05 July 2024 Market Close & Major Financial Headlines: S&P 500 And The Nasdaq Set New Historical Highs, Closing Near The New Marks While The Dow Lumbered Along Closing Fractionally In The Green

Summary Of the Markets Today:

  • The Dow closed up 68 points or 0.17%,
  • Nasdaq closed up 0.90%, (Closed at 18,353, New Historic high 18,366)
  • S&P 500 closed up 0.54%, (Closed at 5,567, New Historic high 5,570)
  • Gold $2,399 up $29.20,
  • WTI crude oil settled at $83 down $0.75,
  • 10-year U.S. Treasury 4.277 down 0.069 points,
  • USD index $104.86 down $0.270,
  • Bitcoin $56,469 down $567 or 0.99%,
  • Baker Hughes Rig Count: U.S. +4 to 585 Canada -1 to 175

*Stock data, cryptocurrency, and commodity prices at the market closing.


Click here to read our current Economic Forecast – July 2024 Economic Forecast: One Recession Flag Removed But Little Indication The Economy Is Strengthening


Today’s Economic Releases Compiled by Steven Hansen, Publisher:

Total nonfarm payroll employment increased by 206,000 in June 2024, and the unemployment rate changed little at 4.1 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in government, health care, social assistance, and construction. The household survey (which gives us the unemployment rate) says employment gains were 116,000 whilst the establishment survey (which gives us the headline employment numbers was 206,000. This growing difference between the establishment survey and the household survey this year is significant:

  • establishment survey = 1,334,000 year-to-date or 222,000 average growth per month in 2024
  • household survey = 16,000 year-to-date or 3,000 average growth per month in 2024

The bottom line is that the establishment survey is saying we have good jobs growth – and the household survey is saying we are close to being in a recession.

And consider that almost three-quarters of the establishment survey’s jobs created this month came from government and healthcare. Is this the type of job growth one would expect from a healthy economy?

NFIB’s June 2024 jobs report found solid employment hiring plans among small business owners, but overall unsuccessful attempts to hire additional workers. A seasonally adjusted 37% of all small business owners reported job openings they could not fill in their current period, down five points from May. NFIB Chief Economist Bill Dunkelberg’s stated:

This summer, small business owners continue to try to hire and find qualified employees for their open positions. The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.

Here is a summary of headlines we are reading today:

Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.

Today Through the Fourth Friday (22 to 28 days) Weather Outlook for the U.S. and a Six-Day Forecast for the World: posted July 5, 2024

This article focuses on what we are paying attention to in the next 48 to 72 hours. The article also includes weather maps for longer-term U.S. outlooks and a six-day World weather outlook which can be very useful for travelers.

First the NWS Short Range Forecast. The afternoon NWS text update can be found here after about 4 p.m. New York time but it is unlikely to have changed very much from the morning update. The images in this article automatically update.

Short Range Forecast Discussion
NWS Weather Prediction Center College Park MD
Fri Jul 05 2024

Valid 12Z Fri Jul 05 2024 – 12Z Sun Jul 07 2024

…Heat is expected to intensify and spread farther up the West Coast this
weekend…

…Oppressive heat and humidity will shift east into the Mid-Atlantic and
Southeast today and Saturday…

…Excessive Rainfall possible over portions of the coastal Mid-Atlantic
down through the Carolinas on Saturday…

…Beryl is forecast to re-intensify over the southwestern Gulf of Mexico
on Saturday and threaten southern Texas…

Dangerous heat is likely to become more widespread in the West today and
Saturday. Today, temperatures will soar into the 100s and 110s over much
of California and southern Oregon. Temperatures will be 15-30 degrees
above average for much of the West Coast today. Widespread temperature
records are expected to be tied or broken. Saturday will likely shape up
to be the hottest day in this heatwave when high temperatures into the
110s will be common across California outside of the cooling effects of
the Pacific Ocean near the coast and the naturally cooler higher
elevations. Numerous record-breaking temperatures can be expected through
the next few days. Locally higher temperatures into the 120s are possible
in the typical hot spots of the Desert Southwest. The triple-digit heat
will expand northward into the Pacific Northwest and parts of the central
Great Basin, with widespread highs rising into the 90s and low 100s. The
duration of this heat is also concerning as scorching above average
temperatures are forecast to linger into next week. Heat impacts can
compound over time, therefore it is important to remain weather aware and
follow the advice of local officials. Heat Watches and Warnings are in
effect for much of the West. This level of heat throughout parts of the
Mojave Desert and Sacramento/San Joaquin valleys of California could pose
a risk to anyone if proper heat safety is not followed. It is imperative
to stay hydrated, out of direct sunlight, and in buildings with sufficient
air-conditioning when possible. It is also equally as important to check
on the safety of vulnerable friends, family, and neighbors.

