Dow inched up 11, advancers slightly ahead of decliners while NAZ dropped 67. The MLP index went up 3+ to the 155s & the REIT index pulled back 4 to the 357s. Junk bond funds slid lower on profit taking & Treasuries declined in price. Oil was off in the 37s & gold jumped 18 to 1723 to stay near recent multi year highs (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 Trump administration is reportedly considering spending up to $1T in the next round of coronavirus relief as the pandemic continues to bludgeon American workers & businesses. Pres Trump met with his economic team yesterday to discuss possible aid measures & no policy measures have been ruled out at this point. Senate Majority Leader Mitch McConnell has told Trump officials that another round of fiscal stimulus from Congress could be just under $1T, a number the administration was receptive to according to leakers. But McConnell has said there are no plans to pass a stimulus measure before the Senate's 2-week recess beginning Jul 3. The upper chamber 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 and workers recover from the unprecedented economic shutdown.
CDC Director Robert Redfield said that he's “very concerned” the agency's public health message on the coronavirus isn't “resonating” with the public as the number of cases continues to rise across the US. Testifying before the House Appropriations Committee, Redfield said he sees “a lot of people” not wearing masks in DC, where he works, while many people do wear masks in his hometown of Baltimore. Crowds have been seen in recent weeks at protests, over the Memorial Day holiday &, Redfield noted, at the SpaceX launch Sat. Huge crowds gathered at Florida’s space coast yesterday to watch SpaceX’s first attempt at launching astronauts to space. During the hearing, House Dems grilled Redfield on Pres Trump's push for states to reopen after shutting down as part of social distancing measures meant to curb the spread of the virus. All 50 states have begun easing quarantine restrictions even though Redfield said “not all states” have met the White House criteria for reopening businesses. “We will continue to message as well we can,” said Redfield, who’s on the White House coronavirus task force. “We’re going to encourage people that have the ability to require to wear masks when they are in their environment to continue to do that.” The coronavirus has sickened more than 18 & killed more than 107K in the US, according to data compiled by Johns Hopkins University. While cases have slowed in hot spots such as New York state, the US is still seeing roughly 20K new Covid-19 cases a day.
CDC is worried public isn’t taking its advice as number of U.S. coronavirus cases rises
Gold futures rose, with prices posting their first gain in 4 sessions on the back of weakness in the US stock market & the $, as investors digested policy actions by the ECB. The ECB, as expected, boosted the size of its Pandemic Emergency Purchase Program (PEPP), saying the envelope for asset purchases was increased by €600B ($675B) to €1.35T. The PEPP is now set to run thru at least the end of Jun 2021, versus the end of 2020, while maturing principal payments from assets purchased under the plan will be reinvested until at least the end of 2022. The central bank's action comes after its Pres Christine Lagarde downgraded the ECB's eurozone GDP estimate to a decline 8-12% this year. Lagarde said the economy was showing signs of bottoming out, but called activity still “tepid” & said she expects the bloc's economy to contract 8.7% in 2020. Overall, gold buying has been fed by central bank stimulus measures to limit the economic harm from the COVID-19 pandemic, but signs of economies coming back to life from lockdowns to halt the spread of the deadly infection has dulled bullion’s appeal. Gold for Aug tacked on $22 (1.3%) to settle at $1727 an ounce, after trading as high as $1729. Prices for the most-active contract tumbled 1.7% yesterday amid a strong rally in global equities. That decline marked a 3rd straight loss for the most-active contract.
Gold marks first gain in 4 sessions on weakness in U.S. dollar and stocks
Oil futures climbed, with data showing high oil-producer compliance with output cuts contributing to a 3rd straight rise in US prices, even as questions were raised about the potential for an extension of the cuts beyond their expiration at the end of this month. OPEC & its major allies, including Russia, (OPEC+) have yet to announce a new meeting date amid reports that the group planned to bring forward a virtual gathering that had been planned for next week. That pressured prices early today. West Texas Intermediate (WTI) crude for Jul rose 12¢ (0.3%) to settle at $37.41 a barrel after touching an earlier low of $36.38. Global benchmark Brent saw its Aug contract tack on 20¢ (0.5%) to end at $39.99 a barrel. The front-month contract has now climbed for 6 consecutive sessions. For a 3rd straight session, prices for WTI & Brent crude marked their highest settlements since Mar 6. Oil-producing giants Saudi Arabia & Russia have agreed to extend production cuts of 9.7M barrels per day thru Jul. However, the Saudis & Russian's backing of an extension are contingent on the compliance of countries like Nigeria & Iraq with existing measures to reduce global supplies.
