Dow jumped up 279, advancers over decliners 7-1 & NAZ gained 60. The MLP index went up 3+ to the 125s & the REIT index added 2+ to 345. Junk bond funds edged higher & Treasuries were sold. Oil climbed above 40 on a decline in crude supplies & gold slid back to 1811.
AMJ (Alerian MLP Index tracking fund)
Consumers have continued spending on big-ticket items such as vehicles & homes during the coronavirus pandemic, helping support the US economy as it battles a surge in cases & renewed business shutdowns. Historically low interest rates are luring in auto & home buyers, many of whom have higher incomes & firmer job security than low-wage, service-sector workers hardest-hit during the recession, economists & industry experts say. Congress is debating whether to extend an extra $600 a week in unemployment benefits provided by the federal stimulus enacted in the spring. The aid is scheduled to expire at the end of Jul. Solid spending on durable goods, typically more expensive products designed to last more than 3 years, differs from previous downturns, when consumers sharply pulled back on these larger purchases while continuing to spend at service-sector businesses, according to findings from a Harvard-based nonprofit research group. Spending on long-lasting, durable goods accounts for about 7% of GDP. Outlays at service-sector businesses comprise a much larger share of economic output & were the hardest-hit businesses by the pandemic. Growth in services will need to rise much more for the US to achieve a full economic recovery. In May, consumers increased their spending on services by 5.4%. A Commerce Dept report due out tomorrow on retail spending, which covers spending on autos but not houses, is expected to show a Jun increase of 5.2%.
The Centers for Disease Control & Prevention (CDC) is calling on Americans to wear facial coverings following new findings that increased mask use has been effective in helping to prevent transmission of the coronavirus. “We are not defenseless against COVID-19,” said CDC Director Dr Robert R. Redfield. “Cloth face coverings are one of the most powerful weapons we have to slow and stop the spread of the virus – particularly when used universally within a community setting. All Americans have a responsibility to protect themselves, their families, and their communities.” In an editorial in the Journal of the American Medical Association, the CDC reviewed & affirmed new scientific data revealing that Americans' increased use of facial coverings has reduced the spread of COVID-19, particularly when used universally within communities. "[A] face covering is not needed all the time," CDC researchers wrote. "It is probably safe for individuals and safe for others to drive alone or to walk or jog alone on an uncrowded route without a face covering. But when individuals choose to go out or must be close to others in public, a cloth face covering can help reduce the spread of COVID-19 from asymptomatic individuals or others. With cloth face coverings, personal protection is derived from their use by all members of the community."
U.S. reports record 67,400 single-day spike of new coronavirus cases
Buyers bid stock prices higher on more reports about a vaccine for the virus, taking the Dow briefly over 27K. As pointed out several time before, all vaccines have to go thru testing periods before they are finally approved. In the meantime, the data on virus cases continues to be dreary & that creates doubts about further opening of the economy & schools.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 40.24 | -0.05 | -0.1% |
| GC=F | Gold | 1,810.00 | -3.40 | -0.2% |
Consumers have continued spending on big-ticket items such as vehicles & homes during the coronavirus pandemic, helping support the US economy as it battles a surge in cases & renewed business shutdowns. Historically low interest rates are luring in auto & home buyers, many of whom have higher incomes & firmer job security than low-wage, service-sector workers hardest-hit during the recession, economists & industry experts say. Congress is debating whether to extend an extra $600 a week in unemployment benefits provided by the federal stimulus enacted in the spring. The aid is scheduled to expire at the end of Jul. Solid spending on durable goods, typically more expensive products designed to last more than 3 years, differs from previous downturns, when consumers sharply pulled back on these larger purchases while continuing to spend at service-sector businesses, according to findings from a Harvard-based nonprofit research group. Spending on long-lasting, durable goods accounts for about 7% of GDP. Outlays at service-sector businesses comprise a much larger share of economic output & were the hardest-hit businesses by the pandemic. Growth in services will need to rise much more for the US to achieve a full economic recovery. In May, consumers increased their spending on services by 5.4%. A Commerce Dept report due out tomorrow on retail spending, which covers spending on autos but not houses, is expected to show a Jun increase of 5.2%.
Consumer appetite for cars, homes bolsters US economy
The Centers for Disease Control & Prevention (CDC) is calling on Americans to wear facial coverings following new findings that increased mask use has been effective in helping to prevent transmission of the coronavirus. “We are not defenseless against COVID-19,” said CDC Director Dr Robert R. Redfield. “Cloth face coverings are one of the most powerful weapons we have to slow and stop the spread of the virus – particularly when used universally within a community setting. All Americans have a responsibility to protect themselves, their families, and their communities.” In an editorial in the Journal of the American Medical Association, the CDC reviewed & affirmed new scientific data revealing that Americans' increased use of facial coverings has reduced the spread of COVID-19, particularly when used universally within communities. "[A] face covering is not needed all the time," CDC researchers wrote. "It is probably safe for individuals and safe for others to drive alone or to walk or jog alone on an uncrowded route without a face covering. But when individuals choose to go out or must be close to others in public, a cloth face covering can help reduce the spread of COVID-19 from asymptomatic individuals or others. With cloth face coverings, personal protection is derived from their use by all members of the community."
Coronavirus spread reduced by Americans' increased use of face masks: CDC
The US reported 67K new cases of the coronavirus, setting yet another fresh record for new cases reported in a
single day, according to data collected by Johns Hopkins University. Cases
in the US keep climbing, averaging 62K new cases per day
over the past 7 days, more than triple the number just a month ago & up more than 21% compared with the 7-day average a week ago,
according to data from Hopkins. Texas,
California & Florida accounted for 32K new cases yesterday,
nearly ½ of all new cases reported across the country. Pres Trump again attributed the increase in cases to ramped up testing. The country processed 760K tests yesterday,
the 2nd-highest number of tests conducted in a single day, according
to data compiled by the Covid Tracking Project, an
independent volunteer organization. The US has processed an average of more than 665K tests
per day between Jul 1-12. That's up from a daily average
of just over 174K diagnostic tests processed nationally per day
thru Apr. “Think of this, if we
didn’t do testing, instead of testing over 40 million people, if we did
half the testing we would have half the cases,” the pres said. “If we did another, you cut that in half, we would
have, yet again, half of that. But the headlines are always testing.” Daily new cases have grown by at least 5% compared with a week ago in
43 states & DC. And hospitalizations are up more than 5% compared with a
week ago in 30 states. Daily new Covid-19 deaths, which lag behind new
cases, have also been steadily rising nationally, driven by a number of
states with rapidly expanding outbreaks. With new cases surging,
especially in hot-spot states across the South & West, the
country's testing infrastructure, however, is struggling to keep up.
U.S. reports record 67,400 single-day spike of new coronavirus cases
Buyers bid stock prices higher on more reports about a vaccine for the virus, taking the Dow briefly over 27K. As pointed out several time before, all vaccines have to go thru testing periods before they are finally approved. In the meantime, the data on virus cases continues to be dreary & that creates doubts about further opening of the economy & schools.
Dow Jones Industrials
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