Dow rose 98, advancers over decliners 2-1 & NAZ slid back 9. The MLP index went up 1 to 114 & the REIT index was even. Junk bond funds hardly budged & Treasuries remained weak. Oil gained 1+ to go over 40 & gold added 1 to 1922.
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Federal Reserve Chair Jerome Powell reiterated his belief that the US economy needs more fiscal support even though the recovery from the “natural disaster” of the coronavirus pandemic so far has been strong. In a speech to the National Association for Business Economics, Powell argued it was better for Congress to provide too much fiscal support than the reverse. “Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said. This would lead more businesses to declare bankruptcy & for households to run into severe economic distress. On the other hand, even if policy actions are more than is needed” it will not go to waste,” Powells added. “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. Both political parties in Congress assert they want to pass a follow up to the CARES Act, but Senate Reps have complained the new fiscal stimulus backed by Democrats is too expensive & they want a more targeted approach.
Powell says U.S. economy needs more fiscal support
Black Friday might be losing its clout. But it is still expected to be the busiest day in stores during the 2020 holiday shopping season, according to a new report. With the coronavirus pandemic prompting consumers to buy more online & avoid crowded spaces,
though, people likely won't be showing up in droves for doorbuster deals
the day after Thanksgiving. Traffic
in retail stores is expected to be down 22-25% year over year
during the six key weeks of the holiday season, a ShopperTrak forecast
released. “Black Friday in the past was so big, it
was typically double the traffic of Super Saturday,” said Brian Field, a
senior director of the retail consulting practice at ShopperTrak. “It’s not going to be that way this
year.” Super Sat (the Sat before Christmas) is when
last-minute shoppers typically rush to stores, packing parking lots, to
finish their gift lists. This year, it will be Dec 19. Hoping to
elongate the season and avoid any last-minute shipping chaos in the
final days leading up to Christmas, retailers are now stocking their
shelves with holiday goodies even before Halloween. Companies are also
spreading out sales events, and starting them in Oct, to give
shoppers plenty of time to buy gifts. Notably, Amazon (AMZN) will hold its Prime Day sales event on Oct 13-14, prompting rivals to hold rival deal days. And this could draw holiday $s further forward. If & when Americans head to the stores this holiday season, they'll
likely find extended hours & pop-up locations to help control crowds & keep shopping in person safe. The
predicted 10 busiest days are expected to account for
just 34.2% of all holiday traffic, compared with 46.5% a year ago,
ShopperTrak said. “All of these days are going to take hits,” Field said.
Holiday crowds at the mall will be smaller this year: ShopperTrak predicts 25% drop in shoppers
Dems & Reps still seem unable to find common ground on enhanced unemployment benefits, more than two months after the expiration of a prior, $600 weekly subsidy that had buoyed household income for Ms. White House officials & senior congressional Dems are still trying to hammer out details of a 5th financial relief package to help counter the negative economic effects of the coronavirus pandemic. Unemployment benefits appear to be a key sticking point in the negotiations, despite consensus in other areas like stimulus checks & aid for small businesses. More than 2M Americans were receiving jobless benefits as of mid-Sep, according to most recent data from the Labor Department. Meanwhile, Treasury Secretary Steve Mnuchin proposed a $1.6T measure last week in negotiations with House Speaker Nancy Pelosi that would include a $400-a-week unemployment supplement. That aid would reportedly last through Dec. It's unclear whether congressional Reps would support a $400-a-week policy or a bill with an overall price tag as high as the White House proposal. “Negotiations are ongoing,” according to a White House spokesman. “The White House continues to reach out to Democrats in good faith to try and reach a deal on delivering relief to American workers.”
Democrats and GOP still fighting over $600 jobless benefits. Where things stand
Powell's comments for more stimulus will get a lot for attention. With elections coming, those guys in DC are eager to get money in the hands of consumers. Now the 2 sides need to figure out how to compromise on their differences. Chances are they will come up with a bill, although details are missing. Investors continue to be hopeful.
Dow Jones Industrials
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