Dow shot up 344 (near session highs), advancers over decliners 5-2 & NAZ jumped 272. The MLP index added 1+ to the 217s & the REIT index went up 3+ to the 485s. Junk bond funds fluctuated & Treasuries were being purchased. Oil rebounded 3+ to the 104s & gold was up 3 to 1979 (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)
Americans harbor some of the most downbeat views on the economy since the recovery from the Great Recession & some of their attitudes are in line with those seen only during recessions, according to the latest CNBC All-America Economic Survey. Amid soaring inflation, 47% of the public say the economy is “poor,” the highest number in that category since 2012. Only 17% rank the economy as excellent or good, the lowest since 2014. Only one in 5 Americans describe their personal financial situation as “getting ahead,” the weakest showing in 8 years. Most say they are “remaining in place,” & one in 10 say they are “falling backward.” Meanwhile, 56% say they expect a recession in the next year — a level only achieved in the survey during an actual recession. “The angst was previously more about what was going to happen in the economy, and we’ve now shifted into a new place where we’re much more much pessimistic about what’s currently happening,” said Micah Roberts, a partner at Public Opinion Strategies & the Rep pollster for the survey. “There’s no overwriting the pessimism in this survey. It is on every page, and it is inescapable.” The survey of 800 Americans nationwide was conducted Apr 7-10 & has a margin of error of plus or minus 3.5%. The pessimism is clearly dragging on Americans' opinions of Pres Biden. In fact, nothing looks to be working in the Biden presidency from the public's viewpoint. His approval rating sank to a new low of just 38%, with 53% disapproving. Biden's -15% net approval rating is measurably worse than his -9% approval in the CNBC December survey. What's more, his approval rating on the economy dropped for a 4th straight survey to just 35%, with 60% disapproving, putting the pres a deep 25 points underwater. Jay Campbell, partner at Hart Research & the Dem pollster for the survey, said the problem for Biden is that the inflation issue is bipartisan. “Cost of living has just blown everything else, including Covid, out of the water. And part of the reason for that is, there are attitudes about the economy that are largely a partisan phenomenon,″ he said . “That is not the case with inflation, or at least not right now. It is the top issue for Democrats, independents and Republicans.”
Biden’s approval rating sinks to new low, public grows pessimistic over economy, CNBC survey shows
Treasury Secretary Janet Yellen warned of major consequences for countries that undermine the sanctions that the US & its Western allies have imposed on Russia over the war in Ukraine. "The unified coalition of sanctioning countries will not be indifferent to actions that undermine the sanctions we’ve put in place," Yellen said. The US & European nations targeted Russia with severe financial penalties that are designed to cripple its economy following the Feb 24 invasion of Ukraine. Although no countries have subverted the measures yet, there is concern that China – which has criticized the sanctions & so far maintained neutrality on the war – could do so in the future. Yellen did not specify what the consequences could be for nations that do not abide by the sanctions on Moscow. The Treasury secretary called on Beijing to persuade Russia to end the war – suggesting that sitting on the sidelines could hurt China's standing in the world. "Going forward, it will be increasingly difficult to separate economic issues from broader considerations of national interest, including national security," Yellen added. "The world’s attitude towards China and its willingness to embrace further economic integration may well be affected by China’s reaction to our call for resolute action on Russia." Western allies have already cut off a key part of the Central Bank of Russia by preventing it from selling $s, €s & other foreign currencies in its roughly $630B reserve stockpile; blocked certain financial institutions from the Swift messaging system for intl payments & sanctioned many Russian lawmakers & elites who have close ties to Putin. The US also ordered a ban on Russian oil imports in addition to blocking new investments in the country.
