EconCurrents

Summary Of the Markets Today:

• The Dow closed down 58 points or 0.18%,
• Nasdaq closed down 1.19%,
• S&P 500 down 0.42%,
• WTI crude oil settled at 91 down 0.2%,
• USD $106.36 down 0.01%,
• Gold 1811 up 0.33%,
• Bitcoin $23,123 down 3.51% – Session Low 22,940,
• 10-year U.S. Treasury 2.781 up 0.18%

Today’s Economic Releases:

NFIB’s Small Business Optimism Index rose 0.4 points in July to 89.9, however, it is the sixth consecutive month below the 48-year average of 98. Thirty-seven percent of small business owners reported that inflation was their single most important problem in operating their business, an increase of three points from June and the highest level since the fourth quarter of 1979. Bill Dunkelberg, NFIB Chief Economist stated:

The uncertainty in the small business sector is climbing again as owners continue to manage historic inflation, labor shortages, and supply chain disruptions. As we move into the second half of 2022, owners will continue to manage their businesses into a very uncertain future.

Nonfarm business sector labor productivity decreased 4.6 percent in the second quarter of 2022. From the same quarter a year ago, nonfarm business sector labor productivity decreased 2.5 percent, reflecting a 1.5-percent increase in output and a 4.1-percent increase in hours worked. The 2.5-percent decline in labor productivity from the same quarter a year ago is the largest decline in this series, which begins in the first quarter of 1948. Unit labor costs in the nonfarm business sector increased 10.8 percent in the second quarter of 2022, This is the largest four-quarter increase in this measure since a 10.6-percent increase in the first quarter of 1982.

In May 2022, 2.7% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 2-percentage point decrease in the overall delinquency rate compared with May 2021.

A summary of headlines we are reading today:

• EIA Lowers U.S. Oil Production Forecast
• An Iran Nuclear Deal Could Send Oil Prices Tumbling Towards $80
• Germany May Consider Lifting Its Ban On Fracking Amid Energy Crisis
• Copper Prices Slide Sideways As Bulls And Bears Battle It Out
• Northrop Grumman moves Antares rocket work to U.S. from Russia and Ukraine with Firefly partnership
• Inflation Reduction Act extends ‘pass-through’ tax break limits for 2 more years. Here’s what that means for entrepreneurs
• With 87,000 new agents, here’s who the IRS may target for audits

These and other headlines and news summaries moving the markets today are included below.

Summary Of the Markets Today:

• The Dow closed up 29 points or 0.09%,
• Nasdaq closed down 0.1%,
• S&P 500 down 0.12%,
• WTI crude oil at $90.30 up $1.28%,
• USD $106.38 down 0.23%,
• Gold $1805 up 0.78%,
• Bitcoin $23,961 up 3.4%,
• 10-year U.S. Treasury 2.75% unchanged

Today’s Economic Releases:

The July 2022 Survey of Consumer Expectations shows substantial declines in short-, medium- and longer-term inflation expectations. Expectations about year-ahead price increases for gas and food fell sharply. Home price growth expectations and year-ahead spending growth expectations continued to pull back from recent series highs. Households’ income growth expectations improved.

The federal budget deficit was $727 billion in the first 10 months of fiscal year 2022, CBO estimates—$1.8 trillion less than it was at the same point last year.

A summary of headlines we are reading today:

• Analyst: Oil To Hit $120 Again By Winter
• China Extends Taiwan Drills, Says It Is Training Under Real War Conditions
• UN Calls For Inspection Of Shelled Ukrainian Nuclear Plant
• Consumer confidence in the housing market hits the lowest point in over a decade
• Boeing Dreamliner deliveries to resume in the ‘coming days,’ FAA says
• More Americans are working part-time — a potential harbinger of future jobs market instability
• “Looks Like A Battlefield”: Third Fuel Tank At Major Cuban Storage Facility Ignites

These and other headlines and news summaries moving the markets today are included below.

