Dow rose 56, advancers ahead of decliners 2-1 & NAZ gained 29. The Financial Index went up a fraction in the 236s. The MLP index rebounded 1 to the 424s & the REIT index added 1+ to the 278s. Junk bond funds were mixed & Treasuries pulled back. Oil remained strong, up fractionally,& gold was flattish.
AMJ (Alerian MLP Index tracking fund)
Photo: Yahoo
A rise in exports & lower imports of oil helped push the trade deficit to its narrowest point in nearly 3 years in Dec, suggesting the economy did much better in Q4 than initially estimated. The US trade gap narrowed to $38.5B, according to the Commerce Dept. The forecast called for a deficit of $46B. That suggests the gov will revise upward its advance reading for Q4 GDP, which showed the economy contracted at a 0.1% annual rate in part because of a decline in inflation-adjusted exports. Exports surged by $8.6B, boosted by sales of industrial supplies, including a $1.2B increase of non-monetary gold. In a reflection of America's current boom in the output of oil & natural gas, petroleum exports rose by nearly $1B to a record high level. A fall in petroleum imports led overall purchases from abroad to decline $4.6B. For the entire year, the country's imports of crude oil fell to their lowest levels since 1997 as measured by volume.
Trade Deficit in U.S. Plunges on Record Petroleum Exports
US wholesalers cut stockpiles slightly in Dec while their sales were unchanged, suggesting businesses were cautious at the end of a weak qtr. The Commerce Dept said that wholesale business stockpiles dipped 0.1% in Dec from Nov to $497.7B, following a 0.4% rise the previous month. Inventories of furniture & automotive goods fell by the most in more than 3 years. Farm product stockpiles also dropped sharply, likely reflecting the impact of this summer's drought in the Midwest. Less restocking reduces factory production, which slows economic growth. A big decline in restocking was a major reason the gov estimated last week that the economy shrank in Q4. Sluggish restocking by companies & deep cuts in defense spending are expected to keep growth weak at the end of last year.
Wholesale Inventories in U.S. Unexpectedly Fell in December
Photo: Yahoo
McDonald's, a Dow stock & Dividend Aristocrat, said that Jan sales at established restaurants around the world fell 1.9%, a steeper decline than expected as fast-food chains fight for diners. It warned last month that same-restaurant sales would be down & analysts expected a decline of 1.1%. The companys expected sales & profit growth to be under pressure in the near term, as diners spend cautiously due to lackluster economic growth in most major markets. At the same time, the leading fast food chain is comparing against strong results from a year ago, including a 6.7% gain in same-restaurant sales in Jan 2012. Feb comparable sales will be hit by about 3 percentage points because the 2012 period included an extra day due to the leap year when sales rose 7.5%. Comparable sales in Europe, the top market, declined 2.1%, with weakness in Germany & France. Analysts expected an increase of 0.1%. The US, a close #2, posted a 0.9% gain, helped in part by the addition of the Grilled Onion Cheddar burger to its Dollar Menu. US results exceeded the forecast for a 0.3% decline. Asia/Pacific, Middle East & Africa (APMEA) turned in a 9.5% decline, despite strength in Australia, steeper than the 5.8% anticipated. MCD continued weakness in Japan & the shift in the timing of the Chinese New Year. The stock rose 76¢.
AMJ (Alerian MLP Index tracking fund)
Treacking fund:
U.S. 3-month |
0.074% | |
U.S. 2-year |
0.256% | |
U.S. 10-year |
1.987% |
| CLH13.NYM | ...Crude Oil Mar 13 | ...96.49 | ... 0.66 | (0.7%) |
| GCH13.CMX | ...Gold Mar 13 | .....1,672.80 | ... 2.20 | (0.1%) |
Photo: Yahoo
A rise in exports & lower imports of oil helped push the trade deficit to its narrowest point in nearly 3 years in Dec, suggesting the economy did much better in Q4 than initially estimated. The US trade gap narrowed to $38.5B, according to the Commerce Dept. The forecast called for a deficit of $46B. That suggests the gov will revise upward its advance reading for Q4 GDP, which showed the economy contracted at a 0.1% annual rate in part because of a decline in inflation-adjusted exports. Exports surged by $8.6B, boosted by sales of industrial supplies, including a $1.2B increase of non-monetary gold. In a reflection of America's current boom in the output of oil & natural gas, petroleum exports rose by nearly $1B to a record high level. A fall in petroleum imports led overall purchases from abroad to decline $4.6B. For the entire year, the country's imports of crude oil fell to their lowest levels since 1997 as measured by volume.
Trade Deficit in U.S. Plunges on Record Petroleum Exports
US wholesalers cut stockpiles slightly in Dec while their sales were unchanged, suggesting businesses were cautious at the end of a weak qtr. The Commerce Dept said that wholesale business stockpiles dipped 0.1% in Dec from Nov to $497.7B, following a 0.4% rise the previous month. Inventories of furniture & automotive goods fell by the most in more than 3 years. Farm product stockpiles also dropped sharply, likely reflecting the impact of this summer's drought in the Midwest. Less restocking reduces factory production, which slows economic growth. A big decline in restocking was a major reason the gov estimated last week that the economy shrank in Q4. Sluggish restocking by companies & deep cuts in defense spending are expected to keep growth weak at the end of last year.
Wholesale Inventories in U.S. Unexpectedly Fell in December
Photo: Yahoo
McDonald's, a Dow stock & Dividend Aristocrat, said that Jan sales at established restaurants around the world fell 1.9%, a steeper decline than expected as fast-food chains fight for diners. It warned last month that same-restaurant sales would be down & analysts expected a decline of 1.1%. The companys expected sales & profit growth to be under pressure in the near term, as diners spend cautiously due to lackluster economic growth in most major markets. At the same time, the leading fast food chain is comparing against strong results from a year ago, including a 6.7% gain in same-restaurant sales in Jan 2012. Feb comparable sales will be hit by about 3 percentage points because the 2012 period included an extra day due to the leap year when sales rose 7.5%. Comparable sales in Europe, the top market, declined 2.1%, with weakness in Germany & France. Analysts expected an increase of 0.1%. The US, a close #2, posted a 0.9% gain, helped in part by the addition of the Grilled Onion Cheddar burger to its Dollar Menu. US results exceeded the forecast for a 0.3% decline. Asia/Pacific, Middle East & Africa (APMEA) turned in a 9.5% decline, despite strength in Australia, steeper than the 5.8% anticipated. MCD continued weakness in Japan & the shift in the timing of the Chinese New Year. The stock rose 76¢.
Stocks are back to awaiting developments. The sellers went home early today, accounting for the rising markets. The gains are good enough to get the Dow back over 14K, barely. The rest of the trading day should bring more of the same. 3 weeks from today will bring the first of gov budget cuts unless the politicos come up with a (temproary) solution. Of course, that won't happen until the last minute if not later.
Dow Jones Industrials
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