Dow gained 314 (down 150 from its high & still below 34K), advancers over decliners more than 3-1 & NAZ went up 160.  The MLP index added 1+ to go over 250 & the REIT index advanced 4+ to the 342s.  Junk bond funds had more selling & Treasuries continued to be sold, bringing higher yields.  Oil was off 1 to 86 (but near the 1 year high) & gold lost 10 to 1931 (more on both below).

AMJ (Alerian MLP Index tracking fund)

Ford chairman calls for deal to end UAW strike, warns entire US auto industry at stake

Rite Aid filed for Chapter 11 bankruptcy protection & said it would begin restructuring to significantly reduce its debt.  The company said it reached a deal with creditors on a restructuring plan that includes evaluating its retail footprint & closing underperforming locations.  Rite Aid also said lenders agreed to extend $3.45B in new funding to “provide sufficient liquidity” as it embarks on its restructuring plan.  The beleaguered drugstore chain has been grappling with slowing sales, mounting debt & a slew of lawsuits that allege the company helped fuel the nation's opioid epidemic by oversupplying painkillers.  During its most recent qtr ended Jun 3, revenue fell to $5.65B, down from $6.01B in the year-ago period.  Its net loss widened to $307M, $5.56 per share, compared with a net loss of $110M, $2.03 per share, in the same period a year earlier.  As a result of the rough qtr, Rite Aid lowered its fiscal 2024 outlook & warned investors it expects to lose $650-680M for the full year, which is slated to end in late Feb.  The retail pharmacy segment has long been a key growth driver for the company, but that hasn't been enough to offset its mounting losses.  Plummeting demand for Covid vaccines & testing, a membership reduction in the company's prescription drug plan, & a loss of customers from its Elixir pharmacy benefits business have contributed to a slowdown in revenue at the struggling drug chain.  Yesterday, the company appointed Jeffrey Stein as its new CEO & chief restructuring officer as well as a member of its board.  Elizabeth Burr had been serving as interim CEO since Jan & will remain on the company’s board.  Chair Bruce Bodaken said: “Jeff is a proven leader with a strong track record of guiding companies through financial restructurings. We look forward to benefitting from his contributions and leveraging his expertise as we strengthen Rite Aid’s foundation and position the business for long-term success.”

Rite Aid files for bankruptcy amid slowing sales, opioid litigation

Blinken meets with Israeli president, promises U.S. support; Gaza-Egypt border still closed

Gold prices fell on higher yields after rising more than 5% last week on safe-haven buying as tensions rise in the Middle East following the Hamas terror attack on Israel earlier this month.  Gold for Dec closed down $7 to settle at $1934 per ounce.  The metal pushed back above the $1900 mark last week as investors turned to the metal's safe haven amid geopolitical turmoil as Israel prepares for a land assault on the Gaza strip & Iran makes threats over a widening war. The price of the metal had weakened prior to the turmoil on worries the Federal Reserve will continue to boost interest rates.  While the Israel-Hamas war will drive haven flows towards gold, the look for the price hinges on the Fed rate cycle nearing an end.  This will result in a retreating US yield, reducing the opportunity cost of gold.  The $ weakened early, with the ICE dollar index last seen down 0.38 points to 106.27.  However treasury yields are rising, bearish for the metal since it offers no interest & the 2-year note was last seen paying 5.092%, up 4.2 basis points, while the yield on the 10-year note was up 9.7 basis points to 4.724%.

Gold Closes Lower as Treasury Yields Rise; Safe-Haven Buying Continues to Offer Support

Oil futures finished lower after posting a sharp gain on Fri, as traders continued to monitor global risks to oil supplies in the wake of the Israel-Gaza war & reports that the US may reach a deal with Venezuela to ease oil sanctions.  Nov West Texas Intermediate crude fell $1.03 (1.2%) to settle at $86.66 a barrel.

Oil Futures Finish Lower as Traders Weigh Risks to Oil Supplies

This will be a big week for earnings & everybody is expecting good reports.  Meanwhile the abundance of problems will be a significant drag.  There are 2 major wars on the globe & they don't look like they will be settled soon.  The US has a major strike which is getting ugly, high interest rates & inflation persist.  Then there is the southern border disaster & crime has become a huge problem.  The Dow is back to where it was at the beginning of Dec (see below).  Investors desperately need good news from the earnings reports.

Dow Jones Industrials