Dow finished off 97 (near session lows), decliners over advancers almost 2-1 & NAZ lost 31. The MLP index was off 1 to the 116s & the REIT index fell 1+ to 350. Junk bond funds rose in price.& Treasuries were sold. Oil dropped1+ to 40 & gold jumped 11 to 1926 (more on both below).
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Senate Dems blocked a vote on Reps' $500B coronavirus relief bill, as House Speaker Nancy Pelosi & White House officials continue to negotiate on a broader aid package for families & businesses still reeling from the pandemic. Although Reps were widely unified in their effort to push forward the measure in a procedural vote, the measure did not secure the necessary 60 votes needed to overcome a Dem filibuster. The bill, less than 1/3 of the size of the $1.8T offer from the White House, included boosted federal unemployment benefits, another round of funding for the Paycheck Protection Program (PPP), a key small business rescue program, money for schools & liability protections for businesses. Dems previously rejected a similar, pared-back proposal introduced by McConnell in Sep, pushing back against "piecemeal" legislation. The Kentucky Rep said last week that he expected Dems to block the legislation. "That's a lot of money ... to target the actual needs the country has," McConnell said. "I'm not anticipating they’re going to support it, but I'm going to give them the opportunity." Yesterday, most Senate Dems voted to table a separate bill that would have reauthorized another round of small-business loans thru the PPP, rejecting the legislation as a political stunt.
Democrats block Senate GOP's skinny stimulus bill, negotiations continue
Job growth within the restaurant industry slowed "significantly" last month just after employment briefly rebounded in the immediate aftermath of the coronavirus related lockdowns, according to a new report. Job losses at drinking & eating places exceeded job gains by a wide margin, with 32 states seeing a net decline of jobs between Aug & Sep, according to the National Restaurant Association's (NRA) latest findings. According to the NRA, eating & drinking places are considered the "primary component of the total restaurant and foodservice industry." Prior to the coronavirus outbreak, eating & drinking places employed 12M out of the total restaurant & foodservice workforce which totaled nearly 16M. By comparison, only 18 states & DC saw employment levels rise in Sep. To put the numbers in perspective, eating & drinking places are now operating with about 2.3M fewer jobs than during Feb's pre-coronavirus peak, the NRA said.
Job growth in restaurant industry slowed 'significantly' in 32 states last month
Economic activity in most parts of the country was “slight to modest,”
according to the Federal Reserve's latest report on economic conditions (Beige Book). Some districts report a leveling off of retail sales although demand
for autos remained steady. Low inventories have constrained sales. Restaurant owners are concerned that cooler weather will slow
sales in coming months. Bank contacts are worried that delinquency rates
may rise. Employment levels were growing across the country but
at a slow pace. Manufacturing was the most consistent
sector to add jobs across the country. Wages only rose slightly & were
often tied to how easy it was for firms to find workers. Consumer
prices rose modestly as construction, manufacturing & retail firms
past along higher costs to their customers. Businesses faced increased
costs due to COVID-19. The
report covers the economy thru Oct 9 & is one of the last broad
looks at economic conditions ahead of the presidential election. It
paints a fairly tepid picture, While the US economy has rebounded from
the depths of the recession that began in Mar, many economists see the
level of activity plateauing in coming months. Fed officials have been
pressing Congress to pass another coronavirus relief package to help
consumers & businesses survive while the coronavirus pandemic
continues to constrain activity.
Fed’s Beige Book finds limited pace of economic growth in early October
Gold prices tallied a 3rd straight gain, with prices for
the precious metal marking their highest finish in over a month, as a
rise in bond yields was overshadowed by weakness in the $. Dec gold climbed $14 (0.7%) to settle at $1929 an ounce,
following a slight gain yesterday. The settlement was the highest
for a most-active contract since Sep 18. Some experts, however, warn that gold is vulnerable to sharp pullbacks,
amid a period of recently listless trade, leading into the presidential
elections in the US & as bond yields gain more
altitude. Investors are also keeping watch on protracted negotiations among US
lawmakers centered on providing fresh aid to American businesses &
workers economically harmed by lockdowns & distancing measures
instituted to curb the viral spread. Gold futures, which traded at $1928 in electronic trading later today, showed little reaction shortly after the release of the Fed
Beige Book report, which said economic growth is “slight to modest” in
most parts of the US.
Gold posts highest finish in a month as U.S. dollar slips, but risks abound
Oil futures declined, sending US & global benchmark prices to their lowest settlements in over a week. US gov data showed that domestic crude supplies fell for a 2nd week in a row, but by less than the market expected & failing to ease pressure from concerns over weaker demand. The rising cases of COVID-19 in the US & Europe, in particular, have led to the potential for more economic shutdowns, which can impede demand for energy. West Texas Intermediate (WTI) crude for Dec fell $1.67 (4%) to settle at $40.03 a barrel & Dec Brent crude, the global benchmark, lost $1.43 (3.3%) to $41.73 a barrel. Both WTI & Brent crude saw their lowest front-month settlements since Oct 12. The EIA reported that US crude inventories fell by 1M barrels last week. That followed a 3.8M-barrel decline the week before. The forecast called ofr a decrease of 1.9M barrels, while the American Petroleum Institute yesterday reported an increase of 584K barrels. EIA data also showed crude stocks at the Cushing, Okla., storage hub edged up by 1M barrels for the week. Total US oil production fell by 600K barrels to 9.9M barrels amid the effects of Gulf of Mexico shut-ins tied to Hurricane Delta earlier this month. Despite the pullback for oil, traders may find some encouragement from prospects for another US stimulus package & the recent committee meeting of OPEC & their allies (OPEC+). The current OPEC+ agreement calls for output cuts of 7.7M barrels a day thru Dec, which will then taper to 5.8M barrels a day starting in Jan.
Oil prices end at 1-week low as demand worries overshadow decline in U.S. crude supplies
After a strong opening, the Dow fell during the midday period. Buyers returned later but could not hold it in the black going into the close. Trader thoughts are negative about the relief bill.
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