WASHINGTON (MaceNews) – The following is Tuesday’s status check of developments in the U.S. that can influence economic, health and political outcomes:
- It was hard not to notice a disturbance in the Force, the force of stock market ebullience, that is. It was a strong start after Russia, however prematurely, announced it was moving to distribution of a vaccine. But the DJIA started faltering in mid afternoon, then stepped off the cliff with about 50 minutes to go in the session. The negative emanations from Capitol Hill had grown stronger when it begin to sink in the pause in negotiations on virus relief may last weeks. The House went home. The Senate was already mostly vacated. All those knowing assumptions about negotiation theater leading to a resolution evaporated, though it’s always possible talks could resume at some point. Sizable opposition to passing anything in the Senate may be an immoveable roadblock. Then came the gut punch to any virus rosy scenarios, the fall college sports scene suddenly started to go dark. The Big Ten and Pac-12 shut down for fear or overhanging liability should college athletes contract serious heart problems along with Covid-19 infections. The Southeastern Conference and Atlantic Coast Conference, which want to keep going, will now review their policy. Hundreds of millions in revenue are not the least of the considerations.
- Will U.S. stocks be able to brush off the negativity? The DJIA finished off 0.38% or 104.53, having slipped back below 28,000. The S&P ended down -0.80%. The Nasdaq never was positive and ended down 1.69% or 185.53. After-hours trading started off on the positive side.
- The markets swoon was much more pronounced for gold futures which went negative for the day after 2:30p ET, falling 5.32% to $1931.20 and further later, to $1927.10. Silver was negative all day, plunging 13.64% to $22.200 and then rebounding to $25.330 late.
- Record low yield at the day’s 3-year Treasury auction, 0.179% which then ticked up to 0.181%. The 10-year hit 0.662% shortly before 3p ET, dipped and bumped back to 0.643% late as curve steepened
- In the campaign, presumptive Democratic challenger Biden chose a seasoned – some might say hardened – campaign fighter as running mate. President Trump’s politics-heavy evening briefing was the perfect opportunity to call Kamala Harris “mean,” and “my No. 1 draft pick.” The former California prosecutor is the first VP choice of color. Trump said he was surprised at the choice, given Harris took on Biden during the primary debates. Biden backers said, unlike Trump, he doesn’t hold a grudge. Both Trump and daughter Ivanka contributed to her campaign in California.
- The virus critical metric trends continued leveling to improving nationwide although some states, like Florida, hit new highs. By one measure (Worldometer) 1,394 more died in the latest 24 hours, reaching a total of 167,586. New Zealand, on the other hand, registered its first cases in 102 days.
- Hong Kong security forces released publisher and pro-democracy advocate Jimmy Lai on bail along with his sons and a prominent activist, all forced to surrender their passports. The arrests drew protests from U.S. officials and newspaper editorial pages.
- In upcoming data, the Mortgage Bankers Assoc. weekly read of mortgage applications at 7a ET, the Consumer Price Index at 8:30a and the EIA’s measure of oil stocks at 10:30a. Boston Fed Pres Rosengren speaks at 10a and Dallas Fed Pres Kaplan an hour later. The day’s measure of business inflation, the PPI, came in stronger than expected, both overall and in the core for July.
- Leftovers from Comet Swift-Tuttle are leaving meteor trails as the Perseids shower peaks.
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