Dow plunged 670 to session lows, decliners over advancers a huge 6-1 & NAZ sank 288. The MLP index dropped 5+ to the 165s & the REIT index dropped 8 to 482. Junk bond funds saw selling again & Treasuries were bid higher. Oil sank 4+ to the 66s & gold slid back 9 to 1795 after recent strength.
AMJ (Alerian MLP index tracking fund)
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Americans are still feeling the financial strain of the COVID-19
pandemic this holiday season & more are stressed about shopping than
they were in 2020, according to a new survey from Experian. About
32% of respondents said COVID-19 has created financial barriers that
have prevented them from spending the way they would like during this
holiday season, according to Experian’s 2021 holiday shopping survey. However, this represents a 20% decrease from those who said the same in
2020. But while Americans feel more financially free than last
year, the pressures of the season remain strong. 30% of
respondents said they are stressed about holiday shopping, up from 25%
in 2020. Another 26% said they are overwhelmed by
shopping, up from 21% last year & 25% said they are anxious about
shopping, up from 24% last year. Overall, 58% of respondents said
holiday spending puts a strain on their finances. The survey found that among all the generations, Gen Z consumers — or those born 1997-2012, according to Beresford Research —
were more likely to struggle with their budgets this holiday season.
Experian spoke to older Gen Z consumers ages 18-24 & found that 45%
said it is hard to stay on budget while holiday shopping. Another 39%
said running out of money prevented them from holiday shopping & 42%
said more shopping than originally planned had been added to their
list. In addition to budgeting, Gen Z consumers are also
struggling the most with access to credit. Of all the
respondents who said they do not have access to credit to buy gifts, 20%
were from Gen Z. However, younger consumers are also the most
motivated to improve their finances. 79% of older Gen Z
consumers said they will better their finances this year, while another
89% of Millennials ages 25-34 said they are motivated to do the
same.
Holiday shopping held back by COVID financial impact, survey shows
Sen Joe Manchin declared that after months of negotiations he has determined that there is no way he can support the massive social spending bill known as the Build Back Better Act. Manchin said that he has spoken with Pres Biden, House Speaker Nancy Pelosi & Senate Majority Leader Chuck Schumer but could not reach an agreement on the legislation. "I've done everything humanly possible," Manchin said, talking about how hard he has worked to try to reach an acceptable compromise on the bill. In the end, however, he said that between ongoing inflation, the national debt, "geopolitical unrest," & the COVID-19 pandemic, the bill being pushed by his fellow Dems was too much. "When you have these things coming at you the way they are right now … I cannot vote to continue with this piece of legislation," he added, stating that if he cannot explain to his constituents why he would vote for a bill, then he cannot vote for it, despite all the work he & other Dems have put into trying to make it work. Manchin acknowledged that there were aspects of the bill he was in favor of, but it was just too hefty for him to justify voting for it. "There’s a lot of good, but that bill is a mammoth piece of legislation," Manchin said, pointing out that it is not even being voted on like a normal bill, but being pushed thru budget reconciliation. The West Virginia senator said that instead of trying to pass such a large spending bill, Congress should be more focused on tackling the omicron variant of COVID-19 that has led to rising case numbers. He also said the gov should be addressing inflation that has "harmed a lot of Americans."
Manchin may have just dealt a death blow to Biden's massive spending plan
Tighter restrictions are being considered around the world as spiraling cases of the omicron Covid-19 variant loom over the festive holiday period. A number of curbs have already been introduced in countries across Europe. The Netherlands entered full lockdown from Sun until mid-Jan, leaving only supermarkets & essential shops open. School in the country have been closed. People will not be able to have more than 2 visitors over the age of 13 per day, although this will be raised to four people on Dec 24-26. In Germany only German citizens, residents & transit passengers will be allowed to enter the country from the UK from Mon, with all inbound travelers required to quarantine for 14 days irrespective of vaccination status. Travel restrictions were also imposed for arrivals from Denmark, Norway & France. Austria will only allow entry to vaccinated travelers from Mon, while France has already banned travel from the UK. Ireland has announced an 8PM curfew for bars, restaurants, theaters & other leisure & entertainment venues, running from Mon until Jan 30. While in Spain, Prime Minister Pedro Sanchez will meet with regional leaders on Wed to discuss containment measures for the coming weeks. Italian leaders are also reportedly weighing further restrictions & will meet Thurs for talks. The World Health Organization said that cases of the omicron variant, which has now been detected in 89 countries, are doubling every 1½-3 days in areas with community transmission. In the UK, gov ministers are also refusing to rule out further restrictions over Christmas. Deputy Prime Minister Dominic Raab said & added that he couldn't make “hard and fast guarantees” that stricter measures would not be imposed. It comes after Prime Minister Boris Johnson controversially “canceled” Christmas in 2020, preventing many family members & friends from seeing each other.
Omicron casts a shadow over holidays as countries consider serious restrictions
The stock markets have no friends today with the popular averages at their daily lows . Once again the Dow is back to where it was in May (on the way up). Holiday shopping looks to be coming in under projections. The Covid is news is dreary & scary, & there is little excitement expected for stocks thru the end of the year.
Dow Jones Industrials
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