Dow fell 22. decliners over advancers about 5-4 & NAZ lost 9. The MLP index retreated 1 to the 149s & the REIT index went up 3+ to the 381s. Junk bond funds fluctuated & Treasuries prices were flat today. Oil was a little lower in the 52s & gold fell 4 to 1850 (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)
A group of Dem lawmakers reintroduced legislation to raise the federal minimum wage to $15 per hour by 2025 — & indicated they may use a powerful procedural tool to pass the bill using their slimmest-possible Senate majority. “Let’s be clear: The $7.25 an hour federal minimum wage is a starvation wage,” Vermont Sen Bernie Sanders, the incoming chairman of the Senate Budget Committee, said. "No person in America can make it on $8, $10 or $12 an hour." The Raise the Wage Act would more than double the current minimum wage, which has remained at $7.25 per hour for the past decade. The Dem-controlled House passed the bill in Jul, but Mitch McConnell, the top Rep in the Senate, blocked the effort. Reps argued that raising labor costs would deal another blow to small businesses already reeling from the pandemic. A recent analysis published by the Congressional Budget Office, a nonpartisan agency, found that as many as 3.7M workers could lose their jobs as a result of the minimum wage increase. At the same time, the CBO projects that some 17M workers would receive a pay boost. The bill will almost certainly fail to garner the 60 votes needed to overcome a legislative filibuster in the Senate. But Dems may use budget reconciliation, a complicated Senate process that would allow them to circumvent the filibuster & advance the measure using their 50 seats, with VP Kamala Harris breaking any tie. "If we cannot get enough republicans to vote for this regulation under regular order, we cannot simply take no for an answer," Sanders said. "We must raise the minimum wage, the $15 an hour, either thru budget reconciliation, by a simple majority vote in the Senate. As the incoming chair of the Senate Budget Committee, that is exactly what I will be fighting to do." Established by the Congressional Budget Reconciliation Act of 1974, reconciliation can be used on certain tax, spending & debt limit bills. It effectively prevents a legislative filibuster, a Senate rule that requires legislation to receive 60 votes in order to be brought up for a final vote (meaning Dems would need to secure the support of at least 10 Reps).
Dems unveil $15 min. wage bill, may use reconciliation to pass legislation
3M (MMM), a Dow stock & Dividend Aristocrat, CEO Mike Roman said the industrial giant
anticipates demand for its N95 respirator masks to be robust throughout
2021, even as the administration of Covid vaccines drive hopes that the
pandemic's intensity will begin to wane. The medical-grade masks are considered the best option to protect against infection, & they have Been in need — & at times, in shortage — throughout the health crisis. MMM started to ramp up production of N95s about a year ago, just as the novel coronavirus, which first emerged in China in late 2019, began to capture global concern. “We do expect demand in our N95 respirator masks to be strong as we go through the year,” Roman said. “We see the demand, the need, from frontline health-care workers and
first responders. That’s still our priority. We’re focused on delivering
to their demand and also to some critical industries that require that
N95 protection.” His comments came after MMM reported
better-than-expected Q4 results. Revenue of $8.58B
beat the forecast for $8.4B, while EPS of
$2.38 were 23¢ above estimates. For the full year, MMM reported 12.3% sales growth in its health-care segment,
which includes its respirator masks & products such as hand
sanitizers. Overall sales of $32.2B in 2020 were up
0.1% compared with 2019 figures. The company distributed 2B respirator masks across the globe last year. The stock rose 5.61 (3%).
If you would like to learn more about MMM, click on this link:
club.ino.com/trend/analysis/stock/MMM?a_aid=CD3289&a_bid=6ae5b6f7
3M CEO expects strong Covid demand for the company’s N95 masks throughout 2021
Johnson & Johnson (JNJ), a Dow stock & Dividend Aristocrat, reported Q4 earnings & revenue that beat expectations. The company also said it would release key details on its
coronavirus vaccine “soon.” Adjusted EPS was $1.86 versus $1.82 expected & revenue was $22.48B versus $21.67B expected. “I’m
incredibly proud of our Johnson & Johnson teams around the world
for going above and beyond to meet stakeholder needs,” CEO Alex Gorsky
said. “We continue to progress our COVID-19 vaccine
candidate and look forward to sharing details from our Phase 3 study
soon.” The company forecast an adjusted EPS for 2021 of $9.40-9.60 & sales of $90.5-91.7B. JNJ is expected to release data from its phase 3 trial testing its Covid-19 vaccine as early as this week. US officials are eagerly anticipating the federal authorization of the vaccine, which could happen as early as next month because it requires only one dose. That means patients will
not have to come back for another dose, simplifying logistics for
health-care providers. CFO Joseph Wolk said the company expects the phase 3 trial data to
be “robust.” He said it's possible there may be differences in results
for people tested in places like South Africa, where there is a new,
highly contagious strain of the virus. The stock rose 4.50 (3%).
If you would like to learn more about JNJ, click on this link:
club.ino.com/trend/analysis/stock/JNJ?a_aid=CD3289&a_bid=6ae5b6f7
J&J beats earnings expectations, will release Covid vaccine data ‘soon’
Gold futures settled lower for 4th-straight session, marking the longest string of consecutive losses in more than 8 months. The move for the metal came on the first day of Federal Reserve's 2-day policy session, which concludes tomorrow. The central bank's statement may reveal further insights about the health of the US economy amid the COVID-19 pandemic. Feb gold lost $4 to settle at $1850 an ounce, after a tiny loss yesterday. Today represents the longest streak of lower settlements for a most-active contract since a 5-session slide ended on Apr 30. The Feb contract has largely been in a range of $1817-1824 though since the start of the year & first notice day is on Fri Jan 29 with the contract expiry due on Feb 24. Bullion trade has been sensitive to expectations for further gov spending as the administration of Pres Biden aims to promote a $1.9T COVID relief package, which is viewed as bullish for gold investors. The yellow metal also has tended to move in step with weakness in the $ & vacillations in gov bond yields, which compete with bullion for haven demand. However, on the central bank front, the highlight is the FOMC decision tomorrow.
Gold down a fourth session to log longest string of losses in over 8 months
Oil futures ended on a mixed note, with US benchmark prices down, but global benchmark Brent crude modestly higher, as traders weighed potential risks to supplies, as well as demand. Indonesian authorities seized Iranian & Panamanian-flagged vessels for suspected illegal oil transfers, meanwhile, there were 2 loud booms were heard over Riyadh, a few days after Saudi Arabia said it intercepted an apparent missile or drone over its capital. West Texas Intermediate crude for Mar delivery fell by 16¢ to settle at $52.61 a barrel. The front-month Mar Brent crude contract, the global benchmark, added 3¢ to $55.91 a barrel. Hinting at a recovery, the Intl Monetary Fund raised its forecast for global economic growth this year to 5.5%, but warned of “extraordinary uncertainty” about the outlook.
Oil prices end mixed as traders weigh risks to crude supplies and demand
Dow Jones Industrials
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