Dow shot up 368, advancers over decliners about 3-1 & NAZ gained 69 (another record). The MLP index rise 1+ to the 124s & the REIT index went 1 to the 343s. Junk bond funds inched higher & Treasuries finished the day lower in price. Oil went up 1 to go over 40 again & gold slid back 1 to 1801 (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 said he is not currently thinking about negotiating a “Phase 2” trade deal with China as relations between DC & Beijing sour over the coronavirus pandemic & other issues. Trump, when asked about the possibility of a 2nd phase trade deal following implementation of a Phase 1 agreement this year, said “I don’t think about it now,” adding that he has many other things on his mind. “The relationship with China has been severely damaged. They could have stopped the plague, they could have stopped it. They didn’t stop it,” Trump said.
The International Energy Agency (IEA) predicted slightly improved global oil demand for 2020, but said much hinges on the progression of the pandemic. "The recent increase in Covid-19 cases and the introduction of partial lockdowns introduces more uncertainty to the forecast," the global energy authority said in its Jul report. The IEA estimates that global oil demand this year will average 92.1M barrels per day, down by 7.9M barrels per day versus 2019, a slightly smaller decline than forecast in the last report. "This is mainly because the decline in 2Q20 was less severe than expected," it said. For 2021, demand will be 97.4 mb/d; but due to the improved outlook for 2020 the recovery next year is lower at 5.3 mb/d.
IEA slightly improves oil demand forecast for 2020, but says much hinges on Covid-19
club.ino.com/trend/analysis/stock/DIS?a_aid=CD3289&a_bid=6ae5b6f7
Disney confident in reopening this week even as coronavirus cases reach new highs in
Gold futures ended lower, but held ground above $1800 an ounce to score a 5th weekly gain in a row as the spread of coronavirus in many states & other countries raised the need to hedge against risk amid continued uncertainty over the economic outlook. Aug gold fell by $1 to settle at $1801 an ounce. Gold futures ended lower yesterday, pulling back after scoring a settlement Wed at the highest since 2011, but the haven metal held ground above $1800 an ounce after data showed weekly US jobless benefit claims remained well above 1M. For the week, gold rose roughly 0.7% from last Thurs's settlement, which was the week's last session due to the Independence Day holiday. The metal now has tallied a 5th weekly rise in a row & trades up by more than 18% for the YTD. Analysts have tied gold's rally in part to a continued fall in bond yields, which have eroded or eliminated the opportunity cost tied to holding non-yielding assets such as gold. The 10-year Treasury note yield was lower for the week, trading at 0.619% today, a day after closing at its lowest since Apr 24. Gold also has kept its appeal amid worries that aggressive stimulus efforts could spark inflationary pressures.
Gold prices end lower, but tally a 5th straight weekly gain
Oil futures climbed, buoyed by positive results tied to a COVID-19 treatment, but US prices ended lower for the week as a report from the Intl Energy Agency (IEA) cautioned that weaker demand caused by the coronavirus pandemic will linger, even if the worst of the hit to economies has subsided. The news also provided support to the US stock market. The IEA in a monthly report raised its annual forecast for crude demand to 92.1M barrels per day, up 400K barrels a day from its outlook last month, citing a smaller-than-expected Q2 decline as lockdowns eased in many countries. However, the agency said that a resurgence of cases of COVID-19 could pose problems for oil demand going forward. The monthly report said “the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside.” There were more than 63K new cases of COVID-19 in the US yesterday, setting a fresh daily record, as cases & US hospitalizations in California & Texas rose. Investors were also watching the relaunch of the Messla oil field & Sarir refinery in Libya, closed since Jan due to civil unrest in the country. Libya coming back on line could add more pressure to an energy market that has been attempting to find its footing amid the economic damage wrought by the coronavirus pandemic. Aug West Texas Intermediate crude rose 93¢ (2.4%) to settle at $40.55 a barrel, after sliding 3.1% yesterday to hit the lowest level for a front-month contract this month. Global benchmark Brent oil for Sep added 89¢ (2.1%) at $43.24 a barrel, following a 2.2% drop a day earlier to its lowest finish in a week. For the week, WTI saw a 0.3% weekly decline, while Bren's Fri gain led to a weekly increase of 1%. In the US, the market saw further signs of production declines. Baker Hughes reported that the number of active US rigs drilling for oil edged down by 4 to 181 this week.
Oil climbs, but U.S. benchmark ends lower for the week as IEA warns of coronavirus risk
Hope springs eternal. Thoughts about a vaccine brought out buyers & they kept bidding the Dow higher all day. The Dow finished up 200 this week & staying near 26K. Not impressive, but it could have been worse. Opening up the US economy is on everybody's' minds & a significant market advance will need to see results.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Pres Trump said he is not currently thinking about negotiating a “Phase 2” trade deal with China as relations between DC & Beijing sour over the coronavirus pandemic & other issues. Trump, when asked about the possibility of a 2nd phase trade deal following implementation of a Phase 1 agreement this year, said “I don’t think about it now,” adding that he has many other things on his mind. “The relationship with China has been severely damaged. They could have stopped the plague, they could have stopped it. They didn’t stop it,” Trump said.