Meanwhile, oppressive heat and humidity will begin to shift eastward to
the Mid-Atlantic and Southeast for the end of the week. High temperatures
rising into the upper 90s and low 100s are expected, with heat indices
soaring into the 110s across the lower Mississippi Valley. Warm overnight
conditions in the upper 70s and low 80s will offer little relief, leading
to a dangerous situation for those without access to adequate cooling. A
cold front entering the southern Plains is anticipated to offer cooler and
below average temperatures to Oklahoma, much of northern/western Texas,
and the Mid-South today. Above average temperatures are then anticipated
to remain confined to the Southeast and Mid-Atlantic for the start of the
weekend, with afternoon highs into the mid-to-upper 90s.

An active and stormy weather pattern over the central U.S. is expected to
bring heightened chances for severe thunderstorms and heavy rainfall,
which could impact holiday gatherings through early this weekend. A
developing area of low pressure over the Northern Plains is forecast to
team up with a lingering frontal boundary stretching from the lower Great
Lakes to the southern Plains to trigger some meteorological fireworks.
Thunderstorm chances span from the Southern Plains/Rockies to the
Middle/Upper Mississippi Valley and also eastward to the Ohio Valley and
Mid-Atlantic. Flash flooding will remain a concern throughout the upper
Midwest as well due to yet another round of thunderstorms overlapping
areas dealing with ongoing river flooding and saturated soils, with
scattered flash flooding also possible between the Ohio Valley and
southern Plains. Today, thunderstorms will continue to progress eastward
with the frontal boundary into much of the eastern third of the country.
Isolated strong to severe storms and flash flooding are possible. The
greatest threat for damaging wind gusts associated with these storms will
be across the upper Ohio Valley. Elsewhere, daily thunderstorm chances
associated with daytime heating are possible along the Gulf Coast and
Florida. Scattered showers and thunderstorms are also possible throughout
the north-central U.S. this weekend as upper troughing remains over the
region. There’s a Slight Risk for Excessive Rainfall leading to Flash
Flooding along a stalled out frontal boundary over portions of
southeastern Virginia down through coastal Carolina on Saturday. Residents
and visitors located within areas expecting severe weather and/or heavy
rainfall are advised to remain weather aware, have multiple ways to
receive warnings, and never drive across flooded roadways.

As we head into the weekend, interests along the western Gulf of Mexico
should pay attention to the future progress of Hurricane Beryl, currently
located in the western Caribbean Sea. Beryl is forecast to weaken into a
tropical storm as it traverses the Yucatan Peninsula on Friday before
emerging into the southwestern Gulf of Mexico on Saturday. Beryl has an
opportunity to re-intensify over the Gulf and turn more northwest toward
the southern tip of Texas by the end of this forecast period Saturday
evening.

To get your local forecast plus active alerts and warnings click HERE and enter your city, state or zip code.

Learn about wave patterns HERE.

Then, looking at the world and of course, the U.S. shows here also. Today we are looking at precipitation.

cone graphic

Please click on “Read More” below to access the full Daily Report issued today.

Today Through the Fourth Friday (22 to 28 days) Weather Outlook for the U.S. and a Six-Day Forecast for the World: posted July 4, 2024

This article focuses on what we are paying attention to in the next 48 to 72 hours. The article also includes weather maps for longer-term U.S. outlooks and a six-day World weather outlook which can be very useful for travelers.

First the NWS Short Range Forecast. The afternoon NWS text update can be found here after about 4 p.m. New York time but it is unlikely to have changed very much from the morning update. The images in this article automatically update.

Short Range Forecast Discussion
NWS Weather Prediction Center College Park MD
Thu Jul 04 2024
Valid 12Z Thu Jul 04 2024 – 12Z Sat Jul 06 2024

…Extremely dangerous and record-breaking heatwave to impact much of the
West through this weekend…

…One more day of oppressive heat and humidity across the Southern Plains
and Lower Mississippi Valley today before steamy temperatures focus over
the Mid-Atlantic and Southeast…

…Flash flooding and severe thunderstorms possible throughout parts of
the Midwest, Ohio Valley, and Southern Plains this Independence Day…

A significant and extremely dangerous heatwave is set to build throughout
the West to end this week and into the extended holiday weekend, with
several days of record-breaking heat forecast. An upper-level high
situated just off the West Coast today is forecast to strengthen and
reorient directly over the western U.S. by Friday. This pattern will
support well above average temperatures over California and into southwest
Oregon today before heat spreads further throughout the western U.S. this
weekend. High temperatures are forecast to reach into the 105-115F range
for interior California away from the immediate coastline, as well as
across much of the Desert Southwest. Locally higher temperatures into the
120s are possible in the typical hot spots of the Desert Southwest.
Searing afternoon temperatures will also spread into the Northwest and
parts of the central Great Basin, with widespread highs rising into the
90s and low 100s. Dozens of daily record high temperatures are possible,
expressing the rarity of this early-July heatwave. The duration of this
heat is also concerning as scorching above average temperatures are
forecast to linger into next week. Heat impacts can compound over time,
therefore it is important to remain weather aware and follow the advice of
local officials. This level of heat throughout parts of the Mojave Desert
and Sacramento/San Joaquin valleys of California could pose a risk to
anyone if proper heat safety is not followed. It is imperative to stay
hydrated, out of direct sunlight, and in buildings with sufficient
air-conditioning when possible. It is also equally as important to check
on the safety of vulnerable friends, family, and neighbors.

