Dow rose 477, advancers over decliners about 4-1 & NAZ went up 96. The MLP index was fractionally higher to the 143s & the REIT index recovered 12 to 353. Junk bond funds bounced back after yesterday's selling & Treasuries dipped lower in price. Oil ended flattish in the 36s & gold slid back 1 to 1739 (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)
The US is not seeing a second wave of coronavirus infections, & the economy will not shut down again, White House economic adviser Larry Kudlow said. "I spoke to our health experts at some length last evening," Kudlow said. "They are saying there is no second spike. Secretary Mnuchin said yesterday, and I totally agree, we are not going to shut down the economy." Every US state has started the process of phased reopening. Yesterday, the US surpassed 2M COVID-19 cases, according to Johns Hopkins University data. More than 113KP individuals have died from the virus. Arizona & Texas were among the states that saw coronavirus cases hit a new peak this week. In others, including California & Florida, infection counts neared their previous highs. Fears over a resurgence of the virus, along with a dour economic forecast by the Federal Reserve, sent stocks plunging yestersday. "What you do have is certain spots are seeing a little bit of a jump up," Kudlow added. "Some small metropolitan areas are seeing it. The CDC and the health people are all over it." The economic toll from the outbreak of the virus & subsequent shutdown is also continuing to grow. Yesterday, the Labor Dept said another 1.5M Americans filed for first-time unemployment benefits. While it marks the 10th week in a row that applications have declined since peaking at the end of Mar, it's still well above pre-crisis levels. In the 3 months since American life came to a grinding halt, more than 44M Americans have lost their jobs.
States may need to reimplement the strict social distancing measures that were put in place earlier this year if US coronavirus cases rise “dramatically,” a Centers for Disease Control & Prevention official said. “Right now, communities are experiencing different levels of transmission occurring, as they gradually ease up onto the community mitigation efforts and gradually reopen,” CDC's Deputy Director for Infectious Diseases Jay Butler told reporters. “If cases begin to go up again, particularly if they go up dramatically, it’s important to recognize that more mitigation efforts such as what were implemented back in March may be needed again,” Butler added. He said the decision to reimplement measures will have to be made locally & based on “what is happening within the community regarding disease transmission.” The “pandemic is not over” and it’s important to recognize that Covid-19 is still making headlines everywhere, he continued. It's unclear what would be considered a “dramatic” rise. Some states are beginning to see a rise in cases after they lifted stay-at-home orders & reopened businesses that were shuttered for weeks due to the virus. Overall, the US is seeing roughly 20K new cases a day, according to Hopkins data. There is a concern by public health experts that some states are opening prematurely as US job losses continue to mount & pressure grows on state leaders to allow people to go back to work. Today the CDC published findings from a survey, which found that a majority of Americans say they would not feel safe if social distancing measures meant to curb the spread of the coronavirus were lifted nationwide. Of the 2402 who completed the surveys, 74.3% reported they would feel unsafe if US restrictions were lifted, compared with 81.5% in New York City & 73.4% in Los Angeles, according to the CDC. New York City & Los Angeles have seen some of the largest outbreaks in the US. CDC Director Robert Redfield said that it continues to be “extremely important” that Americans embrace recommendations such as hand washing and wearing a face covering when in public. “I know that people are eager to return to normal activities and ways of life, important that we remember this,” he said. “This situation is unprecedented. And that the pandemic has not ended.”
CDC warns U.S. may reimplement strict coronavirus measures if cases go up ‘dramatically’
Official figures show that the British economy shrank by a colossal 20.4% in Apr, the first full month that the country was in its coronavirus lockdown. The Office for National Statistics said that all areas of the economy were hit, in particular pubs, education, health & car sales. Jonathan Athow, deputy national statistician for economic statistics, said Apr's fall is “the biggest the U.K. has ever seen,” & “almost 10 times larger than the steepest pre-COVID-19 fall.” Apr's decline follows a 5.8% contraction in Mar. In Apr, the economy was about a qtr smaller than it was in Feb. The UK was put into lockdown on Mar 23 & restrictions are slowly being eased. On Mon, nonessential shops, such as department stores and electronic retailers, are due to reopen.
