Dow fell 90, decliners over advancers 3-2 & NAZ jumped 102. The MLP index dropped 2+ to the 124s & the REIT index retreated 3+ to the 354s. Junk bond funds were mixed & Treasuries continued to be sold. Oil was off pennies in the 43 & gold rebounded 26 to 1949.
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 43.58 | | +0.23 | +0.5% |
| GC=F | Gold | 1,948.20 | +25.10 | +1.3% |
White House Economic Adviser Larry Kudlow credited the Trump administration's economic & relief policies with helping the US economy rebound from a
coronavirus-induced recession that began in Feb – & said more
tax relief is on the way if the pres is reelected. During the 2nd night of the Rep Convention, Kudlow
said US economic health is “coming back” & Americans are going back
to work thanks to emergency spending measures & tax cuts. “Now,
looking ahead, more tax cuts and regulatory roll back will be in store –
payroll tax cuts for higher wages, income tax cuts for the middle
class, capital gains tax cuts for investment, productivity and jobs,”
Kudlow added. While Trump issued an exec action for the payroll tax deferral –
scheduled to begin next month – Kudlow has said he will turn that into a
permanent cut by forgiving deferred payments next year. Trump has also been open about his desire to reduce capital gains
taxes, which are paid on the difference between what an individual
originally paid for a property or investment vs. what it sells for at
the time it is sold. The current top capital gains rate sits at 23.8%. Trump has said he would consider a rate as low as 15%.
More Trump tax cuts ahead for individuals, Kudlow says
Numerous Chinese & US military.exercises, Taiwan missiles tracking Chinese fighters & plummeting China-US ties make for a heady cocktail of tension that is raising fears of conflict touched off by a crisis over Taiwan. In the last 3 weeks, China has announced 4 separate exercises along its coast, from the Bohai Gulf in the north to the East & Yellow Seas & South China Sea, along with other exercises it said were aimed at "the current security situation across the Taiwan Strait." Meanwhile Taiwan, claimed by China as its “sacred” territory, said its surface-to-air missiles had tracked approaching Chinese fighters - details Taiwan does not normally give - as Health Secretary Alex Azar was visiting the island this month. Addressing the Chinese exercises, Taiwan's defenses ministry said the closer Chinese jets get to the island the “more actively” Taipei would respond, though it would “not escalate conflict” nor “trigger an incident.” The US sent another warship thru the Taiwan Strait this month, a few days after a carrier group conducted an exercise in the disputed South China Sea, & this week China complained a US spy plane had observed Chinese live-fire exercises.
China, US tensions raise Taiwan conflict fears: 'Polishing the gun'
New orders for key US-made capital goods slowed in Jul, suggesting the rebound in business investment could become more gradual amid uncertainty about the course of the Covid-19 pandemic, even as the recovery in manufacturing appears to be gaining traction. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 1.9% last month, the Commerce Dept said. These core capital goods orders jumped 4.3% in Jun. The forecast called for orders climbing 1.9% in Jul. Overall durable goods surged 11.2% in Jul, compared with expectations of an increase of 4.3% & a 7.6% increase a month earlier.
U.S. core capital goods orders slow in July from prior month, while durable goods orders surge 11.2%
Dow Jones Industrials
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