Jan 11 (Reuters) – U.S. stock indexes gained ground on Tuesday with Nasdaq leading the advance as investors were relieved that Federal Reserve Chair Jerome Powell’s testimony to Congress did not include any major surprises. Federal Reserve Chair Jerome Powell, in a congressional hearing that pointed to his likely confirmation for a second term in the job, said the U.S. central bank, was determined to ensure high inflation did not become “entrenched.” But he added that rather than diminishing job growth, the Fed’s tightening plans which include higher interest rates and a reduction in its asset holdings were necessary to maintain the economic expansion. After falling just 1% earlier in the day, the interest rate sensitive technology sector .SPLRCT bounced back and brought the broader indexes with it. Technology-laden Nasdaq closed up 1.4% marking its biggest daily gain so far this year. Powell’s comments likely reassured investors that the Fed was not going to prioritize inflation reduction above everything else, including employment, said Shawn Cruz, senior manager of trader strategy at TD Ameritrade in Chicago. “The initial concern was the Fed would upset the pace of the recovery,” said Cruz. But the investor takeaway from Tuesday’s testimony was that “he’s not just going to try and crush inflation” without regarding “the other effects that could have on the economy.” Investors had been selling stocks since Jan. 5 when December meeting minutes showed Fed officials discussing how “very tight” job market and unabated inflation might require interest rate hikes sooner than expected and a reduction of the Fed’s overall asset holdings as a second brake on the economy. While investors will anxiously watch inflation data due out on Wednesday, Cruz notes that they are already prepared for an elevated number with consensus forecasts for a 7% increase on a year-on-year basis for the headline Consumer Price Index (CPI). Core CPI, which excludes food and energy prices, is seen rising by 5.4%, according to economists polled by Reuters. The Dow Jones Industrial Average .DJI rose 183.15 points, or 0.51%, to 36,252.02, the S&P 500 .SPX gained 42.78 points, or 0.92%, to 4,713.07 and the Nasdaq Composite .IXIC added 210.62 points, or 1.41%, to 15,153.45. Eight of the 11 major S&P 500 sectors rose, with growth-heavy sectors like technology, consumer discretionary .SPLRCD and communications services .SPLRCL contributing most to the S&P’s gains. The biggest percentage gainer was energy .SPNY, which finished up 3.4%, as crude oil futures rose. OR The S&P snapped a five-day slump, while the Nasdaq .IXIC added to Monday’s tiny gain. It had started the week with an afternoon comeback that strategists attributed to an influx of retail investors hunting for bargains after an early session sell-off. Marko Kolanovic, chief global markets strategist at JPMorgan Chase & Co, on Monday issued a research note calling the recent pull-back in riskier assets “arguably overdone” and calling it a buying opportunity. Advancing issues outnumbered declining ones on the NYSE by a 3.05-to-1 ratio; on Nasdaq, a 2.23-to-1 ratio favored advancers. The S&P 500 posted 28 new 52-week highs and no new lows; the Nasdaq Composite recorded 42 new highs and 108 new lows. On U.S. exchanges 10.58 billion shares changed hands compared with the 10.55 billion average for the last 20 sessions. NN: a typical relief rally with the millennials buying on the dip…… again. As far as Powell he is spreading copious amounts of joy jell. He has no choice but to raise interest rates and get Fed Funds to 4% from zero where they are at now.
N. Korea says it launched hypersonic missile, Kim attended
North Korea says it has conducted another hypersonic missile test, under the watch of its leader Kim Jong-un. State media said the missile fired on Tuesday had successfully made a turn before hitting its target in the sea some 1,000km (621 miles) away.
It marks North Korea’s third reported test of a hypersonic missile, which can avoid detection for longer than ballistic missiles.
Mr Kim’s presence could indicate the technology has improved, say analysts. The latest ramp-up in testing would appear to support Mr Kim’s stated New Years goals, where he vowed to bolster North Korea’s defence capabilities. It came as six countries – including the US – issued a joint statement condemning last week’s apparent test. urging the North to cease its “destabilising actions” to the region. South Korea’s military initially downplayed the hypersonic missile claims but later said it demonstrated “improvement” from previous tests, said news site Yonhap. North Korea state outlet KCNA praised the test, saying the “superior manoeuvrability” of the missile had been “strikingly verified through the final test-fire”. Their report claimed the glide missile had made a 600 km (375 mile) “glide jump flight,” followed by 240 km of “corkscrew manoeuvring” before hitting its target. The closed-off nation first reported conducting a hypersonic missile test in September 2021. Hypersonic glide missiles are dangerous for several reasons. Unlike ballistic missiles, which travel in a largely predictable parabola, making them vulnerable to interception, hypersonic weapons can traverse laterally, close to the earth’s surface and hit a target in a much shorter flight time. In addition, hypersonic weapons can also achieve more than five times the speed of sound – or about 6,200km/h (3,850mph). All these features make them harder to track and intercept. According to the BBC’s Security Correspondent Frank Gardner, these hypersonic missiles are also worrying as they also leave nations guessing whether they are carrying a conventional high explosive warhead or a nuclear one. North Korea joins a small number of countries, including the United States and China, in attempting to develop hypersonic missiles.
