Dow dropped 183, decliners over advancers 5-2 & NAZ went up 63. The MLP index rose 1+ to the 128s & the REIT index was off 3+ to 349. Junk bond funds were mixed & Treasuries rose slightly. Oil was even above 40 & gold jumped 14 to 1807.
AMJ (Alerian MLP Index tracking fund)
White House trade adviser Peter Navarro warned that China's day of reckoning for its alleged role in the coronavirus pandemic is coming soon. "There will be a series of actions taken over the next several weeks that will hold China accountable for the damage that it’s doing to the American people,” Navarro said. Navarro accused China of "spawning" & lying about the virus starting in Nov & sending it across the globe in Dec, Jan & Feb. The announcement came following Chief of Staff Mark Meadows hint that Pres Trump could announce an exec order on China sometime this week. “We’re going to be looking at how we make sure China is addressed, how we bring manufacturing back from overseas to make sure the American worker is supported," Meadows said. While Navarro said he didn't want to get ahead of Meadows or Trump on specifics, he assured that a potential exec order on China would not impact the trade deal with the US. "The trade deal remains in tact according to Ambassador [Robert] Lighthizer and Secretary Steve Mnuchin," Navarro added. "We’re watching very, very carefully to see whether they fulfill the items there and, to be honest, right now the purchases are lagging but we believe they will catch up by the end of the year if they keep their word." He also noted that the Trump administration is already taking action against China for using Hong Kong to “exploit our financial markets and steal our jobs by using it as a platform for its unfair trade practices." "We’re going to strip every preferential treatment of Hong Kong away which will essentially eliminate China’s ability to use Hong Kong to harm us even as we’re standing up for the great people of Hong Kong who see their democracy crushed,” Navarro said.
Consumers, especially renters, are feeling much better about buying a home
A record 6.5M people either found jobs or were rehired in May, a gov report shows, as the economy emerged from a prolonged shutdown due to the coronavirus that drove the US into a deep recession. Yet the increase in hiring in May only partial recouped the tens of Ms of jobs lost in Mar & Apr, while a fresh outbreak of the virus in the states that reopened the earliest could prevent more people from going back to work anytime soon. Job openings also rose to 5.4M in May from 5M in the prior month, according to a Labor Dept report that's released with a one-month delay. The number of jobs available was running around 7M before the pandemic. The number of layoffs & firings fell to 1.8M in May from 7.7M in Apr & 11.5M in Mar — the biggest back-to-back declines by far in US history. Hotels & restaurants rehired 763K workers in May, but employment is still well below precrisis levels. Travel almost came to a halt in the early stages of the viral outbreak & restaurants were only allowed to sell takeout & delivery. Health-care providers & social-service organizations also added 479K jobs. Dentists & doctor's offices reopened in May as states began to ease lockdown restrictions & people returned for badly needed services. Employment in the construction industry increased by 427K. Sales of new homes have bounced back because of extremely low interest rates even though the economy has been depressed. Similarly, job openings increased the fastest at hotels, restaurants, construction firms & retailers. Job openings fell in the federal gov, education & information — newspapers, magazines, advertising agencies & the like. Even with readership soaring, media outlets have struggled to retain advertisers given widespread economic destruction & business losses. The share of people who left jobs on their own, known as the quits rate, rose to 1.6% from 1.4% among private-sector employees. That's less than ½ a recent peak of 3.2% less than one year ago, however. Fewer people are willing quit a secure or semi-secure job in the middle pandemic. The pandemic destroyed at least 22M jobs in the first 2 months of the viral outbreak, at least temporarily. Although the economy has rebounded in May & Jun, the momentum will be hard to sustain in the face of another wave of COVID-19 cases. Companies might be slow to rehire until they get a better sense of how quickly the economy is going to recover. And many jobs are unlikely to ever come back as companies reconfigure how & where their employees work. Many economists prediction the unemployment rate will linger around 10% of higher through the end of the year. The jobless rate slipped to 11.1% in Jun from 13.3%.
U.S. recoups 6.5 million jobs in May, but hiring set to slow amid new coronavirus outbreak
The economy is bouncing back, but at an uneven & stumbling pace. The rise in virus cases haunts investors' thoughts. While cases are rising, the number of deaths is declining because a higher percentage of victims are younger & their bodies are better able to fight off the virus. The future of the recovery continues to be uncertain which is why strong demand for gold is taking it near record levels reached 9 years ago.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 40.75 | +0.12 | +0.3% |
| GC=F | Gold | 1,807.10 | +13.60 | +0.8% |
White House trade adviser Peter Navarro warned that China's day of reckoning for its alleged role in the coronavirus pandemic is coming soon. "There will be a series of actions taken over the next several weeks that will hold China accountable for the damage that it’s doing to the American people,” Navarro said. Navarro accused China of "spawning" & lying about the virus starting in Nov & sending it across the globe in Dec, Jan & Feb. The announcement came following Chief of Staff Mark Meadows hint that Pres Trump could announce an exec order on China sometime this week. “We’re going to be looking at how we make sure China is addressed, how we bring manufacturing back from overseas to make sure the American worker is supported," Meadows said. While Navarro said he didn't want to get ahead of Meadows or Trump on specifics, he assured that a potential exec order on China would not impact the trade deal with the US. "The trade deal remains in tact according to Ambassador [Robert] Lighthizer and Secretary Steve Mnuchin," Navarro added. "We’re watching very, very carefully to see whether they fulfill the items there and, to be honest, right now the purchases are lagging but we believe they will catch up by the end of the year if they keep their word." He also noted that the Trump administration is already taking action against China for using Hong Kong to “exploit our financial markets and steal our jobs by using it as a platform for its unfair trade practices." "We’re going to strip every preferential treatment of Hong Kong away which will essentially eliminate China’s ability to use Hong Kong to harm us even as we’re standing up for the great people of Hong Kong who see their democracy crushed,” Navarro said.
