Dow tumbled 646 (near session lows), decliners over advancers more than 4-1 & NAZ dropped 263. The MLP index pulled back a big 6+ to 220 & the REIT index was off 3+ to the 362s. Junk bond funds declined & Treasuries continued weak, taking yields higher. Oil was off 3+ to the 85s & gold fell 9 to 1706 (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)
Gas & diesel prices will remain elevated regardless of the 2022 midterm election results, according to an industry analyst. "No matter tonight's election results: #GasPrices will remain above average, since politicians are not the active reason they're above average," Patrick De Haan, head of petroleum analysis at GasBuddy, tweeted. De Haan further noted that diesel prices will also "remain historically high, since politicians are not the active reason they're historically high," The oil & refined products analyst cited various reasons of why pump prices remain high, including the coronavirus pandemic & geopolitical tensions. The national average price of regular gasoline is $3.80 per gallon, 4¢ higher than a week ago & nearly 40¢ more than a year ago. But it's well below the record of $5 per gallon, which was reached in early Jun. The elevated gas prices have been a hurdle for the Biden Administration ahead of the midterm elections, but analysts have argued there are many factors weighing on pump prices including Russia's war on Ukraine & the decision by OPEC+ to sharply cut production by 2M barrels per day starting in Nov. "OPEC+ recent cut in production quotas has contributed to tighter supplies," Lipow Oil Associates Pres Andy Lipow said. At the same time, the EU plans to enact a ban on the purchase of Russian crude oil by early Dec. This will add "to refiners difficulties to secure oil to meet the consumer demand," Lipow added. Crude oil accounts for over ½ of what consumers pay at the pump, according to the US Energy Information Administration (EIA). When oil supplies get interrupted, it's likely that pump prices will increase. The group's latest weekly petroleum report showed gasoline production increased last week, averaging 9.8M barrels per day. Distillate fuel production increased last week, averaging 5.2M barrels per day. Another factor keeping pump prices "stubbornly high" are the refinery outages in the Midwest & West Coast. Those outages "have impacted supply at the same time that nationwide inventories have been drawing and are now 4% lower than a year ago," Lipow added. Similarly, EIA said that geopolitical risks associated with Russia's full-scale invasion of Ukraine, OPEC+’s announced production cuts & global natural gas & coal supplies are some global factors affecting energy commodity prices. The Biden administration has said that its taking actions to "strengthen energy security, address the supply crunch, and lower costs."
Gas prices to remain high regardless of midterm results, analyst says
The subscriber count for Disney+ grew by 12.1M subscribers in Q4, raising the total for the streaming platform to 164M, Walt Disney (DIS), a Dow stock, said. The 4th qtr's total number of paid Disney+ subscribers marked a
39% increase from Oct 2021, when it reported 118M. Its other streaming services, ESPN+ & Hulu,
also saw their numbers of paid subscribers grow year-over-year, rising
42% & 8% respectively. As of Oct 1, ESPN+ had 24.3M, while
Hulu had 47.2M. Overall,
its direct-to-consumer services now has a total of over 235M
subscribers, including 14.6M added in Q4. CEO Bob Chapek
said the company expects that figure to "narrow going
forward" & for Disney+ to become profitable in fiscal 2024. Both of
those things, Chapek said, are "assuming we do not see a meaningful
shift in the economic climate." DIS had $20B in Q4 revenues, compared
to $18.5B in the same period the prior year. Diluted EPS "excluding certain items" decreased 19%
year-over-year, coming in at $0.30. Both were below analyst estimates. The stock dropped 13.16 (13%).
If you would like to learn more about DIS, click on this link:
club.ino.com/trend/analysis/stock/DIS?a_aid=CD3289&a_bid=6ae5b6f7
Disney+ subscriber base grows by 12.1 million in Q4
The Brotherhood of Maintenance of Way Employees Division (BMWED), the 3rd largest rail union in the country, is extending its status quo period (no strike, no lockout) during which it wants to continue negotiations with the freight rail carriers. In a posting, the BMWED union explained that it has moved the end of its cooling off period from Nov 19 to Dec 4, the same date on which the Brotherhood of Signalmen Union (BRS) — the other rail union to reject the proposed deal with railroad management recommended by the Biden administration — status quo period ends. The Signalman's union is having another meeting with the carriers over their fight for paid sick time equivalent to that offered to federal contractors, which has been a primary sticking point in labor talks. Meanwhile, 2 major rail unions are set to vote on ratifying the deal on Nov 21. “With this extension, BLET and SMART-TD will have the opportunity to finish their ratification procedures for any tentative national agreements without disruption. If these Unions do not ratify, then we will have the opportunity to bring all of Rail Labor together, under a single deadline, to finish national negotiations,” the BMWED stated. A labor spokesperson explained if the BLET or SMART-TD does not ratify, the ending of the new cooling-off period date would be Dec 8. That means the earliest a possible strike would happen is Dec 9. Freight industry trade group The Association of American Railroads, said that this extension provides greater certainty for the economy, rail customers & rail passengers planning to travel for the Thanksgiving holiday. The rail industry has previously estimated the cost to the economy of a rail strike at $2B per day.
Key freight rail union BMWED extends deadline for strike that threatens U.S. economy
Oil futures ended lower, logging a 3rd straight session decline, with prices pressured by a weekly climb in US crude supplies & ongoing concerns over the impact of China’s zero COVID policy on that country's demand for oil. US benchmark West Texas Intermediate crude for Dec fell $3.08 (3.5%) to settle at $85.83 a barrel, the lowest front-month finish since Oct 25.
Oil prices end lower on rise in U.S. crude supplies, worries over Chinese deman
Gold futures briefly touched their highest intraday level in a month, before ending lower for the trading session, pulled down in part due to strength in the $ ahead of tomorrow's monthly consumer price index reading. Gold futures for Dec fell $2 to settle at $1713 per ounce after trading as high as $1725. The contract gained 2.1% yesterday to settle above $1700 for the first time in roughly a month. After gold traded back above the psychological $1700 point, bulls appeared to in a position of power. However, the precious metal's near-term outlook will most likely remain influenced by fundamental drivers. Reps & Dems remain in a tight race for control & any shift in the balance of power in the Senate could impact the $, which may find its way back to gold. Today, the ICE US Dollar Index a gauge of the greenback's strength against a basket of major currencies, was up 0.8% at 110.507 after touching its lowest level since Sep a day ago. Strength in the $ can put pressure on $-denominated commodities. A weaker $ & lower Treasury yields helped push gold higher yesterday. While the latest move higher in gold is encouraging for bulls, the yellow metal must top its highs from early Oct to break out of the downtrend that has kept pressure on prices since Mar.
Gold ends lower after tapping a one-month intraday high; silver retreats
Dow Jones Industrials Meaanwhile
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