Dow rose 33, advancers over decliners 5-4 & NAZ added 66. The MLP index fluctuated near 133 & the REIT index gained 4 to 350. Junk bond funds inched higher & Treasuries were weak again. Oil went up in the 39s & gold dropped 37 to the 1772s after its recent advance.
AMJ (Alerian MLP Index tracking fund)
US manufacturing rebounded in Jun as major parts of the country opened back up, ending 3 months of contraction in the sector caused by the coronavirus pandemic. The Institute for Supply Management, an association of purchasing managers, said that its manufacturing index rose to 52.6 last month after registering 43.1 in May & 41.5 in Apr. Any reading below 50 signals that US manufacturers are contracting. New orders, production, hiring & new export orders all jumped in Jun, after they all declined in May but at a slower pace than in Apr. Last week, the Commerce Dept reported that orders to American factories for big-ticket goods rebounded by more than expected last month as the US economy began to slowly reopen. Orders for manufactured goods meant to last at least 3 years shot up 15.8% in May after plunging 18.1% in Apr & 16.7% in Mar as the global economy came to a standstill. Manufacturing was slumping even before the virus outbreak paralyzed the economy in Mar. The ISM manufacturing index has signaled contraction in 8 of the last 11 months. Pres Trump's trade war with China had raised costs & created uncertainty that curbed investment, causing the world economy to lose some momentum.
Companies in Jun continued to bring workers back from their pandemic furlough as the national economy slowly came back to life. Private payrolls grew by 2.4M for the month, a bit lower than the 2.5M that was expected, according to a report from ADP & Moody’s Analytics. The total actually represented a decline from the previous month, which saw a dramatic upward revision to 3.1M. ADP initially said May saw a loss of 2.8M. However, the Labor Dept 2 days later reported a gain of 2.5M for May, a number that itself was far better than the estimate of an 8M loss. “There is no information in that revision. It is simply the result of the fact that our objective here is to predict the [Bureau of Labor Statistics] number with the ADP data and to do that as accurately as possible,” said Mark Zandi, chief economist at Moody’s Analytics. “You can’t glean from that that something positive is happening in the labor market.” Zandi nevertheless added that “it looks like an economic recovery began in June.” For the month, hiring was especially strong in the pivotal leisure & hospitality industry, which took the biggest hit as measures aimed at curbing the coronavirus spread meant shutting down most bars & restaurants across the country. The sector added 961K, by far the biggest gain in any industry. “Small business hiring picked up in the month of June,” said Ahu Yildirmaz, VP & co-head of the ADP Research Institute. “As the economy slowly continues to recover, we are seeing a significant rebound in industries that once experienced the greatest job losses.” In addition to the big gains in hospitality, construction — another hard-hit industry — added 394K & manufacturing rose by 88K. The goods sector in total saw a net gain of 457K positions. On the services side, which grew by 1.9M, other big gainers were trade, transportation & utilities (288K), education & health services (283K) & the “other services” category (215K). Professional & businesses services added 151K & financial activities, which includes Wall Street jobs, was up 65K.
June private payrolls rose 2.37 million and there was a big positive revision for May, ADP says
The US still isn’t testing enough people for the coronavirus, especially as outbreaks accelerate in many states, former Food & Drug Administration Commissioner Dr Scott Gotltieb said. The US has struggled to roll out rapid & effective diagnostic testing since the beginning of the outbreak when the Centers for Disease Control & Prevention shipped faulty test kits to state health officials. Once diagnostic companies began to manufacture their own tests, the strained supply chain caused further delays. By the end of Apr, when the coronavirus had infected more than a M in the US, the country had tested just over 6.3M, or almost 2% of the population, according to data collected by the Covid Tracking Project. The US is now running more than 500K Covid-19 tests a day, but that’s still not enough, he said. “The problem is that even though we have a lot of testing, we have well more than 500,000 tests a day and that’s going to continue to grow, we’re going to be short on tests in places where there’s epidemics,” Gottlieb added.” “States like Texas and Florida, they’re falling behind on testing right now because the testing isn’t evenly distributed across the country.” Gottlieb’s comments come after White House health advisor Dr Anthony Fauci warned lawkmakers yesterday that if the US outbreak continues on its current trajectory, the country could hit more than 100K new cases per day. Gottlieb said the US is already at that point, the country's just not testing enough to detect all the new patients, especially mildly symptomatic people who might not seek testing on their own. “So it might be hard to diagnose 100,000 infections a day for the foreseeable future, but we’re well more than 100,000 cases a day right now,” he said. As businesses continue to bring employees back to work & as schools try to reopen in fall, widespread testing will be a crucial part of the US effort to contain the virus, Gottlieb said.
