Dow soared 829, advancers over decliners 6-1 & NAZ rocketed ahead 198 (next to the Feb19 record of 9817). The MLP index jumped up 7+ to 163 & the REIT index rose 13+ to 371. Junk bond funds remained in demand & Treasuries dropped like a rock in price. Oil climbed 2 to the 39s & gold plummeted 41 to 1686 (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)
Pres Trump promised a "rocketship" rebound from the coronavirus pandemic, suggesting 2021 could be one of the "best years" for the US economy after the better-than-expected May jobs report. "Next year is going to be one of the best years we’ve ever had economically," Trump said. His comments came on the heels of the Labor Dep's May jobs report, which revealed that employers added a stunning 2.5M jobs last month -- the biggest increase on record. The nation's unemployment rate dropped to 13.3% from 14.7%. "The numbers are great. And this leads us into a long period of growth. We’ll go back to having the greatest economy anywhere in the world, nowhere close," Trump said. "I think we’re going to have a great few upcoming months." Economists expected the report, conducted in mid-May, to show that unemployment rose to 19.8% in May & that employers shed 8M jobs. If the expectation had been accurate, it would have been the worst figure since the depression. The jobless rate dropped from 14.7% in Apr, which was the highest level ever since record-keeping began in 1948. The surprise decline, combined with the surge in jobs, suggests the worst is over for the nation's economy as states ease stay-at-home guidelines & businesses bring back staff. Trump suggested there would be a "spectacular" Q4 in the country, beginning in Oct -- if not earlier. "Today is probably the great comeback in American history," he said. "But it's not going to stop here. it's going to keep going."
Senior White House economic adviser Larry Kudlow said the next coronavirus relief package should include long-term relief measures that pay Americans more to "work, invest and take risk." "We need to move from rescue assistance to more long-term economic growth incentives," Kudlow said. Some options currently under consideration at the White House include a payroll tax cut, liability protections for businesses reopening during the outbreak & tax deductions or write-offs for individuals who take a vacation during a defined period of time. Senate Majority Leader Mitch McConnell has told Trump officials behind closed doors that another round of fiscal stimulus from Congress could be just under $1T, a number the administration was receptive to. Kudlow said he expects negotiations on the 4th round of stimulus to begin after the Fourth of Jul. The Senate is not scheduled to return to DC until Jul 20, making it unlikely that lawmakers will pass another round of aid before that date. So far, Congress has passed 4 massive stimulus packages totaling nearly $3T to blunt the economic pain from the virus outbreak. That includes the $2.2T CARES Act signed into law at the end of Mar, which sent one-time payments of up to $1200 to Americans who earn less than $99K. Lawmakers on both sides of the aisle have agreed that another round of aid is likely necessary to help American businesses & workers recover from the lockdown, which is without precedent. Kudlow's comments on the heels of the better-than-expected May jobs report, which revealed that US employers added a stunning 2.5M jobs last month. The unemployment rate dropped to 13.3% from 14.7%, signaling the economy is starting to recover from the virus outbreak. "The recovery has begun!" Treasury Secretary Steven Mnuchin tweeted.
The Transportation Dept said it will allow Chinese passenger air carriers to operate 2 flights per week after Beijing said it would ease coronavirus restrictions to allow in more foreign carriers. On Wed, the US said it planned to bar all Chinese passenger airlines from flying to the US by Jun 16, due to Beijing's curbs on US carriers. The revised Transportation Dept order cuts in ½ the 4 weekly round trip flights Chinese passenger carriers have been flying to the US & take effect immediately. The dept said if China takes further steps for US carriers it is “fully prepared to once again revisit the action.” The notice added that the dept is “troubled by China's continued unilateral dictation of the terms of the U.S.-China scheduled passenger air transportation market without respect for the rights of U.S. carriers.” The announcement defuses a potential new flashpoint in the US-China relationship. China's announcement should allow US carriers to resume once-a-week flights into a city of their choice starting on Jun 8, a fraction of what the US-China aviation agreement allows. The US limit affects US round-trip flights by Air China, China Eastern Airlines Corp, China Southern Airlines &Xiamen Airlines. It is not immediately known which flights will be allowed to continue. It is also unclear if US carriers will agree to fly just once a week to China when they have sought approval for 2 or 3 daily flights. Delta Aur lines (DAL) & Unieted Air Lines (UAL) asked to resume flights to China this month. Both said they were studying China's action. China said all airlines can increase the number of international flights involving China to 2 per week if none of their passengers test positive for COVID-19 for 3 consecutive weeks.