The best way to help the US economy recover would be for business & gov to develop “aggressive and consistent” workplace standards, so consumers & workers feel safe to leave home, said Richmond Fed Pres Thomas Barkin. “Defining these standards and ensuring they are broadly followed, is actually the most critical stimulus program we can do,” Barkin said. The Richmond Fed pres was not impressed by the May jobs report, saying the underlying data is worse than the headline 13.3% unemployment rate. The “unemployment reality” is in the “high teens” & the job losses have fallen disproportionately on people of color, he added. Q2 GDP could come down in the range of about a 40% annual rate, Barkin said. Still, assuming there is no significant resurgence in COVID-19, the economy should improve going forward, Barkin added. “While hardly robust, you can see positive signals in the real-time information,” Barkin said. Consumer sentiment has increased, credit-card spending is not down as much as earlier in the crisis, & auto dealers say demand is rebounding. Real disposable income could actually be positive in the Apr-Jun qtr, he said. But the pace of growth will be slow. Barkin said some large firms are telling him that they are planning layoffs because they are assuming the economy won't recovery fully.
Fed’s Barkin says best stimulus plan would be common standards so consumers feel safe to shop
The step-by-step reopening of the economy & the increase in the number of people returning to work buoyed the spirits of US households in early Jun, according to a closely followed survey of consumer sentiment. The preliminary reading of the consumer-sentiment survey rose to 78.9 in Jun from 72.3 in May, marking the 2nd straight increase, the Univ of Mich said. The forecast called for a reading of 75. Consumers are more hopeful that a US recovery is firmly underway & a record number of participants expect the unemployment to decline from May's official 13.3% rate. A portion of the sentiment survey that examines how Americans view the present climbed to 87.8 from 82.3 points. Similarly, another part of the survey that gauges attitudes for the next 6 months moved up to 73.1 from 65.9. Yet even though Americans are alarmed, most still expect tough times in the year ahead. They worry about further viral outbreaks & the threat to the economy from persistently high unemployment. “Despite the expected economic gains, few consumers anticipate the reestablishment of favorable economic conditions anytime soon,” said Richard Curtin, the chief economist of the survey. The latest reading of consumer sentiment shows Americans expect the economy to gradually recover, but they are uncertain how long it will take to get to normal. Many have scaled back plans to buy big-ticket items such as cars & appliances or anything beyond what's essential until they’re sure they will still have a job and income. The pending expiration of emergency federal jobless benefits could weigh on the minds of consumers in Jul. What's helped are extremely low interest rates & deep discounting by businesses desperate to drum up sales, though such price cuts also hurt profits & the ability of companies to retain workers.
Consumer sentiment climbs again in June as reopening U.S. economy eases worries
Gold futures finished with a modest loss, pressured by a rebound in US stocks to start the session, & strength in the $ & bond yields. But worries about the economic impact of a resurgence in COVID-19 cases still helped the precious metal tally a weekly climb. Prices for the precious metal posted a gain of 1.1% yesterday, finding support as the Dow settled the session with a loss of 7% amid a resurgence of COVID-19 cases & concerns about the economic outlook. Aug gold edged down $2 to settle at $1737 an ounce, after surging 1.1% on yesterday to mark the highest settlement for a most-active contract since Jun 1. The yellow metal saw a weekly gain of 3.2% based on last Fri's settlement of the most-active contract. Prices were trading closer to the session’s high of $1753, but where pared after some upbeat US economic data were released today. US consumer sentiment climbed to 78.9 in early June from 72.3 in May.
Oil futures settled at a modest loss, with US & global benchmark prices suffering their first weekly decline in 7 weeks on worries about oversupply & a resurgence of coronavirus cases in the US. West Texas Intermediate crude for Jul, the US benchmark, fell 8¢ to settle at $36.26 a barrel, the lowest finish for a most-active contract since Jun 1. The contract tumbled 8.2% yesterday to mark the sharpest one-day fall since Apr 27. Global benchmark Brent oil for Aug, however, added 18¢ (0.5%) to end at $38.73 a barrel, following a 7.6% plunge yesterday, its steepest such slide since Apr 21, that took it to its lowest finish since Jun 1. For the week, WTI marked weekly slide of 8.3%, while Brent saw a decline of 8.4%.
