Dow shot up 373, advancers over decliners 2-1 & NAZ jumped 57, flirting with 11K. The MLP index went up 2+ to the 132s & the REIT index was off 2 to the 357s. Junk bond funds continued in demand & Treasuries were sold today, bring higher yields. Oil rose to the 42s & gold soared 31 to 2052 to another record (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)
Fed Vice Chair Clarida still sees the economy staging a comeback this year
The move to get displaced workers back to their jobs slowed sharply in Jul, with private payrolls increasing by just 167K, according to ADP. That total was well below the 1M expected & represented a tumble from the 4.3M created in Jun, according to the report. One bright spot was that the Jun total was revised sharply higher from the approximately 2.4M in the initial estimate. However, that month, combined with May's 3.3M increase, still leaves the jobs market well short of the 19.7M positions lost in Mar & Apr as the U.S. economy went into shutdown mode to stem the coronavirus pandemic. The ADP tally & the gov's official count can differ widely, & jobs numbers during the pandemic have been volatile & subject to substantial revisions. Businesses with 50-499 employees reported an outright decline of 25K. Big business brought back 129K jobs while firms with fewer than 50 workers added just 63K. All but 1K of the jobs came from the services sector, as professional & business services led with 58K. Education & health services added 46K & trade, transportation & utilities contributed 41K. The battered hospitality sector, which took the brunt of the closings as bars & restaurants shuttered across the nation, saw an addition of 38K. However, financial activities lost 18K & information services dropped by 3K. On the goods-producing side, manufacturing added 10K, but construction lost 8K & mining & natural resources fell by 1K. “The labor market recovery slowed in the month of July,” said Ahu Yildirmaz, VP & co-head of the ADP Research Institute. “We have seen the slowdown impact businesses across all sizes and sectors.”
Dems & Reps have finally started to yield as painstaking coronavirus relief talks drag into their 10th day, as the White House appeared to make concessions in the bargaining over extended unemployment benefits. Even so, a range of issues remained unresolved as the sides belatedly try to stave off economic ruin for Ms of Americans & give a jolt to an overburdened health-care system. House Speaker Nancy Pelosi., Senate Minority Leader Chuck Schuer, Treasury Secretary Steve Mnuchin & White House chief of staff Market Meadow plan to meet about pandemic aid sshortly. It follows a huddle yesterday during which both parties made “concessions,” according to Schumer. The Trump administration team offered to extend extra federal unemployment insurance into Dec at $400 per week. The White House had floated keeping the previous $600 a week benefit for a week while negotiators hashed out a broader deal. Senate Reps have proposed a plan that would set the insurance at $200 per week thru Sep, then change the benefit to 70% wage replacement. Mnuchin & Meadows also offered to extend a moratorium on evictions from federally backed housing into Dec. Dems cut their request for Postal Service funding to $10B from $25B.
Johnson & Johnson (JNJ), a Dow stock & Dividends Aristocrat, announced that it will develop & deliver 100M doses of its coronavirus vaccine for the US in a deal totaling more than $1B. The company's experimental vaccine is currently in early stage human trials & is expected to begin late-stage human trials in Sep, execs have previously said. The deal gives the US the option to order an additional 200M doses. “We are scaling up production in the U.S. and worldwide to deliver a SARS-CoV-2 vaccine for emergency use,” said Dr Paul Stoffels, chief science officer at JNJ. The US earlier this year JNJ $456M to develop its vaccine. The company said its goal is to supply more than 1B doses globally thru 2021. The doses will be provided to Americans at no cost if they're used in a Covid-19 vaccination campaign, the Dept of Health & Human (HHS) services said. However, health-care professionals could charge for the cost of administering the vaccine, HHS said. “Today’s investment represents the next step in supporting Janssen’s vaccine candidate all the way through manufacturing, with the potential to bring hundreds of millions of safe and effective doses to the American people,” HHS Secretary Alex Azar said. The stock rose 1.17.
If you would like to lewarn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
J&J reaches deal with U.S. for 100 million doses of coronavirus vaccine at more than $1 billion
Gold prices ended sharply higher, extending a record run for the precious metal that has helped it log gains for 4 straight days & eclipse a historical milestone above $2K. The yellow metal has soared over 34% in 2020, surpassing the YTD 22.5% rally in the NAZ, composed of highflying technology stocks that has led to the overall equity market rally. Gains for gold today helped it notch its 7th record close in 8 sessions, representing the most record closes over such a span since Apr of 2011. Bullion's buoyancy has been supported by central-bank monetary easing during the COVID-19 pandemic that has led to superlow interest rates in the US & subzero rates in parts of the developed world that have helped to stoke appetite for gold which doesn't offer a coupon. A weaker-than-expected reading in private-sector payrolls from ADP didn't deflate the rally for gold. ADP said only 167K private sector jobs were created in Jul, far short of the estimate for a gain of 1M jobs. The report comes ahead of the more closely followed Fri jobs number. Dec surged $34 (1.4%) at $2049, after a similar gain yesterday. Gold prices have gained already about 3.3% so far this week.
