Dow dropped 355, decliners over advancers 3-1 & NAZ was off 82. The MLP index fell 2+ to the 212s & the REIT index tumbled 12 to the 371s. Junk bond funds slid lower & Treasuries had selling again (more below). Oil pulled back 1+ from to the 74s & gold rebounded 15, going back to 1802.
AMJ (Alerian MLP index tracking fund)
The Senate approved a one-week extension of federal gov funding, averting a partial gov shutdown that was scheduled to begin tomorrow. The measure, which passed 71 to 19, gives lawmakers an additional week to negotiate & pass a comprehensive bill to fund federal agencies thru the fiscal year, which ends Sep 30. The House passed its version of the one-week extension Wed by a vote of 224-201, with 9 Reps crossing party lines to support the bill. While that vote was technically bipartisan, only one returning Rep voted for it. The other 8 GOP votes came from members who are leaving Congress at the end of the year. The Senate was under pressure yesterday to pass the bill without delay & without objections from individual senators that could hold up a vote under the expedited procedure being used to pass the measure. "We should move quickly to avert a shutdown today, without any unwelcome brouhaha that has caused shutdowns in years past," Senate Majority Leader Chuck Schumer said. Schumer pledged that both sides would spend the rest of the day working to get the seven day “continuing resolution,” (CR) bill finished. The Senate vote over the stopgap CR took place under the shadow of far more high-stakes negotiations currently underway over a massive omnibus spending bill that would fund all federal agencies thru the end of fiscal year 2023 next Sep.
Senate passes one-week government funding bill, averting a partial shutdown
Treasury yields rose as investors considered what is next for the US economy & awaited remarks from Federal Reserve officials, which could provide hints about monetary policy plans. The yield on the 10-year Treasury was up by 5 basis points to 3.506% & the 2-year Treasury yield was last almost flat at 4.254%. Yields & prices have an inverted relationship. One basis point equals 0.01%. After retail sales figures for Nov came in weaker than expected yesterday, investors mulled over the outlook for the US.economy. Fears about a looming recession related to the Fed's aggressive rate hikes throughout 2022 have mounted in recent weeks. On Wed, the central bank had announced a 50 basis point increase to interest rates, a decline from the 75 basis point hikes implemented at the previous 4 Fed meetings. The central bank also indicated that rates would stay elevated for longer, with Chair Jerome Powell reiterating that the battle against inflation must be continued.
10-year Treasury yield rises as investors assess economic outlook
US automotive safety officials have opened a formal probe into the autonomous driving system used by General Motors (GM) self-driving vehicle unit Cruise. The
National Highway Traffic Safety Administration (NHTSA) said it has received
complaints about the self-driving vehicles – retrofitted Chevrolet Bolt
EVs – engaging in “inappropriately hard braking” or becoming
“immobilized while operating,” according to a filing. Officials said although the 2 types of incidents appear to be
separate from one another, they each result in the Cruise vehicles
becoming unexpected roadway obstacles. “This may introduce
multiple potential hazards such as a collision with a Cruise vehicle,
risk to a stranded passenger exiting an immobilized Cruise vehicle, or
obstruction of other traffic including emergency vehicles,” NHTSA said
in the filing. Drew Pusateri, a spokesman for Cruise, a
majority-owned unit of GM, said the San Francisco-based company has &
will continue “to fully cooperate with NHTSA or any regulator.” Pusateri added that there’s “always a balance between healthy
regulatory scrutiny and the innovation we desperately need to save
lives.” He said the company has driven nearly 700K fully autonomous
miles in an “extremely complex urban environment with zero
life-threatening injuries or fatalities.” The probe involves about
240 of the vehicles equipped with the software system. Each of the crash incidents had already been reported, as
mandated by regulations involving self-driving vehicles. The stock fell 1.04.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM_aid=CD3289&a_bid=6ae5b6f7
U.S. safety regulators investigating GM’s Cruise robotaxis blocking traffic, causing collisions
Stocks sank
as more downbeat news on the US economy accelerated a move lower. The chart below shows Dow has lost around 25% of its recent advance. Thoughts of a looming recession make the outlook for stocks to be gloomy.
Dow Jones Industrials
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