Dow extended its rally, up 214, advancers modestly ahead of decliners & NAZ dropped 210. The MLP index went up 4 to 188 & the REIT index was steady in the 507s. Junk bond funds fluctuated & Treasuries were sold again. Oil was up 1 to the 77s & gold rebounded 14 to 184 (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)
A record number of Americans quit their jobs in Nov, underscoring how persistent turmoil in the labor market has made it difficult for employers to fill open positions. The Labor Dept said that an unprecedented 4.5M Americans, 3% of the workforce, quit their jobs Nov, matching the high from Sep. That's up from 4.2M in Oct & tops the previous record of 4.4M in Sep. The pre-pandemic level was about 3.6M. Meanwhile, the number of job openings unexpectedly fell to 10.6M by the end of Nov. The data comes before the highly contagious omicron variant of the coronavirus began disrupting the economy. The data emphasizes how newly empowered workers are quitting their jobs in favor of better wages, working conditions & hours as businesses lure new workers with higher salaries – a new trend dubbed the "Great Resignation." As a result, Americans' incomes are rising across the board as employers have ramped up hiring to offset the losses. The highest inflation in nearly 40 years, however, has eroded the pay gains for many workers: The gov reported recently that average hourly earnings for all employees actually decreased 0.4% from Oct to Nov when factoring in the impact of rising consumer prices. Although average hourly earnings increased by 0.3% in Nov, that coincided with a top-line inflation increase of 0.8%. Resignations in Nov were concentrated in accommodation & food services, health care & social assistance, & transportation, housing & utilities. A majority of people quit for a new job. The number of available jobs has topped 10M for 6 consecutive months; before the pandemic began in Feb 2020, the highest on record was 7.7M. The record before the pandemic was 7.5M. There were once again more job openings in Nov than the 6.9M unemployed workers, evidence of how difficult it has been for employers to onboard new workers.
Millions of Americans quit their jobs as 'Great Resignation' persists
Airlines canceled hundreds of additional US flights today in the wake of winter storms & as the fast-spreading Covid omicron variant hamstrings crews. 1300 flights around the country were canceled, according to airline data provider FlightAware. Since Christmas Eve, airlines have scrubbed more than 20K flights, disrupting holiday plans for tens of thousands of customers during what was expected to be the busiest travel days since the start of the pandemic. Yesterday cancellations totaled 3225 as a winter storm hit the mid-Atlantic after causing a weekend of disruptions in the Midwest. It was the largest daily total since last Feb 15 when 3899 flights were canceled. About a 5th of the departures at Baltimore/Washington Intl Thurgood Marshall Airport & at Ronald Reagan Washington National Airport were grounded as of midday. The winter storm also snarled rail travel & roads throughout the eastern US. Drivers were trapped in an hourslong traffic jam after officials closed an icy stretch of I-95 in Virginia.
Airlines cancel another 1,300 flights as omicron, severe weather continue to snarl travel
Toyota Motor (TM) has dethroned General Motors (GM) as America's top-selling automaker in 2021, marking the first time
since 1931 that the Detroit automaker wasn't the best-selling car
company in the US. It also marks the first time a non-domestic automaker has taken the top spot in America. TM
was able to manage supply chain issues better, allowing it to take away
GM's throne for the first time in 90 years. An ongoing shortage of
semiconductor chips caused sporadic shutdowns of plants & led to
record-low vehicle inventories in 2021. GM sold 2.2M vehicles in the US in 2021,
down by 12.9% compared to the year earlier. TM, by comparison, sold 2.3M vehicles in the US last year, up 10.4% compared
to 2020. The difference in sales between the 2 automakers was 114K
vehicles. Jack Hollis, Toyota North America's senior VP of automotive operations, downplayed the company's #1 ranking. “Yes,
we did surpass General Motors in sales,” he said. “But to be clear, that is not our goal, nor do we see it
as sustainable.” GM's Q4 production & wholesale deliveries were
up significantly from Q3 as supplies increased. Dealer
inventory, including in-transit vehicles on their way to dealers, was 199K at the end of Q4, up from 128K cars &
trucks at the end of Q3. TM was able to achieve
the milestone by increasing sales of both cars & trucks last year,
despite a 25% decline in sales of its full-size Tundra pickup. Sales of
its smaller Tacoma pickup increased by 5.7% to 252K units. TM stock jumped 12.91 (7%).
If you would like to learn more about TM click on this link:
club.ino.com/trend/analysis/stock/TMa_aid=CD3289&a_bid=6ae5b6f
GM stock rose 4.57 (7%).
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GMa_aid=CD3289&a_bid=6ae5b6f
Toyota is America’s top-selling automaker in 2021, dethroning GM after a 90-year run
Gold futures climbed, finding some support despite strength in Treasury yields to recoup just over ½ of what was lost a day earlier, after data showed slower-than-expected growth among US manufacturers in Dec. A closely followed index of US-based manufacturers dropped to 58.7% in the final month of 2021 compared with 61.1% in Nov, the Institute for Supply Management said. That matched the slowest pace of growth in 11 months. The forecast for the index was to slip to 60%. The data come ahead of Fri's much-anticipated monthly US jobs report, which could help guide price direction for havens such as gold. Some analysts say that bullion continues to draw investment interest from those seeking to hedge against the potential impact of the omicron variant on the parts of the world. Infections have surged, with the US for example, registering 1M yesterday, more than double the previous record of 486K set 4 days ago. Feb gold rose $14 (0.8%) to settle at $1814 an ounce. That followed a 1.6% decline yesterday, which brought the contract to the lowest for a most-active since Dec 21. Minneapolis Fed Pres Neel Kashkari said that inflation has risen higher & lasted longer than he expected. Also, separately Kashkari said that at the Dec FOMC meeting, he penciled in 2 rate increases in 2022. At last check, the 2-year Treasury note yield was hanging around a 22-month high, at 0.796%. Market-based projections point to the Fed starting the process of lifting rates as many as 3 times in 2022 this spring, when it concludes its asset-purchase program.
Gold recoups half of its Monday loss on disappointing U.S. data, omicron uncertainty
Oil futures rose with global benchmark Brent crude at $80 a barrel for its highest close in almost 6 weeks. Major
oil producers (OPEC+) said they would stick to their plan to
gradually boost output next month, despite risks to oil demand tied to
the spread of the omicron variant of the coronavirus. After its meeting, OPEC+, announced that they would continue their agreement to raise monthly production by 400K barrels a day in Feb, as expected. For now, the omicron variant is not leading to the
same hospitalization rates & death associated with earlier variants
& for the most part, govs have not imposed the widespread
lockdowns or travel restrictions which significantly dent oil demand. Mar Brent crude rose $1.02 (1.3%) to settle at $80 a barrel after touching a high at $80.55. The settlement was the highest
for a front-month contract since Nov 25. West Texas Intermediate crude for Feb,
the US benchmark, rose 91 (1.2%) to settle at $76.99 a barre.
Brent oil settles at $80 as OPEC+ sticks with its output plan despite omicron risk to demand
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