During the on-site inspection, Mr Kim called for the strengthening of the country’s “strategic military muscle both in quality and quantity”, South Korean news outlet Yonhap reported. It’s the first time since March 2020 that he has been known to attend a missile launch, and the publicity around his appearance is significant, analysts say. “While [Mr] Kim probably unofficially attended other tests in the interim, this appearance and its Page One feature on [North Korean newspaper] Rodong Sinmun is important,” Chad O’Carroll, chief executive of the Korea Risk Group which monitors North Korea, told Reuters. “It means [Mr] Kim is not concerned about being personally associated [with] tests of major new tech. And doesn’t care how the US sees this.” There have been persistent warnings and sanctions use from the US and UN to deter North Korea’s weapons testing, but Kim Jong-un has defied these so far. NN: IT is painfully obvious that intelligence agencies were caught flat footed again. After denying Kim had achieved the impossible they have perfected a hypersonic missile. The US has not and is in experimental stages,, Russia is close and China is their……..Close to mass producing and deployment of thees nasty monsters
US record breaking cases and hospitalizations
More than 4.1 million new coronavirus infections were detected in the United States during this period, an increase of more than 85 per cent. In the country with 330 million residents, more than 61.5 million people are known to have been infected with the coronavirus so far. More than 839,000 infected people have died. Some 62.6 per cent of the population is considered vaccinated, and 36.5 per cent have received a booster vaccination so far.
Omicron surge puts the brakes on recovery of U.S. companies
Major US companies are now pulling back on plans to return to in-person work in light of the Omicron variants rapid spread across America. Employers planning to call remote workers back into the office in the new year are now pausing those efforts, and they are wary of setting new return dates only to push them back once again in the face of continued uncertainty and risks from the pandemic. Biden warns of winter of severe illness and death for those unvaccinated against Covid The pandemic is also driving changes in how in-person employees work, with a renewed push for strikes and unionization across several industries where workers have frequently faced long hours and unsafe conditions.
Alphabets Google, Meta, Apple, Uber, Lyft, Ford, DoorDash, DocuSign and Fidelity are among the companies that have delayed returns to the office.
Its warranted, given the uptick that weve seen in cases, Bradford Bell, director of the Center for Advanced Human Resource Studies at Cornell Universitys ILR School, said. The delays also depend on where the offices are located, he said. Theyre very much looking at this on a location-by-location basis. Apple CEO Tim Cook told employees in a memo on Wednesday that the partial return to offices, planned for 1 February, was now pushed to a date yet to be determined, after several other delays over the past two years. Cook offered employees a $1,000 bonus to help improve their home offices. Apples offices remain open and employees are still going into work in countries with lower Covid rates, he said. But he specifically pointed to the global rise in cases and the emergence of the Omicron variant as a cause for concern.NN: Let me intrude you to MR Shutdown. The dare i say normal. This is a major factor in our trade calculations……
United Airlines CEO says about 3,000 employees test positive for COVID-19
(Reuters) – United Airlines Holdings Inc’s Chief Executive Scott Kirby said on Tuesday that the company had about 3,000 employees who have currently tested positive for COVID-19. In a note sent to employees, Kirby added that the company is reducing its near-term flight schedule. NN: what ever they are doing its not working. Their is no way airline filtration systems and mask are stopping the Omicron mutation
U.S. reports 1.35 million COVID-19 cases in a day, shattering global record
Jan 11 (Reuters) – The United States reported 1.35 million new coronavirus infections on Monday, according to a Reuters tally, the highest daily total for any country in the world as the spread of the highly contagious Omicron variant showed no signs of slowing. The previous record was 1.03 million cases on Jan. 3. A large number of cases are reported each Monday due to many states not reporting over the weekend. The seven-day average for new cases has tripled in two weeks to over 700,000 new infections a day. The record in new cases came the same day as the nation saw the number of hospitalized COVID-19 patients also hit an all-time high, having doubled in three weeks, according to a Reuters tally. There were more than 136,604 people hospitalized with COVID-19, surpassing the record of 132,051 set in January last year. While the Omicron variant is potentially less severe, health officials have warned that the sheer number of infections could strain hospital systems, some of which have already suspended elective procedures as they struggle to handle the increase in patients and staff shortages. The surge in cases has disrupted schools, which are struggling with absences of staff, teachers and bus drivers. Chicago canceled classes for a fourth day as the district and teachers failed to agree on how to deal with increased infections. New York City suspended service on three subway lines as a large number of workers were out sick, according to its Twitter account. Companies’ plans for workers to return to office have also been derailed.