Yellen flexes muscle in Russia fight, warns nation against flouting sanctions
The shipping hubs working at record pace to ease the crisis. Nationwide, smaller ports have increasingly become viable alternatives to congested coastal docks. The Port of Cleveland, which ranked 49 out of 50 on the Bureau of Transportation Statistics’ 2020 list of top US ports, reported a 69% increase in "tonnage" in 2021. Officials at the Port of Cleveland said a significant increase in goods both in & out of containers, as well as iron ore shipments, drove the increase. Jade Davis, the exec VP of external affairs at the Port of Cleveland, said more shipping companies used the inland port last year to avoid crowded east & west coast hubs. "We end up seeing some ships that diverted from the coasts and couple ships came all they around the Panama Canal," Davis added. "What you don’t see [here] is a bunch of ships sitting out in the harbor, because of that we offer companies the opportunity to procure goods quicker and get them on and off ships quicker." Davis explained some companies that used the port had even chartered their own small ships to dictate where their goods would enter the country. "They’re just calling our port operators and saying, ‘Do you have room and when because we’re worried about various backups?’" Davis continued. Across the country, other small ports are angling for some of the additional business overflowing from major US ports. In Florida, Gov Ron DeSantis has pitched the state’s 15 seaports as the relief the US needs, saying local harbors "are used to operating around the clock." In Texas, Gov Greg Abbott launched an "Escape California" campaign aimed at attracting carriers to the Gulf Coast.
Smaller US ports offer potential solution for supply chain delays
Pres Biden announced another $800M in military assistance following a phone call with Ukrainian Pres Volodymyr Zelenskyy. The new package will contain previous weapons systems already deployed to the fight in Ukraine as well as “new capabilities tailored to the wider assault we expect Russia to launch in eastern Ukraine,” Biden wrote in a statement announcing the additional arms package. “These new capabilities include artillery systems, artillery rounds, and armored personnel carriers. I have also approved the transfer of additional helicopters. In addition, we continue to facilitate the transfer of significant capabilities from our allies and partners around the world,” Biden wrote. The Biden administration said last week that it has provided more than $1.7B in security assistance to Ukraine since Russia's invasion in late Feb. The US has provided a total of $2.4B to Ukraine since the beginning of Biden's presidency, according to the White House.
Biden authorizes additional $800 million in military assistance for Ukraine
Gold futures climbed, stretching their streak of gains to a 5th consecutive session. Most of the gains for the metal came after the UK posted higher than expected & accelerating inflation numbers. Gold
continued to rise after US data showed wholesale prices over the past year have
climbed by 11.2%. All of the related economic
disruptions that have caused inflation to spike -- war, lockdowns,
supply chain snarls -- appear to be having a bigger impact than interest
rate hikes. Jun gold rose $8 (0.4%) to
settle at $1984 an ounce, the highest most-active contract finish
since Mar 11.
Gold prices score a 5th gain in a row
Oil futures settled with a gain of nearly 4% after Russian Pres Vladimir Putin said negotiations with Ukraine had hit a dead end, raising concerns about further global losses of Russian oil. Prices continued to trade higher even after US gov data showed a hefty weekly climb in domestic crude inventories, along with declines in stockpiles of gasoline & distillates. West Texas Intermediate (WTI) crude for May rose $3.65 (3.6%) to settle at $104.25 a barrel. Jun Brent crude, the global benchmark, gained $4.14 (4%) to end at $108.78 a barrel. Based on the front-month contracts, Brent & WTI ended at their highest since Mar 30. Putin said Russia “had no other choice” but to launch what he has termed a “special military operation,” pledging it would “continue until its full completion & the fulfillment of the tasks that have been set.” A report said that Russian oil & condensate production had fallen below 10M barrels a day on Mon to its lowest since Jul 2020, as a result of sanctions & logistical problems. The Intl Energy Agency (IEA), in its monthly report, said that a move by the US & its allies to release oil from their reserves — a move the IEA helped coordinate — should help counter the loss of Russia's vast supplies after its invasion of Ukraine. Still, the IEA estimates that up to 3M barrels a day of Russian oil could be lost to global markets by next month. The agency also cut its demand forecast for the year by 260K barrels to 99.4M barrels a day due to a lockdown in Shanghai that has shut off the city of 25M people. Meanwhile, the Biden administration plans to allow the summertime sale of gasoline with 15% ethanol, which could provide savings of 10¢ per gallon on average. The Energy Information Administration reported that US crude inventories rose by 9.4M barrels last week. The increase came on the back of a 3.9M-barrel weekly decrease in crude stocks in the Strategic Petroleum Reserve. The EIA was expected to show crude inventories up by 300K barrels. The American Petroleum Institute reported that US crude supplies rose by nearly 7.8M barrels.
Oil prices settle at a 2-week high, with global markets set to lose more Russian oil
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