Oil futures finish higher as data shows high compliance with OPEC+ output cuts
The Dow make an temp to extend its winning ways in early trading, but profit taking for the Dow & NAZ was seen in the PM. The Dow is up a staggering 3300 in the last 3 weeks, with buyers betting on a rapid economic recovery later in the year. A rebound is in order, but it is difficult to forecast how much & how fast. Meanwhile gold bugs keep buying the yellow metal. The jobs report & unemployment data tomorrow will give more signals on the economy's future.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
The Trump administration is reportedly considering spending up to $1T in the next round of coronavirus relief as the pandemic continues to bludgeon American workers & businesses. Pres Trump met with his economic team yesterday to discuss possible aid measures & no policy measures have been ruled out at this point. Senate Majority Leader Mitch McConnell has told Trump officials that another round of fiscal stimulus from Congress could be just under $1T, a number the administration was receptive to according to leakers. But McConnell has said there are no plans to pass a stimulus measure before the Senate's 2-week recess beginning Jul 3. The upper chamber 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 and workers recover from the unprecedented economic shutdown.
White House reportedly considers up to $1T for next coronavirus aid package
CDC Director Robert Redfield said that he's “very concerned” the agency's public health message on the coronavirus isn't “resonating” with the public as the number of cases continues to rise across the US. Testifying before the House Appropriations Committee, Redfield said he sees “a lot of people” not wearing masks in DC, where he works, while many people do wear masks in his hometown of Baltimore. Crowds have been seen in recent weeks at protests, over the Memorial Day holiday &, Redfield noted, at the SpaceX launch Sat. Huge crowds gathered at Florida’s space coast yesterday to watch SpaceX’s first attempt at launching astronauts to space. During the hearing, House Dems grilled Redfield on Pres Trump's push for states to reopen after shutting down as part of social distancing measures meant to curb the spread of the virus. All 50 states have begun easing quarantine restrictions even though Redfield said “not all states” have met the White House criteria for reopening businesses. “We will continue to message as well we can,” said Redfield, who’s on the White House coronavirus task force. “We’re going to encourage people that have the ability to require to wear masks when they are in their environment to continue to do that.” The coronavirus has sickened more than 18 & killed more than 107K in the US, according to data compiled by Johns Hopkins University. While cases have slowed in hot spots such as New York state, the US is still seeing roughly 20K new Covid-19 cases a day.
CDC is worried public isn’t taking its advice as number of U.S. coronavirus cases rises
Gold futures rose, with prices posting their first gain in 4 sessions on the back of weakness in the US stock market & the $, as investors digested policy actions by the ECB. The ECB, as expected, boosted the size of its Pandemic Emergency Purchase Program (PEPP), saying the envelope for asset purchases was increased by €600B ($675B) to €1.35T. The PEPP is now set to run thru at least the end of Jun 2021, versus the end of 2020, while maturing principal payments from assets purchased under the plan will be reinvested until at least the end of 2022. The central bank's action comes after its Pres Christine Lagarde downgraded the ECB's eurozone GDP estimate to a decline 8-12% this year. Lagarde said the economy was showing signs of bottoming out, but called activity still “tepid” & said she expects the bloc's economy to contract 8.7% in 2020. Overall, gold buying has been fed by central bank stimulus measures to limit the economic harm from the COVID-19 pandemic, but signs of economies coming back to life from lockdowns to halt the spread of the deadly infection has dulled bullion’s appeal. Gold for Aug tacked on $22 (1.3%) to settle at $1727 an ounce, after trading as high as $1729. Prices for the most-active contract tumbled 1.7% yesterday amid a strong rally in global equities. That decline marked a 3rd straight loss for the most-active contract.
Gold marks first gain in 4 sessions on weakness in U.S. dollar and stocks
Oil futures climbed, with data showing high oil-producer compliance with output cuts contributing to a 3rd straight rise in US prices, even as questions were raised about the potential for an extension of the cuts beyond their expiration at the end of this month. OPEC & its major allies, including Russia, (OPEC+) have yet to announce a new meeting date amid reports that the group planned to bring forward a virtual gathering that had been planned for next week. That pressured prices early today. West Texas Intermediate (WTI) crude for Jul rose 12¢ (0.3%) to settle at $37.41 a barrel after touching an earlier low of $36.38. Global benchmark Brent saw its Aug contract tack on 20¢ (0.5%) to end at $39.99 a barrel. The front-month contract has now climbed for 6 consecutive sessions. For a 3rd straight session, prices for WTI & Brent crude marked their highest settlements since Mar 6. Oil-producing giants Saudi Arabia & Russia have agreed to extend production cuts of 9.7M barrels per day thru Jul. However, the Saudis & Russian's backing of an extension are contingent on the compliance of countries like Nigeria & Iraq with existing measures to reduce global supplies.
Oil futures finish higher as data shows high compliance with OPEC+ output cuts
The Dow make an temp to extend its winning ways in early trading, but profit taking for the Dow & NAZ was seen in the PM. The Dow is up a staggering 3300 in the last 3 weeks, with buyers betting on a rapid economic recovery later in the year. A rebound is in order, but it is difficult to forecast how much & how fast. Meanwhile gold bugs keep buying the yellow metal. The jobs report & unemployment data tomorrow will give more signals on the economy's future.
Dow Jones Industrials
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