Oil prices end slightly lower, post first weekly loss in 7 weeks
The Dow began the day up 800, fell to a low in the red with buying in the last 2 hours to give it a solid gain. There is plenty going on with reopening, drab economic data & US China relations. Next week looks like another wild week for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
The US is not seeing a second wave of coronavirus infections, & the economy will not shut down again, White House economic adviser Larry Kudlow said. "I spoke to our health experts at some length last evening," Kudlow said. "They are saying there is no second spike. Secretary Mnuchin said yesterday, and I totally agree, we are not going to shut down the economy." Every US state has started the process of phased reopening. Yesterday, the US surpassed 2M COVID-19 cases, according to Johns Hopkins University data. More than 113KP individuals have died from the virus. Arizona & Texas were among the states that saw coronavirus cases hit a new peak this week. In others, including California & Florida, infection counts neared their previous highs. Fears over a resurgence of the virus, along with a dour economic forecast by the Federal Reserve, sent stocks plunging yestersday. "What you do have is certain spots are seeing a little bit of a jump up," Kudlow added. "Some small metropolitan areas are seeing it. The CDC and the health people are all over it." The economic toll from the outbreak of the virus & subsequent shutdown is also continuing to grow. Yesterday, the Labor Dept said another 1.5M Americans filed for first-time unemployment benefits. While it marks the 10th week in a row that applications have declined since peaking at the end of Mar, it's still well above pre-crisis levels. In the 3 months since American life came to a grinding halt, more than 44M Americans have lost their jobs.
US will not shut economy again, no 2nd virus spike: top White House adviser
States may need to reimplement the strict social distancing measures that were put in place earlier this year if US coronavirus cases rise “dramatically,” a Centers for Disease Control & Prevention official said. “Right now, communities are experiencing different levels of transmission occurring, as they gradually ease up onto the community mitigation efforts and gradually reopen,” CDC's Deputy Director for Infectious Diseases Jay Butler told reporters. “If cases begin to go up again, particularly if they go up dramatically, it’s important to recognize that more mitigation efforts such as what were implemented back in March may be needed again,” Butler added. He said the decision to reimplement measures will have to be made locally & based on “what is happening within the community regarding disease transmission.” The “pandemic is not over” and it’s important to recognize that Covid-19 is still making headlines everywhere, he continued. It's unclear what would be considered a “dramatic” rise. Some states are beginning to see a rise in cases after they lifted stay-at-home orders & reopened businesses that were shuttered for weeks due to the virus. Overall, the US is seeing roughly 20K new cases a day, according to Hopkins data. There is a concern by public health experts that some states are opening prematurely as US job losses continue to mount & pressure grows on state leaders to allow people to go back to work. Today the CDC published findings from a survey, which found that a majority of Americans say they would not feel safe if social distancing measures meant to curb the spread of the coronavirus were lifted nationwide. Of the 2402 who completed the surveys, 74.3% reported they would feel unsafe if US restrictions were lifted, compared with 81.5% in New York City & 73.4% in Los Angeles, according to the CDC. New York City & Los Angeles have seen some of the largest outbreaks in the US. CDC Director Robert Redfield said that it continues to be “extremely important” that Americans embrace recommendations such as hand washing and wearing a face covering when in public. “I know that people are eager to return to normal activities and ways of life, important that we remember this,” he said. “This situation is unprecedented. And that the pandemic has not ended.”
CDC warns U.S. may reimplement strict coronavirus measures if cases go up ‘dramatically’
Official figures show that the British economy shrank by a colossal 20.4% in Apr, the first full month that the country was in its coronavirus lockdown. The Office for National Statistics said that all areas of the economy were hit, in particular pubs, education, health & car sales. Jonathan Athow, deputy national statistician for economic statistics, said Apr's fall is “the biggest the U.K. has ever seen,” & “almost 10 times larger than the steepest pre-COVID-19 fall.” Apr's decline follows a 5.8% contraction in Mar. In Apr, the economy was about a qtr smaller than it was in Feb. The UK was put into lockdown on Mar 23 & restrictions are slowly being eased. On Mon, nonessential shops, such as department stores and electronic retailers, are due to reopen.
