Dow climbed 59, advancers over decliners 2-1 & NAZ went up 50. The MLP index was up 1+ to the 225s & the REIT index rose 2+ to 430. Junk bond funds edge higher & Treasuries were sold, raising Treasury yields. Oil rose 1+ to the 94s & gold added 1 ti 1773 (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)
Federal Reserve Bank of Minneapolis Pres Neel Kashkari says the central bank needs to press forward with tighter monetary policy until it is clear that very high levels of inflation are moving back down. “When inflation is 8% or 9%, we run the risk of un-anchoring inflation expectations,” Kashkari said & if that happened, the Fed would likely have to embark on very aggressive rate rises to restore balance. “We definitely want to avoid allowing that situation to develop,” Kashkari said. “So with inflation this high for me, I’m in the mode of wanting to err on making sure we’re getting inflation down and only relax when we see compelling evidence that inflation is well on its way back down to 2%,” he added. The Jul consumer price index was up by 8.5% from the same month a year ago. Kashkari said his “biggest fear” is that inflation will be more persistent than many now expect. He also said that it remains the case that the bulk of the inflation surge is tied to supply-chain issues.
Nordstrom (JWN) slashed its financial forecast for the full year as it faces a glut of inventory & slowing demand. The
retailer's lowered forecast came even as it reported fiscal Q2 earnings & sales ahead of estimates. “Customer traffic and demand decelerated significantly beginning in
late June, predominantly at Nordstrom Rack,” CEO Erik
Nordstrom said. “We are adjusting our plans and taking
action to navigate this dynamic in the short term, including aligning
inventory and expenses to recent trends.” JWN now sees
annual sales, including credit card revenue, up 5-7%, compared with a
prior range calling for a 6-8% increase. It's calling for adjusted EPS to be $2.30-2.60, down from a prior
forecast of $3.20-3.50. Analysts had been looking for adjusted EPS of $3.04, with year-over-year revenue growth of 6.7%. Q2 EPS was 81¢ adjusted vs 80¢ expected & revenue was $4.1B vs $3.97B expected. The stock tumbled 4.63 (20%).
If you would like to learn more about JWN, click on this link:
club.ino.com/trend/analysis/stock/JWN?a_aid=CD3289&a_bid=6ae5b6f7
Ukraine marks its 31st Independence Day today as well as the 6-month mark of Russia's full-scale invasion, which began on Feb 24. For many, the day represents resilience & defiance, as captured Russian tanks & other military equipment sit on display in Kyiv's main boulevard, ½ a year after Moscow expected the capital to fall within days. Ukrainian & US officials have warned of stepped up Russian attacks on this day, keeping the country on high alert with a ban on large gatherings in Kyiv for most of the week. Meanwhile, Pres Biden announced a nearly $3B new security assistance package for Ukraine, its biggest yet. The announcement of the upcoming military aid package, the 19th such installment, comes as Ukraine celebrates 31 years of its independence from the Soviet Union.
Ukraine marks 31st Independence Day on high alert; Biden reveals massive new $3 billion aid package
US oil futures climbed,
settling at a more than 3-week high as traders reviewed reports of
developments tied to the EU's draft Iran nuclear agreement. Oil prices fell when a report said that Iran was assessing the US response to the draft deal, then moved up when Iran Intl, citing reports from Al-Arabiya, tweeted that the US rejected all additional conditions requested by Iran. Oct WTI crude rose $1.15 (1.2%) to settle at $94.89 a barrel, the highest front-month contract settlement since
Jul 29.
U.S. oil ends higher as traders weigh developments tied to the EU Iran nuclear deal draft
Gold recovered early losses to finish a bit higher, with prices holding above $1760 per ounce ahead of Federal Reserve Chair Jerome Powell's speech later this week at the Jackson Hole economic symposium. Gold futures for Dec delivery edged up pennies to settle at $1761 per ounce after a 0.7% climb yesterday. Analysts blamed the rebound in the $ & long-term Treasury yields for the weakness in gold over the past week. Others say that it looks like gold is finally stabilizing despite continued strength in both the dollar and yields. The ICE US Dollar Index, a gauge of the greenback's strength against a basket of rivals, remained near a 2-decade high, trading at 108.678, while the 10-year Treasury yield was up 7 points at 3.1188%. Among US. economic data, the gov reported that orders at US factories for long-lasting goods fell flat in Jul on a big drop in military contracts, while a measure of business spending climbed.
This was another semi holiday for the stock market with no dramatic news. But dreary thoughts about rising interest rates & a looming recession are around. Oil has been sloshing around, not too far from 90 since Jan. There were a couple of rally attempts, but they did not last. Currently an Iran nuclear deal is a major driver with a possible deal, one way or the other. Meanwhile, everybody is waiting for Powell to speak on Fri.
Dow Jones Industrials
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