Gold futures dropped, to post a loss of nearly 4% for the week, as an unexpected monthly rise in US jobs & a drop in the nation's unemployment rate rallied the stock market, pushing prices for the haven metal to their lowest finish in 2 months. The US regained 2.5M jobs in May & the unemployment rate fell to 13.3%, according to the Bureau of Labor Statistics. The forecast called for a loss of 7.25M jobs. The unemployment rate was forecast to rise to 19% from a post World War II record of 14.7% in Apr, though states have been allowing businesses to reopen as the coronavirus pandemic recedes. Aug gold shed $44 (2.6%) to settle at $1683 an ounce. The settlement was the lowest since early Apr, based on the most-active contracts.
Gold drops to a 2-month low, down nearly 4% for the week, after upbeat U.S. jobs data
Crude-oil futures ended sharply higher, supported by news that major oil producers will convene Sat to discuss plans for extended productions cuts, while an unexpected monthly climb in US jobs suggested a recovery in energy demand mat be at hand. OPEC & its allies (OPEC+), said they would hold meetings on Sat, with the OPEC members. The major oil producers are expected to reach an official agreement to extend record oil production cuts of 9.7M barrels a day thru Jul. The group decided to move forward a meeting that had been planned for Jun 9-10, after a tentative plan to meet yesterday fell apart. The weekend meeting is being viewed as a signal to crude investors that the group will deliver substantive near-term measures to stabilize oil's value. West Texas Intermediate (WTI) crude for Jul rose $2.14 (5.7%) to settle at $39.55 a barrel a barrel. Global benchmark Brent saw its Aug contract climb $2.31 (5.8%) to end at $42.30 a barrel. For the week, WTI front-month US oil futures were up 11.4%, while Brent climbed 11.8%. Both benchmarks tallied their sixth consecutive weekly gain & marked a 4th session at their highest settlement since Mar 6.
Oil prices log over 11% weekly rise, with OPEC+ set to meet Saturday to discuss extension of output cuts
The jobs numbers were off the chart strong & investors responded by bidding prices substantially higher. The NAZ is essentially tied its record & the Dow is approaching its record with investors seeing a solid recovery in H2. For the time being, problems such as US-China trade relations & civil unrest are not getting much attention. Have a good weekend.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Pres Trump promised a "rocketship" rebound from the coronavirus pandemic, suggesting 2021 could be one of the "best years" for the US economy after the better-than-expected May jobs report. "Next year is going to be one of the best years we’ve ever had economically," Trump said. His comments came on the heels of the Labor Dep's May jobs report, which revealed that employers added a stunning 2.5M jobs last month -- the biggest increase on record. The nation's unemployment rate dropped to 13.3% from 14.7%. "The numbers are great. And this leads us into a long period of growth. We’ll go back to having the greatest economy anywhere in the world, nowhere close," Trump said. "I think we’re going to have a great few upcoming months." Economists expected the report, conducted in mid-May, to show that unemployment rose to 19.8% in May & that employers shed 8M jobs. If the expectation had been accurate, it would have been the worst figure since the depression. The jobless rate dropped from 14.7% in Apr, which was the highest level ever since record-keeping began in 1948. The surprise decline, combined with the surge in jobs, suggests the worst is over for the nation's economy as states ease stay-at-home guidelines & businesses bring back staff. Trump suggested there would be a "spectacular" Q4 in the country, beginning in Oct -- if not earlier. "Today is probably the great comeback in American history," he said. "But it's not going to stop here. it's going to keep going."
Trump makes bold prediction after shock jobs report shows record growth
Senior White House economic adviser Larry Kudlow said the next coronavirus relief package should include long-term relief measures that pay Americans more to "work, invest and take risk." "We need to move from rescue assistance to more long-term economic growth incentives," Kudlow said. Some options currently under consideration at the White House include a payroll tax cut, liability protections for businesses reopening during the outbreak & tax deductions or write-offs for individuals who take a vacation during a defined period of time. Senate Majority Leader Mitch McConnell has told Trump officials behind closed doors that another round of fiscal stimulus from Congress could be just under $1T, a number the administration was receptive to. Kudlow said he expects negotiations on the 4th round of stimulus to begin after the Fourth of Jul. The Senate is not scheduled to return to DC until Jul 20, making it unlikely that lawmakers will pass another round of aid before that date. So far, Congress has passed 4 massive stimulus packages totaling nearly $3T to blunt the economic pain from the virus outbreak. That includes the $2.2T CARES Act signed into law at the end of Mar, which sent one-time payments of up to $1200 to Americans who earn less than $99K. Lawmakers on both sides of the aisle have agreed that another round of aid is likely necessary to help American businesses & workers recover from the lockdown, which is without precedent. Kudlow's comments on the heels of the better-than-expected May jobs report, which revealed that US employers added a stunning 2.5M jobs last month. The unemployment rate dropped to 13.3% from 14.7%, signaling the economy is starting to recover from the virus outbreak. "The recovery has begun!" Treasury Secretary Steven Mnuchin tweeted.
