Dow climbed 103, advancers over decliners better tha 2-1 & NAZ advanced 79. The MLP index went up 1 to 161 & the REIT index added 1+ to the 365s. Junk bond funds were mixed & Treasuries had modest selling. Oil retreated in the 52s & gold lost 8 to 1846.
AMJ (Alerian MLP index tracking fund)
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The number of Americans filing for first-time uemployment aid last week jumped to the highest level since mid-Aug, the latest sign the economy's recovery is stalling amid a surge in Covid-19 infections nationwide. Figures from the Labor Dept show 965K Americans filed first-time jobless claims last week, higher than the 795K forecast. The number is nearly 4 times the pre-crisis level but is well below the peak of almost 7M that was reached when stay-at-home orders were first issued in Mar. Almost 70M Americans (40% of the labor force) have filed for unemployment benefits during the pandemic. The number of people who are continuing to receive unemployment benefits rose to 5.3M, an increase of about 199K from the previous week. Roughly 18.4M Americans were receiving some kind of jobless benefit at year-end. The report provides fresh evidence that a record-setting rise in coronavirus cases – the US reported more than 4200 deaths on Tues, bringing the nation's total to 381K – & new lockdown measures are weighing on the labor market. A separate report released last week shows that employers cut 140K jobs in Dec, marking the first loss since the early months of the pandemic. Many more Americans are receiving jobless aid from 2 federal programs that Congress established with the passage of the CARES Act in Mar: One extends aid to self-employed individuals, gig workers & others who typically aren't eligible to receive benefits, & the other provides aid to those who have exhausted their state benefits. The federal gov renewed those programs at the end of Dec with the passage of a $900B relief act, which includes a supplemental $300-a-week jobless benefit, a one-time $600 stimulus check for most adults & new funding for a small business rescue program.
Another 965,000 Americans filed for unemployment aid last week
China exported more to the rest of the world last year than ever before, despite the global COVID-19 pandemic-related recession, figures from the country’s customs administration showed. The trade surplus hit a historic high of $78B in Dec. Exports grew by double digits for the 3rd consecutive month, up 18.1% in $ terms in Dec from a year earlier, on the back of strong sales of medical goods & pandemic-related products such as home computers. This happened despite a steep recession in the country’s European & American markets, & the 6% rise of the Chinese currency against the $ in 2020. China underwent a steep industrial recovery starting in Apr, after vigorous measures taken to control the COVID-19 pandemic that started in the Wuhan region. Imports also rose strongly in Dec, up 6.5% on the month. The Chinese economy was the only one among the world's major powers to grow in 2020. Official GDP numbers will be released next week &, according to most forecasts, should show growth of around 2% last year. That compares to a 4% decline for the global economy. Economists expect China's exports growth to slow in the coming months if & when western economies manage to control the COVID-19 pandemic's 2nd wave & resume normal activity. But, as shown by the rise of imports, China's domestic market & the country's consumers may then help sustain growth — if that happens. The strength & resilience of the Chinese economy would then be a blessing for recovering Europe & the US, whose exporters will benefit from a fast-growing market. That should help soften a possible protectionist backlash, especially since the administration of Pres-elect Joe Biden is unlikely to be as strident about Chinese trade as its predecessor.
Chinese exports shot to a record high in 2020 as the world economy sank
Dr Scott Gottlieb warned coronavirus vaccine recipients against letting their guards down right away, adding that they should adhere to public-health measures such as wearing masks. The former Food & Drug Administration (FDA) commissioner said the advice is particularly important for elderly Americans who are at higher risk of death or serious illness from Covid-19. “I think for an older individual who is vulnerable to this virus, certainly .. wait for a period of time after the second shot until you’re likely to have full protective immunity,” Gottlieb said. “I don’t think people should feel completely secure after the first shot.” Both Covid vaccines that have received emergency use authorization from the FDA require 2 doses. Roughly 10.3M Americans have received their initial Covid shot, according to the Centers for Disease Control & Prevention. About 29.4M doses have been distributed. The shaky vaccine rollout comes as the nation continues to see high levels of coronavirus infection & more deaths from Covid-19. The country's 7-day average of new daily cases is 245K, according to data compiled by Johns Hopkins University. An average of 3360 Americans have died from Covid per day over the last week, the 2nd-highest tally on record. Vaccine recipients need to still take public-health precautions because the US outbreak remains so significant & “infection is everywhere,” Gottlieb said. “If you’re a vulnerable individual, even if you’ve had the second shot and you think you have full protective immunity from the vaccine, it’s still very prudent to continue to wear a mask and take precautions.” “That doesn’t mean you have to hibernate and have to avoid seeing family,” added Gottlieb. “Maybe you can lean forward in that regard but wear a mask. Be more careful in those interactions, because in a high-prevalent environment, you’re still at risk.” As more Americans become vaccinated, Gottlieb said that should lower overall US infection rates & significantly curtail the intensity of the epidemic. At that point, he added, it will be more sensible to “relax” some precautions. “That’s hopefully going to be the summer, the spring, if these new variants don’t get a foothold here in the United States and change our trajectory,” he said, referencing the coronavirus strains initially found in the UK & South Africa that are believed to be more transmissible.Markets rise on stimulus hopes although jobless claims disappoint
Gottlieb: Covid vaccine recipients should not let their guards down right away
Hopes spring eternal & buyers are hoping throwing more money at the economic recovery will help. Somewhat offsetting the China data, Germany's economy (the largest in the EU) declined 5% last year. The big banks should be reporting earnings shortly & they are expected to be good.
Dow Jones Industrials
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