Deaths are averaging 1,700 per day, up from about 1,400 in recent days but within levels seen earlier this winter.
A redesigned COVID-19 vaccine that specifically targets the Omicron variant is likely needed, Pfizer Inc’s PFE.N CEO said on Monday, adding his company could have one ready to launch by March. U.S. breaks COVID-19 hospitalization record at over 132,000 as Omicron surges Pfizer CEO says Omicron-targeted vaccine is most likely outcome. NN: DO not be fooled the Omicron mutation is a beast. And the hospitalizations which lag behind infections are climbing. The next shoe to drop will be the death rate which is a lagging indicator. Because it is so infectious and people are so resistant to masking up and isolating and vaccines a dangerous decision has been made. Do nothing and let the chips fall where they may. By the fact one is a leader the assumptions is your smarter then the average bear AND you are willing to make the hard decisions no matter how unpopular they may be. unfortunately clueless spinless leadership is the order of the day. And the masses will pay a extreme price. You might notice how the smart money is in shutdown mode. AS we long predicted their will be no government imposed lockdowns. But instead VOLUNTARY shut downs.
Stocks, bonds brace for sky-high U.S. inflation, hawkish Fed
SYDNEY (Reuters) – Major share markets made cautious gains on Monday as investors counted down to another U.S. inflation reading that could well set the seal on an early rate hike from the Federal Reserve, lifting bond yields yet further. The explosion in coronavirus cases globally also threatens to crimp consumer spending and growth just as the Fed is considering turning off the liquidity spigots, tough timing for markets addicted to endless cheap money. That made for wary trading with S&P 500 futures adding 0.1% and Nasdaq futures 0.2%. EUROSTOXX 50 futures and FTSE futures both edged up 0.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3%, while South Korea lost 1.0%. Chinese blue chips were a fraction firmer as recent policy easing was balanced by lingering concerns over the property sector. Analysts fear the U.S. consumer price report on Wednesday will show core inflation climbing to its highest in decades at 5.4% and usher in a rate rise as soon as March. While the December payrolls number did miss forecasts, the drop in the jobless rate to just 3.9% and strength in wages suggested the economy was running short of workers. “It was consistent with the Fed’s evolving view that the labour market is getting close to or is already at maximum employment with wage pressures building,” said analysts at NatWest Markets. “This should add to speculation about a March hike, and we have pulled our expectation for the Fed’s lift-off to occur in March instead of June.” A raft of Fed officials will be out to offer their latest thinking this week, including Chair Jerome Powell and Governor Lael Brainard who face confirmation hearings. Markets quickly shifted to reflect the risks with futures implying a greater than 70% chance of a rise to 0.25% in March and at least two more hikes by year end.
Technology and growth stocks tumbled as investors switched to banks and energy firms, while bonds took a beating.
Yields on 10-year U.S. Treasury notes were near highs last seen in early 2020 at 1.765%, having shot up 25 basis points last week in their biggest move since late 2019. The next chart target is the 1.95/1.97% area. [U/S] “We think that the increase in long-dated Treasury yields has further to run,” said Nicholas Farr, an economist at Capital Economics. “Markets may still be underestimating how far the federal funds rate will rise in the next few years, so our forecast is for the 10-year yield to rise by around another 50bp, to 2.25%, by the end of 2023.” The Fed’s hawkish shift has tended to benefit the U.S. dollar, though it ran into profit taking on Friday after the payrolls report failed to meet the market’s lofty expectations. The dollar index edged up to 95.900, after falling 0.5% on Friday only to find support at 95.700. The euro stood at $1.1336, leaving it near the top of the recent $1.1184/1.1382 trading range. The Japanese yen got a brief break from its recent bear run to stand at 115.74, as the dollar faded from last week’s 116.34 peak. NN: We need to wait and see how the markets sort all this out.
