Dow dropped 280, decliners over advancers better than 2-1 & NAZ was off 66. The MLP index stayed in the 218s & the REIT index was off 1 to the 215s. Junk bond funds fluctuated & Treasuries had limited selling today. Oil slipped back 2+ to 89 & gold fell 11 to 1724 (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 Food & Drug Administration (FDA) authorized Covid booster shots that target the omicron BA.5 subvariant as the US prepares for another surge of infections this fall & winter. It is the first time the FDA has authorized an updated vaccine formula since the original shots rolled out in 2020. Pharmacies are expected to start administering the new boosters after Labor Day weekend. The US has secured 171M doses of Pfizer's (PFE) & Moderna's (MRNA) updated shots so far, according to the Health & Human Services Dept. Pfizer's (PFE) new booster dose is authorized for people ages 12 & older, while Moderna's (MRNA) new shots are authorized for adults ages 18 & older. The eligible age groups can receive the boosters 2 months after completing their primary series or their most recent booster with the old shots. The US will no longer use the original vaccines as booster doses for individuals ages 12 & older now that the the updated shots have been authorized. The Centers for Disease Control & Prevention (CDC) has to sign off on the boosters before pharmacies can give them to patients. The CDC's independent advisory committee is scheduled to meet tomorrow & Fri to review the data & issue its recommendations for health-care providers. Public health officials believe the redesigned boosters will provide longer-lasting protection against the virus & reduce hospitalizations this fall & winter. The new boosters target both the original strain that emerged in China more than 2 years ago, which scientists refer to as the “wild type,” & omicron BA.4 & BA.5, which are now the dominant variants in the US.
FDA authorizes Covid booster shots that target omicron BA.5 variant
The head of McDonald’s (MCD), a Dow stock & Dividend Aristocrat, US criticized a landmark California bill that
would give the state more control over pay for fast-food workers, saying
it unfairly targets big chains. The remarks by Joe Erlinger,
pres of MCD US, come after the California state Senate
earlier this week passed a bill that would give a 10-person council the
authority to raise the industry's minimum wage to up to $22 an hour for
chains with more than 100 locations nationally. California's current
wage floor is $15.50 an hour. The council would also have the authority
to establish safety conditions. Proponents
of the bill say it will empower fast-food workers & help solve
industry problems such as unsafe working conditions & wage theft,
which can include not paying employees for overtime. But the FAST Act
faces strong opposition from the restaurant industry, which fears the
impact on California restaurants and the example it sets for other
states. “It imposes higher costs on one type of restaurant, while
sparing another. That’s true even if those two restaurants have the same
revenues and the same number of employees,” Erlinger wrote in a letter. The stock was up 22¢.
If you would like to learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
McDonald’s U.S. head says California fast-food bill unfairly targets big chains
Walmart's (WMT), a Dow stock & Dividend Aristocrat, owned
Sam's Club will raise its annual fees this fall, as
the warehouse club's membership hovers at a record high &
inflation-pinched shoppers seek deals on bulk items. Fees will
increase to $50 from $45 for club members & to $110 from $100 for
members of its higher-tier level, “Plus,” which includes some additional
perks. The changes take effect Oct 17. It marks the first fee hike in 9 years for the entry-level
membership. Sam's Club has not raised the price of the “Plus” membership
since it debuted in 1999. Sam's
Club is hiking annual fees as warehouse clubs benefit from
budget-conscious customers. Inflation may make the increase sting. In a note to members, Sam's Club CEO Kath McLay said the company is
“mindful of the financial pressure on wallets right now.” With
that in mind, she said, Sam's Club will pick up the tab this year by
reimbursing the fee increase in Sam's Cash that can be used at its
stores. The stock rose 21¢.
If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart-owned Sam’s Club raises annual membership fee for the first time in nine years
Gold prices softened for a 4th straight day as traders bet that the Federal Reserve is likely to keep benchmark interest rates higher for longer following Fed Chair Jerome Powell's Jackson Hole speech last Fri. Meanwhile, gold ended the month of Aug with its 5th straight monthly decline — its longest monthly losing streak in about 4 years. Gold futures for Dec were down $10 (0.6%) to settle at $1726 per ounce. Prices for the most-active contract fell 3.1% for the month, down a 5th consecutive month — the longest monthly losing streak since the 6 month drop ended Sep 2018. Powell's speech on Fri drove Treasury yields & the $ higher, dulling the luster of the yellow metal. The 10-year Treasury yield was up 1.3 basis points at 3.124%, while the ICE Dollar Index, a gauge of the $'s strength against a basket of rivals, was up 0.1%. Gold ended the month with a loss, down a 5th straight month.
Gold logs a 5th straight monthly decline, its longest losing streak in 4 years
Oil futures fell amid worries about the global economic outlook, as central banks move to squelch inflation, contributing to a loss of more than 6% for US benchmark crude prices. Slower economic growth is expected in Europe, China & the US as economies recover from the disruptions caused by the coronavirus pandemic & central banks raise interest rates to combat inflation. Data showing a 3rd-weekly decline in US crude inventories, however, helped oil pare some of its price losses today. West Texas Intermediate crude for Oct fell $1.47 (1.6%) to $90.17 a barrel with the front-month trading down by 6.7% for the month. Prices touched an intraday low of $88.27. Oct Brent crude, the global benchmark, declined by $2.51 (2.5%) at $96.80 a barrel. The contract, which expires at the end of the trading session, was down 7.1% for the month. The most actively traded Nov contract declined $1.68 (1.7%) to $96.16. Both WTI & Brent slid more than 5% yesterday. Oil prices dived yesterday after a Russian news report said OPEC+ wasn't discussing production cuts. Saudi Arabia's energy minister last week had raised the possibility of reductions. OPEC+ meets on Sep 5. Meanwhile, the OPEC+ Joint Technical Committee today said it sees the oil-market surplus rising by 100K barrels a day from its previous estimate to 900K barrels a day. The committee advises OPEC+ on market fundamentals. US benchmark stock indices moved lower again today, after falling for a 3rd straight day yesterday, rattled by Fri's speech by Federal Reserve Chair Jerome Powell warning that economic pain may lie ahead as the central bank continues to tighten monetary policy in its effort to get inflation under control.
Oil futures end lower, with economic jitters fueling a more than 9% monthly loss for U.S. prices
The Dow chart below shows the last couple of weeks in Aug has seen a lot of selling. About ½ of the recent rise has been wiped out. For the month, Dow fell over 1300. As long as Powell's comments overhang stocks, more selling is expected.
Dow Jones Industrials
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