Dow dropped 117, decliners over advancers about 2-1 & NAZ was up 13. The MLP index inched higher in the 123s & the REIT index was off 1+ to the 366s. Junk bond funds fluctuated & Treasuries were being purchased. Oil edged higher in the 41s & gold rose 18 to 1880.
AMJ (Alerian MLP index tracking fund)
|
| GC=F | Gold | 1,879.50 | 1 | +17.90 | +1.0% |
The number of Americans applying for state unemployment benefits
inched down last week to the lowest level since Mar but still remained
significantly higher than pre-pandemic levels. The latest jobless
claims figures from the Labor Dept show that 709K workers sought aid last week, about 4-times
the pre-crisis level. Still, it's well below the peak of nearly 7M in late Mar, when states first implemented lockdown measures
to curb the spread of COVID-19. Jobless
claims have not been this low since Mar 14, when
282K Americans filed for aid, shortly before the virus-induced crisis
triggered a flood of layoffs. More than 66M Americans ‒ roughly 40% of the nation's labor force ‒ have applied for aid since the coronavirus lockdowns began in mid-Mar. The forecast for last week called for 735K new claims. The number of people who are continuing to receive unemployment
benefits fell to 6.78M, a decline of 436K from the
previous week, suggesting that employers are calling their
workers back. Still, some of the drop in continuing
claims may represent workers who have used up the maximum number of
payments available thru state unemployment programs (typically about 6 months) & are now receiving benefits thru a separate federal
program that extends the aid by 13 weeks. Congress created the extra
federal benefits earlier this year with the passage of the CARES Act. There are still roughly 10M more out-of-work Americans than there were in Feb, before the pandemic hit.
Another 709,000 Americans filed for jobless aid last week
White House coronavirus advisor Dr Anthony Fauci said a
vaccine to bring an end to the pandemic now appears to be on the
horizon, but he warned it may not be enough to help eradicate the
disease. America's leading expert on infectious disease dismissed the idea that
people may become complacent following a breakthrough in the race to
deliver a safe & effective vaccine. “I
think the opposite. ... I really do” Fauci said. “The cavalry is coming
but don’t put your weapons down, you better keep fighting because they
are not here yet. Help is on the way, but it isn’t here yet.” “So
to me, that is more of an incentive of, ‘Please don’t give up. Don’t
despair, the end is in sight,’ as opposed to: ‘Hey, we are good to go,
don’t worry about anything.’ We are not good to go. We have got to
continue to double down on public health measures,” he added.
Dr. Fauci says ‘help is on the way’ with vaccines but Covid won’t be eradicated
Americans spent more in Sep on goods & services such as new
cars, clothing & recreation, a 5th straight increase that
underpinned an historic rebound in the economy during Q3. Consumer spending rose 1.4% last month, the gov said. The forecast called for a 1.1% advance. The increase in spending capped off a record surge in GDP over the summer. The increase in spending capped off a record surge in GDP over the summer. The gov today reported that GDP,
the official scorecard for the US economy, leaped at a record 33%
annual pace following a historic decline at the onset of the coronavirus
pandemic. Yet GDP is mostly a look in the rearview mirror & it's unclear if
consumers can keep spending at current levels. The US is suffering
another major wave of coronavirus cases & most federal aid for the
economy lapsed in Jul. Ms of unemployed Americans could be cut off from unemployment
benefits at the end of the year unless a deadlocked Congress approves
another major package of emergency aid for struggling businesses &
idled workers. Consumers
bought new cars & trucks in Sep, purchased new clothes for the
start of the school year & cooler fall weather, & spent more on
recreation such as gym memberships & park fees. They also visited
their doctors & dentists more often. Even after a string of increases, however, consumer spending is still about 2% below pre-pandemic levels. Incomes
increased 0.9% last month to help fuel the rise in spending. More
people went back to work & received wages & salaries. Small
businesses that reopened also made more money. Consumer spending is the single biggest contributor to a strong
economy, but the sharp rebound in outlays during the summer was bound to
slow after federal aid dried up & pentup demand was exhausted. The
ongoing epidemic has made it all but impossible for Ms of people to return to work soon & countless businesses face
the prospect of failure unless the virus eases & customers return. That will weigh on spending in the months ahead & slow an economic
recovery.
U.S. consumer spending climbs 1.4% in September to cap off strong third quarter
Dow Jones Industrials
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