Dow climbed 152, advancers over decliners better than 2-1 & NAZ went up 21. The MLP index shot up 5+ to the 121s & the REIT index was steady near 351. Junk bond funds fluctuated & Treasuries drifted lower. Oil was higher, going over 40, while gold dropped 22 to 1906 (more on both below).
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
House Speaker Nancy Pelosi said that Dems & White House officials are drawing closer to striking a coronavirus relief deal, but negotiators have still not solved 2 of the most
contentious issues: state & local funding & liability protections
for businesses. "They still haven't completely signed off on it," Pelosi said. "But I think we're just about there." After
months of negotiations, both sides have indicated they would like to
finalize a deal by the end of the week, although it's unclear whether it
could be passed before the Nov election. Pelosi spoke with Treasury
Secretary Steve Mnuchin, the top negotiator for the Trump
administration, 3 times this week & is slated to do so again today. "I’m
pleased at where we are now. If we can resolve some of these things in
the next few days, it’ll take a while to write the bill," Pelosi said. "I’d hope that we could be writing starting now, and we are putting pen
to paper, sort of easier parts of the bill. It’s close." But
major obstacles remain, including aid for state & local govs,
liability protections for businesses & growing dissent among Senate
Reps, who have balked at passing a multitrillion-dollar aid
package. Senate Majority Leader Mitch McConnell has also emerged
as a hurdle in negotiations, privately urging the White House not to
settle with Pelosi before the election amid concerns it could interfere
with the confirmation of Amy Coney Barrett to the Supreme Court.
Pelosi says 'we're just about there' on coronavirus relief deal
Verizon (VZ), a Dow stock, beat estimates for 3rd-qtr profit, helped by
strong demand for its phone & internet services as offices & schools
continued to operate virtually amid the COVID-19 pandemic. The
health crisis has brought global economies to a halt, but the telecom
sector has been relatively less affected. With lockdowns easing, VZ
gradually reopened all of its company-operated retail stores in the
qtr, implementing touch-less retail, appointments & curbside
pickups. VZ added 283K postpaid phone subscribers, above the estimate of 268K. Total operating revenue fell 4.1% to $31.54B, which the
company attributed to lower customer activity & the timing of certain
device launches. Revenue in the media unit, which includes Yahoo, HuffPost &
TechCrunch, declined 7.4% in the qtr to $1.7B from a year
earlier as companies cut down on advertising to rein in expenses. VZ stock rose 57¢.
If you would like to learn more about VZ, click on this link:
club.ino.com/trend/analysis/stock/VZ?a_aid=CD3289&a_bid=6ae5b6f7
Verizon profit beats estimates on remote working boost
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, reported that Q3 revenuee fell 9% as the coronavirus pandemic weighed on demand for fountain soft drinks, Powerade & Dasani. But the company topped earnings. EPS was 40¢, down from 60¢ a year earlier. Excluding
asset impairments, severance costs related to its restructuring plan & other items, EPS was 55¢, topping
the 46¢ expected. Net sales dropped 9% to $8.65B, beating expectations of $8.36B. Organic sales fell 6% & unit case volume, which helps measure demand without the impact of
pricing or foreign currency, declined 4%. All 4 categories reported declines in unit case volume. Sparkling soft drinks
was the least affected, with its volume falling only 1%. Demand for
Coke Zero Sugar & trademark Coke drinks lifted the category, although
overall it was hurt by the decline in the North American fountain
business. Juice,
dairy & plant-based drinks saw volumes shrink by 6%, hurt by pressure
in Asia Pacific & Latin America. Unit case volume of water, enhanced
water & sports drinks fell by 11%. The company noted qtr-over-qtr improvements in demand. While the
pandemic continues to limit drink purchases at movie theaters,
restaurants & office buildings, KO said at-home demand is still
elevated. Away-from-home volume fell by the mid-teens, an
improvement from its nadir of 50%, helped by higher sales at fast-food
restaurants & convenience stores. As it navigates the crisis, KO is undergoing a transformation. It is
slimming its portfolio, cutting drinks like Tab that haven't sold well & don't have much opportunity for growth. KO stock was up 67¢.
If you would like to learn more about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7
Coca-Cola earnings top estimates, despite 9% decline in revenue
Gold settled lower, but comments from House Speaker
Nancy Pelosi raised hopes for a deal on another round of coronavirus
aid, prompting prices to hold ground above the key $1900-an-ounce mark. Analysts,
however, attributed overall weakness in prices for the precious metal
to strength in the $ & a continued push higher in Treasury
yields, which can dull the luster of gold & other commodities, which
are non-yielding assets. Gold for Dec fell $24 (1.3%) to settle at $1904 an ounce after touching an intraday low of $1894. Prices settled at $1929
in the previous session, the highest most-active contract finish since
Sep 18.
Gold settles lower, but holds above $1,900 on signs of fiscal stimulus bill progress
Oil futures ended higher, as a fall in US weekly
jobless claims to a new pandemic low & progress toward a fresh
coronavirus aid package boosted prospects for energy demand. Prices also found support after Russia’s Pres Vladimir
Putin said his country has not ruled out delaying production increases
by OPEC & their
allies that are set to be implemented in Jan. The group of producers, collectively known as OPEC+, includes Russia. West Texas Intermediate crude for Dec delivery rose 61¢ (1.5%) to settle at $40.64 a barrel. Dec Brent crude,
the global benchmark, added 73¢ (1.8%) at $42.46 a barrel. Some analysts said upside for oil was likely to remain limited after an
unexpected rise in US gasoline inventories in weekly data that
underlined concerns over fuel demand.
Oil prices end higher as some signs point to demand recovery
Pelosi claims they are close to a deal, whatever that means. However the 2 big issues: (1) state & local funding & (2) liability protections for businesses remain. From the start, they have been the biggest impediments to a deal. Negotiations drone on.
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