Dow gained 180, advancers over decliners 3-2 & NAZ went up 74. The MLP index added 1+ to 206 & the REIT index went up 1 to the 463s. Junk bond funds stayed near breakeven & Treasuries were sold again, bringing higher yields (more below). Oil dropped 1 to the 113s after a recent rally & gold jumped 26 to 1963.
AMJ (Alerian MLP index tracking fund)
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The US announced a raft of new financial sanctions on Russian lawmakers & defense companies, further ratcheting up financial pressure on Moscow over its invasion of Ukraine. The latest actions from the Treasury Dept target more than 400 individuals & entities, including dozens of Russian defense companies; 328 members of the Russian State Duma, the lower house of Parliament & dozens of Russian elites, including Herman Gref, the head of Russia/s largest financial institution. The measures were announced during summit meetings between President Biden & NATO.
US hurting Russia's pockets even more with fresh sanctions
Orders at US factories for long-lasting goods fell more than expected in Feb, snapping a months-long streak of increases & business investment as manufacturers confronted a worsening supply-chain crisis. Bookings for all durable goods – products that are intended to last at least 3 years – fell 2.2%, the first decline in 5 months, the gov reported. The forecast called for a 0.5% decline. In other economic news, the gov also reported that the number of Americans filing for jobless benefits fell more than expected last week amid elevated business demand for workers & easing COVID-19 cases nationwide. Figures released by the Labor Dept show that applications for last week fell to 187K from an upwardly revised 215K a week earlier. It easily beat the forecast of 212K claims & marks the lowest level for initial claims since 1969 when it was 182K.
Orders for durable goods slip at US factories, first decline in months
The yield on the benchmark 10-year Treasury note rose 5.3 basis points to 2.374%, near recent highs, & the yield on the 30-year Treasury bond climbed 3.6 basis point to 2.556%. Yields move inversely to prices & 1 basis point is equal to 0.01%. Initial jobless claims last week totaled 187K, the lowest level since 1969. Inflation fears & interest rate hikes remain high on the agenda for investors. Federal Reserve Chair Jerome Powell struck an even more hawkish tone in a speech Mon, in which he said the central bank could be more aggressive with its rate hikes. Powell’s comments amid the economic uncertainty have seen the 10-year Treasury yield surge, touching 2.41% yesterday. Investors continue to monitor the war in Ukraine. There are 3 key geopolitical meetings set to occur today, with an extraordinary NATO summit taking place in Brussels, as well as meetings of EU leaders & the Group of Seven (G-7). Speaking ahead of the meetings, NATO Secretary General Jens Stoltenberg said that Russian Pres Putin had made a “big mistake” invading Ukraine Additional assistance for Ukraine is expected to be announced.
10-year Treasury yield rises back near recent high
The economic news was mixed. The durable goods data was disturbing & fits in with lower GDP forecasts being made. But the jobless claims data has become routine as long as it stays near 50 year lows. Attention will be on the NATO meeting today although it is likely they won't say anything new. EU & G-7 meetings usually provide a lot of hot air.
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