Dow advanced 29 (session lows), advancers over decliners 2-1 & NAZ skyrocketed 464 (reclaiming about 1/3 of the fall from the record high almost 2 months ago). The MLP index fell 1+ to the 168s & the REIT index went up 3+ to the 384s. Junk bond funds were bid higher & Treasuries remained weak while stocks rallied. Oil pulled back 1 to 64 & gold soared 37 to 1715 (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)
Boeing (BA), a Dow stock, sold 82 aircraft in Feb & logged 51 cancellations, marking the
first time since Nov 2019 that monthly sales outpaced scrapped
orders. The COVID-19 pandemic continues to weigh on sales of new planes as airlines largely try to
conserve cash wherever they can. Some carriers, however, are starting to
prepare for a recovery in travel demand by buying new planes. Feb sales included 25 Boeing 737 Max planes to United Airlines (UAL) & 27 KC-46 tankers. The aircraft manufacturer posted 51
cancellations, including 32 Max planes. Singapore Airlines replaced an
order for 19 787-10 Dreamliners with one for 11 777X jets, BA's
long-delayed new plane. The company expects that twin-aisle, long-range
jet to enter commercial service in late 2023. Its backlog now stands at 4041 planes. BA
delivered 22 aircraft last month, including 18 737 Max planes. The
Federal Aviation Administration in Nov cleared the jets to fly
again after a 20-month grounding that followed 2 deadly crashes. Most
other aviation regulators have followed suit, allowing BA to resume
deliveries of the more than 3K Max planes it has had on backorder. The stock rose 6.71.
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club.ino.com/trend/analysis/stock/BAa_aid=CD3289&a_bid=6ae5b6f7
Boeing aircraft orders outpace cancellations for first time since 2019
Gold futures rose sharply to reclaim the key price at $1700 & post their first gain in 5 sessions, with prices supported by a
retreat in the $ & a pullback in yields for gov debt from
one-year highs. Gold for Apr gained a huge
$38 (2.3%) to settle at $1716 an ounce, marking the biggest
one-day $ & percentage rise for a most-active contract since Jan
4. Prices tumbled 1.2% to hit the lowest for the
most-active contract since Apr 3 yesterday. Gold prices rebounded as the 10-year Treasury note yield was down 6 basis points at 1.535% today, after
hovering around 1.60% yesterday. On top of that, the $ fell 0.3%
after trading near its highest level since Nov 24 a day ago. Lower bond yields & a weakening dollar can make
commodities priced in the US currency more attractive to buyers,
compared against other assets. Meanwhile, investors continue to seek out long-term inflation hedges,
with expectations growing that fiscal spending & successful COVID
vaccination rollouts will lead to a powerful rebound in the economy &
inflation. Gold is viewed as a hedge against inflation. The
House is expected this week to provide final approval of a $1.9T
package of COVID relief spending, giving Pres Biden an early
political victory & stoking expectations for a surge in economic
growth later in 2021.
Gold ends more than 2% higher as yields pull back, dollar softens
The anxiety of small-business owners eased in Feb, a new survey shows, but they are still wrestling with the aftereffects of the recent coronavirus spike & an uneven economic recovery. The closely followed optimism index compiled by the National Federation of Independent Business (NFIB) edged up to 95.8 last month from 95 in Jan. One year ago, however, the index stood near an all-time high of 104.5. Pandemic restrictions started soon after, in Mar 2020. More than ½ of the small businesses surveyed said they either hired or tried to hire workers last month, but many could not find suitable workers. Companies said finding enough talent was their biggest problem, even more than taxes or regulatory costs. Few were planning to invest or increase spending given a still-high level of uncertainty about the coronavirus & the path of the economy in the next 6 months. The biggest share of small businesses in 12 years, meanwhile, said they are raising prices in a potential harbinger of higher inflation. Companies have raised prices because of tight supplies. The shortages are being exacerbated by rising customer demand. Many small businesses were dealt another blow at the end of last year after states reimposed some restrictions following a record surge in corovirus cases. Most of those restrictions are now being lifted, but it will take time for small businesses to recover lost ground. What could help is fresh financial aid from the federal gov, an increasing number of Americans being vaccinated & a decline in coronavirus cases. Business should improve in the next few months.
Small businesses are less anxious, NFIB finds, but suffer from uneven recovery
Oil futures suffered a 2nd straight day of losses as traders awaited data that may reveal a 3rd weekly climb in US crude inventories. The American Petroleum Institute followed by official data from the Energy Information Administration (EIA) tomorrow. Analysts expect domestic crude supplies rose by 2.7M barrels last week. Supplies jumped up by 21.6M barrels the week before, with the change to a drop in refinery activity from the winter storm in Texas. West Texas Intermediate (WTI) crude for Apr fell $1.04 (1.6%) to settle at $64.01 a barrel. May Brent, the global benchmark, fell 72¢ (1.1%) to $67.52 a barrel. In a monthly report released Tues, the EIA lifted its 2021 oil-price forecasts by 14% from Feb's report, with WTI's average for the year at $57.24 & Brent's at $60.67. It also raised its 2022 US oil production forecast by 4.3% to 12.02M barrels per day. Oil prices moved higher in early Mon dealings, with Brent topping $71 a barrel for the first time in over a year, before pulling back to settle lower for the session, marking the first loss in 4 sessions. Traders showed concern about the stability of oil supplies in the Middle East after an attack by Iran-backed Houthi rebels on oil facilities in Saudi Arabia over the weekend, but there was reportedly no damage to the Saudi's largest oil export terminal at Ras Tanura in the Persian Gulf. OPEC & its allies (OPEC+) reached an agreement last week to roll over production curbs into Apr & Saudi Arabia said it would extend its unilateral cut of 1M barrels a day.
Oil posts 2nd straight loss ahead of weekly U.S. supply data
Tech shares had a spectacular rally & the Dow finished only with a modest advance. Gold found fans today while bonds were hit with selling. There was significant selling in stocks during the last 2 hours.
Dow Jones Industrials
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