Dow gained 271, advancers over decliners about 2-1 & NAZ rose 114. The MLP index was off 2+ to the 173s & the REIT index added 5+ to the 466s. Junk bond funds continued higher & Treasuries climbed again from their low levels. Oil rebounded almost 1 to the 69s & gold fell 8 to 1805 (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)
Although Pres Biden repeatedly objected to a national gas tax hike to fund the bipartisan infrastructural package, the $1T bill unveiled by the Senate this week includes a national motor vehicle per-mile user fee pilot program that may violate one of his biggest "red lines." For months, White House officials argued that letting the federal gasoline tax rise at the rate of inflation broke his campaign promise to not hike taxes for any American who earned less than $400K. The federal gas tax, which pays for the Highway Trust Fund, has remained at 18.4¢ a gallon since 1993 & has not kept up with inflation or the growing presence of fuel-efficient vehicles. "The president has been clear throughout these negotiations: He is adamantly opposed to raising taxes on people making less than $400,000 a year," White House spokesman Andrew Bates said in mid-Jun. "After the extraordinarily hard times that ordinary Americans endured in 2020 — job losses, shrinking incomes, squeezed budgets — he is simply not going to allow Congress to raise taxes on those who suffered the most." Despite that pledge, the Infrastructure Investment & Jobs Act – which senators could pass as soon as this week – leaves open the possibility of a tax that's tethered to personal vehicle mileage. The pilot program, outlined in section 13002 of the bill, would charge users based on vehicle miles traveled. The 2702-page bill directs Treasury Secretary Janet Yellen & Transportation Secretary Pete Buttigieg to provide recommendations to Congress within 3 years of the pilot program.s establishment, at which point lawmakers could choose whether or not to pass new legislation taxing miles-per-vehicle in order to fund the infrastructure overhaul. The program would target passenger motor vehicles, light trucks & medium- & heavy-duty trucks, while fees would likely vary between vehicle types & weight classes "to reflect estimated impacts on infrastructure, safety, congestion, the environment, or other related social impacts." "The Secretary, in coordination with the Secretary of the Treasury, and consistent with the recommendations of the advisory board, shall establish a pilot program to demonstrate a national motor vehicle per-mile user fee to restore and maintain the long-term solvency of the Highway Trust Fund and to improve and maintain the surface transportation system," the bill reads.
Bipartisan infrastructure bill may cross Biden's 'red line' with mileage fee
White House chief medical advisor Dr Anthony Fauci warned that a more severe Covid variant could emerge as the US daily new case average is now approaching 100K per day, exceeding the level of transmission last summer before vaccines were available. Fauci said the US could be “in trouble” if a new variant overtakes delta, which already has a viral load 1000 times higher than the original Covid strain. Delta has upended the US response to the pandemic, as it has proven capable of infecting even people who are vaccinated. Moderna (MRNA) warned today that breakthrough infections will become more common as the delta variant continues to spread. However, vaccines still provide strong protection against severe illness & death, & the overwhelming majority of new infections are among people who are unvaccinated. MRNA, for example, said that the booster shot it’s developing produced a robust immune response against delta. Fauci warned in the interview that the US is “very lucky” to have vaccines that have held up against the variants, suggesting that may not be the case if even more severe strains emerge. “If another one comes along that has an equally high capability of transmitting but is also much more severe, then we could really be in trouble,” Fauci added. “People who are not getting vaccinated mistakenly think it’s only about them. But it isn’t. It’s about everybody else, also.” The US is reporting a 7-day average of 94K new cases as of Aug 4, up 48% from one week ago, according to data from Johns Hopkins University.
Fauci warns more severe Covid variant could emerge as U.S. cases near 100,000 daily
Gold futures closed slightly lower, quashing bullion's attempt to deliver its first back-to-back gain since mid Jul, as Treasury yields climbed from lows not seen since Feb. Dec gold traded down $5 to settle at $1808 an ounce on Comex, after closing up a smidgen yesterday. The 10-year Treasury note was yielding 1.21%, still holding near its lowest levels since Feb, but off its yesterday intraday nadir at 1.1255%. The rise in Treasury yields can also undercut the appeal of gold compared against precious metals that don't offer a coupon. The decline for gold also comes as the Dow & NAZ were rallying, trading at or near record highs & underscoring a weaker appetite on the session for assets perceived as havens like gold & bonds.
Gold futures end lower as Treasury yields pop highe
More & more people who were once vaccine hesitant in several southern states are now getting their first shots as the delta Covid variant rips thru areas of the US with low immunizations rates. In Arkansas, Mississippi, Louisiana & Alabama, the 7-day average of daily reported first doses has more than doubled since the start of Jul, Centers for Disease Control & Prevention data shows, as the outbreak has worsened nationwide. Over that same time period, average daily case counts have grown from about 13K per day across the country to roughly 94K per day as of Aug 4, according to Johns Hopkins University, with the overwhelming majority of new infections among those who are unvaccinated. “Clearly, Americans are seeing the impact of being unvaccinated and unprotected and they’re responding by doing their part, rolling up their sleeve and getting vaccinated,” White House Covid czar Jeff Zients said. Studies have shown that unlike the original Covid strain, the delta variant is much more transmissible & requires 2 vaccine doses for the body to have a fighting chance at preventing infection & severe symptoms.
Covid vaccinations have more than doubled in Arkansas, Mississippi, Louisiana and Alabama since July
Oil futures ended higher, snapping a 3-day losing streak tied in part to worries that the spread of the delta variant of the coronavirus that causes COVID-19 may impact energy demand. West Texas Intermediate (WTI) crude for Sep gained 94¢ (1.4%) to finish at $69.09 a barrel. Oct Brent crude, the global benchmark, rose 91¢ (1.3%) to close at $71.29 a barrel. WTI is nursing a week-to-date loss of more than 6%, while Brent is off 5.4%. The buy-the-dip approach remains a force in the oil market. Crude slumped yesterday after an unexpected uptick in US crude stockpiles, although gasoline inventories showed a much larger-than-expected drop. A stronger $ also weighed on crude. The $ backed off today, with the ICE U.S. Dollar Index , a measure of the currency against a basket of 6 major rivals, off 0.1%. The build in US crude stocks was largely attributed to a fall in exports.
Oil bounces, snapping 3-day losing streak
Dow Jones Industrials
No comments:
Post a Comment