Markets pull back on Covid and GDP worries

Dow dropped 271 with selling into the close, decliners over advancers 2-1 & NAZ fell 132.  The MLP index lost 1+ to the 177s & the REIT index was off 6+ to the 463s after yesterday's sharp decline.  Junk bond funds inched higher & Treasuries were sold.  Oil went up 1+ to the 69s & gold was off 8 to 1791 (more on both below).

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Unvaccinated people are 11 times more likely than vaccinated people to die from Covid-19, a large study by the Centers for Disease Control & Prevention (CDC) found.  The study looked at Covid-19 cases, hospitalizations & deaths in 13 states “and found further evidence of the power of vaccination,” CDC Director Dr Rochelle Walensky said.  More than 600K Covid cases from Apr thru &-Jul were analyzed & linked to vaccination status.  Those who were unvaccinated were about 4.5 times more likely to contract the virus, more than 10 times more likely to be hospitalized with the virus & 11 times more likely to die from the disease.  A previous CDC study based on data from just 43K Covid cases in Los Angeles County between May & Jul found that unvaccinated people were 5 times more likely to contract Covid & 29 times more likely to be hospitalized with the virus.  About 54% of the US population is fully vaccinated, according to the CDC.

New study finds unvaccinated are 11 times more likely to die from Covid, CDC says

Americans who are unvaccinated against Covid-19 are largely driven by a mistrust of the gov & fears over vaccine side effects, & there is very little that can be done to persuade them to get the shots, a new CNBC/Change Research poll reveals.  Change Research surveyed 1775 respondents from Aug 30 - Sep 2 about Americans’ views on Covid vaccines.  Among the 29% of US voters who are unvaccinated, 83% say they do not plan to get the lifesaving shots, the survey shows.  Pres Biden yesterday outlined a host of new vaccine & testing mandates for federal workers & contractors as well as health-care & private company employees.   Growing vaccine hesitancy could make it difficult to reach the up to 90% vaccination rate that some health officials have suggested is necessary to achieve nationwide herd immunity to Covid.  Some 34% of unvaccinated respondents said they were hesitant to get the shots because they didn't trust the federal gov, while another 34% were worried about the vaccine's side effects.  Less than 10% of unvaccinated respondents said they would be more likely to get vaccinated if the delta variant were more problematic in their community & 7% said they would get vaccinated if asked by Trump.  “There does appear to be something specific to COVID-19 at work as well, because 56% of the unvaccinated report having received a flu shot in the past,” the poll added.

CNBC poll shows very little will persuade unvaccinated Americans to get Covid shots

Dec gold fell $7 (0.4%) to settle at $1792 an ounce after touching an intraday high of $1806.  Prices for the most-active contract lost 2.3% for the week.  The precious metal finished 0.4% higher at $1,800 an ounce yesterday, following declines in each of the 2 previous sessions.  Sep 22 looms especially large for gold, the date of the next Federal Reserve announcement on monetary policy.  Gold prices extended their losses shortly after data showed the US producer price index climbed 0.7% in Aug, down from a 1% jump in Jul.

Gold prices end lower, mark first weekly loss in 5 weeks

Oil futures settled higher to tally a gain for the week, as traders assessed China's decision to release crude from its strategic reserve & continued to monitor the slow return of production in the Gulf of Mexico following Hurricane Ida.  West Texas Intermediate crude for Oct rose $1.58 (2.3%) to settle at $69.72 a barrel, lifting the US benchmark up by 0.6% for the week.  Nov Brent crude, the global benchmark, climbed $1.47 (2.1%) at $72.92 a barrel.  Yesterday, crude tumbled in a choppy trading session, with weakness coming after reports said China plans a release from its crude-oil reserve, in a move to ease commodity price inflation.  But analysts have played down the implications of the move, arguing that the move likely refers to releases that already took place this summer.  Crude output in the Gulf of Mexico remains curtailed following Hurricane Ida, which made landfall on the Louisiana Gulf Coast on Aug 29.  The Bureau of Safety & Economic Enforcement estimated that 66% of oil production & 76% of natural-gas production in the Gulf remains shut in. 

Oil prices settle higher to post a gain for the week

The Dow dropped everyday day in the shortened week for trading, finishing down 760 in what can only be described as a drab week.  There are plenty of problems with slowing economic growth, high inflation, the virus keeps fighting back hard, Afghanistan, the Fed starting to reduce its bond buying program, etc.  Analysts are lowering GDP growth estimates for Q3 to around 3%.  The consumer price index next Tues will get a lot of attention by traders.

Dow Jones Industrials