UK economy shrinks 20.4% during April lockdown
The best way to help the US economy recover would be for business & gov to develop “aggressive and consistent” workplace standards, so consumers & workers feel safe to leave home, said Richmond Fed Pres Thomas Barkin. “Defining these standards and ensuring they are broadly followed, is actually the most critical stimulus program we can do,” Barkin said. The Richmond Fed pres was not impressed by the May jobs report, saying the underlying data is worse than the headline 13.3% unemployment rate. The “unemployment reality” is in the “high teens” & the job losses have fallen disproportionately on people of color, he added. Q2 GDP could come down in the range of about a 40% annual rate, Barkin said. Still, assuming there is no significant resurgence in COVID-19, the economy should improve going forward, Barkin added. “While hardly robust, you can see positive signals in the real-time information,” Barkin said. Consumer sentiment has increased, credit-card spending is not down as much as earlier in the crisis, & auto dealers say demand is rebounding. Real disposable income could actually be positive in the Apr-Jun qtr, he said. But the pace of growth will be slow. Barkin said some large firms are telling him that they are planning layoffs because they are assuming the economy won't recovery fully.
Fed’s Barkin says best stimulus plan would be common standards so consumers feel safe to shop
The step-by-step reopening of the economy & the increase in the number of people returning to work buoyed the spirits of US households in early Jun, according to a closely followed survey of consumer sentiment. The preliminary reading of the consumer-sentiment survey rose to 78.9 in Jun from 72.3 in May, marking the 2nd straight increase, the Univ of Mich said. The forecast called for a reading of 75. Consumers are more hopeful that a US recovery is firmly underway & a record number of participants expect the unemployment to decline from May's official 13.3% rate. A portion of the sentiment survey that examines how Americans view the present climbed to 87.8 from 82.3 points. Similarly, another part of the survey that gauges attitudes for the next 6 months moved up to 73.1 from 65.9. Yet even though Americans are alarmed, most still expect tough times in the year ahead. They worry about further viral outbreaks & the threat to the economy from persistently high unemployment. “Despite the expected economic gains, few consumers anticipate the reestablishment of favorable economic conditions anytime soon,” said Richard Curtin, the chief economist of the survey. The latest reading of consumer sentiment shows Americans expect the economy to gradually recover, but they are uncertain how long it will take to get to normal. Many have scaled back plans to buy big-ticket items such as cars & appliances or anything beyond what's essential until they’re sure they will still have a job and income. The pending expiration of emergency federal jobless benefits could weigh on the minds of consumers in Jul. What's helped are extremely low interest rates & deep discounting by businesses desperate to drum up sales, though such price cuts also hurt profits & the ability of companies to retain workers.
Consumer sentiment climbs again in June as reopening U.S. economy eases worries
Gold futures finished with a modest loss, pressured by a rebound in US stocks to start the session, & strength in the $ & bond yields. But worries about the economic impact of a resurgence in COVID-19 cases still helped the precious metal tally a weekly climb. Prices for the precious metal posted a gain of 1.1% yesterday, finding support as the Dow settled the session with a loss of 7% amid a resurgence of COVID-19 cases & concerns about the economic outlook. Aug gold edged down $2 to settle at $1737 an ounce, after surging 1.1% on yesterday to mark the highest settlement for a most-active contract since Jun 1. The yellow metal saw a weekly gain of 3.2% based on last Fri's settlement of the most-active contract. Prices were trading closer to the session’s high of $1753, but where pared after some upbeat US economic data were released today. US consumer sentiment climbed to 78.9 in early June from 72.3 in May.
Gold prices end lower, but tally a 3% weekly gain amid public-health worries
Oil futures settled at a modest loss, with US & global benchmark prices suffering their first weekly decline in 7 weeks on worries about oversupply & a resurgence of coronavirus cases in the US. West Texas Intermediate crude for Jul, the US benchmark, fell 8¢ to settle at $36.26 a barrel, the lowest finish for a most-active contract since Jun 1. The contract tumbled 8.2% yesterday to mark the sharpest one-day fall since Apr 27. Global benchmark Brent oil for Aug, however, added 18¢ (0.5%) to end at $38.73 a barrel, following a 7.6% plunge yesterday, its steepest such slide since Apr 21, that took it to its lowest finish since Jun 1. For the week, WTI marked weekly slide of 8.3%, while Brent saw a decline of 8.4%.
Oil prices end slightly lower, post first weekly loss in 7 weeks
The Dow began the day up 800, fell to a low in the red with buying in the last 2 hours to give it a solid gain. There is plenty going on with reopening, drab economic data & US China relations. Next week looks like another wild week for stocks.
Dow Jones Industrials
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