Dow was off 91, advancers modestly ahead of decliners & NAZ went up 2. The MLP index rose 2+ to the 198s & the REIT index gained 4+ to the 451s (for another record). Junk bond funds did little & Treasuries were sold. Oil slid lower in the 69s & gold added 2 to 1894.
AMJ (Alerian MLP index tracking fund)
|
|
Treasury Secretary Janet Yellen said that Pres Biden's $4T spending plan would be good for the US, even if it contributes to rising inflation & results in higher interest rates. "If we ended up with a slightly higher interest rate environment it would actually be a plus for society's point of view and the Fed's point of view," Yellen said. "We've been fighting inflation that's too low and interest rates that are too low now for a decade," Yellen added. "We want them to go back to" a normal interest rate environment, "and if this helps a little bit to alleviate things then that's not a bad thing- that's a good thing," she continued.
Yellen says higher interest rates would be 'plus' for US
China bought fewer American products in May versus the prior month, while exports to the US rose, according to customs data. China bought $13.1 worth of goods from the US in May, down from $13.9B in Apr. May's figure marked the lowest monthly amount since Oct. While overall Chinese imports from other countries grew at their fastest pace in 10 years — up 51.1% — the pace of growth for imports from the US slowed to 41% in May from a year ago, versus 52% the prior month. As a result, China's trade surplus with the US rose to $31.8B in May, up from $28.1B in Apr. The increase comes despite efforts by former Pres Trump to reduce that surplus. According to the US-based Peterson Institute for Intl Economics, China is still behind on meeting its agreement to buy more American goods, as laid out in the phase one trade deal signed in Jan 2020. The US remains China's largest trading partner on a single-country basis, despite the trade tensions. In the last 2 weeks, Janet Yellen & Trade Representative Katherine Tai have each spoken separately with Chinese Vice Premier Liu He for the first time under Pres Biden. China's exports to the US rose to $44.9B in May, up from $42B in Apr. However, the pace of growth slowed to 21% year-on-year, from 31% in Apr. Overall Chinese exports also grew at a slower pace, up 27.9% in $ terms in May from a year earlier, versus a 32.3% rate in Apr.
China buys fewer American goods in May; trade surplus grows
Dr Scott Gottlieb said that fully vaccinated Americans should feel well-protected against the coronavirus throughout the summer. However, he said an additional dose might to boost immunity could still be needed later this year. “I think you could feel safe through the summer,” the former Food & Drug Administration (FDA) commissioner said. “The combination of the protective immunity that people have through
vaccination — even if it’s declining over time — combined with the fact
that prevalence is very low, I think people could feel reasonably
assured through the summer.” While many US health officials & pharmaceutical execs
have both signaled that further Covid shots are likely necessary down
the road, the exact timing of when they would be needed has been less
clear. “It would be nice if it’ll turn out that it’ll be a year
before anyone might need a booster,” Dr. Peter Marks, director of the
FDA's Center for Biologics Evaluation & Research, said last month. “But we still don’t know,” Marks added. “It could be more, it could be a
little less but ... this is just something we’re gonna have to figure
out as we go.”
Dr. Gottlieb: Vaccinated people safe this summer but fall booster may be needed
The popular averages are close to record levels. Even the MLP index is double last year's dreary lows. However while the US economy is doing well, inflation anxieties linger.
Dow Jones Industrials
No comments:
Post a Comment