Markets drop after Trump rejects relief bill proposal

Dow sank 375 (with heavy selling in the last hour), decliners over decliners 5-4 & NAZ declined 177.  The MLP index dropped 1+ to the 111s & the REIT index fell 3+ to the 358s.  Junk bond funds were mixed & Treasuries cur early losses with buying in the last hour.  Oil gained 1, going over 40, & gold pulled back 22, falling to 1897 (more on both below).

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“This morning the President’s team of physicians met with him in the Residence,” Dr Sean Conley said, the latest report on Trump’s progress battling Covid-19.  “He had a restful first night at home, and today he reports no symptoms,” Conley added.  Trump's “vital signs and physical exam remain stable,” Conley wrote. “Overall he continues to do extremely well.”  The optimistic update from the White House doctor came less than a day after Trump was discharged from Walter Reed Medical Center, where he had been flown as a precautionary measure after he began experiencing Covid-19 symptoms.  

Trump reports no symptoms after first night back at the White House, doctor says in memo

Boeing (BA), a Dow stock, is cutting its expectations for new commercial aircraft demand over the next decade, citing what it estimates will be a years-long slump in travel demand because of the coronavirus pandemic.  The manufacturer forecast that the world's airlines will need 18,350 planes worth $2.9T over the next 10 years, an 11% drop from its forecast a year ago & a jarring downbeat prediction after years of strong growth in travel around the world.  Thru 2039, BA forecast 43,110 deliveries of new aircraft, ¾ of them single-aisle jets, which are used for short-haul routes.  In its annual forecast last year, BA estimated deliveries of 44K planes to customers thru 2038.  Demand for new commercial aircraft will be driven in the medium term by carriers replacing older, less fuel-efficient planes rather that purchases aimed at growth.  “The industry has faced challenges before, & from a comparative basis this challenge is ... larger without question,” said Darren Hulst, VP of commercial marketing.  He added the industry has recovered from crises before & will likely rebound but that this will likely take several years.  Hulst said intl long-haul travel is expected to take longer to recover than shorter, domestic routes, echoing previous industry forecasts.  One bright spot during the pandemic is air cargo, Hulst said, citing the grounding of hundreds of passenger jets that have removed capacity from the market.  The stock sank 11.65 (7%).
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Boeing says coronavirus pandemic to hurt aircraft sales for more than a decade

House Speaker Nancy Pelosi cited Federal Reserve Chair Jerome Powell in her latest push for a coronavirus relief deal, echoing the central bank chief's comments that more fiscal support is needed to sustain the economy's nascent recovery.  “Chairman Powell’s warning could not be more clear: robust action is immediately needed to avert economic catastrophe from the devastation of the coronavirus pandemic," Pelosi said.  Powell said the economic rebound that began in May was buoyed in large part by the $2.2T aid package that Congress passed at the end of Mar, which included sweetened unemployment benefits, a one-time stimulus check and targeted aid for small businesses.  Although Dems & Reps broadly agree that another bill is necessary to aid the economy's recovery, they sharply disagree over the size & scope of it.  House Dems passed a $2.2T package last week that includes extended federal unemployment benefits at $600 a week, a fresh round of $1200 stimulus checks & additional funding for state & local govs. 

Pelosi cites Fed's Powell in latest push for coronavirus relief deal

Gold futures finished lower, a day after settling at their highest in just over 2 weeks on the heels of a weaker $.  Investors continued to keep an eye on the moves in the $, as well as prospects for additional stimulus from DC.  Gold for Dec fell $11 (0.6%) to settle at $1908 an ounce.   Prices had tacked on 0.7% yesterday to settle at $1920.10–the highest for a most-active contract since Sep 18.  Federal Reserve Chairman Jerome Powell reiterated his belief that the US economy needs more fiscal support, even as the recovery from pandemic has been strong thus far.  “The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods,” he said in a speech

Gold futures end lower, retreating from their highest levels in 2 weeks

Oil futures rose, building on the previous session's sharp gains as investors focused on a strike that's curtailed Norwegian output & braced for Hurricane Delta, which threatens energy production in the Gulf of Mexico.  West Texas Intermediate (WTI) crude for Nov rose $1.40 (3.6%) to $40.62 a barrel, following a climb of 5.9% yesterday.  Dec Brent crude gained $1.35 (3.3%) at $42.64 a barrel.  Optimism over prospects for another round of fiscal stimulus out of C was credited with boosting WTI by nearly 6% & Brent by 5.1% yesterday, alongside concerns over a strike that has idled output in 6 Norwegian oil fields responsible for around 330K barrels a day of oil-equivalent production.  House Speaker Nancy Pelosi, told Dem congressional leaders yesterday that stimulus talks with Treasury Secretary Steve Mnuchin were going “very slowly.”

Oil prices stretch gains to a second session on supply disruptions, hurricane fears

Pres Trump broke off negotiations late today with Dems on another coronavirus relief deal until after the election, rejecting the party's latest $2.2T proposal.  “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,”  Trump tweeted, one day after returning to the White House from Walter Reed, where he was being treated for COVID-19.  The pause in negotiations puts at risk potentially Ts of $s in aid for families, businesses & the US economy, including a fresh round of $1200 stimulus checks, extra unemployment aid for Ms of out-of-work Americans, funding for coronavirus testing & contact tracing & relief for cash-strapped state & local govs.  Although Dems & Reps broadly agree that another bill is necessary to aid the economy's recovery, they sharply disagree over the size & scope of it.

Trump rejects Dems' COVID-19 relief proposal

Stock indices fell after Pres said he would end negotiations on a new fiscal stimulus package, sending jitters into investors who hoped DC lawmakers would strike a deal soon.  There was heavy selling in the last hour.  Obviously there is a lot of confusion about the status of the stimulus bill.

Dow Jones Industrials