Oppressive heat and humidity will also be found throughout the southern
Plains and lower Mississippi Valley today, while expanding eastward to the
Mid-Atlantic and Southeast for the end of the week. High temperatures
rising into the upper 90s and low 100s are expected, with heat indices
soaring into the 110s across the lower Mississippi Valley. Warm overnight
conditions in the upper 70s and low 80s will offer little relief, leading
to a dangerous situation for those without access to adequate cooling. A
cold front entering the southern Plains is anticipated to offer cooler and
below average temperatures to Oklahoma, much of northern/western Texas,
and the Mid-South by Friday. Above average temperatures are then
anticipated to confine to the Southeast and Mid-Atlantic for the start of
the weekend, with afternoon highs into the mid-to-upper 90s. If planning
to spend an extended amount of time outdoors this Fourth of July, be sure
to use caution and act quickly if you see signs of heat-related illnesses.

An active and stormy weather pattern over the central U.S. is expected to
create chances for severe thunderstorms and heavy rainfall, which could
impact holiday gatherings through early this weekend. A developing area of
low pressure over the northern Plains is forecast to progress into the
upper Midwest by tonight and team up with a lingering frontal boundary
stretching from the lower Great Lakes to the southern Plains to trigger
some meteorological fireworks. Thunderstorm chances span from the southern
Plains/Rockies to the middle/upper Mississippi Valley and also eastward to
the Ohio Valley and Mid-Atlantic. However, the greatest threat for strong
to severe thunderstorms will be near/along the frontal boundary through
parts of the middle/upper Mississippi Valley and southern Plains. Damaging
wind gusts and frequent lightning are the most likely weather hazard
associated with these Fourth of July storms. Flash flooding will remain a
concern throughout the upper Midwest as well due to yet another round of
thunderstorms overlapping areas dealing with ongoing river flooding and
saturated soils, with scattered flash flooding also possible between the
Ohio Valley and southern Plains. On Friday, thunderstorms will continue to
progress eastward with the frontal boundary into much of the eastern third
of the country. Isolated strong to severe storms and flash flooding are
possible. The greatest threat for damaging wind gusts associated with
these storms will be across the upper Ohio Valley. Elsewhere, daily
thunderstorm chances associated with daytime heating are possible along
the Gulf Coast and Florida. Scattered showers and thunderstorms are also
possible throughout the north-central U.S. this weekend as upper troughing
remains over the region. Residents and visitors located within areas
expecting severe weather and/or heavy rainfall are advised to remain
weather aware, have multiple ways to receive warnings, and never drive
across flooded roadways.

Have a safe Independence Day!

To get your local forecast plus active alerts and warnings click HERE and enter your city, state or zip code.

Learn about wave patterns HERE.

Then, looking at the world and of course, the U.S. shows here also. Today we are looking at precipitation.

cone graphic

Please click on “Read More” below to access the full Daily Report issued today.

03 July 2024 Market Close & Major Financial Headlines: The S&P 500 And The Nasdaq Fly To New Historic Highs. The DOW Was Moderately Down.

Summary Of the Markets Today:

  • The Dow closed down 24 points or 0.06%,
  • Nasdaq closed up 0.88%, (Closed at 18,188, New Historic high 18,188)
  • S&P 500 closed up 0.51%, (Closed at 5,537, New Historic high 5,539)
  • Gold $2,365 up $31.10,
  • WTI crude oil settled at $84 up $0.99,
  • 10-year U.S. Treasury 4.354 down 0.081 points,
  • USD index $105.35 down $0.37,
  • Bitcoin $59,862 down $2,178 or 3.51%,

*Stock data, cryptocurrency, and commodity prices at the market closing.


Click here to read our current Economic Forecast – July 2024 Economic Forecast: One Recession Flag Removed But Little Indication The Economy Is Strengthening


Today’s Economic Releases Compiled by Steven Hansen, Publisher:

Private sector employment increased by 150,000 jobs in June 2024 and annual pay was up 4.9% year-over-year, according to the ADP® National Employment Report. I know some are spinning this as a low number – the facts are that 150,000 employment gains supports economic growth; If anything, the ADP numbers are slightly trending up; And overall both ADP and the BLS’s numbers are showing adequate employment growth. Nela Richardson, chief economist, ADP adds:

Job growth has been solid, but not broad-based. Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month.

U.S.-based employers announced 48,786 cuts in June 2024, down 23.6% from the 63,816 cuts announced one month prior. It is 19.8% higher than the 40,709 cuts announced in the same month in 2023. Andrew Challenger, Senior Vice President and workplace expert for Challenger, Gray & Christmas, Inc. stated:

June is typically a low month for job cut announcements, as most companies are midyear or at the end of their fiscal years. The months following fiscal year ends tend to have a spike in cuts, as those plans are implemented. Over the last decade, job cuts have primarily been announced during the first half of the year. Prior to 2013, major announcements would bookend the year.

The Challenger Report Announced Job Cuts Jan 2021-Jun 2024

The US trade balance was improving until March 2023 but recently the trade balance has been deteriorating. The deficit increased from $74.5 billion in April (revised) to $75.1 billion in May 2024, as exports decreased more than imports. The graph below shows imports are growing much faster than exports.

