Dow shot up 337, advancers over decliners about 3-1 & NAZ advanced 155. The MLP index added 3+ to 350 & the REIT index gained 6+ to 370. Junk bond funds fluctuated while stocks were purchased & Treasuries slid lower. Oil climbed into the 47s for a 9 month high & gold surged 24 to 1856 (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)
Sen Bernie Sanders called on Dem leaders to reject a $748B bipartisan coronavirus relief proposal because it leaves out stimulus checks for Ms of Americans. The independent slammed the bill as "totally inadequate" & questioned how his Dem colleagues could support it after maintaining for months that at least $2.2T emergency aid is needed. Most of the funding for the bipartisan proposal stems from leftover CARES Act money. “What kind of negotiation is it when you go from $3.4 trillion to $188 billion in new money? That is not a negotiation. That is a collapse,” Sanders said. “We cannot go home until there [are] strong unemployment benefits plus $1,200 per adult, $500 per kid for every working person and family in this country.” The $748B measure, released by a dozen centrist senators, includes funding for education, vaccine distribution, transportation, small business relief & federal unemployment aid. A more controversial $160B add-on would include aid for state & local govs & a liability shield for businesses against COVID-related lawsuits — the 2 thorniest issues that have plagued negotiations for months. The members of the bipartisan group said they all back the narrower measure & urged leaders to bring it to the floor for a vote this week.
Sanders urges Dems to reject bipartisan coronavirus relief bill
The top 4 congressional leaders will meet today to try to strike deals to fund the gov & send another round of coronavirus relief as Ms of Americans await help. House Speaker Nancy Pelosi, set up the meeting with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer & House Minority Leader Kevin McCarthy as Congress runs out of time to address both issues. Treasury Secretary Steve Mnuchin who spoke to Pelosi for more than an hour today, will call later. The meeting marks the most significant effort yet for the four leaders to come to a bipartisan agreement on a package that could get thru a divided Congress. Absent congressional action, gov funding will lapse Sat & 12M people will lose unemployment benefits the day after Christmas. A rank-&-file bipartisan group of senators & representatives has played a role in pushing congressional leaders closer to crafting a relief package. The lawmakers released a plan yesterday that would put more than $700B into small business loans, unemployment insurance, vaccine distribution, education & rental assistance. Negotiators in the group urged their party leaders to pass the bill outright or at least use it as a template for a final agreement.
Congressional leaders to meet on Covid relief and government funding as deadlines loom
Gold futures climbed to finish at their highest in a week, rebounding from a 2 week low a day earlier, as prospects for another coronavirus fiscal package gained more traction before the end of the year. The move for the metal also comes ahead of tomorrow's monetary policy announcement from the Federal Reserve. Feb gold rose $23 (1.3%) to settle at $1855 an ounce, the highest finish for a most-active contract since Dec 8, FactSet data show. Prices closed 0.6% lower yesterday to hit the lowest settlement since Dec 2. Many economists view a further fiscal relief program as crucial to bolstering the virus-stricken economy, but also supportive for gold prices as a larger fiscal deficit, when monetized by the Federal Reserve’s bond buying program, implies a depreciation of the $. A reading of business activity in the New York state, Empire State index, has slowed over the past few months & expanded only slightly in Dec, according to the latest survey from the New York Fed. Separately, the US import price index edged up 0.1% last month. US industrial production growth slowed slightly in Nov, weighed down by a sharp decline in utility output. Industrial output rose 0.4% in Nov, the Federal Reserve reported.
Gold climbs to highest finish in a week on hope for further U.S. coronavirus relief
Lockheed Martin (LMT) won a 10-year, $900Mn contract involving a variety of services in support of F-16 aircraft, the defense contractor announced. The
company is the aircraft's original equipment manufacturer & will
carry out the contract duties at its site in Greenville, South Carolina. The contract includes "depot-level maintenance activities, predefined
programmatic work, aircraft modification and unplanned drop-in
maintenance." F-16s are operated by 25 countries with a total of 4588 produced. The
announcement came after the company posted better-than-expected
quarterly results in Oct, boosted by its F-35 fighter jet program. The company added that "Lockheed Martin’s team of F-16 experts are
on-site and prepared to meet the service’s most challenging problems,
partnering between Production and Sustainment operations, giving full
life cycle coverage for the F-16." "The
F-16 Fighting Falcon offers advanced interoperable capabilities that
enhance partnerships with allies across the world. It has been proving
its effectiveness for decades & continues to remain the best value
among 4th generation jets for its capabilities & affordable lifecycle
costs." The stock was off 8¢.
If you would like to learn more about LMT, click on this link:
club.ino.com/trend/analysis/stock/LMT?a_aid=CD3289&a_bid=6ae5b6f7
Lockheed Martin awarded $900M F-16 service contract
Oil futures rose to post their highest settlement in more than 9 months, as investors cheered the rollout of a COVID-19 vaccine & tracked progress toward another round of economic relief. The gains for oil come even as OPEC cut its 2020 & 2021 forecasts for oil demand. The Intl Energy Agency (IEA) warned that the economic recovery in some of the world's wealthier countries was “going backwards” this qtr. In its monthly oil market report, the IEA cut its forecast for a 2021 recovery in demand by 170K barrels a day to 5.7M barrels a day. West Texas Intermediate crude for Jan rose 63¢ (1.3%) to settle at $47.62 a barrel. That was the highest finish for a front-month contract since Feb 26. Feb Brent, the global benchmark, added 47 (0.9%) at $50.76 a barrel, posting the highest finish since early Mar.Ho
Oil settles at a more than 9-month high on vaccine optimism, U.S. stimulus hopesHopes are riding higher for a relief bill, even if it's less some would like to see (i.e. Bernie Sanders). And the vaccine news already is encouraging. Other vaccines awaiting final approval are a bonus. Investors are feeling good with the popular stock averages at or essentially at record highs.
Dow Jones Industrials
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