Dow climbed 204 (but off early highs), advancers over decliners about 5-4 & NAZ gained 94. The MLP index declined 2+ to the 138s & the REIT index added 2+ to the 369s. Junk bond funds were hit with a little selling & Treasuries edged lower in price. Oil fell to the 48s & gold was off 5 to 1877 (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)
US retail sales rose 3.0% during this year's expanded holiday shopping season from Oct.11 - Dec 24, a report by Mastercard said, powered by a pandemic-driven shift toward online shopping. US e-commerce sales jumped 49% in this year's holiday shopping season, according to Mastercard SpendingPulse report, underscoring the COVID-19 pandemic’s role in transforming customers' shopping habits. The holiday shopping season can account for the majority of certain retailers' annual sales, but the health crisis meant several retailers faced with capacity constraints in certain stores, rolled out their holiday promotions early. Holiday e-commerce sales made up 19.7% of total retail sales this year. The National Retail Federation has estimated that the number of people who shopped only online jumped 44% during the Thanksgiving holiday weekend, with thin crowds at many stores. People spending longer at home due to extended work-from-home & remote learning policies have fueled demand for home decor & home-improvement products, with retail sales in the home furniture & furnishings category jumping 16.2%. Electronics & appliances also rose 6% during the period as a reduction in spending on dining out, travel & leisure encouraged shoppers to make other purchases. The SpendingPulse report tracks spending by combining sales activity in Mastercard's payments network with estimates of cash & other payment forms but excludes automobile sales.
US holiday retail sales rise 3.0% - Mastercard report
The House will vote today on increasing the 2nd round of federal direct payments to $2000 as Dems embrace Pres Trump's calls to put more money in Americans' pockets. The measure would boost the stimulus checks in the year-end coronavirus relief & gov funding package to $2000 from $600. The vote comes a day after Trump signed the more than $2T pandemic aid & full-year gov spending bill into law. Last week, the pres called the legislation a “disgrace.” He waited days to sign the package after he received it from Congress. Trump claimed he opposed the bill because it included too little direct money to Americans & too much foreign aid. Trump has pushed for $2000 payments in recent days. He noted that the House & potentially the Senate could move to approve larger cash deposits. However, most Reps in the GOP-held Senate have opposed even a $1200 check. Trump's gambit caps a chaotic 8 months of efforts to send another round of coronavirus relief. Americans waited months for more help after financial lifelines that aided them thru the early months of the pandemic expired over the summer. Trump's delays in signing the year-end bill cost an estimated 14M jobless Americans a week of unemployment benefits after 2 key relief programs briefly expired. Dems have called the relief bill a down payment & plan to push for more aid after Pres-elect Biden takes office. As they had called for larger direct payments throughout & talks, they jumped on the pres's support for $2000 deposits.
House to vote on $2,000 stimulus checks after Trump signs Covid relief and funding bill
Gold futures finished lower after back-to-back gains, giving up an early rise in a choppy trading session as investors deemed some firmness in the $ & a global stock rally sufficient headwinds for bullion. Bullion had briefly scored a modest bounce toward its highest level in about 6 weeks intraday after Pres Trump signed a coronavirus relief package over the weekend, ending a brief standoff between the White House & Congress. Gold is viewed as a hedge against devaluation of $s & large deficits being run up by govs to curb the harmful economic effects of the COVID-19 pandemic. Bullion has benefited over the year from economic uncertainties created by COVID-19, but has been struggling to hold on to key levels near $1900, with the rollout of experimental vaccines & remedies that have been rapidly authorized by governmental health bodies to tackle the pandemic. Risk markets scored a boost after the signing of the relief bill, as the coronavirus pandemic continued to surge across the country & the rest of the world. The legislation was seen as a support for gold prices because gov spending is seen putting pressure on the $. However, much of the move in gold from COVID aid measures may have been priced into the metal. A neutral $, tilting slightly higher in the session, eventually helped to pressure gold lower. A firmer $ tends to make assets priced in the commodity less appealing to buyers overseas. The $ was flat at 90.323. Gold for Feb shed $2 to settle at $1880 after posting a 0.3% weekly decline on Thurs & snapping a streak of 3 consecutive weekly gains.
Gold prices end lower as stocks rally, steady dollar buffet bullion
Oil futures settled lower, fading after getting an early boost following Pres Trump's decision over the weekend to reverse course & sign legislation that includes $900 billion in aid to consumers & small businesses. West Texas Intermediate crude for Feb fell 61¢ (1.3%) to close at $47.62 a barrel after trading as high as $48.96. Feb Bre, the global benchmark, declined 43¢ (0.8%) to settle at $50.86 a barrel. The US case tally has topped 19 & health experts warned the next few weeks will be hard after Ms of Americans traveled over the Christmas holiday. Trump, who had blindsided investors and lawmakers last week by blasting the $900B stimulus package & demanding that $600 checks to households be increased to $2000, changed course Sun to sign the legislation. The package includes $1.4T to fund gov agencies thru Sep, averting a gov shutdown.
Oil ends lower as COVID worries outweigh boost from stimulus package
After buying in the first hour of trading, sellers returned & the Dow finished about 120 off session highs & the advance-decline rate also suffered. The bulls like to see new records for the Dow & NAZ, but massive spending bills are giving traders a lot to think about.
Dow Jones Industrials
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