Markets fall as Treasury yields rise

Dow retreated 344, decliners over advancers 4-1 & NAZ edged up 50.  The MLP index slid back 2+ to the 283s & the REIT index remained weak, down 8+ to the 429s.  Junk bond funds were mixed & Treasuries continued to be sold, raising yields sharply.  Oil rose 1.40 to go over 70 as traders weigh China demand concerns & gold inched up 1 to 2731 (more on both below).

Dow Jones Industrials 

For some shoppers, the upcoming holiday season may lead to significant credit card debt.  Meanwhile, some people are still paying off debt from last year's gift buying.  In fact, 28% of shoppers who used credit cards have not paid off the presents they purchased for family & friends last year, according to a recent holiday spending report by NerdWallet.  The site polled more than 1700 adults in Sep.  “Between buying gifts and booking peak-season travel, the holidays are an expensive time of year,” said Sara Rathner, NerdWallet's credit cards expert.  “Not only are consumers at risk of getting into credit card debt, but that debt can stick around long after the decorations come down.”  The stakes are higher in 2024 with credit card debt already at $1.14T.  This year, spending between Nov 1 - Dec 31 is expected to increase again to a record total of $979-989B, according to the National Retail Federation.  Shoppers may spend $1778 on average, up 8% compared to last year, Deloitte's holiday retail survey found.  Most will lean on plastic: About 3-qtrs, 74%, of consumers plan to use credit cards to make their purchases, according to NerdWallet.  Meanwhile, credit cards are 1 of the most-expensive ways to borrow money.  The average credit card charges more than 20%, near an all-time high.

28% of credit card users are still paying off last year’s holiday debt

Minneapolis Federal Reserve Bank Pres Neel Kashkari repeated he expects "modest" interest-rate cuts over the coming qtrs, though a sharp weakening of labor markets could move him to advocate for faster rate cuts.  "If the labor market weakens surprisingly, that would cause me to take a fresh look at my 'dots,'" Kashkari said in a town hall, using "dots" as short-hand for his view of the appropriate path ahead for interest rates.  Currently, he said, he believes rates are putting the brakes on the economy.

Fed's Kashkari: any surprise job market weakness could trigger rethink of rate-cut pace

GE HealthCare announced a new artificial intelligence application it said will save time for doctors who diagnose & treat cancer.  CareIntellect for Oncology, as the tool is called, will help oncologists get up to speed on a patient's history & disease progression by quickly showing them the data they need.  GE said it wants to spare oncologists the headache of digging thru records so they can focus on caring for their patients.  Health-care data is notoriously difficult to analyze, & as much as 97% of the data produced by hospitals goes unused, according to a Deloitte report.  That information is stored across numerous vendors & file formats such as images, lab test results, clinical notes & device readings, which can be extremely taxing for doctors to sort thru.  “It’s very time-consuming, very frustrating for these clinicians,” Dr Taha Kass-Hout, GE HealthCare's global chief science & technology officer, said.  CareIntellect for Oncology will be able to summarize clinical reports & identify when patients are deviating from their treatment plans, Kass-Hout said.  The system can flag when a patient misses a lab test, for instance, so that their doctor can determine the best next steps.  “For cancer patients, the treatment journey can last years and involve numerous doctor visits,” he added.  GE stock

GE HealthCare announces time-saving AI tool for doctors who treat cancer

Gold took a breather after surging to a record high, as higher Treasury yields & the $ offset support from growing uncertainties surrounding the US presidential election & the Middle East war.  Spot gold was little changed at $2723 per ounce after hitting a record $2740 earlier in the session.  US gold futures settled 0.3% higher at $2738.   10-year yields are moving a lot higher & the dollar index got stronger.  That's putting some weight on gold.  Benchmark 10-year Treasury yields rose to a 12-week high, while the $ index gained, making gold more expensive for overseas buyers.  Bullion, considered a hedge against political & economic uncertainty, has climbed over 32% so far this year, shattering multiple record peaks as the Federal Reserve's interest rate cut combined with safe-haven demand set up a perfect storm for gold.  Traders now see an 85% chance of a qtr basis point cut by the Fed in Nov.

Gold pauses for breath as US yields, dollar move higher

Oil prices settled nearly 2% higher, recouping some of last week's more than 7% decline, with no letup of fighting in the Middle East & expected Israeli retaliation on Iran worrying markets about supply from the region.  Brent crude futures were up $1.23 (1.7%) at $74.29 a barrel, while US West Texas Intermediate crude futures was $1.34 (1.9%) higher, at $70.56 a barrel.  Brent settled more than 7% lower last week, while WTI lost around 8%.  Those were the contracts' biggest weekly declines since Sep 2, due to slowing economic growth in China & falling risk premiums in the Middle East.  Israeli forces besieged hospitals & shelters for displaced people in the northern Gaza Strip, medics said, as they stepped up operations against Palestinian militants.  Israel also carried out targeted strikes on sites belonging to Hezbollah's financial arm in Lebanon.

Oil Prices Rise Nearly 2%, Recovers Some of Last Week's 7% Decline

Earnings season ramps up this week.  Early results were welcomed by investors but investors are feeling nervous about future reports.  Also, Boeing (BA), a Dow stock, faces a double-whammy on Wed, when it's expected to release earnings at the same time workers vote on whether to accept a tentative deal agreed with the union to end a 5-week strike.  This should be an eventful week in he stock market.