Dow recovered 206, advancers over decliners about 2-1 & NAZ went up 106 after recent selling. The MLP index was even in the 182s & the REIT index bounced back 2+ to the 451s. Junk bond funds crawled higher & Treasuries were sold (more below). Oil was off pennies in the 75s & gold declined 10 to 1727.
AMJ (Alerian MLP index tracking fund)
| CL=F | Crude Oil | 75.08 | -0.23 | -0.3% |
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The 10-year Treasury yield pulled back, taking a pause in its rapid run that has unnerved financial markets. The yield on the benchmark 10-year Treasury note fell by about 3 basis points to 1.503% & the yield on the 30-year Treasury bond dipped 2 basis points to 2.048%. Yields move inversely to prices & 1 basis point is equal to 0.01%. The 10-year Treasury yield pulled back yesterday, taking a pause in its rapid run that has unnerved financial markets. Many strategists expect Treasury yields to be choppy in the near term but to rise even further by the end of the year. Rising energy prices in Europe is also likely adding to investor concerns over inflationary pressures.
10-year Treasury yield retreats after rapid rise, hovers near 1.50%
Just days after House Speaker Nancy Pelosi vowed that Dems will pass the $1T infrastructure plan this week, progressives in the party did their own promising. Rep Pramila Jayapal's Congressional Progressive Caucus issued a stinging rebuke of the voting on the bipartisan package without first passing Pres Biden's $3.5T Build Back Better reconciliation package. The caucus said it is still committed to "delivering the transformative change that people throughout this country urgently want, need, and deserve." The 96-member coalition said the agenda "is not some fringe wish list: it is the President’s agenda, the Democratic agenda, and what we all promised voters when they delivered us the House, Senate and White House." Dems may have control, but they are working with a razor-thin majority in the Senate & a House divided. Pelosi once held the position that the House would only pass the infrastructure bill if they also passed the reconciliation package. A report Mon said that Pelosi changed her opinion after she found out that Dems could reduce the $3.5T price tag. "It all changed, so our approach had to change," Pelosi told her caucus. Pres Biden has been engaging with members of Congress on the path forward on the packages.
Progressive defies Pelosi on infrastructure as Dem divisions deepen
Pending home sales snapped back in Aug, following 2 months of declines, as the housing market showed signs of regaining its footing. The Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, rose 8.1% last month to 119.5, according to the National Association of Realtors (NAR). A score of 100 is equivalent to the level of contract activity in 2001. The forecast was expecting pending home sales to rise 1.4% after falling a downwardly revised 2% in Jul. But contracts signed were down 8.3% year over year. "Rising inventory and moderating price conditions are bringing buyers back to the market," said Lawrence Yun, NAR's chief economist. "Affordability, however, remains challenging as home price gains are roughly three times wage growth."
Pending home sales spike amid rising inventory, moderating prices
There is a pause in recent selling, although negative thinking is still around. The rally today is short of impressive. Besides the many persistent problems such as the virus & inflation worries, those guys in DC can't get their act together. That is very troublesome for the bulls to deal with.
Dow Jones Industrials
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