Dow fell 52, decliners modestly ahead of advancers & NAZ gained 9 to another record. The MLP index drifted down 1 to 151 & the REIT index was fractionally lower in the 385s. Junk bond funds rose & Treasuries were bid higher. Oil was flattish just below 58 & gold went up 6 to 1840.
AMJ (Alerian MLP index tracking fund)
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Businesses sharply cut back on the number of people they hired at the end of 2020 with most of the decline at restaurants, hotels & other companies hurt most by the coronavirus. Hiring shrank by almost 400K in Dec to 5.5M, according to the gov's job openings & labor turnover survey. The report is issued with a one-month delay. Many businesses were forced to lay off workers again after coronavirus cases exploded to a record high & states reimposed some restrictions. Job openings, meanwhile, rose slightly to 6.65M. Although openings were actually higher at the end of 2020 compared to a year earlier, companies aren't rushing to fill them. Hotels & restaurants accounted for more than ½ of the decline in hiring in Dec. Hiring also fell in transportation, warehousing, arts, entertainment & recreation. Retailers hired almost 100K workers in Dec, though most of those jobs were temporary. Although job openings are seemingly high, most companies aren't rushing to fill them. The economy lost 227K jobs in Dec & only gained back 49K in Jan. Hiring is likely to accelerate if the vaccines are effective & the pandemic starts to fade, but it could take months for the labor market to recover its momentum. The US lost a net 5.5M jobs in 2020,.
Hiring sank in December to cap off worst year for U.S. labor market since 2009
Dems on a pivotal House panel proposed an additional $1400 in direct payments to individuals as Congress began piecing together a $1.9T COVID-19 relief package that largely follows Pres Biden's proposal for battling the pandemic & reviving a still staggering economy. The proposal by the Ways & Means Committee, which plans to vote on its measure by week's end, would expand tax credits for families with children, for lower-earning people & for Americans who buy health insurance on marketplaces created by Obamacare. It would also provide health care subsidies for some unemployed workers. Less than 3 weeks into his presidency, Biden has declared that defeating the virus & fixing the economy are his top priorities. The coronavirus pandemic has killed over 460K Americans while the economy has lost 10M jobs since the crisis began last year. The unveiling of the package — at over $900B, nearly ½ of Biden's entire plan — came with Congress' Dem leaders hoping to rush the legislation to the pres for his signature by mid-Mar, when previously provided emergency unemployment benefits expire. The schedule reflects a desire by Biden & congressional Dems to show they can respond swiftly & decisively to the crisis, even if as seems likely they must do so over solid Rep opposition. The House Education & Labor Committee also previewed its plans, a roughly $350B package that includes $130B to help schools reopen safely, $40B for colleges battered by the pandemic & a plan to gradually raise the federal minimum wage to $15 an hour.
Democrats unveil details of $1.9 trillion stimulus package
General Motors (GM) is extending temporary shutdowns at 3 assembly plants thru mid-Mch due to a global shortage of semiconductor chips. The
impacted plants are in Kansas; Ontario, Canada; & San Luis Potosí,
Mexico. They produce the Chevrolet Malibu sedan & Buick Encore,
Cadillac XT4, GMC Terrain & Chevy Equinox & Trax crossovers. The
shutdowns, which were initially supposed to last thru this week,
will be re-assessed in mid-Mar. They're intended to ensure the company
has enough semiconductor chips to produce its more profitable pickup
trucks & SUVs. “Semiconductor supply remains an issue that is
facing the entire industry,” GM said. “GM’s plan is to
leverage every available semiconductor to build and ship our most
popular and in-demand products, including full-size trucks and SUVs and
Corvettes for our customers.” The stock fell 89¢.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM extending plant shutdowns at three car and crossover plants due to chip shortage
Stocks aren't doing much of anything, with a lot of attention being paid to what's going on in DC.
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