Gold logs fresh record high near $2,050
Oil futures posted the highest close in 5 months, but ended off session highs, after data confirmed a large drop in crude inventories while also showing an unexpected rise in gasoline stocks that undercut notions of a pickup in demand. West Texas Intermediate (WTI) crude for Sep rose 49¢ (1.2%) to finish at $42.19 a barrel, after rising as high as $43.52 immediately after the data. The global benchmark, Oct Brent crude, closed at $45.17 a barrel, up 74¢ (1.7%), the highest since Mar 6 for both benchmarks. The Energy Information Administration (EIA) said US crude stocks fell 7.4M barrels last week ended July 31, while gasoline inventories rose 419K barrels & distillate supplies increased by 1.6M barrels. Analysts had looked for EIA crude inventories to show a fall of 4.1M barrels. Gains for crude were stoked late yesterday when the American Petroleum Institute (API) said US crude-oil inventories fell 8.6M barrels last week, according to sources. API said gasoline stocks fell by 1.7M barrels, while distillate supplies rose by 3.8M barrels. On the supply side, OPEC+ pledged to cut output by 9.7M barrels a day beginning in May, easing to 7.7M barrels a day this month & running thru the end of the year. Countries that exceeded the earlier curbs are supposed to further curtail output, which means output is targeted to rise by around 1.5M barrels a day beginning this month, though skeptics doubt that past violators of such agreements will fully comply.
Oil ends at 5-month high after data shows drop in crude supplies but rise in gasoline inventories
The Dow was bid higher at the open & traders did not look back all day. It finished near the high, well above 27K & which is pretty much the high 2 months ago. Before that, it was at that level (on the way down) in late Feb. Those guys in DC look to be anxious about throwing more money at the struggling economy. Work on coronavirus vaccine seems like it will pay off soon. Treatments for those afflicked are showing progress. However, the gold bugs are taking gold to new heights while NAZ is setting records & the Dow is not far from the records reached 6 months ago.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Federal Reserve Vice Chair Richard Clarida expects the economy to continue to recover thru the
year & likely return to its pre-pandemic level by the end of the 2021. The central bank's director of bank supervision said he hasn't changed his forecast despite a swell in Covid-19 cases that has caused a general slowing in resumption of activities. “The
economy took a huge hit in the spring,” Clarida said. “My own personal
forecast is that we’ll see a rebound in economic activity in the
third-quarter data. The course of the economy is going to depend on the
course of the virus, and it’s a complex picture.” “It will take some time I believe
before we get back to the level of activity we were at in Feb
before the pandemic hit,” he said. “My baseline view is that we could
get back to the level of activity perhaps towards the end of 2021. There
are a lot of moving parts with the virus and the global outlook.” One factor causing Clarida to hold to his forecast is the expectation for more rescue funding from Congress. Though
an impasse between congressional Dems & the White House allowed
extended unemployment compensation benefits to expire, talks are ongoing & leaders in DC have expressed a likelihood that some
compromise will be reached. “The longer this drags on, the greater
risk there is to long-term damage to the economy,” Clarida added. “I
don’t think we’re at that point yet.”
Fed Vice Chair Clarida still sees the economy staging a comeback this year
The move to get displaced workers back to their jobs slowed sharply in Jul, with private payrolls increasing by just 167K, according to ADP. That total was well below the 1M expected & represented a tumble from the 4.3M created in Jun, according to the report. One bright spot was that the Jun total was revised sharply higher from the approximately 2.4M in the initial estimate. However, that month, combined with May's 3.3M increase, still leaves the jobs market well short of the 19.7M positions lost in Mar & Apr as the U.S. economy went into shutdown mode to stem the coronavirus pandemic. The ADP tally & the gov's official count can differ widely, & jobs numbers during the pandemic have been volatile & subject to substantial revisions. Businesses with 50-499 employees reported an outright decline of 25K. Big business brought back 129K jobs while firms with fewer than 50 workers added just 63K. All but 1K of the jobs came from the services sector, as professional & business services led with 58K. Education & health services added 46K & trade, transportation & utilities contributed 41K. The battered hospitality sector, which took the brunt of the closings as bars & restaurants shuttered across the nation, saw an addition of 38K. However, financial activities lost 18K & information services dropped by 3K. On the goods-producing side, manufacturing added 10K, but construction lost 8K & mining & natural resources fell by 1K. “The labor market recovery slowed in the month of July,” said Ahu Yildirmaz, VP & co-head of the ADP Research Institute. “We have seen the slowdown impact businesses across all sizes and sectors.”
