Dow jumped 267, advancers over decliners 2-1 & NAZ went up 127. The MLP index was up 1+ to the 219s `& the REIT index rose 2+ to 250. Junk bond funds were mixed & Treasuries had some selling. Oil rose 1+ to the 87s & gold went up 11 to 1648.
AMJ (Alerian MLP index tracking fund)
The number of Americans filing first-time unemployment benefits
unexpectedly dropped to a 3-week low last week, a sign the labor
market remains extremely tight despite the Federal Reserve's efforts to
cool it down. Figures from the Labor Dept
show applications last week fell to 214K from the
downwardly revised 226K recorded a week earlier. That is also below
the 2019 pre-pandemic average of 218K claims. Continuing
claims, the number of Americans who are consecutively receiving
unemployment aid, rose to 1.38M, up by 21K from the previous
week's revised level. One year ago, more than 3.3M Americans
were receiving unemployment benefits. The strong jobs data comes as the Federal Reserve<
tries to crush runaway inflation with the most aggressive rate hikes in
decades. Policymakers have already approved 5 straight rate
increases & have signaled that more hikes are to come as they try to
cool the economy, and the labor market.
Number of Americans filing for unemployment unexpectedly drops
US existing home sales slowed for the 7th straight month in Sep as rising mortgage rates, surging inflation & steep home prices continued to push prospective buyers out of the market. Sales
of previously owned homes tumbled 1.5% in Sep from the previous
month to an annual rate of 4.7M units, according to the National Association of Realtors (NAR). That is
slightly better than what was expected. On an annual basis, home sales plunged 23.8% in Sep. "The
housing sector continues to undergo an adjustment due to the continuous
rise in interest rates, which eclipsed 6% for 30-year fixed mortgages
in September and are now approaching 7%," NAR chief economist Lawrence
Yun said. "Expensive regions of the country are especially feeling the
pinch and seeing larger declines in sales." There were about 1.2M homes for sale at the end of Sep, a decline of 2.3% from Aug & down 0.8%
from last year. Despite more homes sitting on the market, homes still
sold on average in just 19 days. Before the pandemic, homes typically
sat on the market for about a month before being sold. At the
current pace of sales, it would take roughly 3.2 months to exhaust the
inventory of existing homes. Experts view a pace of 6-7 months
as a healthy level.
Existing home sales tumble to 10-year low as mortgage rates skyrocket
American Airlines (AAL) reported a $483M profit for Q3 & joined
rivals in forecasting resilient travel demand, as the airline industry
continues to shrug off concerns about an economic slowdown. Revenue rose to a record $13.4B, up 13% from 2019 despite flying nearly 10% less, a sign passengers
are still traveling despite higher fares. Its quarterly sales came in
slightly ahead of estimates. “Demand
remains strong, and it’s clear that customers continue to value air
travel and the ability to reconnect post-pandemic,” CEO Robert Isom said. He added that the airline will likely get back to 95-100% of its 2019 capacity next year, an expansion he said is limited
by slower aircraft deliveries & a pilot shortage on regional airlines. AAL expects the strength to continue thru the end of the holiday
season. For Q4 it's expecting total revenue to be up as
much as 13% over 3 years ago, before the Covid pandemic. It forecast its capacity during the qtr to be down 5-7% from
2019 & is projecting adjusted EPS of 50-70¢. The airline said its costs per available seat
mile will likely rise 8-10% in Q4
over the same qtr in 2019 & for the full year, as much as 13%
over 3 years ago. The stock fell 38¢.
If you would like to learn more about AAL, click on this link:
club.ino.com/trend/analysis/stock/AAL?a_aid=CD3289&a_bid=6ae5b6f7
American Airlines expects fourth-quarter profit thanks to strong travel demand
Dow Jones Industrials
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