Dow surged 179 (80 below the highs) on the first day of trading in the new year, advancers over decliners almost 4-1 & NAZ jumped 43. Bank stocks had a strong day, following a bad year in 2011, taking the Financial Index up 5.
The MLP index rose 1 to a new record, 391, while the REIT gained 1+ to the 233s. Junk bond funds were mixed while Treasuries sold off in the rising stock market. Oil prices soared as tensions grow over key Persian Gulf oil shipments. Gold jumped the most in 10 weeks on demand for a safe haven following a report that Iran produced its first nuclear-fuel rod.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
US consumers were lured to auto showrooms by holiday discounts & may have pushed car sales to the 2nd fastest pace in more than 2 years. Light-vehicle sales in Dec, set for release tomorrow, may have run at a 13.4M annual rate, up from the 12.5M pace a year earlier. While the rate would trail the 13.6M pace in Nov, typically a slow sales month, the number of units sold increased in Dec. Consumer confidence reached an 8-month high in Dec, according to the Conference Board, as carmakers aired holiday ads & continued promotions begun in late Nov. Ad campaigns brought consumers into showrooms seeking year-end deals.
Dealer’s Best December in Five Years Follows U.S. Sale Ads: Cars\
VF Corp.'s stock rose after the stock was raised to "Buy" from "Neutral" & added to a Top Picks Live List. The analyst said that VFC strong clothing brands, which include Timberland & The North Face, are seeing revenue increases. VFC bought boot & shoe maker Timberland in Sep, adding $163M to its Q3 revenue. Profit margins should benefit from lower cotton prices, reduced inventories & price hikes that are likely to be able to be maintained. The price target was boosted to $157 from $137 & the stock stock climbed $2.68 (2%) to $129.67.
VF rises as analyst lifts rating, price target AP
Photo: Yahoo
In a major shift, the Federal Reserve (FED) will start updating the public 4 times a year on how long it plans to keep short-term interest rates at record lows. The first forecast will be included in its economic projections after the Jan 24-25 meeting. The change marks the latest move by the FED to make its communications more open & explicit which could help assure investors, companies & consumers that rates won't rise before a specific time. It is hoped that this might help lower long-term yields further to lead consumers & businesses to borrow & spend more. Lower yields on bonds also tend to cause some investors to shift money into stocks, which can boost wealth & spur more spending.
Fed to Make Benchmark Rate Forecasts Public
Stocks began the year with substantial gains. Manufacturing data was encouraging, but there was more than that to this rally. Maybe it was because new pension money went into stocks right away. Dow crashed thru the 12.2K ceiling, wanting to go higher. Fri will be the last jobs report for 2011 & Mon the DC politicos return. Let's see how that plays out. With oil prices over $100, rising tensions in the Mideast are worth watching.
S&P 500 Financials Sector Index
| Value | 180.06 | |
| Change | 4.83 (2.8%) |
The MLP index rose 1 to a new record, 391, while the REIT gained 1+ to the 233s. Junk bond funds were mixed while Treasuries sold off in the rising stock market. Oil prices soared as tensions grow over key Persian Gulf oil shipments. Gold jumped the most in 10 weeks on demand for a safe haven following a report that Iran produced its first nuclear-fuel rod.
Alerian MLP Index
| Value | 391.22 | |
| Change | 1.29 (0.3%) |
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.005% | |
U.S. 2-year | 0.255% | |
U.S. 10-year | 1.956% |
| CLG12.NYM | ...Crude Oil Feb 12 | ...103.04 | ... 4.21 | (4.3%) |
US consumers were lured to auto showrooms by holiday discounts & may have pushed car sales to the 2nd fastest pace in more than 2 years. Light-vehicle sales in Dec, set for release tomorrow, may have run at a 13.4M annual rate, up from the 12.5M pace a year earlier. While the rate would trail the 13.6M pace in Nov, typically a slow sales month, the number of units sold increased in Dec. Consumer confidence reached an 8-month high in Dec, according to the Conference Board, as carmakers aired holiday ads & continued promotions begun in late Nov. Ad campaigns brought consumers into showrooms seeking year-end deals.
Dealer’s Best December in Five Years Follows U.S. Sale Ads: Cars\
VF Corp.'s stock rose after the stock was raised to "Buy" from "Neutral" & added to a Top Picks Live List. The analyst said that VFC strong clothing brands, which include Timberland & The North Face, are seeing revenue increases. VFC bought boot & shoe maker Timberland in Sep, adding $163M to its Q3 revenue. Profit margins should benefit from lower cotton prices, reduced inventories & price hikes that are likely to be able to be maintained. The price target was boosted to $157 from $137 & the stock stock climbed $2.68 (2%) to $129.67.
VF rises as analyst lifts rating, price target AP
V.F. Corporation (VFC)
In a major shift, the Federal Reserve (FED) will start updating the public 4 times a year on how long it plans to keep short-term interest rates at record lows. The first forecast will be included in its economic projections after the Jan 24-25 meeting. The change marks the latest move by the FED to make its communications more open & explicit which could help assure investors, companies & consumers that rates won't rise before a specific time. It is hoped that this might help lower long-term yields further to lead consumers & businesses to borrow & spend more. Lower yields on bonds also tend to cause some investors to shift money into stocks, which can boost wealth & spur more spending.
Fed to Make Benchmark Rate Forecasts Public
Stocks began the year with substantial gains. Manufacturing data was encouraging, but there was more than that to this rally. Maybe it was because new pension money went into stocks right away. Dow crashed thru the 12.2K ceiling, wanting to go higher. Fri will be the last jobs report for 2011 & Mon the DC politicos return. Let's see how that plays out. With oil prices over $100, rising tensions in the Mideast are worth watching.
Dow Industrials
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