Dow was up 77, advancers over decliners nearly 2-1 & NAZ gained 37. The MLP index rose 2+ to the 248s & the REIT index added 1+ to the 336s. Junk bond funds traded higher following recent selling & Treasuries had more selling, raising yields (more below). Oil slid back under 77 & gold dropped another 12 to 1878.
AMJ (Alerian MLP Index tracking fund)
The 10-year Treasury touched a fresh 15-year high after the latest economic data showed continued resilience in the labor market. The yield on the benchmark 10-year note rose more than 2 basis points to 4.647%. Earlier in the session, the 10-year yield reached 4.688%, the highest level going back to 2007 when it yielded as much as 4.719%. The yield on the 2-year Treasury fell more than 4 basis points to 5.096%. Yields & prices move in opposite directions & 1 basis point equals 0.01%. Weekly initial jobless claims came in lighter than expected, signaling continued strength in the labor market. Initial filings for unemployment benefits totaled 204K for last week according to the Labor Dept. The estimate anticipated a total of 215K. The prospect of continuing inflationary pressures & rates staying elevated for longer has prompted renewed fears about a potential recession. Investors will be paying close attention to data that may provide an indication of the state of the economy & scan today & tomorrow comments from Fed officials for clues about the economic expectations of policymakers.
10-year Treasury yield touches fresh 15-year high
For many Americans, Oct is a time for seasonal decorating & pumpkin spice lattes. This year, it also marks the resumption of student loan payments at a point when US households are already struggling to make ends meet amid high inflation & higher interest rates. And
yet, just as Ms of borrowers face their first student loan bill
in more than 3 years, Oct is expected to be a particularly big
month for holiday shopping, as well, with consumers planning to start earlier & spend more than before. Those competing forces “create a battle for consumer spending,” said
Nick Handrinos, vice chairman & leader of Deloitte LLP's retail &
consumer products practice. This year, ½ of shoppers plan to begin their holiday shopping by Halloween, according to a recent Bankrate report. A separate study, by RetailMeNot,
found that more shoppers are starting even earlier than before —
with as many as 64% kicking off the season in Oct, up from 53% in 2022. With more shoppers getting an early start on the
season, holiday retail sales are likely to increase 3.5-4.6% in 2023, according to Deloitte's annual forecast. “We expect
healthy employment and income growth to keep the volume of sales growing
for the 2023 holiday season,” said Daniel Bachman, Deloitte's US
economic forecaster. And despite predictions that people are
shopping earlier to take advantage of sales & spread out their holiday
expenses, research from Morning Consult found that early shoppers are splurging, not saving.
Holiday shoppers are getting an early jump on the season, but student loan payments weigh heavily
United Auto Workers (UAW) strikes at more plants belonging to General Motors (GM), Stellantis (STLA)& Ford (F) could reportedly come tomorrow, depending on the status of negotiations. More automaker sites seeing strikes will depend on whether talks between the union & the automakers do not take a significant step forward said an unnamed source. In the event of insufficient progress, the new strikes would reportedly 2 hours after the locations where they would take place get unveiled. The 10M announcement of the new sites that are planned to be affected will come from the leader tomorrow. The union posted on social media yesterday that its pres, Shawn Fain, would give a "stand-up announcement" at 10 AM tomorrow. "Our focus continues to be on bargaining in good faith with the UAW leadership to reach an agreement as quickly as possible that rewards our employees and allows GM to succeed and thrive into the future," a spokesperson for GM said. The union is seeking pay raises amounting to 40% over a new 4-year contract as well as expanded benefits & other provisions. The offers from the automakers, meanwhile, have come in closer to 20%, which includes a 10% hike that would become effective immediately.
GM, Ford, Stellantis could reportedly see more UAW strikes this week
The stock market continue to struggle as it faces so many headwinds. Sorry about the problems with typeface today.
Dow Jones Industrials
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