Dow dropped 306 (but below early lows), decliners over advancers 3-2 & NAZ recovered 50. The MLP index was off 1+ to 171 & the REIT index rose 2+ to the 492s. Junk bond funds saw more selling & Treasuries were purchased again, bringing lower yields. Oil was off 1+, going below 71, & gold went up 9 to 1808.
AMJ (Alerian MLP index tracking fund)
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The Federal Reserve raising interest rates next year would signal the central bank feels good about the country's economic recovery, New York Fed Pres John Williams said. “I go into next year feeling [like] the baseline outlook is a very good one. Therefore, actually raising interest rates would be a sign of a positive development in terms of where we are in the economic cycle,” Williams added. “I’m pretty optimistic that we’re seeing really strong improvements in the labor market. You’re seeing the unemployment rate come down quickly,” Williams continued. His comments came after the Fed signaled earlier this week that it sees as many as 3 rate hikes in 2022. The Fed cut rates to near-zero levels in Mar 2020 as part of its efforts to support the economy at the onset of the Covid-19 pandemic. The central bank also said this week it would aggressively dial back its bond-buying program. That rate forecast comes during an increase in US inflation. The consumer price index — which tracks the price of everything from cars to food to rent — surged 6.8% in Nov on a year-over-year basis, marking its fastest acceleration since 1982. The producer price index — another inflation measure that tracks wholesale prices — increased last month by 9.6%, its fastest pace on record. “We’re very focused on inflation; it is obviously too high right now,” Williams said. “We want to make sure inflation comes back down to our 2% longer-run goal.” However, Williams noted that the Fed doesn't need to further speed up the tapering of its asset purchase program to temper the recent inflation surge.
Raising rates would be a positive event for the economy, Fed’s Williams says
With Christmas fast-approaching, retailers are gearing up for a last-minute rush of shoppers. Stores & retail websites are expected to draw more than 148M shoppers on Sat, according to an annual survey by the National Retail Federation & Prosper Insights & Analytics. That's a slight drop from the final Sat before Christmas last year, a day known as Super Saturday in the industry. Last year, 150M consumers were expected to turn out, which was higher than the estimated 147M shoppers in 2019. This year, however, that final sprint will be shaped by new & conflicting factors. A strong wave of early holiday shopping means some consumers may have less to buy. Warmer weather in much of the country could make people feel more comfortable driving to the mall or make them feel less in the holiday spirit. And a surge in Covid-19 cases in the Northeast & Midwest could cause gatherings to be canceled or prompt shoppers to shift toward buying online or opting for goods instead of booking trips or concert tickets. More shoppers are having trouble finding items. 44% of respondents in a recent survey said they were unable to make a holiday purchase due to out of stocks, a month-over-month jump of 7 percentage points.
Retailers head into the final holiday sprint dogged by a Covid surge, mild weather
A redefinition of what it means to be fully vaccinated against Covid-19 is certainly “on the table,” Dr Anthony Fauci said. He said that there was no doubt that optimum vaccination was with a booster dose. Currently, individuals are considered to be fully vaccinated either t2 weeks after their 2nd dose of a 2-dose series, such as the Pfizer (PFE) - BioNTech (BNTX) vaccine or 2 weeks after a single-dose vaccine, such as the Johnson & Johnson (JNJ), a Dow stock, vaccine. But Fauci said that the regulators were open to reconsidering those definitions. “There’s no doubt that optimum vaccination is with a booster,” he continued. “Whether or not the CDC is going to change that, it certainly is on the table and open for discussion. I’m not sure exactly when that will happen. But I think people should not lose sight of the message that there’s no doubt if you want to be optimally protected, you should get your booster.” Vaccination status has already had an impact on the lives of Ms of Americans. Ms of health care workers around the country are required, under Biden's embattled vaccine mandate, to be fully immunized against the coronavirus, while some states & cities have imposed their own rules that puts limits on what unvaccinated people are able to do.
Fauci says a redefinition of fully vaccinated is ‘on the table’
Investor optimism is fading. Concerns about the effects of a tighter money policy are being weighed. Already the holiday retail selling is showing signs of getting only a mediocre rating. Inflation & virus worries are major worries in the stock market. Dysfunctional DC does not help matters. Safe haven gold is back in demand.
Dow Jones Industrials
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