Dow gave back 47, decliners over advancers 5-4 & NAZ went up 27. The MLP index fell 1+ tp the 148s & the REIT index stayed even at 371. Junk bond funds inched higher & Treasuries were steady in price. Oil slid lower in the 47s after rising to a 9 month high & gold added 5 to 1860.
AMJ (Alerian MLP index tracking fund)
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US retail sales in Nov fell for the first time in 7 months, suggesting consumers are pulling back on spending amid a surging pandemic & expiring federal aid. The value of total sales declined 1.1% from the prior month, Commerce Dept figures showed. It marked the first month-over-month drop since Apr, when the coronavirus pandemic forced businesses around the country to close & shoppers were directed to stay at home. The slowdown follows a spike in COVID-19 infections nationwide, which has triggered some state & local govs to impose new restrictions on businesses. The report revealed that the weakness was spread across a number of industries, but the biggest drop in sales was at department stores, down 7.7% last month. Sales also fell at clothing & electronic stores. Consumers, facing the loss of key unemployment lifelines put in place earlier this year with the passage of the Mar CARES Act, reined in their spending despite the start of the holiday season. Shoppers mostly stayed home on Black Friday, which is typically the busiest day of the holiday shopping season. Consumers, also facing the loss of key unemployment lifelines, reined in their spending despite the start of the holiday season. Crowds at malls & stores were thin after health officials warned people not to shop in person. Retailers followed suit by putting their best deals online. Half as many people shopped inside stores this Black Friday than last year.
November retail sales fall for first time since April despite holiday season
Senate Majority Leader Mitch McConnell voiced optimism for deals on both general spending & on coronavirus stimulus, after he & other congressional leaders ended their talks for last evening. The lawmakers face a Fri deadline for passing a spending plan to avoid a gov shutdown & are also seeking an accord to provide aid – both to small businesses hammered by coronavirus-related disruptions & to Ms of Americans who've lost their jobs because of the pandemic. McConnell said that Reps were getting “closer and closer” to an agreement with 2 top Democrats, House Speaker Nancy Pelosi & Senate Minority Leader Chuck Schumer. “We’re making significant progress and I’m optimistic that we’re gonna be able to complete an understanding sometime soon,” McConnell added last night. McConnell would not commit to a $ amount for a deal that some project could cost around $1T. “I’m not gonna get into details but we’re getting closer,” McConnell reiterated. “And as I’ve said all week and I’ll say again tonight – you’re tired of hearing it – everybody wants to finish. Everybody wants to get a final agreement as soon as possible. We all believe the country needs it. And I think we’re getting closer and closer.” House Minority Leader Kevin McCarthy said the tone of the talks has been positive.
McConnell, Pelosi both optimistic that budget, coronavirus relief deals are near
After 3 straight months of record highs, homebuilder confidence in the single-family housing market pulled back in Dec. Builders say they are concerned that buyers are starting to experience sticker shock. Sentiment dropped 4 points to 86 in Dec, according to the latest NAHB/Wells Fargo Housing Market Index. That is now the 2nd-highest reading in the history of the index, which dates to 1985. Anything above 50 is considered positive. Last Dec, the index stood at 76. “Housing demand is strong entering 2021, however the coming year will see housing affordability challenges as inventory remains low and construction costs are rising,” said NAHB Chairman Chuck Fowke. Of the 3 components, current sales conditions dropped 4 points to 92. Sales expectations in the next 6 months fell 4 points to 85 & buyer traffic also decreased 4 points to 73. Home prices for existing & new homes are soaring. Home prices are up due to high demand & short supply. New home prices face additional pressure because of rising costs for builders. “The issues that have limited housing supply in recent years, including land and material availability and a persistent skilled labor shortage, will continue to place upward pressure on construction costs,” said NAHB chief economist Robert Dietz. “As the economy improves with the deployment of a Covid-19 vaccine, interest rates will increase in 2021, further challenging housing affordability in the face of strong demand for single-family homes.”
Homebuilder confidence drops from record high as rising prices hit buyers
Markets are resting near record highs, waiting for news on the stimulus bill Congress is working on. Excitement over the new vaccines has faded.
Dow Jones Industrials
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