Summary Of the Markets Today:

• The Dow closed up 77 points or 0.23%,
• Nasdaq closed down 0.50%,
• S&P 500 down 0.16%,
• WTI crude oil settled at $88 dup 0.65%,
• USD $106.55 up 0.75%,
• Gold $1774 down 0.87%,
• Bitcoin $22,961 up 1.96% – Session Low 22,485,
• 10-year U.S. Treasury 2.827% up 0.151%
• Baker Hughes Rig Count: U.S. -3 to 764 Canada -1 to 203

Today’s Economic Releases:

The NBER considers indicators including nonfarm payrolls, industrial production, and retail sales, among others, in designating the start and end of U.S. recessions. Today’s July 2022 BLS employment report is showing nonfarm payrolls are far from recession territory with a significant gain in employment.

• The household survey showed an increase of 179,000 whilst the establishment survey says 528,000.
• The employment/population ratio remains on an improvement trend.
• The unemployment rate modestly reduced to 3.5% – but the larger reason for this slight reduction is that the civilian labor force was reduced by 63,000. In all cases, the establishment survey is volatile – and there can be significant changes month-over-month.
• A strong jobs report will allow the Fed to raise the federal funds rate another 75 basis points.

According to the Federal Reserve: “Consumer credit [in June 2022] increased at a seasonally adjusted annual rate of 8.7 percent during the second quarter. Revolving credit increased at an annual rate of 14.6 percent, while nonrevolving credit increased at an annual rate of 6.9 percent. In June, consumer credit increased at an annual rate of 10.5 percent.” Looking at year-over-year growth, credit was up 7.7%.

A summary of headlines we are reading today:

• Russian Refinery Returns To Operations After Drone Strike
• U.S. Drilling Activity Slows As Prices Ease
• AMC plans to issue 517 million shares of preferred stock, under the ticker symbol ‘APE’
• Job Gains & Powell’s Pains Demolish Dovish-Dreams, Spark Market Turmoil This Week
• Firearm Companies Say Packages Shipped With UPS Being Damaged, Disappearing: Reports
• Consumer Credit Surged In June, 2nd Largest Monthly Increase Ever
• Bond Report: Treasury yields surge after blockbuster U.S. July jobs data
• Market Extra: A red-hot July jobs number has traders penciling in another jumbo Fed rate hike

These and other headlines and news summaries moving the markets today are included below.

Summary Of the Markets Today:

• The Dow closed down 86 points or 0.26%,
• Nasdaq closed up 0.41%,
• S&P 500 down 0.08%,
• WTI crude oil settled at $88 down 2.90%,
• USD $105.93 down 0.42%,
• Gold $1793 down 0.54%,
• Bitcoin $22,525 down 3.84% – Session Low 22,469,
• 10-year U.S. Treasury 2.663% down 0.085%

Today’s Economic Releases:

Tomorrow the BLS will issue the employment report for July 2022. Small businesses across the country continue to raise wages to keep employees and fill a historically high level of open positions, according to NFIB’s monthly jobs report. Seasonally adjusted, 49% of all owners reported job openings they could not fill in the current period, down one point from June and down two points from May’s 48-year record high. NFIB Chief Economist Bill Dunkelberg says:

Hiring has never been harder for small business owners. The labor shortage remains frustrating for many small business owners as they continue to manage inflation and other economic headwinds. Owners are adjusting business operations where they can to help mitigate lost sales opportunities due to staffing shortages.

The U.S. monthly international trade deficit decreased in June 2022. Exports increased whilst imports decreased. In normal times, slowing imports suggests a slowing economy.

The 4-week moving average of initial unemployment insurance weekly claims increased from the previous week’s revised average – and continues to moderately increase.

U.S.-based employers announced 25,810 cuts in July, a 20.6% decrease from the 32,517 cuts announced in June. It is 36.3% higher than the 18,942 cuts announced in the same month last year, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

A summary of headlines we are reading today:

• Prices At The Pump Continue To Plunge, But Stronger Demand Could Halt The Trend
• Burger King parent says more customers are redeeming coupons and loyalty rewards
• Nikola’s revenue tops expectations on the delivery of 48 electric trucks
• Restaurant Brands International earnings top estimates, fueled by stronger Tim Hortons, Burger King sales
• Walmart lays off corporate employees after slashing forecast
• Indian investors hunt for value in US stocks amid rate hikes
• From food to fuel: What sparked the transformation in the sugar industry?

These and other headlines and news summaries moving the markets today are included below.