Markets rebound after last week's substantial sell-off

Dow advanced 487, advancers over decliners a modest 2-1 & NAZ gained 119.  The MLP index hardly budged above 280 & the REIT index was up 2+ to the 429s.  Junk bond funds were flattish & Treasuries had very limited buying, taking yields a little lower (more below).  Oil was up pennies in the 67s (more below) & gold slid back 1 to 2523.

Dow Jones Industrials

Boeing (BA) a Dow stock, announced it reached a tentative agreement with the union representing 33K workers in the Pacific Northwest, just days ahead of a possible strike scheduled later this week.  If the deal is approved, the proposed 4-year contract would provide employees with a general wage increase of 25%, along with a commitment to build the next commercial airplane in the Seattle region.  The agreement is the first full labor deal reached between the 2 entities in 16 years.  While providing an increase in wages, the deal would provide better retirement benefits & give the union greater input in the safety & quality of BAs production system.  "We've heard what’s important to you for the new contract. And we have reached a tentative agreement with the union on a historic offer that takes care of you and your family," BA Commercial Airplanes Pres & CEO Stephanie Pope said.  "The contract offer provides the largest-ever general wage increase, lower medical cost share to make healthcare more affordable, greater company contributions toward your retirement, and improvements for a better work-life balance."  Pope also said the contract will deepen the company's commitment to the Pacific Northwest, where BA planted its roots.  "This would go along with our other flagship models, meaning job security for generations to come," she said.  "It’s a commitment to you and to our community."  The Intl Association of Machinists and Aerospace Workers (IAM) called the agreement the best contract it had ever negotiated & described union workers as committed to building quality airplanes.  The stock rose 5.56.

Boeing strikes tentative labor deal with union representing over 32K workers

Treasury yields were slightly higher as investors look ahead to fresh inflation prints following a series of weaker-than-expected US economic data releases.  The yield on the 10-year Treasury was less than 1 basis point higher at 3.712% & the 2-year Treasury yield rose about 2 basis points to 3.671%.  Yields & prices move in opposite directions.  1 basis point is equivalent to 0.01%.  Aug's consumer price index will be out Wed, followed by the producer price index on Thurs.  Treasury yields tumbled across the first week of Sep trade as reports on nonfarm payrolls & private payrolls both missed forecast estimates, reviving concerns about the extent of the slowdown in the US economy.  The unemployment rate dipped as expected to 4.2%.  The Federal Reserve holds its next monetary policy meeting next Wed, on Sep 18.  Markets were last pricing a 71% probability of a 25-basis-point cut in interest rates, against a 29% probability of a 50-basis-point cut, according to CME Group's FedWatch Tool.

Yields rise as investors gear up for inflation prints after weak jobs data

US crude oil futures rebounded nearly 1% after posting the worst week since Oct 2023.  The US benchmark, West Texas Intermediate, has fallen 15.8% so far in the 3rd qtr while the Brent global benchmark has fallen more than 16.6%.  The West Texas Intermediate Oct contract was $68.13 per barrel, up 46¢ (0.7%) & YTD US crude oil has fallen 4.8%.  Bent Nov was $71.56 per barrel, up 50¢ (0.7%) & YTD, the global benchmark has pulled back 7%.  Weak demand in China has weighed on the crude market, with consumption expected to soften in Europe & the US as the summer driving season winds down & refineries go into maintenance mode.  OPEC+ has delayed a production boost originally scheduled to begin in Oct as prices have deteriorated.  Some analysts expect the group to start increasing production in Dec & forecast that Brent will trade around $70-85 per barrel.

U.S. crude oil rebounds after worst week since 2023

Buyers returned as inflation came back into focus for investors gauging pressures that could influence the size of interest rate cuts.  Comments by Fed officials appeared to tilt the market in favor of a 0.25% cut by suggesting that incoming data would have to support the need for larger & further easing.