Dow advanced 186 (but selling into the close), advancers over decliners 2-1 & NAZ jumped 190. The MLP index went up 2+ to the 189s & the REIT index soared 4+ to the 431s. Junk bond funds rose & Treasuries remained in demand. Oil surged 2+ to about 67 & gold gained 7 to 1883 (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)
Pres Biden is prepared to "change course" on passing his massive tax & spending packages if Dems are unable to strike a bipartisan agreement on infrastructure with Senate Reps, a top White House adviser said "He wants a deal. He wants it soon," White House senior adviser Cedric Richmond said. "But if there's meaningful negotiations taking place in a bipartisan manner, he's willing to let that play out. But again, he will not let inaction be the answer. And when he gets to the point where it looks like that is inevitable, you'll see him change course." Biden has laid out 2 massive economic proposals – the $2.3T American Jobs Plan & the $1.8T American Families Plan – that make up his "Build Back Better agenda." The measures, which would be paid for by raising taxes on corps & wealthy Americans, seek to dramatically expand the gov-funded social safety net, overhaul the nation's infrastructure & invest billions into green energy & combating climate change. The White House has said it would like to see progress on a bill by Memorial Day & has indicated that it wants to send the measure to Biden's desk before the Aug recess. But the 2 sides remain deeply divided on the size & scope of such a measure.
WH suggests Biden may drop talks with GOP if spending negotiations falter
9 states now have 70% of adult residents with at least one vaccine shot, Centers for Disease Control & Prevention data shows, as nationwide Covid case & death counts fell further. The 7-day average of new infections is about 25K per day as of yesterday, according to Johns Hopkins University, down 24% from a week ago. The daily death toll, which is currently at nearly 550 per day, is also declining. About 49% of the US population has had at least one shot, with 39% fully vaccinated. Of people ages 18 & older nationwide, 61% are at least partially vaccinated. Pres Biden's goal is to get that number to 70% by Jul 4. Vaccination progress varies across the country. Currenly, New Mexico became the 9th state to report that 70% of adult residents have had at least one shot, joining Vermont, Hawaii, New Hampshire, Massachusetts, Connecticut, Maine, New Jersey & Rhode Island. Data from the CDC shows the US is reporting an average of 1.8M vaccinations per day over the past week. With about 13K cases reported yesterday, the 7-day average of daily new infections in the country dropped to 25K. The 7-day average is down 24% compared with one week ago. The US is seeing an average of 546 Covid deaths per day over the last week, the lowest since Jul 2020.
Nine states have 70% of adults at least partially vaccinated
Gold futures climbed, with prices inching toward $1900-an-ounce resistance, as weakness in the $ & Treasury yields, along with volatility in bitcoin, contributed to metal's finish at the highest since early Jan. Jun gold rose $7 (0.4%) to settle at $1884 an ounce, following a weekly gain of 2.1%, which marked the metal's 3rd straight weekly advance. The settlement was the highest for a most-active contract since Jan 7. Some strategists view $1900 for gold as a point of resistance that could help gauge how bullish investors have become about bullion. Still, gold's recent ascent is setting it up for the best monthly gain since Dec as worries about a choppy recovery from COVID in parts of the world & uncertainties about inflation have helped to support the precious metal.
Gold settles at highest since January
Oil futures climbed, finding support as a US official said there aren't yet any signs that Iran will comply with the nuclear commitments required to lift sanctions on the country, casting doubts that Tehran would soon be able to resume crude exports. A lack of cooperation by Iran, as well as skeptical comments about Iranian compliance by Secretary of State Antony Blinken, lower the odds that a new agreement is reached & therefore, suggest sanctions are not likely to be lifted in the near to medium term. Blinken said the US hasn't yet seen whether Iran is “ready and willing to make a decision to do what it has to do” to have sanctions removed. West Texas Intermediate (WTI) crude for Jul rose $2.47 (3.9%) to settle at $66.05 a barrel, the highest front-month contract finish in a week. Jul Brent crude, the global benchmark, added $2.02 (3%) at $68.46 a barrel. Iran informed the UN nuclear watchdog that it would extend a monitoring deal for a month, the International Atomic Energy Agency said. The leader of Iran's parliament yesterday had announced that the monitoring agreement had lapsed, raising doubts about efforts to revive the Iran nuclear deal. Indirect talks aimed at returning the US to the nuclear accord & Tehran moving back into compliance with the deal have shadowed the oil market. An agreement would see the lifting of US sanctions on Iran, returning a large source of crude supply to the market.
Oil prices up sharply as U.S. official raises doubt that Iran will comply with nuclear commitments
The bulls were out in force today. Excitement around mergers got them excited among other things. Inflation worries were put aside for the time being. However they have not gone away. Interest in gold is strong & there was also buying in Treasuries. More gov spending programs at a time when the recovery in the US is coming along is what brings on higher inflation & that hurts everybody.
Dow Jones Industrials
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