Stocks were mixed on Tuesday morning following the first earnings reports from major banks. JPMorgan shares fell despite the company's better-than-expected 3Q earnings and lower loan loss reserves. Citigroup shares also fell after the company reported higher costs and forecast a slower economic recovery in 2021. Net income at Citi fell sharply from the prior year, but came in well above the consensus forecast. The Dow fell 0.3%, the S&P fell 0.3%, and the Nasdaq rose 0.3%. Crude oil traded near $40 per barrel, while gold fell $33 to $1896 per ounce.

Stocks rose on Friday morning, recovering from early losses. The Commerce Department reported that core capital goods orders excluding aircraft rose 1.8% in August, down from 2.5% in July but above the Reuters consensus forecast of 0.5% growth. Costco posted better-than-expected fiscal 4Q results, though the shares fell on concerns about high coronavirus costs. Boeing shares rose 3% on news that the European regulatory ban on the 737 MAX jet could be lifted in November. The Dow rose 0.1%, the S&P 0.3%, and the Nasdaq 0.8%. Crude oil fell slightly to $40 per barrel, while gold traded near $1866 per ounce.

Runaway inflation (an 11.8% rate) has sent Turkish 10-year bond rates soaring toward 14%. A relatively high inflation rate of 5% is also propping up 10-year bond rates in India (at 6.2%). But interest rates around the rest of the world are near all-time lows, as they are in the U.S. and the U.K. Some are even outright negative, as in Japan, France, Germany and Switzerland. In the U.S., the Federal Reserve has taken numerous extraordinary steps to keep financial markets functioning, and we don't look for the Fed to raise short-term rates for at least the next 12-18 months. At the same time, for several reasons, we do not expect the Fed to follow its European peers and establish negative interest rates in the U.S. First, the jury is out as to whether negative rates are actually helping economies recover. Second, money-market funds in the U.S. play an important role in the financial markets, and negative government bond yields would "break the buck." Our advice to fixed-income investors seeking yield is to consider ETF specializing in securitized debt, corporate debt, and high-yield or floating bonds.

Stocks were mixed on Thursday morning. On the employment front, the Labor Department said that initial claims for state unemployment benefits totaled 884,000 in the week ended September 5, in line with a week earlier. Last week's unemployment claims were revised up to 884,000 from the 881,000 that was previously reported. The Dow fell 0.2%, the S&P 0.2%, while the Nasdaq rose 0.3%. Crude oil fell to $37.79 per barrel, while gold rose $13 to $1968 per ounce.

Stocks continued to drop on Friday morning, extending Thursday's losses, following an August employment report that showed a slowdown in job creation from June and July. The Labor Department said that the U.S. economy added 1.371 million payroll jobs in August, down from 1.734 million in July and below the Reuters consensus forecast of 1.4 million. The official unemployment rate fell to 8.4% from 10.2% in July, and was better than the consensus estimate of 9.8%. The Dow fell 1.9%, the S&P 2.5%, and the Nasdaq 3.6%. Crude oil fell below $41 per barrel, while gold traded near 1932 per ounce.

Stocks continued their rally on Friday morning, a day after the Federal Reserve announced a new strategy that will keep interest rates low for an extended period. Investors also weighed new consumer spending data. The Commerce Department said that consumer spending rose 1.9% in July, above the Reuters consensus forecast of 1.5% growth but down from a 6.2% increase in June. However, spending could decline in the coming months in the absence of new fiscal stimulus, including enhanced unemployment benefits. The Dow rose 0.2%, the S&P 0.3%, and the Nasdaq 0.5%. Crude oil fell to $43 per barrel, while gold rose $35 to $1967 per ounce.

Stocks fluctuated on Thursday, finishing the day mixed, as investors weighed the Federal Reserve's new monetary policy strategy, which will focus on maximizing employment and allow inflation to rise above its traditional 2% target rate. The change is likely to keep interest rates low for the foreseeable future. The Labor Department also announced a change in its methodology, starting next Thursday, for reporting weekly unemployment claims. The new methodology is intended to provide more reliable claims data, which some economists believe has been distorted by the sharp jump in claims due to the pandemic. Earlier in the day, the department reported first-time claims of 1.006 million for the week ended August 22, slightly above consensus, and continuing claims of 14.535 million, also above the consensus forecast. The Dow rose 0.57%, the S&P rose 0.17%, and the Nasdaq fell 0.34%. Crude oil fell to $43 per barrel, while gold fell $17 to $1935 per ounce.

Can Housing Sustain the Broad Economy?

Stocks recovered from early losses on Thursday morning as investors weighed new weekly employment data. The Labor Department said that first-time unemployment benefit claims rose to 1.106 million for the week ended August 15, up from 971,000 a week earlier and above the Reuters consensus forecast of 925,000. The Dow was flat, the S&P rose 0.1%, and the Nasdaq rose 0.7%. Crude oil fell 1% to $42.50 per barrel, while gold fell $16 to $1955 per ounce.

Stocks were mixed on Tuesday morning as investors weighed prospects for further government stimulus measures and the approval of a coronavirus vaccine in Russia - despite the lack of standard Phase 3 testing. The Labor Department said that its producer price index rose 0.6% in July, above the Reuters consensus forecast of 0.3% and the strongest growth since October 2018. The Dow rose 0.9%, the S&P rose 0.3%, and the Nasdaq fell 0.3%. Crude oil traded near $42 per barrel, while gold dropped more than 4% to $1954 per ounce.