Trump opens up about US-China relationship, 'Phase 2' deal prospects
The International Energy Agency (IEA) predicted slightly improved global oil demand for 2020, but said much hinges on the progression of the pandemic. "The recent increase in Covid-19 cases and the introduction of partial lockdowns introduces more uncertainty to the forecast," the global energy authority said in its Jul report. The IEA estimates that global oil demand this year will average 92.1M barrels per day, down by 7.9M barrels per day versus 2019, a slightly smaller decline than forecast in the last report. "This is mainly because the decline in 2Q20 was less severe than expected," it said. For 2021, demand will be 97.4 mb/d; but due to the improved outlook for 2020 the recovery next year is lower at 5.3 mb/d.
IEA slightly improves oil demand forecast for 2020, but says much hinges on Covid-19
Walt Disney World will reopen in Orlando, Florida, on Sat amid a growing number of Covid-19 cases within the state. The pandemic has devastated Disney (DIS), a Dow stock. The company has been forced to shutter its theme parks, push back its film openings & run ESPN without live games from major US sports leagues. One
bright spot for DIS has been its streaming service Disney+, which
saw its number of app downloads jump 74% ahead of its release last week
of the filmed stage production of Lin-Manuel Miranda's “Hamilton”
featuring the musical's original cast. Reopening its parks, which accounted for 37% of the company’s $69.6B in total revenue last year, is a top priority for DIS. Already, its competitors
have reopened to limited capacity in Orlando. DIS was among the
first parks to close in the state in mid-Mar & will be one of the
last to reopen. Despite extensive safety procedures and approval from local gov, there is still apprehension from potential guests & experts
about whether Disney World should reopen its gates to the public. Especially, after Florida Gov Ron DeSantis extended Florida's state of
emergency for another 60 days on Tues. The stock rose 2.52.
If you would like to learn more about DIS, click on this link:club.ino.com/trend/analysis/stock/DIS?a_aid=CD3289&a_bid=6ae5b6f7
Disney confident in reopening this week even as coronavirus cases reach new highs in
Gold futures ended lower, but held ground above $1800 an ounce to score a 5th weekly gain in a row as the spread of coronavirus in many states & other countries raised the need to hedge against risk amid continued uncertainty over the economic outlook. Aug gold fell by $1 to settle at $1801 an ounce. Gold futures ended lower yesterday, pulling back after scoring a settlement Wed at the highest since 2011, but the haven metal held ground above $1800 an ounce after data showed weekly US jobless benefit claims remained well above 1M. For the week, gold rose roughly 0.7% from last Thurs's settlement, which was the week's last session due to the Independence Day holiday. The metal now has tallied a 5th weekly rise in a row & trades up by more than 18% for the YTD. Analysts have tied gold's rally in part to a continued fall in bond yields, which have eroded or eliminated the opportunity cost tied to holding non-yielding assets such as gold. The 10-year Treasury note yield was lower for the week, trading at 0.619% today, a day after closing at its lowest since Apr 24. Gold also has kept its appeal amid worries that aggressive stimulus efforts could spark inflationary pressures.
Gold prices end lower, but tally a 5th straight weekly gain
Oil futures climbed, buoyed by positive results tied to a COVID-19 treatment, but US prices ended lower for the week as a report from the Intl Energy Agency (IEA) cautioned that weaker demand caused by the coronavirus pandemic will linger, even if the worst of the hit to economies has subsided. The news also provided support to the US stock market. The IEA in a monthly report raised its annual forecast for crude demand to 92.1M barrels per day, up 400K barrels a day from its outlook last month, citing a smaller-than-expected Q2 decline as lockdowns eased in many countries. However, the agency said that a resurgence of cases of COVID-19 could pose problems for oil demand going forward. The monthly report said “the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside.” There were more than 63K new cases of COVID-19 in the US yesterday, setting a fresh daily record, as cases & US hospitalizations in California & Texas rose. Investors were also watching the relaunch of the Messla oil field & Sarir refinery in Libya, closed since Jan due to civil unrest in the country. Libya coming back on line could add more pressure to an energy market that has been attempting to find its footing amid the economic damage wrought by the coronavirus pandemic. Aug West Texas Intermediate crude rose 93¢ (2.4%) to settle at $40.55 a barrel, after sliding 3.1% yesterday to hit the lowest level for a front-month contract this month. Global benchmark Brent oil for Sep added 89¢ (2.1%) at $43.24 a barrel, following a 2.2% drop a day earlier to its lowest finish in a week. For the week, WTI saw a 0.3% weekly decline, while Bren's Fri gain led to a weekly increase of 1%. In the US, the market saw further signs of production declines. Baker Hughes reported that the number of active US rigs drilling for oil edged down by 4 to 181 this week.
Oil climbs, but U.S. benchmark ends lower for the week as IEA warns of coronavirus risk
Hope springs eternal. Thoughts about a vaccine brought out buyers & they kept bidding the Dow higher all day. The Dow finished up 200 this week & staying near 26K. Not impressive, but it could have been worse. Opening up the US economy is on everybody's' minds & a significant market advance will need to see results.
Dow Jones Industrials
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