Dow shot up 243, advancers over decliners better than 3-1 & NAZ gained 23. The MLP index added 3+ to the 167s & the REIT index rose 6+ to the 376s. Junk bond funds fluctuated following their recent rally & Treasuries were sold. Oil pulled back 1+ to the 38s & gold went up 16 to 1699.
AMJ (Alerian MLP Index tracking fund)
Labor Secretary Eugene Scalia said that the current US unemployment rate is likely lower than May's surprisingly improved number that was released last week. "Those numbers were about three to four weeks ago [when] the surveys were taken, so I think unemployment today is actually lower than was reported on Friday," Scalia said. The Labor Dept reported a lower-than-expected 13.3% unemployment rate last week. However, the rate is likely higher due to a "misclassification error," as noted in the official report. If the "error" had not occurred, the note said "the overall unemployment rate would have been about 3 percentage points higher than reported," on a non-seasonally adjusted basis. However, the number is still better than Apr's unemployment rate of 19.7%. "Unemployment still is at an elevated level," Scalia said. "There may be some workers who were furloughed or maybe on the Paycheck Protection Program, who were listed as employed but importantly — this is key — we saw the same issue in Apr, too. That number came down significantly just like the other numbers came down." An estimated 21M Americans are out of work, with the leisure & hospitality sector being the hardest hit.
Another coronavirus relief package is all but inevitable, but its contents depend on whether the US economy sees another blowout jobs report next month, Kevin Hassett, a senior advisor to Pres Trump said. Hassett, the former chairman of the White House Council of Economic Advisors, added that “the odds of there being a phase four deal are really close to 100%,” even after the jobs data for last month far exceeded expectations. A repeat performance in Jun would “absolutely affect the things that we pursue” in additional legislation, he said. The US just saw its biggest month-to-month job gains ever: The Labor Dept reported that nonfarm payrolls in May rose by 2.5M & the unemployment rate fell to 13.3%, shocking economists who anticipated that more than 8M additional jobs had been shed. The strong report may have allowed the Trump administration to narrow its plans for a 4th “phase” of coronavirus relief. If the jobs report for Jun shows similar figures, it could further lift the pressure on Reps & the White House to consider the more sweeping aid measures proposed by Dem. “One of the things that we’ve been saying and that the president’s insisted on is that we watch the economy recover, we see if it surprises us on the upside and if the programs that we have out there work or need to be fixed,” Hassett added. Hassett said the White House is making plans for whether the economy outperforms or underwhelms in Jun. “We had a really good month of jobs numbers, if we get another month like that in June, then I think it would absolutely affect the things that we pursue in July in the phase four deal,” Hassett said. The May jobs report was driven by gains in the leisure and hospitality industries, which began rehiring workers as states lifted their strict social distancing measures on those businesses. More easing is due in Jun: New York City, the nation's financial center, kicked off its first phase of the reopening process Mon.
June jobs data will affect coronavirus phase 4 bill, Trump aide Hassett says
Germany's industrial production fell a seasonally adjusted 17.9% in Apr, which is the largest monthly drop on record, the Federal Statistical Office said. Compared to Apr 2019, production fell by 25.3%. Capital-goods production fell 35%, & automotive production dropped 74.6%.
The Dow needs another 2K+ to reach a new record while NAZ is flirting with setting a new record. More reopening by states (even when they are done in small steps) is attracting investors. Optimism is running high despite problems with civil unrest & US-China relations. As pointed out before, nervous investors keeping gold at 9 year highs (not far from records in 2011).
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 39.84 | +0.29 | +0.7% |
| GC=F | Gold | 1,689.70 | +6.70 | +0.4% |
Labor Secretary Eugene Scalia said that the current US unemployment rate is likely lower than May's surprisingly improved number that was released last week. "Those numbers were about three to four weeks ago [when] the surveys were taken, so I think unemployment today is actually lower than was reported on Friday," Scalia said. The Labor Dept reported a lower-than-expected 13.3% unemployment rate last week. However, the rate is likely higher due to a "misclassification error," as noted in the official report. If the "error" had not occurred, the note said "the overall unemployment rate would have been about 3 percentage points higher than reported," on a non-seasonally adjusted basis. However, the number is still better than Apr's unemployment rate of 19.7%. "Unemployment still is at an elevated level," Scalia said. "There may be some workers who were furloughed or maybe on the Paycheck Protection Program, who were listed as employed but importantly — this is key — we saw the same issue in Apr, too. That number came down significantly just like the other numbers came down." An estimated 21M Americans are out of work, with the leisure & hospitality sector being the hardest hit.
Labor secretary: Unemployment today is even lower than May numbers show
Another coronavirus relief package is all but inevitable, but its contents depend on whether the US economy sees another blowout jobs report next month, Kevin Hassett, a senior advisor to Pres Trump said. Hassett, the former chairman of the White House Council of Economic Advisors, added that “the odds of there being a phase four deal are really close to 100%,” even after the jobs data for last month far exceeded expectations. A repeat performance in Jun would “absolutely affect the things that we pursue” in additional legislation, he said. The US just saw its biggest month-to-month job gains ever: The Labor Dept reported that nonfarm payrolls in May rose by 2.5M & the unemployment rate fell to 13.3%, shocking economists who anticipated that more than 8M additional jobs had been shed. The strong report may have allowed the Trump administration to narrow its plans for a 4th “phase” of coronavirus relief. If the jobs report for Jun shows similar figures, it could further lift the pressure on Reps & the White House to consider the more sweeping aid measures proposed by Dem. “One of the things that we’ve been saying and that the president’s insisted on is that we watch the economy recover, we see if it surprises us on the upside and if the programs that we have out there work or need to be fixed,” Hassett added. Hassett said the White House is making plans for whether the economy outperforms or underwhelms in Jun. “We had a really good month of jobs numbers, if we get another month like that in June, then I think it would absolutely affect the things that we pursue in July in the phase four deal,” Hassett said. The May jobs report was driven by gains in the leisure and hospitality industries, which began rehiring workers as states lifted their strict social distancing measures on those businesses. More easing is due in Jun: New York City, the nation's financial center, kicked off its first phase of the reopening process Mon.
June jobs data will affect coronavirus phase 4 bill, Trump aide Hassett says
Germany's industrial production fell a seasonally adjusted 17.9% in Apr, which is the largest monthly drop on record, the Federal Statistical Office said. Compared to Apr 2019, production fell by 25.3%. Capital-goods production fell 35%, & automotive production dropped 74.6%.
German industrial production dropped a record 17.9% in April
The Dow needs another 2K+ to reach a new record while NAZ is flirting with setting a new record. More reopening by states (even when they are done in small steps) is attracting investors. Optimism is running high despite problems with civil unrest & US-China relations. As pointed out before, nervous investors keeping gold at 9 year highs (not far from records in 2011).
Dow Jones Industrials
No comments:
Post a Comment