Dow zoomed 454 to go over 30K, advancers over decliners 3-1 & NAZ went up 156 (over 12K). The MLP index advanced 4+ to the 145s & the REIT index rose 2+ to the 271s. Junk bond funds were mixed & Treasuries continued weak. Oil gained 1+ to the high 44s & gold retreated 38 to 1901 (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)
Some Dem lawmakers opened the door this week to a smaller coronavirus relief deal as Congress faces growing pressure to pass an aid package before the end of the year. Although House Speaker Nancy Pelosi & Senate Minority Leader Chuck Schumer, have maintained for months that at least $2.2T is needed for American workers & businesses still reeling from the pandemic, some top Dems have suggested that a smaller aid package to tide over the economy until Pres-elect Joe Biden takes office on Jan 20 would be better than nothing. "I just hope that we can get agreement. It may not be everything that everybody wants but at least if we can get some significant relief to people," House Majority Leader Steny Hoyer said. "And then we're going to be here next year. If we need to do other things, we'll do other things.” Negotiations on Capitol Hill have been stalled for months despite seemingly endless meetings between Pelosi & Treasury Secretary Steve Mnuchin, & with just 8 legislative days left on their calendar, it's unclear whether lawmakers will be able to reach an agreement before year's end. The deadlock comes at an increasingly perilous time for the nation as it teeters on the brink of another downturn: COVID-19 infections are surging, state & local govs are implementing more restriction measures, new unemployment insurance claims rose last week, & key support programs are set to expire on Dec 31.
Some Democrats open door to smaller coronavirus relief deal
Gold futures logged a 2nd straight sharp loss but held above a key level of support, as the precious metal retreated amid progress on COVID-19 vaccines that helped to send the Dow above a milestone at 30K for the first time. Progress toward remedies for COVID-19 has reduced the need for the safe-haven metal after investors earlier this year rushed into bullion as the $ rose amid economic uncertainties created by the pandemic. Further clarity on the US political scene, after Pres Trump said his aides would cooperate with Pres-elect Joe Biden’s transition to the White House, is also easing concerns about a drawn-out fight over the election. The Dow surged to trade in record territory & investors were also piling into small-capitalization stocks, with the Russell 2000 index also at an all-time high for a 2nd session in a row. Dec gold lost $33 (1.8%) to settle at $1804 an ounce, taking it to its lowest level since mid Jul. It touched an intraday low at $1797. Gold dealers see the metal's support level around $1800, around its 200-day moving average, after slipping beneath a key level at $1850 yesterday. Moving averages are seen by technical analysts as potential dividing line between bullish & bearish momentum in an asset.
Gold price ends at lowest since mid July, but hangs above key support level at $1,800
The federal gov is conducting a practice run this week of its coronavirus vaccine distribution networks with some test shipments as the drugs await emergency approval from the Food & Drug Administration (FDA) in “just a few weeks.” The dry run is part of a series of field exercises under the Trump administration's vaccine program Operation Warp Speed, Health & Human Services Secretary Alex Azar said. The shipments, which won't contain the actual vaccine vials, will test the systems used by state health departments to order vaccine doses to “ensure that all goes smoothly,” Azar said. “If all goes well, we could be distributing vaccine soon after December 10,” Azar added. “We believe we can distribute vaccine to all 64 jurisdictions within 24 hours of FDA authorization. Then we hope administration can begin as soon as the product arrives.” The US is aiming to deliver 40M doses of Covid-19 vaccine by the end of the year. Initial doses would be prioritized for health-care workers & people most vulnerable to serious disease. Last week, Pfizer (PFE) announced that it had selected 4 states — Texas, New Mexico, Tennessee & Rhode Island — to operate a pilot delivery program designed to work out kinks in its distribution system. As part of the program, the company will ship vials filled with saline solution before it starts shipping the actual vaccine, said a PFE spokeswoman. “We’re working on this constantly,” said Gen Gustave Perna, who is leading the federal gov's effort to distribute the vaccines. “We work rehearsals of different scenarios to make sure we’re capturing all the nuances of the delivery, but each and every week we get stronger. It’s not lost on anybody listening, we’re one week closer to distributing the vaccine.”
U.S. to test run Covid vaccine distribution networks as it awaits FDA approval in ‘just a few weeks’
Oil futures rallied sharply, pushing the US benchmark to its
highest close for a most actively traded contract since Mar 5. West
Texas Intermediated crude for Jan delivery rose $1.85 (4.3%) to end at $44.91 a barrel. Oil has been in rally mode since early Nov,
rallying in step with equities as investors appeared to look past rising
COVID-19 cases in the US & Europe, focusing instead on progress
toward a vaccine.
U.S. oil benchmark closes at more-than-8-month high just shy of $45 a barrel
Consumer confidence fell in Nov to a 3-month low after a record wave of coronavirus cases spurred some cities & states to reimpose restrictions & as Americans took greater precautions. The index of consumer confidence slipped to 96.1 this month from a revised 101.4 in Oct, the Conference Board said. The forecast called for a decline to 97.3. Confidence is still far below pre-pandemic levels. The index stood at 132.6 before the viral outbreak in Feb. An index that tracks how consumers feel about the economy right now dipped to 105.9 in Nov from 106.2 in Oct — a surprisingly small decline given the explosion in new COVID-19 cases. Another gauge that assesses how Americans view the next 6 months —the future expectations index — fell more sharply. It dropped to 89.5 from 98.2 even though coronavirus vaccines are likely to be widely available by next summer. “Heading into 2021, consumers do not foresee the economy, nor the labor market, gaining strength,” said Lynn Franco, senior director of economic indicators at the nonprofit board. “In addition, the resurgence of COVID-19 is further increasing uncertainty and exacerbating concerns about the outlook.” Other measures of confidence, including the consumer-sentiment survey & daily report by Morning Consult, also declined in Nov.
Consumer confidence deflates in November after record coronavirus surge
Investors are happy & bidding stocks higher. Optimism over the imminent deployment of a COVID-19 vaccine propelled the Dow above 30K for the first time. Meanwhile safe haven gold is down more than 10% from its recent highs above 2K. Now traders will be paying more attention to the goings on in DC, watching for a stimulus bill by year's end.
Dow Jones Industrials
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