Dow fell 250 (near session lows), decliners over advancers better than 3-1 & NAZ retreated 128. The MLP index remained near 252 & the REIT index closed down 7 to the 327s. Junk bond funds slid lower & Treasuries continue to be sold heavily, raising Treasury yields to multi year highs. Oil was up 1+ to nearly 90 & gold gained again, up 16 to 1984 (more on both below).
AMJ (Alerian MLP Index tracking fund)
Learn to trade options with MarketClub!
Fed's Powell admits 'bumpy' path to lowering prices could take longer than Americans would like
Mortgage rates rise again amid worsening home affordability crisis
The State Dept issued a worldwide caution alert due to soaring tensions in the Middle East & elsewhere triggered by the ongoing Israel-Hamas war. Citing
the “potential for terrorist attacks, demonstrations or violent actions
against U.S. citizens and interests,” the State Dept warned
Americans abroad to exercise increased caution. Earlier in the week, the State Dept raised its travel advisory alert to Lebanon & warned US citizens not to travel to the country due to “the
unpredictable security situation related to rocket, missile and
artillery exchanges between Israel and Hezbollah or other armed militant
factions.” The State Dept has directed US citizens who are looking for help departing Israel, the West Bank, Gaza & Lebanon to fill out a crisis intake form.
U.S. State Department issues ‘worldwide caution’ alert as tensions in the Middle East soar
Gold rose for a 3rd day, rising to the highest in more than 2 month on a lower $ safe-haven buying amid Israel's war on Hamas on concerns over a widening Middle East conflict. Gold for Dec closed up $12 to settle at $1980 per ounce, the highest since Jul 31. Safe-haven buyers are moving to the safety of the metal as outrage in Arab nations & Iran rose following an explosion near a Gaza hospital initially attributed to an Israeli strike, heightening worries the war between Israel & Hamas could spread as Arab nations & Iran expressed outrage. The rise came even as treasury yields rose to a 17-year high on expectations for a further interest-rate hike from the Federal Reserve. In a speech, Fed chair Jerome Powell said the central bank continues to target a 2% inflation rate but gave no indication of whether interest rates will be raised again.
Gold Edges Rises to a 10-Week High on Safe-Haven Interest and a Lower Dollar
Oil futures ended higher, with US prices edging closer to $90 a barrel. Energy markets are in the grasp of geopolitical events. The biggest fear is an expansion of the Israel-Hamas war, & Iran gets involved. Iran could cause issues in the Strait of Hormuz. Supply disruptions are the biggest concern & they are abating any time soon. Nov West Texas Intermediate crude rose $1.05 (1.2%) to settle at $89.37 a , ahead of the contract's expiration at the end of tomorrow's session.
U.S. Oil Futures Climb Closer to $90 a Barrel
These are scary times around the globe starting with 2 major wars. That drives nervous investors to buy gold. As expected, Powell's talk did not relieve the minds of investors. Powell said that inflation is still too high, signaling that the Fed intends to hold interest rates high for an extended period of time as economic growth remains strong. Dow is where it was 11 months ago.Dow Jones Industrials