New orders for manufactured goods in May 2024 was up 0.9% year-over-year (down 0.3% year-over-year inflation adjusted). Manufacturing remained in a recession in May.

In the week ending June 29, the advance figure for seasonally adjusted initial unemployment claims 4-week moving average was 238,500, an increase of 2,250 from the previous week’s revised average. The previous week’s average was revised up by 250 from 236,000 to 236,250.

In June  2024, the Services Purchasing Manager Index registered 48.8%, 5 percentage points lower than May’s figure of 53.8%. The reading in June was a reversal compared to May and the second in contraction territory in the last three months. Before April, the services sector grew for 15 straight months following a composite index reading of 49 percent in December 2022; the last contraction before that was in May 2020 (45.4 percent). The Business Activity Index registered 49.6 percent in June, which is 11.6 percentage points lower than the 61.2 percent recorded in May and the first month of contraction since May 2020. The New Orders Index contracted in June for the first time since December 2022; the figure of 47.3 percent is 6.8 percentage points lower than the May reading of 54.1 percent. The takeaway here is that the services industry entering contraction territory is a recession flag.

The Minutes of the Federal Open Market Committee for June 11–12, 2024 shows significant discussion on inflation and the federal funds rate which pundits want reduced. Highlights of the minutes which I think are significant are detailed below:

In their discussion of inflation developments, participants noted that after a significant decline in inflation during the second half of 2023, the early part of this year had seen a lack of further progress toward the Committee’s 2 percent objective. Participants judged that although inflation remained elevated, there had been modest further progress toward the 2 percent goal in recent months … participants suggested that a number of developments in the product and labor markets supported their judgment that price pressures were diminishing. In particular, a few participants emphasized that nominal wage growth, though still above rates consistent with price stability, had declined, notably in labor-intensive sectors. 

… Participants remarked that demand and supply in the labor market had continued to come into better balance. Participants observed that many labor market indicators pointed to a reduced degree of tightness in labor market conditions. These included a declining job openings rate, a lower quits rate, increases in part-time employment for economic reasons, a lower hiring rate, a further step-down in the ratio of job vacancies to unemployed workers, and a gradual uptick in the unemployment rate.

… Several participants also suggested that the [BLS] establishment survey may have overstated actual job gains. 

… Participants generally observed that continued labor market strength could be consistent with the Committee achieving both its employment and inflation goals, though they noted that some further gradual cooling in the labor market may be required.

… Participants observed that a lower rate of output growth this year could aid the disinflation process while also being consistent with a strong labor market. Participants generally viewed the Committee’s restrictive monetary policy stance as having a restraining effect on growth in consumption and investment spending and as contributing to a gradual slowing in the pace of economic activity. A couple of participants particularly stressed that the Committee’s past policy tightening had contributed to higher rates for home mortgage loans and other longer-term borrowing, which were moderating spending and production, including households’ discretionary purchases and residential construction activity. 

… Some participants highlighted reasons why inflation could remain above 2 percent for longer than expected. These participants pointed to risks that inflation could stay elevated as a result of worsening geopolitical developments, heightened trade tensions, more persistent shelter price inflation, financial conditions that might be or could become insufficiently restrictive, or U.S. fiscal policy becoming more expansionary than expected; the latter two scenarios were also seen as implying upside risks to economic activity.

… In discussing the outlook for monetary policy, participants noted that progress in reducing inflation had been slower this year than they had expected last December. They emphasized that they did not expect that it would be appropriate to lower the target range for the federal funds rate until additional information had emerged to give them greater confidence that inflation was moving sustainably toward the Committee’s 2 percent objective. 

… Some remarked that the continued strength of the economy, as well as other factors, could mean that the longer-run equilibrium interest rate was higher than previously assessed, in which case both the stance of monetary policy and overall financial conditions may be less restrictive than they might appear. A couple of participants noted that the longer-run equilibrium interest rate was a better guide for determining where the federal funds rate may need to move over the longer run than for assessing the restrictiveness of current policy. Participants noted the uncertainty associated with the economic outlook and with how long it would be appropriate to maintain a restrictive policy stance.

Here is a summary of headlines we are reading today:

Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.

Today Through the Fourth Friday (22 to 28 days) Weather Outlook for the U.S. and a Six-Day Forecast for the World: posted July 3, 2024

This article focuses on what we are paying attention to in the next 48 to 72 hours. The article also includes weather maps for longer-term U.S. outlooks and a six-day World weather outlook which can be very useful for travelers.

First the NWS Short Range Forecast. The afternoon NWS text update can be found here after about 4 p.m. New York time but it is unlikely to have changed very much from the morning update. The images in this article automatically update.