Germany assessing reliability of antibody tests for Omicron – minister
‘Pandemic is controlling our economic trajectory,’ says expert as job growth disappoints
“Well, today’s jobs report ends 2020 on a sour note. We saw payrolls slow well below expectations and in fact even more sluggish payroll growth than what we saw in November, which we were hoping to see, was a bit of a fluke. On top of that, even though we’ve actually seen a pretty significant slowdown in jobs growth in the last two months as the Delta and Omicron variants have took their toll. We have actually seen over six million jobs added over the course of 2021, which is a record high and I think really speaks to the fact that we’ve actually seen significant job growth over the year, despite the conversations and discussions we’ve been having about how difficult it is for employers to hire.” NN: We have two key events. The omicron mutation that is ripping through society. It is obvious the powers that be do not want to provuide tests. And the game they are playing is let the virus rip through society. As often pointed out no more lock downs. As you are seeing its shut down time again. The unemployment numbers picked up the fact that the smart people are staying at home and not working. The other element to this is the run away inflation. The Fed really fucked up by waiting a year to put out the fire. The twin curse of the FED pulling stimulus and raising rates along with an economy that could suck shut again because of the Omicron spread will devastate the markets
Omicron surge pushes U.S. COVID hospitalizations toward record high
WASHINGTON, Jan 7 (Reuters) – COVID-19 hospitalizations in the United States are poised to hit a new high as early as Friday, according to a Reuters tally, surpassing the record set in January of last year as the highly contagious Omicron variant fuels a surge in infections. Hospitalizations have increased steadily since late December as Omicron quickly overtook Delta as the dominant coronavirus variant in the United States, although experts say Omicron will likely prove less deadly than prior iterations. While potentially less severe, health officials have warned that the sheer number of infections caused by Omicron could strain hospital systems, some of which have already shown signs of distress, partly due to staffing shortages.
“I don’t believe we’ve seen the peak yet here in the United States,” Centers for Disease Control and Prevention (CDC) Director Rochelle Walensky told NBC News’ “Today” program on Friday, as schools and businesses also struggle with rising caseloads.
The United States reported 662,000 new COVID-19 cases on Thursday, the fourth highest daily U.S. total coming just three days after a record of nearly 1 million cases was reported, according to the Reuters tally. The seven-day average for new cases set a record for a 10th consecutive day at 597,000, while COVID hospitalizations reached nearly 123,000 and appeared poised to top the record of over 132,000 set last year. Deaths, an indicator that lags hospitalizations, remain fairly steady at a still high 1,400 a day, according to the tally, well below last year’s record numbers. New York Governor Kathy Hochul and the head of one of the largest U.S. hospitals both said they were cautiously optimistic that cases and hospitalizations would soon plateau in the state. “We think with our modeling that the peak will happen next week,” said Steven Corwin, chief executive of New York-Presbyterian Hospital, during Hochul’s daily briefing.
Delaware, Illinois, Maryland, Pennsylvania, Ohio, Vermont and Washington, D.C., all reported record levels of hospitalized COVID patients in recent days, according to the Reuters analysis.
Hospitalization data, however, does not differentiate between people admitted for COVID-19 and so-called incidental positives. Those are patients who were admitted and treated for issues other than COVID-19 and contracted the virus while in the hospital and are counted in coronavirus hospitalization numbers. Incidental infections have occurred throughout the pandemic but might be significantly higher now due to the staggering pace of Omicron’s spread – a phenomenon that has prompted state health departments to consider altering their disclosures. Starting next week, Massachusetts hospitals will report whether admissions are primary or incidental to COVID-19, said Kathleen Conti, a spokesperson for the state’s department of health. Rising cases have forced hospital systems in nearly half of U.S. states to postpone elective surgeries. While many school systems have vowed to continue in-person instruction, some have faced ad hoc closures as cases rise. Chicago Public Schools, the third-largest U.S. school system, were closed for a third day on Friday amid a teacher walkout over COVID-19 protections. U.S. and other officials have said schools can be safely opened, especially with widely available vaccines and boosters, and the CDC on Thursday issued new isolation policy guidelines for schools. Officials continue to press vaccinations as the best protection against serious illness, although federal mandates requiring them have become politically contentious. U.S. Supreme Court justices on Friday grilled Republican state officials and business groups seeking to block President Joe Biden’s vaccine-or-testing mandate for large businesses and pressed the administration to justify the policy at a time of surging COVID-19 cases nationwide.] The U.S. Food and Drug Administration on Friday shortened the interval between the primary series of the Moderna MRNA.O COVID-19 vaccine and a booster dose from six months to five for people aged 18 or older. The regulatory decision comes days after the agency made a similar move for getting a booster shot of the Pfizer PFE.N and BioNTech BNTX.O COVID-19 vaccine. The Pfizer booster has also been authorized for use in children aged 12 to 15. Overwhelmed by Omicron surge, U.S. hospitals delay surgeries. NN: this show the complete lack of leadership. The system is crushed. Of course they are not gong to admit to their failures. As they disclose record hospitalizations they are quick to tell us the Omicron mutation is less infectious and less deadly. I am sure you feel the same way as i do… their claims are not comforting to me.. REALLY less deadly well reality is something is shutting down the economy as we predicted and filling covid isolation ward of the hospitals with a lot of very very sick people. So for me its time for the booster shot, vitamin up, mask up, test test test andlive for now in self imposed isolation. And ill let the stupid money be the lab rats as this sorts itself out.