Dow shot up 225 (near session highs), advanbcers over decliners 5-2 & NAZ was up 172. The MLP index added 1+ to 171 & the REIT index rose 3+ to the 466s. Junk bond funds fluctuated & Treasuries were sold. Oil dropped 1+ to the low 62s & gold remained at 1784 (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)
Federal Reserve Bank of Dallas Pres Robert Kaplan said that he is "watching very carefully" how the delta variant may impact the US economy & would "adjust" his views on policy "somewhat" if it were to slow growth. "It's unfolding rapidly," he added. Kaplan previously stated that the Fed should begin tapering this fall. However, he pointed out that the "big imponderable" is the "path of this virus" & would assess its impact on GDP growth before the next policy meeting. "So far, it's not had a material effect on – based on high-frequency data – dining out, consumer activity," he said. "It is having an effect in delaying return to office. It's affecting the ability to hire workers because of fear of infection." Kaplan added a "big economic variable" is how quickly the US population can get vaccinated, as well as mask-wearing & other ways to protect from the virus.
Fed’s Kaplan watching COVID delta variant 'very carefully,' may 'adjust' views
Pres Joe Biden said flights out of Afghanistan have resumed & he pledged to get all Americans out of the country who wanted to leave. Nearly as important as getting Americans out is evacuating the US military translators & others who helped American troops, he said. Speaking at the White House, Biden said over 18K people have been evacuated from Afghanistan since the end of July & 5700 in the last 24 hours. Biden's remarks come as US forces rush to airlift as many people as possible out of the country ahead of a self-imposed deadline to depart Afghanistan by Aug 31. The pres said the end of Aug was still the intended date of departure. “I think we can get it done by then, but we’re going to make that judgement as we go,” he added. No flights left Kabul airport for at least 8 hours because Qatar had reached capacity, 2 US officials said. The State Dept is expected to announce that flights from Kabul will be able to land in Europe as the US looks for other locations to send planes. The pres has defended his decision to pull out US forces despite a mounting humanitarian crisis in the wake of the Taliban's rapid takeover of Afghanistan, arguing that there was no way “to have gotten out without chaos ensuing.” Thousands of Afghans have fled to the gates of Hamid Karzai Intl Airport in Kabul seeking a flight out of the country after the Taliban swept across the country.
Biden says flights out of Afghanistan resume, pledges to get all Americans out
The House of Representatives will return next week, setting up the latest test for Pres Biden's sprawling economic agenda. House Speaker Nancy Pelosi's plans to hold a procedural vote as soon as Mon to move forward with a handful of Dem priorities: the $1T bipartisan infrastructure legislation passed by the Senate, the $3.5T Dem plan to expand the social safety net & a voting rights bill. She then aims to join the Senate in passing a budget resolution, the first step toward Dems approving their massive spending plan without a Rep vote. The spending plan is not expected to get thru the Senate for weeks or even months, which would put off the final passage of the infrastructure bill, if all goes according to Pelosi's plans. In an effort to keep progressives on board with the smaller infrastructure plan & centrists in line with trillions more in new spending, Pelosi has said she will not take up either economic plan until the Senate passes both of them. Opposition from within her caucus has threatened to derail the speaker's plans, leaving Dems looking for a path forward as they return to the Capitol. A group of 9 centrist House Dems on Mon reiterated their call for the chamber to vote on the bipartisan infrastructure bill before it considers the spending on social programs and climate policy. As Dems hold a narrow majority in the House, the 9 lawmakers could sink the budget resolution on their own — delaying progress on an economic agenda that Dems hope will boost households & improve their fortunes in next year's midterm elections.
House returns next week to forge ahead with infrastructure bill, budget plan
Dr Scott Gottlieb urged fellow vaccinated Americans to be on guard about the Covid delta variant, saying its highly transmissible nature cannot be ignored even by people who have immunity protection. “The original premise around the vaccines — that they reduce the risk of serious disease and hospitalization — is still intact,” the former Food & Drug Administration commissioner said. “We still see in the data that the vast majority of people who are getting in trouble with Covid are people who are unvaccinated.” However, Gottlieb added the risk to vaccinated people is not zero. “People who are vaccinated in a setting of this epidemic surge, especially if they’re in places where there’s a high prevalence of infection, need to take appropriate precautions,” he said. “You can’t just throw caution to the wind. You can still become a vehicle for spread in your community.” The 7-day average of daily new coronavirus cases in the US is 141K, up 14% from a week ago. Cases are increasing by more than 5% in 42 states plus DC.
Gottlieb: Vaccinated people cannot ‘throw caution to the wind’ due to delta variant
The Federal Reserve's efforts to reverse its easy policy will be a dominant theme for markets in the week ahead, as central bankers gather in Jackson Hole, Wyoming. The central bankers may even look relaxed against the backdrop of the Grand Tetons in the crisp late Aug air. But they will be under pressure to gently steer toward less policy support, without creating a market tantrum. Federal Reserve officials, in numerous recent speeches & interviews, have already managed to speed up expectations for when they could begin to slowly pare back their $120B a month in bond purchases. More of that talk is expected at their annual symposium, which begins Thurs. The Fed chairman's speech is typically the highlight of the annual event, & various Fed chairs have used Jackson Hole to send important messages. The question is whether Jerome Powell will channel his speech Fri to provide more details on how the Fed could begin to unwind its bond buying, & even whether he is personally ready to embrace it.
Fed officials will seek to avoid a tantrum as they keep ‘taper talk’ going at Jackson Hole
Gold futures ended modestly higher, with the precious metal tallying its first gain in 4 sessions to eke out a back-to-back weekly advance. Bullion has been buoyed this week, at least partly, by a downturn in stocks amid growing concerns about the economic impact of the spread of the delta variant of the coronavirus. Dec gold edged up about 1 to settle at $1784 an ounce, after trading as high as $1791. Some analysts see $1790 as a resistance price for bullion that it has struggled to overcome recently. Amplifying the concerns about the economy has been fears that the Federal Reserve will begin unwinding parts of their easy-money programs later this year, despite the uncertainty stemming from the renewed spread of COVID.
Gold futures end modestly higher to eke out a weekly gain
Oil futures finished lower for a 7th straight day, with US benchmark prices losing almost 9% for the week, as worry about the impact on energy demand from the spread of the coronavirus delta variant took a toll. West Texas Intermediate (WTI) crude for Sep fell $1.37 (2.2%) to settle at $62.32 a barrel, the lowest finish since May. The front-month contract marked a weekly fall of 8.9%, the biggest such loss since more than 10% drop reported for the week ended Oct 30. The most active, & new front month Oct WTI dropped $1.36 (2.1%) to settle at $62.14 a barrel. Oct Brent crude, the global benchmark, lost $1.27 (1.9%) at $65.18 a barrel, for a 7.7% weekly fall & the lowest settlement since May. Crude fell sharply on yesterday, getting caught up in a broad market selloff that saw metals & other commodities tumble along with global equities. US stocks posted a mixed finish, but saw economically sensitive sectors left behind. Oil futures weren't helped earlier this week by data showing a drop in US crude inventories, with investors instead focused on the global demand outlook, & a drop in US gasoline demand just weeks ahead of the end of summer driving season, which ends on Labor Day weekend in Sep. Baker Hughes reported a 3rd straight weekly increase in the number of active oil-drilling rigs, up by 8 to 405 this week.
Oil futures log a 7th straight drop, with U.S. prices down nearly 9% for the week
Dow Jones Industrials
No comments:
Post a Comment