Short Range Forecast Discussion
NWS Weather Prediction Center College Park MD
Wed Jul 03 2024
Valid 12Z Wed Jul 03 2024 – 12Z Fri Jul 05 2024

…Dangerous heatwave to impact much of the West, while oppressive heat
and humidity also swelter areas from the Southern Plains to the
Mid-Atlantic…

…Flash flooding and severe thunderstorms possible over the next few days
across portions of the Plains, Midwest, and Ohio Valley…

Record-breaking and dangerous heat is forecast to make this Fourth of July
week a scorcher across much of the West and from the southern Plains to
the Mid-Atlantic. Over 110 million residents are currently under
heat-related watches, warnings, and advisories throughout 21 states as of
early this morning. An upper-level high situated just off the West Coast
today is forecast to strengthen and reorient directly over the western
U.S. by the end of the week. This pattern will support well above average
temperatures over California today before heat spreads further along the
West Coast by the end of the week. High temperatures are forecast to reach
into the 105-115F range throughout interior California away from the
immediate coastline, as well as into much of the Desert Southwest.
Afternoon temperatures will also begin to increase across much of Oregon
and Washington by Thursday and Friday, with widespread highs soaring into
the 90s. Dozens of record highs are possible, expressing the rarity of
this early-July heatwave. The duration of this heat is also concerning as
scorching above average temperatures are forecast to linger into next
week. Heat impacts can compound over time, therefore it is important to
remain weather aware and follow the advice of local officials. This level
of heat throughout the Sacramento and San Joaquin valleys of California
could pose a risk to anyone if proper heat safety is not followed. This
includes staying hydrated, out of direct sunlight, and in buildings with
sufficient air-conditioning. It is also very important to check on the
safety of vulnerable friends, family, and neighbors.

Oppressive heat and humidity will also be found throughout the southern
Plains and lower Mississippi Valley into the Independence Day holiday
while also expanding eastward to the Mid-Atlantic for the end of the week.
High temperatures rising into the upper 90s and low 100s are expected,
with heat indices soaring into the 110s across the lower Mississippi
Valley. Warm overnight conditions in the upper 70s and low 80s will offer
little relief, leading to a dangerous situation for those without access
to adequate cooling. A cold front entering the southern Plains is
anticipated to offer cooler and below average temperatures to Oklahoma and
much of northern/western Texas by Friday.

An active and stormy weather pattern over the central U.S. is expected to
create chances for severe thunderstorms and heavy rainfall, which could
impact holiday gatherings this week. A developing area of low pressure
over the central High Plains today forecast to progress into the upper
Midwest by Thursday along with a lingering frontal boundary stretching
from the lower Great Lakes to the central Plains are anticipated to be the
triggers for some meteorological fireworks. For today, the best chances
for scattered flash flooding due to thunderstorms capable of producing
intense rainfall rates is forecast between eastern Kansas and the Ohio
Valley along the aforementioned frontal boundary. Instances of severe
weather (mainly associated with damaging wind gusts) are also possible,
with chances for severe storms also located in parts of the
northern/central High Plains closer to the developing low pressure system.
By Independence Day, thunderstorm chances span from the southern
Plains/Rockies to the middle/upper Mississippi Valley and also eastward to
the Ohio Valley and Mid-Atlantic. However, the greatest threat for strong
thunderstorms turning severe resides over parts of eastern Kansas,
northeast Oklahoma, and southern/central Missouri. Damaging wind gusts and
frequent lightning are the most likely weather hazard associated with
these Fourth of July storms, with isolated strong storms also possible
into the Midwest, Ohio Valley, and Mid-Atlantic. Flash flooding will
remain a concern throughout the upper Midwest as well due to yet another
round of thunderstorms overlapping areas dealing with ongoing river
flooding and saturated soils. Portions of southern Minnesota, eastern
South Dakota, western Wisconsin, and northern Iowa currently have the
highest probabilities (70-90%) for at least 1 inch of rain on Thursday.
Residents and visitors located within areas expecting severe weather
and/or heavy rainfall this week are advised to remain weather aware, have
multiple ways to receive warnings, and never drive across flooded
roadways.

To get your local forecast plus active alerts and warnings click HERE and enter your city, state or zip code.

Learn about wave patterns HERE.

Then, looking at the world and of course, the U.S. shows here also. Today we are looking at precipitation.

cone graphic

Please click on “Read More” below to access the full Daily Report issued today.

02 July 2024 Market Close & Major Financial Headlines: Markets Opened Sharply Lower, Saw Green Within The First Half Hour, Continued To Trend Higher, Finally Closing At Session Highs

Summary Of the Markets Today:

  • The Dow closed up 162 points or 0.41%,
  • Nasdaq closed up 0.84%,
  • S&P 500 closed up 0.62%,
  • Gold $2,340 up $1.20,
  • WTI crude oil settled at $83 down $0.39,
  • 10-year U.S. Treasury 4.427 down 0.051 points,
  • USD index $105.69 down $0.210,
  • Bitcoin $61,827 down $1,003 or 1.60%,

*Stock data, cryptocurrency, and commodity prices at the market closing.


Click here to read our current Economic Forecast – July 2024 Economic Forecast: One Recession Flag Removed But Little Indication The Economy Is Strengthening


Today’s Economic Releases Compiled by Steven Hansen, Publisher:

Home prices nationwide, including distressed sales, increased year over year by 4.9% in May 2024 compared with May 2023 according to CoreLogic. The CoreLogic HPI Forecast indicates that home prices will rise by 0.7% from May 2024 to June 2024 and increase by 3% on a year-over-year basis from May 2024 to May 2025.

