Dow retreated 173 (off session lows), decliners over advancers about 6-1 & NAZ dropped 85. The MLP index was even in the 246s & the REIT index pulled back 4+ to the 339s on higher interest rates. Junk bond funds traded lower & Treasuries had substantial selling, moving yields sharply higher following the recent decline. Oil was off chump change in the 83s & gold slid 5 to 1881 (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)
Rep lawmakers remained divided after nominating Rep Steve Scalise as their candidate for speaker of the House of Representatives, raising the prospect that the lower chamber will once again face a drawn-out election with multiple rounds of voting. The GOP majority leader from Louisiana does not appear to have the 217 Rep votes needed to win the speaker's gavel at this time given the tight margin in the closely divided House. Scalise secured his party's nomination after defeating Judiciary Committee Chairman Jim Jordan of Ohio in a narrow 113-to-99 vote during a closed-door meeting. “The conversations we’ve been having with my colleagues over the last few days leading up to this show that there’s a resolve that we need to get back to work,” Scalise said after winning the nomination. But the party remained divided after the internal ballot & the House adjourned last evening without a full floor vote on Scalise's candidacy. It is unclear when Scalise will face the House. The GOP has scheduled another closed-door meeting today. Rep Marjorie Taylor Greene of Georgia, one of the GOP lawmakers who remains opposed to Scalise, said the Louisiana congressman should face a floor vote today rather than another closed-door party meeting.
Scalise does not appear to have votes to become speaker as GOP remains divided
The number of Americans applying for unemployment benefits was unchanged last week, remaining at historically low levels in another sign that the US job market remains strong in the face of higher interest rates. Unemployment claims stayed at 209K last week, the Labor Dept reported. The 4-week moving average of claims, which strips out week-to-week volatility, fell 3K to 206K. The numbers, a proxy for layoffs, continue to show that American workers enjoy extraordinary job security. When the Federal Reserve began raising its benchmark interest rate last year to rein in surging consumer prices, many economists expected the US to sink into recession. But the economy & the job market have remained sturdy even as higher rates have brought inflation down steadily from the 4-decade highs reached in 2022. The combination of easing inflationary pressures & healthy hiring is raising hopes that the Fed can stick a soft landing — beating inflation without triggering an economic downturn. Overall, 1.7M people were collecting unemployment checks the latest week, up 30K from the week before.
US jobless claims remain at historically low 209,000
Delta Air Lines (DAL) reported a record in quarterly revenue on a 35% jump in intl travel. The company said it expects strong intl travel demand to continue thru
the fall, while also predicting record profitability in Transatlantic,
South American & Latin American revenues. It forecast an adjusted operating margin of 9-11% in Q4, with a 9-12% year-on-year increase in revenue. Over the qtr, DAL posted a 13% increase in adjusted operating
revenue from the same qtr in 2022 at $14.6B, while recording
$2B in operating income at an operating margin of 13.5%. A
jump in fuel costs, however, is pressuring profits. DAL now expects
adjusted EPS of $6.25 this year, compared with $6-7 estimated in Jul. It reported an adjusted EPS
of $2.03 for the 3rd qtr, above expectations
of $1.95, according to LSEG data, helped by a 35% rise in intl passenger revenue from a year ago. The stock fell 86¢.
If you would like to learn more about DAL, click on this link:
club.ino.com/trend/analysis/stock/DAL_aid=CD3289&a_bid=6aeoso5b6f7
Delta Air Lines profit boosted by international demand but US trends weaker
Gold prices weakened for the first time in 5 sessions as the US reported inflation rose at a higher than expected pace last month, pushing the $ & treasury yields higher. Gold for Dec closed $4 lower to settle at $1883 per ounce. The precious metal fell off an overnight high of $1898 as the Labor Dept reported consumer prices rose by 3.7% annualized in Sep, unchanged from Aug & ahead of expectations for a 3.6% increase. Core inflation, which excludes volatile items like food & energy, was up 4.1% annualized, matching the consensus forecast. The $ & bond yields rose following the inflation data on renewed expectations for further interest-rate hikes, bearish for gold even as safe-haven buying following the Sat attack on Israel by Hamas offers support for the metal. The ICE dollar index was last seen up 0.71 points to 106.53, while the yield on the 2-year note was up 5.5 basis points to 5.071%, while the 10-year note was paying 4.717%, up 15.2 basis points.
Gold Closes Lower as the Dollar and Yields Rise after US September Inflation Tops Expectations
Prices for US benchmark oil futures ended lower for a 3rd consecutive session, pressured by a more than 10M-barrel weekly rise in domestic crude supplies & climb in US production to its highest on record. Iran is the big wild card when it comes to the Israel-Gaza war. If it gets involved, that market will be concerned if anything happens in the Strait of Hormuz, the world's most important oil chokepoint. Nov West Texas Intermediate crude fell 58¢ (0.7%) to settle at $82.91 a barrel.
U.S. oil futures stretch losses into a third straight session
The inflation news was not welcomed by the stock market. There was buying into the close to trim losses, but stocks are still not in favor. The VIX (uncertainty index) is almost 17, pretty much a 5 month high. Also there is another a major yield downgrade for US debt looming out there, somewhere. Times are tough for risky investments like stocks.Dow Jones Industrials
No comments:
Post a Comment