Dow gained 222 (going over 28K again), advancers over decliners 3-1 & NAZ adde 19. The MLP index was 1+ higher to the 116s & the REIT index went up 3+ to the 367s. Junk bond funds fluctuated & Treasuries were slightly higher. Oil jumped 1+ to the 39s & gold rose 9 to 1975.
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 39.67 | +1.39 | +3.6% |
| GC=F | Gold | 1,974.50 | +8.30 | +0.4% |
The US gov plans to transport a coronavirus
vaccine to distribution sites across the US within 24 hours after the
Food & Drug Administration grants an emergency authorization or
approval, senior administration officials said. The gov will use medical supply company McKesson (MCK) as its main distributor for the vaccine, Paul Ostrowski, who is
overseeing logistics for the Trump administration's Covid-19 vaccine
program Operation Warp Speed, said. “We will move [the vaccine] as fast as possible within a day or so.” The Centers for Disease Control & Prevention (CDC) outlined a sweeping plan
to make vaccines for Covid-19 available for free to all
Americans. In the plan, the CDC said it anticipates a coronavirus
vaccine will initially be granted an emergency use authorization before a
full formal approval. Much of the guidance, but not all,
described in the plan will overlap with many routine activities for
immunizations & pandemic influenza planning, CDC Director Dr Robert
Redfield said. Redfield said the plan will be
updated as new information becomes available, including Covid-19 vaccine
use in pregnant women & in pediatric populations. He said the vaccine
will initially be very limited & will likely go to those most in
need, such as health-care workers.
U.S. prepares to distribute coronavirus vaccine within 24 hours of OK from FDA
With demand for housing surging, the nation’s homebuilders are positively ebullient. Builder
confidence in the market for single-family homes in Sep increased
5 points to 83 on the monthly NAHB/Wells Fargo Housing Market Index. That's the highest reading in the survey’s 35-year history, which
matched its last all-time high in Aug. Anything above 50 is
considered positive. The index stood at 68 in Sep 2019. All 3 of the index's components rose to record highs. Current sales
conditions rose 4 points to 88. Sales expectations in the next 6
months increased 6 points to 84 & traffic of prospective buyers increased
9 points to 73. “The suburban shift for home building is keeping
builders busy, supported on the demand side by low interest rates,” said
NAHB Chief Economist Robert Dietz. “In another sign of this growing
trend, builders in other parts of the country have reported receiving
calls from customers in high-density markets asking about relocating.” While
housing demand is incredibly strong, builders continue to be dogged by a
lack of skilled labor & finished lots. And now, there’s a new hurdle —
fast-rising prices for lumber due to the Covid-19 crisis & the raging
fires in the West. “Historic traffic numbers have builders seeing
positive market conditions, but many in the industry are worried about
rising costs and delays for building materials, especially lumber,” said
NAHB chairman Chuck Fowke. “More
domestic lumber production or tariff relief is needed to avoid a
slowdown in the market in the coming months.” Lumber prices have
jumped more than 170% since mid-Apr, adding more than $16K to the
price of a typical new single-family home. Lumber
producers shut down in Mar & Apr as the pandemic hit the US & did not expect to see the quick surge in housing demand that began
in late May. Ramping up production, while protecting workers with social
distancing, was not easy, & supply suffered.
Homebuilder sentiment soars to record high, but lumber prices raise a red flag
Sales at retail stores across the country rose in Aug for the 3rd month in a row in another display of the economy's resilience, but
the momentum appears to be waning after a big burst of demand earlier
in the summer once the US reopened for business in the wake of the
coronavirus crisis. Retail sales increased 0.6% last month, the gov said, a tick below the forecast. Yet the pace of sales has slowed from earlier in the summer,
when the economy reopened & many retailers experienced a sharp rebound
in customer traffic. Sales gains are likely to be harder to come by in
the months ahead, especially after the end of generous federal aid for
the unemployed & businesses struggling to survive. Retail sales are a big part of consumer spending & typically
increase when the economy improves & Americans feel more confident to
spend. Sales have exceeded pre-crisis levels since Jue, a turnaround
that few economists would have predicted early in the pandemic. Sales rose 0.2% at auto dealers, which account for about 1/5 of all retail spending. Gas
station receipts also increased 0.4%, largely reflecting an increase in
the cost of gasoline. Yet it still costs a lot less to fill a tank than
it did last summer. People aren't driving as much because of ongoing
economic restrictions & tens of Ms of people working from home. If autos & gas are excluded, retail sales rose a slightly higher 0.7%. Sales
rose 4.7% at bars & restaurants as people went out to eat more or
ordered more takeout food. Higher spending at restaurants even in the
face of ongoing limits on indoor seating is a good sign. People tend to
spend less at restaurants when they are more worried about the economy. Sales rose more modestly at home centers, pharmacies, electronic & appliance stores & clothing outlets. Internet
retailers saw basically no change in sales levels, though receipts are
up 22% from a year earlier. Online sales have soared during the pandemic
with most people working at home & limiting their trips out of the
house. Sales fell last month at department stores & groceries. Grocery sales are still up 9% from a year earlier though.
U.S. retail sales climb in August for third straight month, but momentum is slowing
Investors like what they see in the economic recovery for the US. So far in Sep, the Dow is down only 200 (less than 1%) in what has been traditionally the toughest month for stocks. Later today, the Fed will speak & investors will listen.
Dow Jones Industrials
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