Dow dropped 206, decliners over advancers 2-1 & NAZ was off 4. The MLP index fell 1+ to the 178s & the REIT index was off 1+ to the 462s. Junk bond funds slid lower & Treasuries were sold following the recent rally. Oil gave back 1+ to the 69s & gold inched up 1 to 1815.
AMJ (Alerian MLP index tracking fund)
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US private sector job growth slowed sharply in Jul amid an uptick in new COVID-19 infections. The economy added 330K private sector jobs last month, a
decline from the downwardly revised 680K jobs gained in Jun,
according to the ADP National Employment Report. The forecast called for the addition of 695K
jobs. "The labor market recovery continues to exhibit uneven
progress, but progress nonetheless," said Nela Richardson, chief
economist at ADP. "Bottlenecks in hiring continue to hold back stronger
gains, particularly in light of new COVID-19 concerns tied to viral
variants." The service sector added 318K jobs last month. Within services, the leisure & hospitality sector continued to pace
the gains, adding 139K new workers last month. However, that was down
from the 332K jobs added in Jun. Hiring in education & health
services (+64,000); professional & business services (+54K); &
trade, transportation & utilities (+36K) remained strong, while job
losses in information services (-1K) continued. Goods-producing
sectors added a total of 12K jobs, led by manufacturing (+8K). Last month, goods producers hired 68K new workers. Job growth was pretty evenly distributed across small-, medium- & large-sized businesses.
Private sector hiring slows sharply in July amid an uptick in COVID infections
General Motors (GM) earned a pretax profit of $4.1B on $34.2B in Q2 revenue in the face of the ongoing chip shortage that has
hampered production this year. The automaker said it has booked $8.5B in earnings thru H1 & is revising its full-year outlook upward from $10-11B to $11.5-13.5B. However, the new guidance
assumes it will have cleared its inventory of incomplete vehicles
awaiting chips, which stands at $1.4B worth of product. In
a letter to shareholders, CEO Mary Barra credited GM's pivot to focus
on "highest-demand, capacity-constrained products," namely its large
trucks & SUVs, as a driving force behind the stronger-than-expected
performance. "The credit for our strong first half goes to our employees and extended team, including suppliers and dealers, who have
collectively demonstrated strength, agility and resilience," Barra
wrote. GM has gone to extreme lengths to keep production of its
profitable truck lines going this year, even removing some features to
conserve its available supply of chips. However, it finally had to idle
its 3 full-size pickup plants for the last week in Jul & will be
suspending production at them for another week starting Mon. Overall
production was higher in May & Jun than initially projected, with
the arrival of some chip supplies coming earlier than expected. Strong demand for used cars also delivered record profits of $1.6B for the GM Financial arm. GM's positive outlook for the rest of the year follows similar guidance from other automakers. The stock fell 4.58 (9%).
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM shares fall despite $4.1B profit, boosted forecast
Treasury Secretary Janet Yellen will warn that enacting Pres Biden's economic agenda is critical to maintaining America's status as the world's top economic superpower, according to a copy of her remarks. She will deliver the address as part of a White House messaging blitz designed to rally the public behind the T$ bipartisan infrastructure bill & Dems' even bigger $3.5T spending plan. It will be her first domestic trip & a reflection of her increasingly visible role as one of the administration's champions for expansive investments in “human capital.” “We’ve grown used to America as the world’s pre-eminent economic power. We aren’t destined to stay that way, but with these investments, I believe we will,” Yellen said in her remarks. “We have a chance now to repair the broken foundations of our economy, and on top of it, to build something fairer and stronger than what came before.” Her comments come at a critical moment in negotiations with Capitol Hill. The Senate is haggling over the final details of the infrastructure bill, while Dems are trying to unify their own party around the broader spending package. Yellen will urge lawmakers not to lose sight of their ambition, arguing that the nation’s economic recovery “did not happen by default.” Instead, she credits the rapid rebound from recession as the direct result of the Biden administration's policy decisions. Long-term secular problems — declining labor force participation, wage polarization, climate change — are also choices, not inevitable outcomes. “Fiscal policy can help unwind them. Or the lack thereof can intensify them,” Yellen said.
Yellen: Pass Biden agenda to keep U.S. the world’s top economic superpower
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