Dow went up 162, advancers ahead of decliners about 5-4 & NAZ fell 72. The MLP index gained 3+ to the 176s & the REIT index was off 4+ to the 458s. Junk bond funds dipped lower & Treasuries were sold again. Oil rose 2 to the 68s, erasing yesterday's decline, & gold added 3 to 1729 (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)
The Senate passed a major $1T infrastructure spending bill in a significant show of bipartisan force that marked a big step forward for Pres Biden's domestic agenda. The vote was 69-30, with 19 Rep – including Senate Minority Leader Mitch McConnell – joining all Dems to approve major investments to the nation's roads, bridges, railways & more. To mark the achievement, VP Kamala Harris came to the Capitol to preside over the Senate & announced the successful vote. "Big news, folks," Biden tweeted. "The Bipartisan Infrastructure Deal has officially passed the Senate. I hope Congress will send it to my desk as soon as possible so we can continue our work of building back better." But the rare showing of bipartisanship was short lived, as Senate Majority Leader Chuck Schumer quickly pivoted to advancing a massive $3.5T budget bill. Minutes after the infrastructure bill success, Schumer immediately called a procedural vote to begin debate on the Dems' budget plan, which passed along party lines: 50-49. This partisan budget proposal will be the vehicle for Dems to pass liberal priorities such as universal pre-kindergarten, expanded Medicare access, 2 free years of community college, subsidized child care, legalizing undocumented immigrants & green climate initiatives. "The two-track strategy is proceeding full steam ahead," Schumer said. This 2nd spending plan is spearheaded by Sen Bernie Sanders, the chairman of the budget committee. Reps made clear they'll make it politically painful for Dems to pass this 2nd bill, which will not require any GOP support under a process called budget reconciliation. "[Democrats] want to begin pushing through a reckless taxing and spending spree that was authored by our self-described socialist colleague Chairman Sanders," McConnell said. He said Reps are going to force tough votes on a series of politically charged amendments. "We're going to argue it out right here on the floor at some length," McConnell said. "Every single senator will be going on record over and over and over." The final passage of the 2nd $3.5T budget blueprint in the Senate in the coming days is critical because House Speaker Nancy Pelosi said she won't allow a standalone vote on the narrower $1T bipartisan infrastructure deal unless it's paired with the bigger package that liberals have demanded.
Senate approves bipartisan $1T infrastructure plan in win for Biden
About 3.4M Americans were long-term unemployed in Jul, a reduction of about 560K from the prior month, according to the Bureau of Labor Statistics. However, the figure remains elevated relative to pre-pandemic levels. About 2 in 5 jobless individuals are long-term unemployed, meaning they've been out of work at least 6 months. This period poses elevated financial risk for households. Household income may drop significantly — especially as enhanced federal benefits for the jobless are poised to expire on Labor Day. The dynamic makes it harder to find a new job, scars workers' long-term earnings potential & raises the odds of losing a future job down the road. Roughly 39% of all jobless workers have been out of work for 27 weeks or longer, down from about 42% in Jun. The reduction came on the back of a stronger-than-expected Jul jobs report. Hiring rose at its fastest pace in almost a year, as the economy added 943K jobs & the unemployment rate fell to 5.4%. The number of job openings jumped to more than 10M in Jun, the highest on record, the Labor Dept reported. The number of long-term unemployed remains 2.3M higher than in Feb 2020. Nearly 2.5M individuals were unemployed for at least a year in Jul, down by 406K people from Jun.
3.4 million Americans are still long-term unemployed
Gold futures settled higher for the first time in 4 sessions, with bullion eking out a gain after putting in the lowest settlement since Mar yesterday, following a plunge of more than 5% intraday in early Asian trading hours. Dec gold ended $5 (0.3%) higher at $1731 an ounce, a day after bullion skidded 2.1% for the lowest settlement since Mar 31. The gain marks the first session since Aug 4 that the precious metal is settling in positive territory. Gold is under pressure after the latest monthly US jobs report, released on Fri, reignited the threat of the Fed tapering its monthly $120B asset purchases & eventually raising benchmark interest rates, which currently stand at 0%-0.25%.
Gold ekes out slight gain to help halt 3-session selloff
Oil futures ended higher, bouncing after holding support above the Jul lows seen in a sharp selloff during the previous session which was blamed partly on fears the global spread of the delta variant of the coronavirus that causes COVID-19 would dent energy demand. The bounce came as investors across asset classes appeared to welcome Senate passage of an infrastructure package, sending it to the House of Representatives. West Texas Intermediate (WTI) crude for Sep rose $1.81 (2.7%) to close at $68.29 a barrel. Oct Brent crude rose $1.59 (2.3%) to finish at $70.63 a barrel. The Infrastructure Investment & Jobs Act calls for $550B in new public-works spending above what already was expected in future federal investments, including $110B for roads, bridges & other projects, as well as $66B for rail, $65B for broadband internet & $55B for water systems. WTI & Brent fell by more than 4% at session lows yesterday before trimming losses, closing at their lowest levels since Jul 19. Moves by China, the world's largest oil importer, to restrict business & consumer activity in an effort to contain low but growing numbers of delta-variant cases were cited as a reason for the selloff. Worries about demand from China extended beyond oil, with some economists arguing that a cooling of the country's appetite for a range of commodities was likely here to stay. Moves by US companies to delay planned returns to the office were also a factor,
Oil prices bounce, erasing Monday loss as traders cheer U.S. Senate passage of infrastructure bill
Stocks were purchased in the first hour of trading & then remained elevated for the rest of the day. The advance-decline ratio was weak & tech stocks were sold on NAZ. A lack of enthusiasm for stocks was due to monthly reports on inflation in the next 2 days & they are expected to be cheerless. Additionally the pork filled bill passed in the senate is being followed by a substantially bigger pork bill that is filled with 100% pet projects. They will do little to help the recovery, especially over the short run. However it will add to the deficit. Raising the debt ceiling, which is being ignored by those guys in DC, will have to be increased to an even higher ceiling. There are plenty of dark clouds for investors to watch.
Dow Jones Industrials
No comments:
Post a Comment