Dow declined 532 with selling in the last hour, decliners ahead of advancers 4-3 & NAZ was off 10. The MLP index fell 1 to 171 & the REIT index stayed near the 489s. Junk bond funds fluctuated & Treasuries were bid higher. Oil was off 1+ to 71 & gold added 3 to 1801 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
The highest inflation in nearly 4 decades, ongoing supply chain woes & concerns regarding the omicron variant of the coronavirus aren't stopping consumers from splurging on loved ones this holiday season. "People have gone into this holiday season in a sense wanting to make up for some of last year," Katherine Cullen, the senior director of industry & consumer insights at the National Retail Federation (NRF) said. Although last year was a strong sales season, "many localities are saying there are safe ways to gather with family, there are safe ways to travel" this year, which means people are not having to cancel holiday plans. "I think people are looking to spend even more this year because they want to celebrate with family and friends," she added. "They're splurging on gifts. They're spending on travel." For instance, NRF data in Oct showed that those over 65 years old planned on spending more on gifts this year compared to 2020. Cullen said this could be because they are expecting to celebrate the holidays with their grandchildren or younger relatives. "That emotional mindset is really important when we look at spending because that is driving some of what we're seeing right now," she added. During the first 11 months of the year, sales were already up 14.2% over the same period in 2020 which calculates retail sales excluding automobile dealers, gasoline stations & restaurants. As a result, the NRF projected that 2021 would be another "strong holiday season," especially since retailers and consumers were prepared to combat the economic headwinds early on. Retailers started offering deep discounts as early as Oct & reminded shoppers to begin their shopping early, so they have time to find items that they need even if things are back-ordered. "That messaging on the part of retailers … seems to have paid off," she said. Though roughly 30% of holiday shoppers said that they were having trouble finding items, they're not necessarily giving up, Cullen added.
Holiday shopping: Why surging inflation, supply
CDC Director Dr Rochelle Walensky said she is standing by an advisory committee’s decision to keep Johnson & Johnson (JNJ), a Dow stock, Covid-19 vaccine on the market despite a rare, but serious, side effect that has caused blood clots in some people. “Given the current state of the pandemic, both here and around the world, any vaccination is better than no vaccination,” Walensky added. “Individuals who are unable or unwilling to receive an mRNA vaccine will continue to have access to Johnson & Johnson’s Covid-19 vaccines.“ The agency's Advisory Committee on Vaccine Practices unanimously recommended Pfizer (PFE) & BioNTech's (BNTX) or Moderna's (MRNA) Covid-19 vaccines, which use mRNA technology that hasn't been linked to the blood clots, over JNJ's, which uses a more traditional virus-based technology. The Centers for Disease Control & Prevention confirmed 54 cases of mostly younger women who developed blood clots with low blood platelet levels — a new condition called thrombosis with thrombocytopenia syndrome (TTS) — after receiving JNJ's shots. Of those cases, 36 required treatment in intensive care. The panel's presentation of the data showed the greatest rick of TTS is among females 30-49 years of age. The committee voted unanimously on a preferential recommendation making the JNJ vaccine available to those who are unable or unwilling to receive the other 2 vaccines.
CDC director says any Covid vaccine is better than none in recommending J&J shot
AAA said that more than 109M Americans are expected to travel this holiday season. The group predicts crowded roads and skies – a nearly 34% increase
from last year of people traveling 50 miles or more – between Dec 23
- Jan 2, with air travel nearly tripling over 2020. The AAA expects more than 100M people to travel by automobile, 6.4M by air & 2.9M via bus, train or cruise. This rebound will bring 2021 numbers to 92% of 2019 levels & airlines will see a 184% increase from last year. "Americans who canceled their vacations in 2020 want to gather with
family and friends for the holidays this year, although they will still
be mindful of the pandemic and the new omicron variant," AAA Travel said. "With vaccines
widely available, conditions are much different and many people feel a
greater level of comfort with travel." Of those tens of Ms, the auto club predicted that 48.3M
would travel at least 50 miles from home by automobile – an increase of
nearly 4M over last year despite higher gasoline prices. Just a day later, the World Health Organization (WHO) identified omicron
as a SARS-CoV-2 "variant of concern" – a variant that has since spread
to 39 states & led state leaders to reimpose restrictions.
109M Americans to travel this holiday season, AAA says
Gold futures climbed back above the $1800 mark to post its highest settlement in nearly 4 weeks. The Bank of England surprised the market yesterday with a 15 basis-point hike to its benchmark interest rate to 0.25%. The ECB, meanwhile, left key interest rates unchanged & reiterated that its Pandemic Emergency Purchase Program will end in Mar as planned. The move come after the latest projections for the Federal Reserve point to 3 interest rate increases in 2022 &a phase out of the central bank's bond buying by Mar next year. Feb gold rose $6 (0.4%) to settle at $1804 an ounce, with most-active contract prices scoring a weekly rise of 1.1%. Prices settled at the highest since Nov 22. Gold traded lower for the year so far after a volatile 2021 for prices.
Gold prices rise back above $1,800 to post a gain for the week
Oil futures fell to suffer its 7th weekly loss in 8 weeks, with weakness tied to worries about the spread of the omicron variant & its potential impact on fuel demand. France yesterday imposed fresh restrictions on travelers from the UK in response to the spread of the omicron variant. The US is reporting more than 120K new cases of COVID-19 a day, up more than 40% from 2 weeks ago. West Texas Intermediate crude for Jan fell $1.52 (2.1%) to settle at $70.86 a barrel, pulling the US benchmark down by 1.1% for the week. Feb Brent crude, the global benchmark, lost $1.50 (2%) at $73.52 a barrel for a 2.2% weekly decline. Omicron demand concerns & the movement of the $ are very much dictating current moves in oil prices — & will likely set the tone over the holiday period. Omicron demand concerns & the movement of the $ are very much dictating current moves in oil prices, & will likely set the tone over the holiday period.
Oil prices suffer a weekly loss as omicron continues to spread
Dow Jones Industrials
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