Markets edge higher ahead of election results

Dow climbed 333, advancers over decliners 2-1 & NAZ rose 51.  The MLP index was steady in the 226s & the REIT index added 2+ to the 367s.  Junk bond funds continued in demand & Treasuries saw more buying which brought lower yields.  Oil dropped 2+ to 89 & gold zoomed 34 to 1715 (more on both below).

AMJ (Alerian MLP Index tracking fund)

Free Apple Analysis!

Bring Your Portfolio Into The 21st Century

Four Days, Four Trades, +40% Average Returns
Learn to trade options with MarketClub!

According to the National Federation of Independent Business (NFIB), 33% of small business owners cited inflation as their most important problem in Oct.  That number is 3 points higher than was reported in Sep.  The NFIB's Small Business Optimism Index dropped 0.8% to 91.3 in Oct, marking 10 consecutive months it has remained under the 49-year average of 98.  "Owners continue to show a dismal view about future sales growth and business conditions, but are still looking to hire new workers," NFIB Chief Economist Bill Dunkelberg said.  "Inflation, supply chain disruptions and labor shortages continue to limit the ability of many small businesses to meet the demand for their products and services," he continued.  Small business owners expecting better business conditions over the next 6 months dipped 2 points from Sep to a net negative 46%.  The data also revealed that the net percent of owners raising average selling prices declined one point to a net 50%, which was seasonally adjusted, and that half of all the businesses surveyed are raising prices as a result of inflation.  The NFIB's Oct jobs report found that 46% of owners reported job openings that were hard to fill, the same as was reported in Sep.  Among owners seeking workers, 90% reported few or no qualified applicants for the positions they were looking to fill.  Seasonally adjusted, a net negative 8% of all owners reported higher nominal sales in the past 3 months, a decline of 3 points from Sept.  The net percentage of owners expecting higher real sales volumes dropped three points to a net negative 13%.  A net 44% of owners reported raising compensation, when seasonally adjusted, which is down one point from Sep.  A net 32% plan to increase compensation in the next 3 months, a 9-point jump from Sep & the highest since Oct 2021.  The frequency that positive profit trends were reported was a net negative 30%, a one-point increase from Sep.

NO END IN SIGHT: Small business outlook sours as inflation, labor shortages persist

Roughly ½ of shoppers will buy fewer things due to higher prices, & more than 1/3 said they will rely on coupons to cut down on the cost, according to a recent survey of more than 1000 adults by RetailMeNot.  Though the study found many consumers are also eager to get an early start on seasonal shopping, that surge is largely driven by concerns about affordability & money-saving strategies, other reports show.  Household finances have taken a hit with a lower savings rate & declining real wages, which could slow holiday sales.  A separate report by BlackFriday.com also found that 70% of shoppers will be taking inflation into consideration when shopping this holiday season & even more will be on the lookout for deals.  Roughly 25% of consumers said they would opt for cheaper versions or more practical gifts, such as gas cards, according to TransUnion’s holiday shopping survey.  “People are trying to economize and make the most of what they have,” said Cecilia Seiden, VP of TransUnion's retail business.  Still, households will shell out $1455, on average, on holiday gifts, in line with last year, a separate retail report found.

Consumers are cutting back on holiday gift buying amid higher inflation

Boeing (BA), a Dow stock, aircraft deliveries in Oct fell from a month earlier after a fuselage flaw in its bestselling 737 Maxes delayed handovers of new planes.  BA delivered 35 planes in Oct, down from 51 in Sep.  Of those, 22 were 737 Maxes.  The manufacturer's commercial aircraft unit had said that the flaw would impact its delivery numbers for the month.  “We’ll recover on that quickly,” Stan Deal, chief exec of BA's commercial airplane unit.  “We can surge and we will recover for our deliveries at the end of the year, but that adverse quality which we have to manage out of the system was an impact.”  BA is making about 31 of the 737s a month.  Last week, it told investors that it expects to deliver 400-450 of its 737s next year, up from about 375 planes this year.  The company logged orders for 122 of its 737 Max planes in Oct from carriers.  Supply chain problems & labor shortages have prevented the manufacturer from ramping production up further.  The stock was up 4.92.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7

Boeing’s aircraft deliveries slipped in Oct on 737 fuselage flaw 

Oil futures settled lower for a 2nd straight session, as traders continued to weigh uncertainty over China’s zero-COVID policy, which clouds the nation's energy-demand outlook.  US benchmark West Texas Intermediate crude for Dec fell $2.88 (3.1%) to settle at $88.91 a barrel on the New York Mercantile Exchange.  Meanwhile, natural-gas futures continued to see volatile trading, easing back by nearly 12% today after gaining 8.5% a day earlier on the back of US forecasts for colder-than-usual weather.  Dec natural gas settled at $6.138 per M British thermal units, down 81¢ (11.6%).

Oil ends lower for a second straight session on uncertainty over China’s zero-COVID policy

Gold futures moved higher, giving up early losses, to trade back above $1,700 an ounce for the first time in about a month, buoyed by a retreat in the US $ &Treasury yields.  Gold futures for Dec climbed $34 (2.1%) to trade at $1715 per ounce.  Prices for a most-active contract haven't settled above $1700 since Oct 7.  The ICE US Dollar index was down 0.5% at 109.569 as US voters headed to the polls to vote in the midterm elections, while the 10-year Treasury note yield fell nearly 7 points to 4.141%.  The rise in gold prices was attributed to weakness in the $, as well as technical buying as gold managed to trade above its 50-day moving average.  A closely watched report on inflation in Oct is due out on Thurs, with economists expecting the consumer-price index to show prices increased by 7.9% on a year-over-year basis.

Gold tops $1,700 an ounce; silver settles at highest since June

While excitement was limited in the stock market today, the bears stayed home.  So stocks were bid higher.  The Dow started the day strong, sold off to around breakeven in midday trading & finished with strong buying in the 1½ hour of trading with a little selling into the close.  Who knows?  Maybe the buyers were hoping the Reps would have a good showing.  However more inflation is coming shortly & that news could be so-so at best.

Dow Jones Industrials