01-hpi-natl-change_MAY-24-1024x576

The number of job openings changed little at 8.1 million on the last business day of May 2024, the U.S. Bureau of Labor Statistics reported today. Over the month, both the number of hires and total separations were little changed at 5.8 million and 5.4 million, respectively. I have a healthy disrespect for this particular dataset. Historically there was reasonable correlation between job openings and job growth. but something changed with the COVID recession. It is likely there are phantom job openings. Historically this dataset would suggest that there will be little change in job growth in the coming months.

Here is a summary of headlines we are reading today:

Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.

Today Through the Fourth Friday (22 to 28 days) Weather Outlook for the U.S. and a Six-Day Forecast for the World: posted July 2, 2024

This article focuses on what we are paying attention to in the next 48 to 72 hours. The article also includes weather maps for longer-term U.S. outlooks and a six-day World weather outlook which can be very useful for travelers.

First the NWS Short Range Forecast. The afternoon NWS text update can be found here after about 4 p.m. New York time but it is unlikely to have changed very much from the morning update. The images in this article automatically update.

Short Range Forecast Discussion
NWS Weather Prediction Center College Park MD
Tue Jul 02 2024
Valid 12Z Tue Jul 02 2024 – 12Z Thu Jul 04 2024

…Dangerously hot conditions to impact much of the southern Plains, lower
Mississippi Valley, and western U.S. this week…

…Severe thunderstorms and flash flooding possible over portions of the
Midwest through midweek…

…Unsettled weather with localized flash flooding chances continue across
the Southeast and southern Rockies…

Over 60 million residents are currently under heat-related watches,
warnings, and advisories this morning as early-July heat swelters much of
the south-central and western United States. The weather pattern
responsible for the potentially record-breaking heat includes upper-level
ridging just off the West Coast and and a separate upper ridge over the
south-central U.S. today before sliding to the east by midweek. For the
southern Plains, high temperatures are forecast to soar into the upper 90s
and low 100s. When combined with elevated humidity levels, heat indices
are forecast to rise into the 110s across the lower Mississippi Valley and
Gulf Coast. Excessive Heat Warnings and Heat Advisories currently span
from Kansas/Missouri to the Gulf Coast States. After enjoying a refreshing
start to the workweek, the Midwest and East Coast can expect a gradual
return to muggy summer warmth by Wednesday as surface high pressure
reorients itself off the East Coast and ushers in southerly flow. Extreme
heat building throughout the West Coast and more specifically interior
California this week will be particularly dangerous for those without
effective cooling. High temperatures away from the immediate coastline are
forecast to reach into the 105-115F range, which could break numerous
daily records in the San Joaquin and Sacramento Valleys. Heat begins to
build northward on Independence Day as highs into the 90s reach Oregon and
interior Washington. Excessive Heat Warnings, Watches, and Heat Advisories
go into effect today for some and stretch from southwest Washington to the
Desert Southwest. The duration of this heat wave is concerning as the
current forecast keeps scorching conditions in place through at least the
end of the week. This magnitude and duration of heat could pose a danger
to the public if proper heat safety is not followed. This includes staying
hydrated, out of direct sunlight, and in properly air-conditioned
buildings. Additionally, it is very important to check on vulnerable
friends, family, and neighbors to confirm their safety.

Active and stormy weather associated with a few storm systems progressing
from the northern Rockies to the Midwest this week will create fireworks
of their own this holiday week. Initially, a cold front swinging from the
upper Midwest to the Great Lakes by early Wednesday is forecast to spark
numerous thunderstorms from northeast Kansas to central Wisconsin. Some
storms could turn severe and produce damaging wind gusts, a few tornadoes,
and large hail from northeast Kansas to southern Iowa. This area is
highlighted by the Storm Prediction Center as having an Enhanced Risk
(level 3/5) of severe weather. Thunderstorms are also expected to contain
intense rainfall rates as elevated levels of atmospheric moisture content
remain in place. Flood Watches have been issued for much of Iowa, with the
threat of scattered flash floods also encompassing much of the Midwest
today. For areas experiencing swollen rivers from prior rainfall, any
additional heavy rain could exacerbate flooding concerns. By Wednesday, a
cold front is forecast to stretch from the lower Great Lakes to the
central/southern Plains and provide a focus for additional potent
thunderstorms across the mid-Mississippi Valley. Once again thunderstorms
are expected to produce the potential for damaging wind gusts and flash
flooding. A separate area of potentially organized convection may impact
the central High Plains, where a greater threat for large hail and
tornadoes exists. The Fourth of July will feature the aforementioned
frontal boundary lingering over the Ohio Valley and lifting as a warm
front over the central Plains as an area of low pressure ejects off the
High Plains. This will lead to shower and thunderstorm chances from the
northern Plains and Midwest to the Ohio Valley and Mid-Atlantic, with the
highest chances for severe weather extending from eastern Kansas to
central/southern Missouri.

