Dow rose 46, decliners over advancers about 3-2 & NAZ declined 27. The MLP index slid to 152 & the REIT index pulled back fractionally to the 365s. Junk bonds funds did little today & Treasuries were being bought. Oil backed off slightly in the 46s (but still near the highs from before the pandemic) & gold added 4 to 1842 (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)
The Senate passed a one-week gov funding extension as Congress rushes to reach spending & coronavirus relief deals. The measure heads to Pres Trump's desk. He needs to sign it into law before tomorrow to prevent a gov shutdown. The bill funds the gov thru Dec 18. Congressional leaders hope to pass both a full-year spending package & pandemic aid before then, but have struggle to reach agreement on both fronts. Appropriators have agreed on a $1.4T price tag for legislation to keep the gov running thru Sep 30, 2021. However, they have failed to agree on where exactly the money will go. Despite the most frantic efforts in months to craft a coronavirus rescue package, Congress has several major disputes to resolve to reach a deal. Ms of Americans await help as an uncontrolled outbreak ravages communities across the country & leads to food insecurity unseen in years. If lawmakers cannot pass relief legislation in the coming days, about 12M people will lose unemployment benefits on the day after Christmas. An eviction moratorium and family leave provisions put in place earlier this year will also expire at the end of Dec.
Senate passes one-week government funding extension, sends it to Trump
The Senate approved a colossal defense policy bill despite multiple threats from Pres Trump that he would veto the measure. At least 75 members of the Rep-led Senate voted for the sweeping $740B annual defense bill, a number larger than the 2/3 majority that would be needed to defeat Trump's promised veto. With the weight of the House and the Senate behind the National Defense Authorization Act (NDAA) the bill breezes from Congress to Trump's desk with overwhelming support. The NDAA, which typically passes with strong bipartisan support and veto-proof majorities, authorizes a topline of $740B in spending & outlines Pentagon policy. Earlier this month, Trump threatened to veto the must-pass defense bill if lawmakers do not include a measure eliminating legal protections for social media companies. Trump is calling for the repeal of a federal law, known as Section 230 of the Communications Decency Act, which protects tech giants like Facebook (FB) & Twitter (TWTR) from being held legally liable for what is posted on their platforms. Last week, Trump referred to the provision as a “liability shielding gift” to “Big Tech” & called for it to be “completely terminated” otherwise he would nix this year's NDAA. The pres also said the measure posed a serious threat to US national security as well as election integrity but did not give any further explanatory details. Trump has also said that TWTR, his social media platform of choice, has unfairly censored him.
Senate overwhelmingly passes $740 billion defense bill as Trump’s veto threat looms
Gold futures rose to tally a gain for the week as investors in the precious metal responded to the risk of fiscal deadlock in DC, the possibility of a Brexit without an EU trade deal & some signs of US inflation in commodity prices. Gold prices struggled to stay above $1850 an ounce this week after a slump to a 5 month low in late Nov. Prices for gold edged after the latest data on US consumer sentiment. Dem euphoria over Joe Biden's presidential election win drove sentiment higher, but the increase runs counter to many economic indicators signaling a deterioration in the economy. The first of 2 readings in the consumer sentiment index for Dec rose to 81.4 from 76.9 in the prior month, the Univ of Mich said. While talks on another coronavirus relief package remain stalled, the Senate at least passed a one-week spending bill in a voice vote, sending the measure on to Pres Trump so he can sign it into law & prevent a partial gov shutdown. Feb gold rose $6 (0.3%) to settle at $1843 an ounce, following a flattish time for bullion yesterday to mark the lowest finish for a most-active contract since Dec 2. Markets have been on edge as UK Prime Minister Boris Johnson said Britain needs to brace for the likelihood that a post-Brexit trade deal with the EU won't happen & investors also were watching a lack of productive negotiations out of DC on fresh coronavirus fiscal aid.
Gold tallies a gain for week as U.S. fiscal and Brexit risks rise
Oil futures ended lower, but notched a weekly gain as investors took their cue from progress on the rollout of COVID-19 vaccines which may help the economic recovery. Signs of resilient demand in Asia & elsewhere also helped underpin prices. West Texas Intermediate (WTI) crude for Jan fell by 21¢ (0.5%) to settle at $46.57 a barrel. Feb Brent crude lost 28¢ (0.6%) at $49.97 a barrel, settling below the key level of $50 after breaching it this week for the first time since Mar. WTI registered a 0.7% weekly rise though, while Brent tacked on 1.5%. Both benchmarks yesterday marked their highest front-month contract settlements since Mar 4. Oil is building on sharp Nov gains, attributed largely to progress toward COVID-19 vaccines, which outweighed worries over the potential hit to demand from a surge in cases in the US & Europe. The vaccine developed by Pfizer (PFE) & BioNTech (BNTX) was rolled out in the UK earlier this week, while the Food & Drug Administration was seen moving toward emergency authorization of the vaccine after an advisory panel voted that benefits of the drug outweighed the risk. Baker Hughe reported that the number of active US rigs drilling for oil rose by 12 to 258 this we, following increases in each of the last 2 weeks.
Oil ends lower, but notches a weekly gain, lifted by vaccine optimism
The US suffered its worst week for cases, deaths & hospitalizations with the coronavirus illness COVID-19, as the FDA said it would grant emergency-use authorization to the vaccine developed by Pfizer (PFE) & Germany partner BioNTech (BNTX). The announcement comes a day after a federal advisory committee made up of independent medical experts voted 17-4-1 that the benefits of the Pfizer–BioNTech vaccine outweigh the risks. The FDA is not required to follow the recommendation of the committee but often does. The FDA said it has been in touch with the Centers for Disease Control & Prevention & “Operation Warp Speed,” the program set up to expedite development of therapeutics & vaccines during the pandemic (Pfizer–BioNTech) vaccine development took place outside that program, “so they can execute their plans for timely vaccine distribution.” Once the vaccine is authorized, it will be the first COVID-19 vaccine to be made available to Americans outside of clinical trials. FDA head Dr Stephen Hahn said the regulator is now finalizing the documents needed to ensure that patients & providers have the information they need to safely administer the vaccine. “This is a critical part of what the agency does to promote and protect the public health,” he said. The same vaccine has already received emergency authorizations from the governments of the UK, Canada & Bahrain, & the UK has launched a vaccine-distribution program.
U.S. suffers its worst week of cases, deaths and hospitalizations since the start of the pandemic
Traders are not sure where to take take the market. The Dow topped the important milestone of 30K, but then it stalled (like those guys in DC). The news on the new virus vaccines is good, but rising new cases are discouraging for investors. The US economy looks to be sluggish in Q4 & attempts to pass a stimulus bill have gone nowhere. The Dow is down modestly this week but up 1% in Dec.as the Santa Claus rally has stalled.
Dow Jones Industrials
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