Dow was off 51, advancers over decliners 3-1 & NAZ was off 23. The MLP index gained 3+ to 251 & the REIT index barely budged from 354. Junk bond funds were little changed & Treasuries had mixed trading, leaving yields flattish (more below). Oil recovered 2+ to the 75s & gold was even at 1987.
AMJ (Alerian MLP Index tracking fund)
United Auto Workers (UAW) members at Chrysler owner Stellantis (STLA) have ratified a new labor contract following a historically contentious
round of bargaining between the union & company, according to
preliminary results posted today by the union. The deal is the 2nd this week for the Detroit automakers. A deal with General Motors (GM) received 54.7% support from UAW-GM members who voted, according to preliminary results. UAW members with Ford (F) are on pace to also ratify their agreement, but are continuing to vote today. A
majority of STLA facilities overwhelmingly approved the deal,
which, like GM & Ford, includes at least 25% wage increases. It also
includes the reopening of an Illinois plant that had been indefinitely idled. According to the UAW's vote tracker,
the deal was supported by 68.4% of the more than 26K autoworkers at
STLA who voted. There were still a few smaller facilities left to
finalize voting, but there aren't enough employees at those locations to
offset the roughly 9650-vote margin. The STLA deal
received notable objection at the automaker's Jeep plants in Toledo,
with 55% of workers there opposing the deal. Other major assembly plants
overwhelmingly supported the pact. The stock went up 20¢.
If you would like to learn more about STLA, click on this link:
club.ino.com/trend/analysis/stock/STLA_aid=CD3289&a_bid=6aeoso5b6f7
UAW members ratify new contract with Chrysler owner Stellantis
Student loan repayments that resumed last month after a more than 3-year pause are forcing
more than ½ of shoppers to cut back on spending for the holidays. Over ½ of consumers admit that they are moderately to very worried
about their monthly budgeting & financial stability because of the
resumption of these repayments, according to a survey by Study.com. In
Mar 2020, due to the COVID-19 pandemic, the Dept of Education's
office of Federal Student Aid, via an exec order from
then-Pres Trump, provided borrowers with some relief by suspending
loan payments, pausing collections on defaulted loans & reducing
interest rates to 0%. According to data from the Education Data
Initiative, the average monthly student loan payment is sitting at about
$503. That is based on previously recorded average payments & median
average salaries among college graduates. Economists predicted this resumption in payments would hit consumers
hard, hindering their ability to make major life changes, like buying a
home. However, recent data shows it is even affecting their ability to
celebrate holidays like in years past. The Study.com data shows
that 60% of consumers are planning to pull back on spending for
Thanksgiving & about 63% said they will spend less
during the Dec holidays. 22% of people said they will trim holiday expenses by more than
$250 this year. However, 21% are eyeing cutting over $750 from their
holiday budgets. In general, nearly ½ of consumers are cutting back on dining out & 48% plan to cut spending on entertainment. About 43% plan to cut
back on personal shopping. The survey underscored how teachers,
in particular, are feeling a huge pinch. 71% of teachers
are even considering other career paths given the financial strain
caused by loan repayments. Teachers typically have higher outstanding loan amounts
than other consumers. For instance, teachers who underwent graduate
programs in high-cost cities face as much as $103K in student loan
debt, according to data from Student Loan Planner.
Student loan repayments hit holiday shopping budgets
The yield on the benchmark 10-year Treasury hit its lowest level in about 2 months as investors bet that the Federal Reserve's rate-hiking campaign could finally be over. The yield on the benchmark 10-year briefly traded at 4.379%, its lowest level since Sep 20, before bouncing back to trade around 4.45%. The 2-year Treasury yield also hit its lowest level since Sep 1 but was last up 3 basis points at 4.875%. Yields & prices have an inverted relationship & 1 basis point equals 0.01%. Yields across the curve are down sharply for the week, after data released this week indicated that persistently high inflation could be finally be easing. Weak oil prices, which look set for their 4th consecutive week of declines, have also added to the sense that inflation is likely to remain lower. That has all boosted hopes that the Fed could decide to stop hiking interest rates & has sparked debate on when the first cut could come. Today's release of Oct's housing starts & building permits data revealed that both were stronger than expected, according to the Commerce Dept. Private owned housing starts came in at a seasonally adjusted annual rate of 1.37M, higher than the 1.35M estimated. Building permits came in at 1.49M, also above the 1.45M estimate.
10-year Treasury yield hits lowest level since September
Traders are taking it easy after the strong rebound in Nov. Dow is up 600 this week & up an impressive 850 this month. The challenge for the bulls will be to extend this rally with mixed economic data.Dow Jones Industrials
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