Continued sufficient moisture content over the Southwest and southern
Rockies will also aid in the development of daily showers and
thunderstorms capable of producing localized instances of flash flooding
through midweek. Regions most likely to be affected by scattered downpours
include southeast Arizona and New Mexico, with burn scars and sensitive
terrain the most at risk for flash flooding. Meanwhile, a dying stationary
front entering the Southeast from the western Atlantic will also aid in
daily widely scattered thunderstorms across the Gulf Coast, Florida, and
the Southeast coastline/southern Georgia.

To get your local forecast plus active alerts and warnings click HERE and enter your city, state or zip code.

Learn about wave patterns HERE.

Then, looking at the world and of course, the U.S. shows here also. Today we are looking at precipitation.

Please click on “Read More” below to access the full Daily Report issued today.

01 July 2024 Market Close & Major Financial Headlines: Wall Street’s Three Major Indexes Gapped Fractionally Higher At The Opening Bell Then Dropping To The unchanged Line For Most Of The Session, Finally Closing In The Green

Summary Of the Markets Today:

  • The Dow closed up 51 points or 0.13%,
  • Nasdaq closed up 0.83%,
  • S&P 500 closed up 0.27%,
  • Gold $2,341 up $1.40,
  • WTI crude oil settled at $84 up $1.96,
  • 10-year U.S. Treasury 4.469 up 0.126 points,
  • USD index $105.82 down $0.04,
  • Bitcoin $63,205 up $537 or 0.86%

*Stock data, cryptocurrency, and commodity prices at the market closing.


Click here to read our current Economic Forecast – July 2024 Economic Forecast: One Recession Flag Removed But Little Indication The Economy Is Strengthening


Today’s Economic Releases Compiled by Steven Hansen, Publisher:

Total Construction spending is up 6.4% year-over-year in May 2024 – down from 7.6% year-over-year last month. Private construction was up 5.4% year-over-year whilst public construction was up 9.7% year-over-year. As one can see from the graph below, construction spending is on a slowing trendline – but still remains a bright spot in the economy.

The Manufacturing PMI® registered 48.5 percent in June 2024, down 0.2 percentage point from the 48.7 percent recorded in May. A Manufacturing PMI® above 42.5 percent, over a period of time, generally indicates an expansion of the overall economy. The New Orders Index remained in contraction territory, registering 49.3 percent, 3.9 percentage points higher than the 45.4 percent recorded in May. The Backlog of Orders Index registered 41.7 percent, down 0.7 percentage point compared to the 42.4 percent recorded in May. The bottom line is that  for the last 18 months, manufacturing has remained a weak spot in the economy with no evidence of growing strength.

Here is a summary of headlines we are reading today:

Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.

NOAA Updates its Mid-month Outlook for July, 2024 – Did they Get it Right this Time? – Posted on July 1, 2024

At the end of every month, NOAA updates its Outlook for the following month which in this case is July of 2024. We are reporting on that tonight.

There have been some significant changes in the Outlook for July and these are addressed in the NOAA Discussion so it is well worth reading.  We provided the prior Mid-Month Outlook for July for comparison. It is easy to see the substantial changes in the weather outlook by comparing the Mid-Month and Updated Maps.

The article includes the Drought Outlook for July. NOAA also adjusted the previously issued Seasonal (JAS) Drought Outlook to reflect the changes in the July Drought Outlook. We also provide the Week 2/3 Tropical Outlook for the World.

The best way to understand the updated outlook for July is to view the maps and read the NOAA discussion. I have highlighted the key statements in the NOAA Discussion.

I am going to start with graphics that show the updated Outlook for July and the Mid-Month Outlook for July. This is followed by a graphic that shows both the Updated Outlook for July and the previously issued three-month outlook for JAS 2024. So you get the full picture in three graphics.

Here is the updated Outlook for July 2024.

 

For Comparison Purposes, Here is the earlier Mid-Month Outlook for July.

It is important to remember that the maps show deviations from the current definition of normal which is the period 1991 through 2020.  So this is not a forecast of the absolute value of temperature or precipitation but the change from what is defined as normal or to use the technical term climatology.

It is a substantial change from what was issued on June 20, 2024. Remember, it is the first set of maps that are the current outlook for July.  One expects some changes  10 days later. However, the changes to the updated July Outlook are significant.  This then gives us some reason to question the (June 20, 2024) three-month JAS temperature and precipitation Outlooks which are shown in the following graphic.

NOAA provided a combination of the Updated Outlook for July and the Three-Month Outlook.

The top pair of maps are again the Updated Outlook for the new month. There is a temperature map and a precipitation map. The bottom row shows the three-month outlooks which includes July the new month. I think the outlook maps are self-explanatory.

To the extent that one can rely on a forecast, we would conclude that August and September will be very different than July, especially for precipitation. You can subtract July from the three-month Outlook and divide by two to get a combined August-September Outlook.

However given the major change in the new July outlook from what was issued on June 20,  2024, we might not trust the Seasonal Outlook issued on June 20, 2024. Something to think about.

Some readers may need to click “Read More” to read the rest of the article.  Some will feel that they have enough information. But there is a lot more information in the rest of this article.

