Markets struggle to rebound as selling continues

Dow inched up 1 in choppy trading, decliners barely ahead of advancers & NAZ slid back 56.  The MLP index fell 2+ to the 216s & the REIT index was even at 380.  Junk bond funds remained little changed & Treasuries saw strong buying, reducing yields.  Oil fell 2 to the 72s (another yearly low) & gold 

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More than 2/3 of Americans are having a hard time affording groceries as food costs continue to soar, according to new data.  Retail technology platform Swiftly reported that 69% of shoppers say they are struggling to pay their grocery bills after months of persistently sky-high inflation & 83% currently rely on some form of coupons or loyalty program to put food on the table, according to its True Cost of a Grocery Shop survey.  The study also pointed to shifts in consumer behavior.  Some 74% of those surveyed said they had changed their grocery shopping habits in the last year & 33% said they are now shopping in-store more than in years past.  The average cost of everyday essentials is elevated across the board this year, but the cost of groceries is even higher.  The Labor Dept's latest consumer price index – which tracks the prices of a bevy of goods including gasoline, grocery & rents – showed prices rose an average of 7.7% on an annual basis in Oct, hovering near a 4-decade high.  But the cost of food at home soared 12.4% over the same month a year ago.  Some staple items rose by eye-popping amounts, with coffee up 14.8%, cereal up by 16.9% & eggs up by a staggering 43%.  Swiftly's analysis determined "food costs are becoming too expensive for the average American and are only increasing due to record inflation and ongoing economic challenges," adding, "Simply put, food costs are too high."

Majority of Americans struggling to pay for groceries as food prices soar

New Turkish insurance rules on oil tankers carrying Russian crude continue to slow down the movement of tankers off the coast of Turkey & between Russia's Black Sea ports & the Mediterranean. Sixteen vessels (none Russian-flagged) are waiting for insurance clearance, according to MarineTraffic, and that number is expected to grow.  Based on MarineTraffic data, 35 vessels including nine Russian-flagged tankers have departed from Russia since the first day (Dec 5) a G7 nation oil price cap & EU ban on most Russian crude purchases went into effect.  “All the vessels heading to the Bosphorus from the north (to leave Black Sea) are mostly full,” said Captain Adil Ashiq, US Western Region executive for MarineTraffic.  “The majority of crude is going to Turkey, followed by Greece, Italy, and India,” Ashiq added.  Tankers with a destination of Russia can be seen in the corresponding MarineTraffic graphic.  VesselsValue said that the average wait for tankers at the Bosphorus has increased compared to last week by roughly 47%, when there were 14 vessels with an average wait duration of 64 hours & a combined tonnage capacity of 1.46M tons.  “As we get further into the duration of the Russian crude oil sanctions and price cap, we expect to see increasing congestion on the north and south side of the Bosphorus, along with areas around the Dardanelles Strait for the same reasons,” said Graham Close, Senior Trade Analyst at VesselsValue.  Andy Lipow, president of Lipow Oil Associates, said that concerns about the age & quality of the shadow fleet carrying Russian crude oil through the Bosphorus will only grow. “As the EU sanctions take hold, these transit delays will impact Chinese and Indian refiners who remain the largest and grow in importance for Russian oil sales,” Lipow said.   “Turkey wants insurers to provide full and all-encompassing liability insurance for anything sanctions related and of course, P&I [maritime protection and indemnity insurance] clubs are not going to do that.”

Russian oil price cap, EU sanctions cause crude tanker bottleneck 

The Food & Drug Administration is expected to decide by spring whether to approve Pfizer's (PFR) vaccine to prevent respiratory syncytial virus, or RSV, in adults ages 60 & older.  PFE said the FDA has accepted its RSV vaccine candidate for review under an expedited process that reduces the approval timeline by 4 months.  The FDA is expected to make a final decision on whether to approve the vaccine by May 2023.  RSV is a common respiratory virus that causes cold-like symptoms in most people, but it can result in severe illness in infants and older adults.  Between 60-120K older adults are hospitalized with RSV every year & 6-10K older adults die from the virus.  There is no vaccine for RSV.  PFE's vaccine candidate was about 86% effective in preventing severe lower respiratory tract illness, defined as 3 or more symptoms.  The vaccine was about 67% effective at preventing milder lower respiratory tract illness, defined as 2 or more symptoms.  “With no RSV vaccines currently available, older adults remain at-risk for RSV disease and potential severe outcomes, including serious respiratory symptoms, hospitalization, and in some cases, even death,” said Annaliesa Anderson, PFE's head of vaccine research & development.  The stock rose 53¢.
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FDA expected to decide on Pfizer RSV vaccine for older adults by May 2023

Gold futures tallied back-to-back session gains, but prices settled below $1800 an ounce for a 3rd consecutive session as traders await next week's Federal Reserve decision on interest rates.  The technical outlook remains bullish for gold near term, but if rates & the $ begin to rise, there is likely to see much of the Nov rally retraced in the weeks ahead.  Gold for Feb rose $15 (0.9%) to settle at $1798 an ounce

Gold Futures Up a Second Straight Session, but Hold Below $1,800 an Ounce

US oil futures fell 3%, with losses in the energy sector led by sharp declines in futures prices for petroleum products,  The Energy Information Administration reported that domestic crude-oil supplies fell last week, but supplies of gasoline & distillates climbed.  US benchmark WTI crude fir Jan fell 2.24 (3%) (3%) to settle at $72.01 a barrel, the lowest front-month contract finish since Dec 21, 2021.

U.S. oil futures end lower, with energy market losses led by a drop in petroleum product prices

The stock market is meandering, waiting for excitement.  Not too much this week, so stocks are being sold.  Next week there will be new inflation data & the Fed will decide how much to raise interest rates.  That will bring excitement to the stock market.

Dow Jones Industrials