Dow fell 46, advancers over decliners 5-4 & NAZ went up 16. The MLP index jumped 6+ to the 221s & the REIT index was off 1+ to the 448s. Junk bond funds inched higher & Treasuries saw more buying. Oil rose 2+ to go over 90 & gold added 1 to 1778.
AMJ (Alerian MLP index tracking fund)
The number of Americans filing for unemployment benefits unexpectedly declined last week, suggesting that demand for employees remains strong amid a continuing labor shortage. The Labor Dept reported that applications for
last week edged lower to 250K from the downwardly
revised 252K recorded a week earlier. That is above the 2019
pre-pandemic average of 218K claims & just narrowly missed topping
the 8-month high of 261K recorded in mid-Jul. New claims
in the first week of Aug were revised down from the preliminary
262K reported that would have marked the highest level this year. Continuing claims (the number of Americans who are consecutively
receiving unemployment aid) rose slightly to 1.43M flast week, up by 7K from the previous week's revised level. That
is the highest level since Apr. By comparison, one year ago, nearly
11.8M Americans were receiving unemployment benefits. For
months, the labor market has been one of the few bright spots in the
economy, with the Jul jobs report showing that the unemployment rate
dropped to 3.5% — a historic low — for the first time since the COVID-19
pandemic began 2 years ago. However, despite the relatively
steady jobless claims figures, there are signs that the labor market is
starting to weaken. A plethora of companies have announced hiring freezes or layoffs in recent weeks.
Jobless claims dip slightly for first time in three weeks
Kohl's (KSS) cut its full-year sales & profit forecasts, squeezed by steeper discounts & higher costs amid
dwindling demand for clothing & shoes in the face of high inflation. Decades-high inflation,
although now easing, has made Americans more wary of opening their
wallets to clothing, shoes & other non-essentials, pressuring demand
at retailers & leaving them with bloated inventories. While a
return to offices & social events coupled with a resilient high-income
consumer have buoyed sales of dressy, high-end fashion, KSS, which
leans toward more casual styles & caters to low-income customers, is
taking a bigger hit. The department store chain now expects fiscal 2022 net sales to
fall 5-6%, compared with its previous forecast of flat to
1% growth. The company expects 2022 EPS of $2.80-3.20,
compared with its previous forecast of $6.45-6.85. The forecast called for EPS of $4.06. The stock dropped 1.51.
If you would like to learn more about KSS, click on this link:
club.ino.com/trend/analysis/stock/KSS?a_aid=CD3289&a_bid=6ae5b6f7
Kohl's cuts annual forecasts as inflation squeezes demand
US existing home sales dropped to a fresh 2-year low in Jul as rising mortgage rates & the relentless increase in home values slowed activity by edging prospective homebuyers out of the market. Sales of previously owned homes tumbled 5.9% in Jul from the previous month to an annual rate of 4.8M units, according to the National Association of Realtors. It marks the 6th consecutive month that sales have declined. On an annual basis, home sales plunged 20.2% in Jul. "We're witnessing a housing recession in terms of declining home sales and home building," NAR chief economist Lawrence Yun said. "However, it's not a recession in home prices."
Existing home sales plunge 5.9% in July to lowest level in 2 years
It sure feels like the economy is in a recession, even if it is only mild. Housing is feeling it & retailers are less bullish than they were at this time of year (school starting & going into the holiday season) in better years.
Dow Jones Industrials
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