Today Through the Fourth Friday (22 to 28 days) Weather Outlook for the U.S. and a Six-Day Forecast for the World: posted July 1, 2024

This article focuses on what we are paying attention to in the next 48 to 72 hours. The article also includes weather maps for longer-term U.S. outlooks and a six-day World weather outlook which can be very useful for travelers.

First the NWS Short Range Forecast. The afternoon NWS text update can be found here after about 4 p.m. New York time but it is unlikely to have changed very much from the morning update. The images in this article automatically update.

Short Range Forecast Discussion
NWS Weather Prediction Center College Park MD
Mon Jul 01 2024
Valid 12Z Mon Jul 01 2024 – 12Z Wed Jul 03 2024

…Dangerously hot conditions will continue across the southern Plains and
lower Mississippi Valley, while simmering heat builds throughout
California’s Central Valley starting Tuesday…

…Heavy rain and flash flooding likely across parts of the Southeast
coastline today…

…Severe thunderstorm and heavy rain threat situated over northern Plains
and Midwest early this week…

July kicks off with anomalous and potentially dangerous heat impacting the
south-central U.S. and portions of the West Coast. As of this morning,
over 50 million residents are under heat-related watches, warnings, and
advisories. The upper-level pattern throughout the next few days
responsible for the summer heat consists of ridging just off the West
Coast and over the lower Mississippi Valley, while an upper trough
situates over the northern Rockies and northern Plains. For the central
U.S., high temperatures are forecast to soar into the upper 90s and low
100s across the southern Plains through midweek. When combined with
elevated humidity levels, heat indices are forecast to rise into the 110s
across the lower Mississippi Valley and Gulf Coast. Excessive Heat
Warnings and Heat Advisories currently span from Kansas to the Gulf Coast
States. After enjoying a refreshing start to the workweek, the Midwest and
East Coast can expect a gradual return to muggy summer warmth by Wednesday
as surface high pressure reorients itself off the East Coast and ushers in
southerly flow. Extreme heat building throughout the West Coast and more
specifically interior California this week will also be particularly
dangerous for those without effective cooling. High temperatures away from
the immediate coastline are forecast to reach into the 100-110F range,
which could break numerous daily records in the San Joaquin and Sacramento
valleys on Tuesday and Wednesday. Excessive Heat Warnings, Watches, and
Heat Advisories go into effect as early as Tuesday and span from southern
Oregon to the low desert of southeast California. The duration of this
heat wave is concerning as the current forecast keeps scorching conditions
in place through at least the end of the week. This level of heat could
pose a danger to the entire population if proper heat safety is not
followed. This includes staying hydrated, out of direct sunlight, and in
properly air-conditioned buildings. Additionally, it is very important to
check on vulnerable friends, family, and neighbors to confirm their safety.

A cold front sliding down the East Coast today is forecast to slow its
southerly motion as it intersects the Southeast coastline, with developing
thunderstorms along the boundary. Some storms are expected to contain
intense rainfall rates and slow propagation, which creates the threat for
flash flooding. Parts of the South Carolina coastline, including the city
of Charleston, has been highlighted as having a Moderate Risk (level 3/4)
of Excessive Rainfall today. Areas most at risk for flooding are locations
with poor drainage, where heavy rainfall coincides with the afternoon high
tide, and in urbanized communities. Be sure to remain weather aware and
always remember to never drive through flooded roads.

Additionally, a storm system exiting the northern Rockies this morning is
anticipated to create some pre-Independence Day fireworks across the
northern Plains and Midwest through midweek as the threat of heavy rain
and severe weather slides eastward with time. Severe thunderstorm chances
are centered over Nebraska South Dakota today, with neighboring states
included in the potential for potent thunderstorms capable of containing
damaging wind gusts and sporadic hail. Of potentially greater concern
throughout the upper Mississippi Valley is the prospect for more heavy
rainfall over saturated soils and swollen rivers. As approaching frontal
boundaries provide a focus for several clusters of thunderstorms, areas of
intense rainfall rates are possible throughout the northern Plains and
upper Midwest today before sliding gradually eastward on Tuesday, but
still remaining centered over the Midwest. Probabilities for at least 1
inch of rain are high (70-90%) for much of Iowa, eastern Nebraska,
southern Minnesota, central/southern Wisconsin, and far northwest Illinois
through Tuesday. This next round of heavy rain could create instances of
flash flooding as well as exacerbate ongoing river flooding across areas
still recovering from last weeks heavy rainfall.

Continued sufficient moisture content over the Southwest and southern
Rockies will also aid in daily showers and thunderstorms capable of
producing localized instances of flash flooding. Regions most likely to be
affected by scattered downpours include Arizona, New Mexico, and
southwestern Colorado, with burn scars and sensitive terrain the most at
risk for flash flooding.

To get your local forecast plus active alerts and warnings click HERE and enter your city, state or zip code.

Learn about wave patterns HERE.

Then, looking at the world and of course, the U.S. shows here also. Today we are looking at precipitation.

Please click on “Read More” below to access the full Daily Report issued today.