Dow was off 44, advancers barely ahead of decliners & NAZ added 14. The MLP index went up 1+ to the 148s & the REIT index gave back 4+ to the 377s. Junk bond funds crawled higher & Treasuries drifted lower. Oil rose 1+ to the high 55s & gold inched up 1 to 1855.
AMJ (Alerian MLP index tracking fund)
|
|
US private employers resumed hiring in Jan amid signs that new COVID-19 cases are falling & state govs are lifting lockdown measures implemented to curb the spread of the virus, according to the ADP National Employment Report. The report showed that companies added 174K jobs last month, topping the 49K job increase that was predicted. The increase followed a decline of the upwardly revised 78K in Dec, the first time that employment shrank since the early days of the pandemic. “The labor market continues its slow recovery amid COVID-19 headwinds,” Ahu Yildirmaz, VP & co-head of the ADP Research Institute, said. “Although job losses were previously concentrated among small and midsized businesses, we are now seeing signs of the prolonged impact of the pandemic on large companies as well.” The job losses were concentrated heavily in services-related businesses, which accounted for 156K of the total gain. Education & health services led those businesses with 54K new jobs created, while professional & business services added 40K positions. The leisure & hospitality industry, one of the hardest hit by the pandemic, saw its payroll increase by 35K last month. The goods-producing sector, meanwhile, added 19K jobs with the bulk (18K) stemming from construction. Medium businesses with 50-499 employees created the most jobs, expanding payroll by 84K last month. Small businesses added 51K jobs & large businesses created just 39K.
ADP report shows private companies added 174K jobs in January, beating expectations
The huge service side of the US economy grew faster in Jan & companies added more workers, signaling better times ahead as the record surge in coronavirus cases receded. A survey of top business leaders at non-manufacturing companies such as banks, hospitals & home builders rose to a 2-year high of 58.7% from a revised 57.7% in the prior month, the Institute for Supply Management said. Readings above 50% signals that businesses are expanding & numbers above 55% are usually a sign of broad strength. A similar ISM survey of manufacturers was also strong in Jan. “Respondents’ comments are more optimistic about business conditions and the economy,” said Anthony Nieves, chairman of the survey. The services that businesses provided in Jan largely held steady. The production index registered a healthy 59.9% down less than 1 point from the prior month. Companies also increased orders for materials — food, paper products, computers, etc. — used to provide their services. The new orders gauge climbed 3.2 points to 61.8%. A measure of jobs & hiring, perhaps the most critical part of the survey, jumped 6.5 points to 55.2%, hitting the highest level since the pandemic began last Mar. That’s an indication companies hired more workers or brought back employees in Jan as gov restrictions were lifted. Although the ISM survey indicator is still relatively high, business is still far from normal. Senior execs are asked whether business is getting better or worse, but the ISM surveys don't reveal how much better. The economy downshifted at the end of 2020 after a fresh onslaught from the coronavirus pandemic. Yet rising vaccinations, the lifting of business restrictions & the promise of more federal aid from DC is giving companies a jump-start early in the new year.
Services side of U.S. economy speeds up in January, signals faster growth
Senate leaders reached a deal to transfer control of committees to Dems, 2 weeks after the party took control of the chamber, Majority Leader Chuck Schumer said. He came to a deal with Minority Leader Mitch McConnell on how to share power in a Senate split 50-50. The 2 wrangled for weeks over how to structure Senate rules, technically leaving Reps in control of committees that decide when to move ahead with nominations & legislation. Schumer said the Senate will pass the organizing resolution later today. Approval will mean “committees can promptly set up and get to work with Democrats holding the gavels,” he added. Reps worked with Dems to confirm several of Pres Biden's nominees while they still held committee power. The Senate approved Transportation Secretary Pete Buttigieg & Homeland Security Secretary Alejandro Mayorkas yesterday, giving Biden 6 Cabinet members confirmed by the chamber. Even so, GOP control threatened to delay approval of at least one of Biden's nominees. The top Rep & Dem on the Judiciary Committee, Lindsey Graham & Dick Durbin, respectively, had disagreed over when to hold a confirmation hearing for Attorney General nominee Merrick Garland. McConnell had sought assurances that Dems would not scrap the filibuster, which would allow any legislation to pass with a majority vote. The disagreement became moot when Dem Sens Joe Manchin & Kyrsten Sinema said they would not vote to get rid of the tool.
Senate leaders reach deal to fully transfer power to Democrats, Schumer says
Traders are taking a breather after several days of unusually volatile trading in a few stocks. Early economic for Jan is looking good. However there is a lot of activity going on in DC.
Dow Jones Industrials
No comments:
Post a Comment