Dow retreated 202, decliners over advancers 2-1 & NAZ was off 157.  The MLP index settled down 1 to the 251s & the REIT index was steady in the 327s.  Junk bond funds remained weak & Treasuries continued to be sold, bringing higher yields.  Oil slid lower in the  89s following recent strength & gold was up 12 to 1993 (more on both below).

AMJ (Alerian MLP Index tracking fund)

As mortgage rates hit 8%, home ‘affordability is incredibly difficult’

Initial filings for unemployment benefits dipped last week, indicating that the US labor market remains tight & a potential factor in persistent inflation.  Weekly jobless claims totaled a seasonally adjusted 198K last week, the Labor Dept reported.  That marked a decline of 13K from the previous week & was below the for 210K & the lowest weekly level since Jan.  Claims have been in a general deceleration pattern since the summer, but some economists worry that could change.  Announced layoffs have been on the rise in recent weeks, indicating that the tide of lower claims could turn soon.  Continuing claims, which run a week behind, totaled 1.734M, up 29K from the previous week & higher than the estimate for 1.698M.  The labor market has been a critical factor in the Federal Reserve's deliberations over monetary policy.  Officials worry that a still-tight labor market could provide upward pressure on prices even after the central bank has raised rates 11 times totaling 5.25 percentage points since Mar 2022.

U.S. weekly jobless claims total 198,000, fewer than expected

The Biden administration requested more than $105B from Congress to support the security needs of Ukraine, Israel, Taiwan & the US southern border.  Pres Biden's biggest request in the package is more than $61B for Ukraine.  Since Russia’s full-scale invasion of Ukraine in Feb 2022, the US has unleashed an arsenal worth $44B in security assistance, according to figures provided by the State Dept.  He's also calling for an additional $14.3B for Israel, another $2B for Taiwan & Indo-Pacific security, & a little over $9 billion for humanitarian assistance.  Israel is at war with Hamas after the militant group launched a shocking & brutal terrorist attack Oct 7.  Meanwhile, there are rising tensions around Taiwan, which China claims as its own.  The White House said the supplemental funding request invests approximately $50B in the US defense industry.  “The funding will expand production lines, strengthen the American economy, keep us safe, and create new American jobs,” Shalanda Young, director of the Office of Management & Budget, said.  The request comes as business in Congress is at a standstill as the House GOP remains divided over who should be the speaker.  Additionally, the White House is seeking $6.4 billion for border operations, pushing back against Reps who have criticized it for not doing enough to contend with migration from Latin America.  The request also includes about $1.2B for efforts aimed at countering fentanyl, which has driven a wave of deadly overdoses in the US.

Biden seeks $105 billion for Ukraine, Israel, Taiwan, border security

Gold prices rose again, climbing to an 11-week high as the metal continues to attract safe-haven buying as Israel's war against Hamas continues.  Gold for Dec closed up $13 to settle at $1994 per ounce, rising for a 4th-straight day to the highest since Jul 31.  The rise comes amid high treasury yields & a strong $, usually bearish notes for the precious metal.  However Israel's war on Hamas after the group's terror attacks earlier this month have investors on edge & turning to gold as a safe haven.  Today's move higher follows a speech yesterday from Federal Reserve chair Jerome Powell, who suggested the central bank may not raise interest not raise interest rates at its next policy meeting, while indicating rates may not be lowered as swiftly as market expectations, pushing yields on the 10-year treasury note to a 16-year high yesterday.

Gold Closes at an 11-Week High, Rises For a Fourth Day as War in Israel Boosts Safe Haven Buying

Oil futures ended with a loss, but remained higher for the week with traders weighing the potential for the spread of violence in the Middle East following the start of the Israel-Hamas war earlier this month.  Nov West Texas Intermediate crude fell 62¢ (0.7%) to settle at $88.75 a barrel with the contract expiring at the end of today's session.  Front-month prices ended the week 1.2% higher & the new front month Dec contract settled at $88.08, down 29¢.

Oil Futures End Lower for the Session, Up for the Week

Just another dreary weak for the stock market.  Dow fell 540 this week & is near the low end of its trading range for this year.  Try to be brave & endure.

Dow Jones Industrials