Kudlow: Next relief bill must include these measures to support economy
The Transportation Dept said it will allow Chinese passenger air carriers to operate 2 flights per week after Beijing said it would ease coronavirus restrictions to allow in more foreign carriers. On Wed, the US said it planned to bar all Chinese passenger airlines from flying to the US by Jun 16, due to Beijing's curbs on US carriers. The revised Transportation Dept order cuts in ½ the 4 weekly round trip flights Chinese passenger carriers have been flying to the US & take effect immediately. The dept said if China takes further steps for US carriers it is “fully prepared to once again revisit the action.” The notice added that the dept is “troubled by China's continued unilateral dictation of the terms of the U.S.-China scheduled passenger air transportation market without respect for the rights of U.S. carriers.” The announcement defuses a potential new flashpoint in the US-China relationship. China's announcement should allow US carriers to resume once-a-week flights into a city of their choice starting on Jun 8, a fraction of what the US-China aviation agreement allows. The US limit affects US round-trip flights by Air China, China Eastern Airlines Corp, China Southern Airlines &Xiamen Airlines. It is not immediately known which flights will be allowed to continue. It is also unclear if US carriers will agree to fly just once a week to China when they have sought approval for 2 or 3 daily flights. Delta Aur lines (DAL) & Unieted Air Lines (UAL) asked to resume flights to China this month. Both said they were studying China's action. China said all airlines can increase the number of international flights involving China to 2 per week if none of their passengers test positive for COVID-19 for 3 consecutive weeks.
US will now allow some flights to China
Gold futures dropped, to post a loss of nearly 4% for the week, as an unexpected monthly rise in US jobs & a drop in the nation's unemployment rate rallied the stock market, pushing prices for the haven metal to their lowest finish in 2 months. The US regained 2.5M jobs in May & the unemployment rate fell to 13.3%, according to the Bureau of Labor Statistics. The forecast called for a loss of 7.25M jobs. The unemployment rate was forecast to rise to 19% from a post World War II record of 14.7% in Apr, though states have been allowing businesses to reopen as the coronavirus pandemic recedes. Aug gold shed $44 (2.6%) to settle at $1683 an ounce. The settlement was the lowest since early Apr, based on the most-active contracts.
Gold drops to a 2-month low, down nearly 4% for the week, after upbeat U.S. jobs data
Crude-oil futures ended sharply higher, supported by news that major oil producers will convene Sat to discuss plans for extended productions cuts, while an unexpected monthly climb in US jobs suggested a recovery in energy demand mat be at hand. OPEC & its allies (OPEC+), said they would hold meetings on Sat, with the OPEC members. The major oil producers are expected to reach an official agreement to extend record oil production cuts of 9.7M barrels a day thru Jul. The group decided to move forward a meeting that had been planned for Jun 9-10, after a tentative plan to meet yesterday fell apart. The weekend meeting is being viewed as a signal to crude investors that the group will deliver substantive near-term measures to stabilize oil's value. West Texas Intermediate (WTI) crude for Jul rose $2.14 (5.7%) to settle at $39.55 a barrel a barrel. Global benchmark Brent saw its Aug contract climb $2.31 (5.8%) to end at $42.30 a barrel. For the week, WTI front-month US oil futures were up 11.4%, while Brent climbed 11.8%. Both benchmarks tallied their sixth consecutive weekly gain & marked a 4th session at their highest settlement since Mar 6.
Oil prices log over 11% weekly rise, with OPEC+ set to meet Saturday to discuss extension of output cuts
The jobs numbers were off the chart strong & investors responded by bidding prices substantially higher. The NAZ is essentially tied its record & the Dow is approaching its record with investors seeing a solid recovery in H2. For the time being, problems such as US-China trade relations & civil unrest are not getting much attention. Have a good weekend.
Dow Jones Industrials
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