US actions against China coming over coronavirus role, Navarro says
After plunging to nearly the lowest level in its
history in Apr, an index measuring consumer sentiment in the housing
market bounced back significantly in Jun. Renters were especially
optimistic about homebuying. The share of consumers who think it's
a good time to buy a home increased from 52% to 61% month to month,
according to the Fannie Mae survey, while fewer Americans said it was a
bad time to buy. Renters drove much of that improvement. "The
share of renters who say it's a good time to buy a home is now at its
highest level in five years, suggesting favorable conditions for
first-time homebuying, consistent with the recent rebound in home
purchase activity," said Doug Duncan, Fannie Mae senior VP & chief economist. Current homeowners are also getting slightly
more optimistic about the sales market, especially given the lack of
housing supply. The percentage of respondents saying now is a good time
to sell a home increased from 32% to 41%, although nearly ½ still
think it's a bad time to sell. Home sales jumped dramatically in
May, after grinding to a halt in Mar & Apr. While new listings are
coming on the market, the total inventory of homes for sale at the end
of May was 19% lower than May 2019, according to the National
Association of Realtors. Pending sales in May, which represent signed
contracts on existing homes, jumped a record 44% compared with Apr. "However,
this activity may cool again in the coming months, depending on the
extent to which it can be attributed to consumers having chosen to delay
or to accelerate homebuying plans due to the pandemic," said Duncan.
"We believe the continuing uncertainty regarding the coronavirus' containment suggests an uneven and potentially volatile course toward economic recovery." Consumers
are still very concerned about their job security, even as the
employment picture improves slightly. Renters & homeowners with a
mortgage are particularly worried given the
sudden record-high unemployment brought on by the pandemic. More
Americans now think home prices will strengthen, which is a double-edged
sword in the market. Home prices were already elevated going into the
pandemic & affordability was weakening despite record-low mortgage
rates. On that front, more respondents said they expect mortgage rates
to rise over the next year.
Consumers, especially renters, are feeling much better about buying a home
A record 6.5M people either found jobs or were rehired in May, a gov report shows, as the economy emerged from a prolonged shutdown due to the coronavirus that drove the US into a deep recession. Yet the increase in hiring in May only partial recouped the tens of Ms of jobs lost in Mar & Apr, while a fresh outbreak of the virus in the states that reopened the earliest could prevent more people from going back to work anytime soon. Job openings also rose to 5.4M in May from 5M in the prior month, according to a Labor Dept report that's released with a one-month delay. The number of jobs available was running around 7M before the pandemic. The number of layoffs & firings fell to 1.8M in May from 7.7M in Apr & 11.5M in Mar — the biggest back-to-back declines by far in US history. Hotels & restaurants rehired 763K workers in May, but employment is still well below precrisis levels. Travel almost came to a halt in the early stages of the viral outbreak & restaurants were only allowed to sell takeout & delivery. Health-care providers & social-service organizations also added 479K jobs. Dentists & doctor's offices reopened in May as states began to ease lockdown restrictions & people returned for badly needed services. Employment in the construction industry increased by 427K. Sales of new homes have bounced back because of extremely low interest rates even though the economy has been depressed. Similarly, job openings increased the fastest at hotels, restaurants, construction firms & retailers. Job openings fell in the federal gov, education & information — newspapers, magazines, advertising agencies & the like. Even with readership soaring, media outlets have struggled to retain advertisers given widespread economic destruction & business losses. The share of people who left jobs on their own, known as the quits rate, rose to 1.6% from 1.4% among private-sector employees. That's less than ½ a recent peak of 3.2% less than one year ago, however. Fewer people are willing quit a secure or semi-secure job in the middle pandemic. The pandemic destroyed at least 22M jobs in the first 2 months of the viral outbreak, at least temporarily. Although the economy has rebounded in May & Jun, the momentum will be hard to sustain in the face of another wave of COVID-19 cases. Companies might be slow to rehire until they get a better sense of how quickly the economy is going to recover. And many jobs are unlikely to ever come back as companies reconfigure how & where their employees work. Many economists prediction the unemployment rate will linger around 10% of higher through the end of the year. The jobless rate slipped to 11.1% in Jun from 13.3%.
U.S. recoups 6.5 million jobs in May, but hiring set to slow amid new coronavirus outbreak
The economy is bouncing back, but at an uneven & stumbling pace. The rise in virus cases haunts investors' thoughts. While cases are rising, the number of deaths is declining because a higher percentage of victims are younger & their bodies are better able to fight off the virus. The future of the recovery continues to be uncertain which is why strong demand for gold is taking it near record levels reached 9 years ago.
Dow Jones Industrials
No comments:
Post a Comment