U.S. already at 100,000 new coronavirus cases a day, it just isn’t testing them all, Gottlieb says
Stocks began the day with a strong advance, with the Dow up almost 200. But sellers returned & are bringing it back down to around break even. Tech stocks are in demand with the NAZ close to the record reached last week. Early economic reports are looking good, although dramatic percentage gains will not last because they are starting from depression levels. On the other hand, encouraging news is especially welcome during this difficult time.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 39.71 | +0.44 | +1.1% |
| GC=F | Gold | 1,776.40 | -24.10 | -1.3% |
US manufacturing rebounded in Jun as major parts of the country opened back up, ending 3 months of contraction in the sector caused by the coronavirus pandemic. The Institute for Supply Management, an association of purchasing managers, said that its manufacturing index rose to 52.6 last month after registering 43.1 in May & 41.5 in Apr. Any reading below 50 signals that US manufacturers are contracting. New orders, production, hiring & new export orders all jumped in Jun, after they all declined in May but at a slower pace than in Apr. Last week, the Commerce Dept reported that orders to American factories for big-ticket goods rebounded by more than expected last month as the US economy began to slowly reopen. Orders for manufactured goods meant to last at least 3 years shot up 15.8% in May after plunging 18.1% in Apr & 16.7% in Mar as the global economy came to a standstill. Manufacturing was slumping even before the virus outbreak paralyzed the economy in Mar. The ISM manufacturing index has signaled contraction in 8 of the last 11 months. Pres Trump's trade war with China had raised costs & created uncertainty that curbed investment, causing the world economy to lose some momentum.
American manufacturing bounces back in June on reopenings
Companies in Jun continued to bring workers back from their pandemic furlough as the national economy slowly came back to life. Private payrolls grew by 2.4M for the month, a bit lower than the 2.5M that was expected, according to a report from ADP & Moody’s Analytics. The total actually represented a decline from the previous month, which saw a dramatic upward revision to 3.1M. ADP initially said May saw a loss of 2.8M. However, the Labor Dept 2 days later reported a gain of 2.5M for May, a number that itself was far better than the estimate of an 8M loss. “There is no information in that revision. It is simply the result of the fact that our objective here is to predict the [Bureau of Labor Statistics] number with the ADP data and to do that as accurately as possible,” said Mark Zandi, chief economist at Moody’s Analytics. “You can’t glean from that that something positive is happening in the labor market.” Zandi nevertheless added that “it looks like an economic recovery began in June.” For the month, hiring was especially strong in the pivotal leisure & hospitality industry, which took the biggest hit as measures aimed at curbing the coronavirus spread meant shutting down most bars & restaurants across the country. The sector added 961K, by far the biggest gain in any industry. “Small business hiring picked up in the month of June,” said Ahu Yildirmaz, VP & co-head of the ADP Research Institute. “As the economy slowly continues to recover, we are seeing a significant rebound in industries that once experienced the greatest job losses.” In addition to the big gains in hospitality, construction — another hard-hit industry — added 394K & manufacturing rose by 88K. The goods sector in total saw a net gain of 457K positions. On the services side, which grew by 1.9M, other big gainers were trade, transportation & utilities (288K), education & health services (283K) & the “other services” category (215K). Professional & businesses services added 151K & financial activities, which includes Wall Street jobs, was up 65K.
June private payrolls rose 2.37 million and there was a big positive revision for May, ADP says
The US still isn’t testing enough people for the coronavirus, especially as outbreaks accelerate in many states, former Food & Drug Administration Commissioner Dr Scott Gotltieb said. The US has struggled to roll out rapid & effective diagnostic testing since the beginning of the outbreak when the Centers for Disease Control & Prevention shipped faulty test kits to state health officials. Once diagnostic companies began to manufacture their own tests, the strained supply chain caused further delays. By the end of Apr, when the coronavirus had infected more than a M in the US, the country had tested just over 6.3M, or almost 2% of the population, according to data collected by the Covid Tracking Project. The US is now running more than 500K Covid-19 tests a day, but that’s still not enough, he said. “The problem is that even though we have a lot of testing, we have well more than 500,000 tests a day and that’s going to continue to grow, we’re going to be short on tests in places where there’s epidemics,” Gottlieb added.” “States like Texas and Florida, they’re falling behind on testing right now because the testing isn’t evenly distributed across the country.” Gottlieb’s comments come after White House health advisor Dr Anthony Fauci warned lawkmakers yesterday that if the US outbreak continues on its current trajectory, the country could hit more than 100K new cases per day. Gottlieb said the US is already at that point, the country's just not testing enough to detect all the new patients, especially mildly symptomatic people who might not seek testing on their own. “So it might be hard to diagnose 100,000 infections a day for the foreseeable future, but we’re well more than 100,000 cases a day right now,” he said. As businesses continue to bring employees back to work & as schools try to reopen in fall, widespread testing will be a crucial part of the US effort to contain the virus, Gottlieb said.
U.S. already at 100,000 new coronavirus cases a day, it just isn’t testing them all, Gottlieb says
Stocks began the day with a strong advance, with the Dow up almost 200. But sellers returned & are bringing it back down to around break even. Tech stocks are in demand with the NAZ close to the record reached last week. Early economic reports are looking good, although dramatic percentage gains will not last because they are starting from depression levels. On the other hand, encouraging news is especially welcome during this difficult time.
Dow Jones Industrials
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