ADP private payroll growth at 167,000 in July
Dems & Reps have finally started to yield as painstaking coronavirus relief talks drag into their 10th day, as the White House appeared to make concessions in the bargaining over extended unemployment benefits. Even so, a range of issues remained unresolved as the sides belatedly try to stave off economic ruin for Ms of Americans & give a jolt to an overburdened health-care system. House Speaker Nancy Pelosi., Senate Minority Leader Chuck Schuer, Treasury Secretary Steve Mnuchin & White House chief of staff Market Meadow plan to meet about pandemic aid sshortly. It follows a huddle yesterday during which both parties made “concessions,” according to Schumer. The Trump administration team offered to extend extra federal unemployment insurance into Dec at $400 per week. The White House had floated keeping the previous $600 a week benefit for a week while negotiators hashed out a broader deal. Senate Reps have proposed a plan that would set the insurance at $200 per week thru Sep, then change the benefit to 70% wage replacement. Mnuchin & Meadows also offered to extend a moratorium on evictions from federally backed housing into Dec. Dems cut their request for Postal Service funding to $10B from $25B.
White House appears to make concessions on unemployment benefit offer in coronavirus relief talks
Johnson & Johnson (JNJ), a Dow stock & Dividends Aristocrat, announced that it will develop & deliver 100M doses of its coronavirus vaccine for the US in a deal totaling more than $1B. The company's experimental vaccine is currently in early stage human trials & is expected to begin late-stage human trials in Sep, execs have previously said. The deal gives the US the option to order an additional 200M doses. “We are scaling up production in the U.S. and worldwide to deliver a SARS-CoV-2 vaccine for emergency use,” said Dr Paul Stoffels, chief science officer at JNJ. The US earlier this year JNJ $456M to develop its vaccine. The company said its goal is to supply more than 1B doses globally thru 2021. The doses will be provided to Americans at no cost if they're used in a Covid-19 vaccination campaign, the Dept of Health & Human (HHS) services said. However, health-care professionals could charge for the cost of administering the vaccine, HHS said. “Today’s investment represents the next step in supporting Janssen’s vaccine candidate all the way through manufacturing, with the potential to bring hundreds of millions of safe and effective doses to the American people,” HHS Secretary Alex Azar said. The stock rose 1.17.
If you would like to lewarn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
J&J reaches deal with U.S. for 100 million doses of coronavirus vaccine at more than $1 billion
Gold prices ended sharply higher, extending a record run for the precious metal that has helped it log gains for 4 straight days & eclipse a historical milestone above $2K. The yellow metal has soared over 34% in 2020, surpassing the YTD 22.5% rally in the NAZ, composed of highflying technology stocks that has led to the overall equity market rally. Gains for gold today helped it notch its 7th record close in 8 sessions, representing the most record closes over such a span since Apr of 2011. Bullion's buoyancy has been supported by central-bank monetary easing during the COVID-19 pandemic that has led to superlow interest rates in the US & subzero rates in parts of the developed world that have helped to stoke appetite for gold which doesn't offer a coupon. A weaker-than-expected reading in private-sector payrolls from ADP didn't deflate the rally for gold. ADP said only 167K private sector jobs were created in Jul, far short of the estimate for a gain of 1M jobs. The report comes ahead of the more closely followed Fri jobs number. Dec surged $34 (1.4%) at $2049, after a similar gain yesterday. Gold prices have gained already about 3.3% so far this week.
Gold logs fresh record high near $2,050
Oil futures posted the highest close in 5 months, but ended off session highs, after data confirmed a large drop in crude inventories while also showing an unexpected rise in gasoline stocks that undercut notions of a pickup in demand. West Texas Intermediate (WTI) crude for Sep rose 49¢ (1.2%) to finish at $42.19 a barrel, after rising as high as $43.52 immediately after the data. The global benchmark, Oct Brent crude, closed at $45.17 a barrel, up 74¢ (1.7%), the highest since Mar 6 for both benchmarks. The Energy Information Administration (EIA) said US crude stocks fell 7.4M barrels last week ended July 31, while gasoline inventories rose 419K barrels & distillate supplies increased by 1.6M barrels. Analysts had looked for EIA crude inventories to show a fall of 4.1M barrels. Gains for crude were stoked late yesterday when the American Petroleum Institute (API) said US crude-oil inventories fell 8.6M barrels last week, according to sources. API said gasoline stocks fell by 1.7M barrels, while distillate supplies rose by 3.8M barrels. On the supply side, OPEC+ pledged to cut output by 9.7M barrels a day beginning in May, easing to 7.7M barrels a day this month & running thru the end of the year. Countries that exceeded the earlier curbs are supposed to further curtail output, which means output is targeted to rise by around 1.5M barrels a day beginning this month, though skeptics doubt that past violators of such agreements will fully comply.
Oil ends at 5-month high after data shows drop in crude supplies but rise in gasoline inventories
The Dow was bid higher at the open & traders did not look back all day. It finished near the high, well above 27K & which is pretty much the high 2 months ago. Before that, it was at that level (on the way down) in late Feb. Those guys in DC look to be anxious about throwing more money at the struggling economy. Work on coronavirus vaccine seems like it will pay off soon. Treatments for those afflicked are showing progress. However, the gold bugs are taking gold to new heights while NAZ is setting records & the Dow is not far from the records reached 6 months ago.
Dow Jones Industrials
No comments:
Post a Comment