts said optimism over easing lockdowns & news of progress toward a vaccine were lifting overall appetite for risk assets. WTI broke a 6-day winning streak on Fri but finished that week nearly 13% higher. US markets were closed yesterday for the Memorial Day holiday. Brent crude rose yesterday.
Oil finishes higher with supply cuts and pickup in demand lifting U.S. prices by more than 3%
Stocks began the day strong & never looked back until the last 15 mins when sellers took the Dow down about 170 from its highs. The Dow jumped up 1500 in the last 7 trading days with little economic news to support the rally. Opening up sounds good, but there are problems pointed out above. A new vaccine will take time to get approval. Then there are China trade tensions which have been fuzzy recently. Tomorrow should be an interesting day for stocks.
Dow Jones Industrials
No comments:
Post a Comment