Dow dropped 173, decliners over advancers 4-3 & NAZ went up 57. The MLP index was steady in the 144s & the REIT index hardly budged in the 371s. Junk bond funds fluctuated & Treasuries were pretty much even. Oil rose to the mid 45s & gold was flattish at 1904 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Federal Reserve officials took part in a detailed discussion about their asset purchase program during the meeting earlier this month, at which some members said they expect several changes to be enacted. At the Nov 4-5 meeting officials voted to keep benchmark short-term borrowing rates anchored near zero. Market participants were looking to the minutes to gauge where policymakers stand on possibly ramping up or adjusting the asset purchase program, which currently has the Fed buying $120B of Treasurie's & mortgage-backed securities a month. The Fed could choose to increase the purchases or to lengthen the duration of those bonds. While members said the current pace of purchases was helping keep financial conditions accommodative, they noted that changes could be enacted if necessary. “Participants noted that the Committee could provide more accommodation, if appropriate, by increasing the pace of purchases or by shifting its Treasury purchases to those with a longer maturity without increasing the size of its purchases,” the minutes said. “Alternatively, the Committee could provide more accommodation, if appropriate, by conducting purchases of the same pace and composition over a longer horizon.” FOMC officials also expressed concern about the pace of the economic recovery, noting that growth was still well off the pace before the coronavirus pandemic hit in Mar. During his post-meeting news conference, Fed Chair Jerome Powell said he feels the Fed still has plenty of policy “ammunition” and pledged that the committee is “strongly committed to using these powerful tools to support the economy.” Since then, the Fed has learned that it start 2021 without some of the weapons in its arsenal, as Treasury Secretary Steve Mnuchin has directed the central bank to return collateral funding it received for multiple pandemic-era lending programs. They include corp bond purchases, loans to state & municipal govs & the Main Street Lending Program for small- & medium-sized businesses.
Fed weighed adjusting bond purchases to provide more help to subpar economy, meeting minutes show
A senior Federal Reserve official said he expects the
economic recovery to forge ahead despite a record increase in
coronavirus cases, saying businesses have learned how to cope with the
pandemic. James Bullard, pres of the St Louis Federal
Reserve Bank, said he thinks the economy is likely
to expand at a steady pace in the waning months of 2020 & into early
next year. While recent economic data “has not been as strong as it’s
been,” Bullard acknowledged, he said businesses have learned how to keep
their workers & customers safe. They are likely to continue to hire,
produce & even invest more in anticipation of vaccines being widely
available next year. Most of the increase in coronavirus cases recently, he contended, have
occurred outside the workplace, at home or other social gatherings. At the same time, Bullard said, he expects Americans to modify their
behavior again as they did last summer to slow the latest spread of the
coronavirus. For now Bullard doesn't expect a change in the Fed's aggressive approach to supporting the economy. “I think we have a great policy right now,” said Bullard, though he
remained open to additional measures if the economy needed more help. Bullard
has been one of the more relatively optimistic voices at the Fed on the
current recovery. He said the US has learned a lot during the
pandemic, allowing most businesses to work toward precrisis levels of
production. “A lot of learning has already occurred,” he added.
“It seems to me there is light at the end of the tunnel in terms of
seeing an end to the crisis. It’s very much a realistic view.”
Fed’s Bullard sees ‘light’ at end of coronavirus tunnel
Gold futures booked a meager gain, as the precious metal
attempted to recover from a series of sharp declines that were prompted
partly by progress on vaccines & treatments for the economy-disrupting
coronavirus. Dec gold added 1 to settle at $1805 an
ounce. The precious metal is on track for a weekly decline of almost 4%.
Metals trading will be closed in observance of Thanksgiving in
the US.
Gold ends slightly higher day before Thanksgiving but on track for 4% weekly skid
Consumer spending moderated in Oct, the gov said. Spending rose 0.5% after a revised 1.2% gain in the prior month. This is the smallest gain since Apr. The forecast expected a 0.4% rise. Incomes sank 0.7% in Oct as gov programs ended. The forecast was expecting a 0.5% drop. The PCE index, the Federal Reserve's inflation barometer slowed to a 1.2% annual rate down from a 1.4% gain in Sep. The core measure that strips out food & energy increased at a 1.3% annual rate, down from 1.5% in the prior month. The Fed is farther away from its 2% inflation target. The savings rate dipped to 13.6% from 14.3%. Wages & salaries rose 0.7% in the prior month. The US is suffering another major wave of COVID-19 cases at the same time that gov stimulus funds are waning & consumer confidence fell to a 3-month low.
U.S. consumer spending moderates in October
Nordstrom (JWN) reported that Q3 sales picked up more than expected, suggesting it might have a stronger holiday season than
some investors expected if trends continue. CEO Erik Nordstrom said the retailer has made strides with its online
business, especially since its stores were temporarily shuttered. Digital sales were $1.6B &
represented 54% of its business. He said the company is
“continuing to amplify categories that are relevant with customers
during the pandemic, such as activewear & wellness products.” He added it's also looking toward the future with the Covid-19 vaccine &
anticipates “pent-up customer demand, particularly around occasions like
travel or in-person social events.” The retailer's
off-price store, Nordstrom Rack, could be a major growth driver because
it’s one of the few in this category with a large online presence.. EPS was 34¢, down from 81¢, down from last year. The forecast called for a loss of 6¢. Total
revenue fell to $3.09B from $3.67B a year
ago, & was lower than the $3.10B expected. JWN
was among the retailers that were forced to close their doors in the
early days of the coronavirus pandemic. Total sales were down 40% in Q1 & 53% in Q2 compared with the same
period a year earlier. In Q3, total sales were down
only 16%. That includes an approximately 10-percentage point impact
from the Anniversary Sale. CFO Anne Bramman said expects sales to decrease in the low
20-percentage range in Q4, although the company expects to
deliver positive operating cash flow. Yet she
acknowledged the outlook is uncertain because of the pandemic & said
that its expectations are based on stores remaining open. The stock climbed 2.85 (12%).
If you would like to learn more about JWN, click on this link:
club.ino.com/trend/analysis/stock/JWN?a_aid=CD3289&a_bid=6ae5b6f7
Nordstrom shares rise as retailer shows signs of recovery
Oil futures extended gains, with the US & global
benchmarks ending at their highest level since Mar 5 for a 2nd
straight session as investors remained cheered by optimism over progress
toward COVID-19 vaccines & data that showed a fall in US crude
inventories last week. West Texas Intermediate crude for Jan rose 80¢ (1.8%) to end at $45.71 a barrel. The global benchmark, Jan Brent crude advanced 75¢ per barrel (1.6%) to finish at $48.61 a barrel.
Oil futures rally to end at more-than-8-month high
Dow Jones Industrials
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