Dow dropped 165, decliners over advancers 4-3 & NAZ lost 69. The MLP index added 2 to the119s & the REIT index pulled back 4+ to the 355s. .Junk bond funds were flattish & Treasuries crawled higher. Oil went over 41 on OPEC+'s commitment to output cuts & gold recovered 13 to 1907 (more on both below)..
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
The Federal Reserve's vow to keep interest rates near zero for what could be years is "appropriate" for now, though more action could be needed as the recovery proceeds, San Francisco Fed Pres Mary Daly said. "We've got the economy and the policy in a good position right now," Daly said. "I see us as well positioned to weather this storm we are in, and it remains to be seen if more will be needed ... I'll continue to watch the data and see if adjustments will be necessary." The Fed slashed interest rates to zero in the face of the coronavirus coronavirus pandemic & began pumping Ts of $s into financial markets, extraordinary actions that have helped fuel stock price gains even as the real economy struggles to regain its footing. But Ms of Americans are still out of work. The situation, Daly said, "seems unfair (and) another example of Wall Street winning and Main Street losing." But keeping interest rates at their current near-zero levels until the economy returns to full employment, as the Fed has promised it will do, will in time create more jobs & help reduce inequality, Daly added. And while raising rates earlier might keep the already rich from adding further to their wealth, she suggested, it would also exacerbate inequality by making jobs for everyone else even harder to come by. "I am not willing to trade millions of jobs ... to keep the stock market from going up for the few who have those holdings," she added.
US economy, Fed policy in 'good position,' Daly says
House Speaker Nancy Pelosi & Treasury Secretary Steve Mnuchin spoke ealier but again did not strike a deal on coronavirus stimulus. The pair talked by phone & had “productive” discussions about
language in relief proposals delivered over the weekend, Pelosi
spokesman Drew Hammill said. He added that “one major area of
disagreement continues to be that the White House lacks an
understanding of the need for a national strategic testing plan” for
Covid-19. Pelosi & Mnuchin, the lead negotiators in aid talks between the White House & congressional Dems, plan to speak again tomorrow. Mnuchin said that he & Pelosi “had a comprehensive discussion on a lot of
issues.” “We continue to make progress on certain issues, but on certain issues we continue to be far apart,” he added. The negotiators have made a last-ditch push to reach a stimulus
agreement before the 2020 election. But the chances of Congress passing
new aid before Nov3 have slimmed as the Rep-held Senate pushes to vote on a more narrow plan than either the White House or Dems have proposed.
Pelosi, Mnuchin speak about coronavirus stimulus again as stalemate drags on
United Health (UNH), a Dow stock, raised its annual profit forecast after its quarterly profit beat
estimates, helped by growth in its Optum unit that manages drug
benefits & a slower-than-expected rebound in demand for deferred
care. Large
US health insurers benefited from lower
health care spending in H1, which more than
offset pandemic-related additional costs. The companies, however, signaled a rebound in demand for deferred
services in May & Jun & projected higher medical costs for H2. UNH reported a medical loss
ratio (MLR) - the percentage of premiums paid out for medical services -
of 81.9%, lower than last year’s 82.4% & analysts' estimate of
83.55%, according to IBES data. Results for Q3 also reflect costs from the
company's customer cost-sharing initiatives for COVID-19 testing &
treatment. Revenue from its Optum unit rose 21.4% to $34.9B in the qtr. Its
largest health insurance business brought in $50.4B in sales for
the qtr, a near 5% rise from a year earlier. Growth in sales of its
gov-backed health plans for seniors, people with disabilities & those with low-income was offset by a decline in employer-sponsored
plans. EPS was $3.51, beating estimates of $3.09. UNH
raised its annual 2020 adjusted EPS forecast to $16.50-16.75, from its previous range of $16.25-16.55.
The stock sank 9.43 (3%).
If you would like to learn more about UNH, click on this link:
club.ino.com/trend/analysis/stock/UNH?a_aid=CD3289&a_bid=6ae5b6f7
UnitedHealth raises 2020 profit forecast as pharmacy benefits business drives growth
Gold futures finished higher to recoup much of their loss
from a day earlier when bullion sank below a psychologically significant
level at $1900 an ounce. Dec gold rose $12 (0.7%) to settle at $1907 an ounce, a day after tumbling 1.8%. Gold enthusiasts point to uncertainties around the 2020
presidential race between Pres Trump & former VP Joe Biden & a lack of clarity around the prospects for
economic growth amid the viral outbreak as factors that have buttressed
gold prices despite steep periodic drawdowns.
Gold settles back above $1,900 an ounce
Oil futures stretched their gains to a 2nd session, as Saudi Arabia & Russia reportedly held a discussion by phone, reiterating the OPEC+ commitment to abide by the production-cut agreement. A report by the Intl Energy Agency, however, underlined fears an acceleration in new COVID-19 cases around the world will dent demand for crude, limiting gains for prices. Saudi Arabia's Crown Prince Mohammed bin Salman & Russian Pres Vladimir Putin talked by telephone, the official Saudi Press Agency said. The pair “agreed on the importance of all oil-producing countries to continue cooperating and abiding by OPEC+ agreement to achieve these goals for the benefit of both producers and consumers,” the Saudi Press Agency reported. The news follows a report on Oct 8 that Saudi Arabia was considering the postponement of plans for OPEC+ to raise oil production early next year to the end of the first quarter. West Texas Intermediate crude for Nov climbed 84¢ (2.1%) to settle at $41.04 a barrel, following a rise of almost 2% yesterday. Dec Brent crude, the global benchmark, added 87¢ (2.1%) at $43.32 a barrel.
Oil prices finish higher, encouraged by OPEC+ commitment to output cuts
Prospects for a stimulus before the election are fading fast. The 2 sides are just too far apart. Bank earnings are coming in mixed. Next week should bring earnings reports from corps. Expectations are high although comments about Q4 & next year will get the most attention. Meanwhile, new treatments to control Covid will require more testing, delaying their use.
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