Friday, November 22, 2013

Markets rise for the seventh weekly gain

Dow climbed another 54 (closing at the highs) to a new record, advancers ahead of decliners 3-2 & NAZ was up 22.  The MLP index rose 3+ to the 455s & the REIT index dropped 1+ to the 267s.  Junk bond funds were about 1% lower & Treasuries managed modest gains.  Oil & gold slipped back.

AMJ (Alerian MLP Index tracking fund)

stock chart

Treasury yields:

U.S. 3-month


U.S. 2-year


U.S. 10-year


CLF14.NYM....Crude Oil Jan 14....94.76 Down ...0.68  (0.7%)

Live 24 hours gold chart [Kitco Inc.]

U.S. President Barack Obama


The pres will have a stronger hand to push thru environmental, financial & other regulations after the Senate voted to let a simple majority confirm most presidential nominees.  Yesterday’s rule change means Obama no longer will need Rep support to win approval of his nominees to run federal agencies & serve on federal trial & appeals courts.  There are 231 nominees pending in the Senate, including 53 judges, 81 candidates for cabinet-level agencies & 13 at independent regulatory agencies, according to the White House.  Most important are picks to serve on the US Court of Appeals for the DC Circuit, which handles challenges to federal regulations & is called the 2nd-highest court in the country.  Among the cases being reviewed by the court is one on the Federal Communications Commission’s “net neutrality” rules requiring internet-service providers such as Verizon (VZ), a Dow stock, & Comcast (CMCSA) to treat all traffic equally, a goal of Google (GOOG) & Netflix (NFLX).  The court, which has 3 vacancies & where Reps now have an edge, also would probably rule on the administration’s proposal to limit carbon-dioxide pollution from power plants.  Those rules are under development by the EPA now, & may not be ripe for a legal challenge for more than a year.  Judges can last for decades & are a major influence on business activity.  In addition, Reps are fuming mad about this change which will make new legislation more complicated in DC, starting with the budget battle & raising the debt ceiling in Jan.

Businesses Wary as Obama Picks Get Edge in Senate Rules

Payrolls increased in 34 states in Oct & the unemployment rate fell in 28, a sign labor market progress is picking up across much of the country.  Florida led the nation with a 44K gain in employment last month, followed by California with 39K more jobs, according to the Labor Dept.  The gains came even as federal gov agencies were partially shut down in the first half of the month, leading to the furloughing of 800K workers at one point & biting into consumer & business confidence.  Bigger gains in employment could help boost sentiment & household spending ahead of the holiday shopping season.  In Sep, payrolls increased in 26 states & the unemployment rate declined in 33. 

Payrolls Rose in 34 U.S. States in October, Led by Florida

Intel, a Dow stock, said revenue next year will be little changed from 2013 levels, short of estimates, triggering the steepest drop in 10 months.  The company said sales would be approximately the same from $52.6B in 2013, below the $53.7B analysts were projecting.  The world’s largest maker of semiconductors said that it will expand access to its factories for other chipmakers, taking advantage of advanced production capabilities & seeking to boost revenue sources amid greater competition.  The company will focus more on providing what customers want, rather than trying to push its own designs, CEO Brian Krzanich said.  INTC, which has traditionally only made its own chips, is expanding its foundry business, or manufacturing chips to order for other companies.  “We’d become insular,” Krzanich said.  “We’d become focused on what was our best product rather than where the market was moving.”  Gross margin will be in the middle of its target range of 55-65%, in line with analysts’ estimates, CFO Stacy Smith said.  INTC predicts the PC market, measured by units, to be down in the ‘low single-digit’ percent, Smith said.  While spending on new plants & equipment in 2014 will be little changed from 2013 at around $11B, investments aimed at enabling customers to convert to INTC chips in tablets will hurt total profitability, he said.  Intel VP Hermann Eul, who heads the company’s mobile division, said the company will focus on developing parts for a smaller number of phonemakers with large sales volumes.  The company isn’t giving up on mobile, he said.  The stock fell 1.37 (5%).

Intel Drops After Sales Forecast Falls Short of Estimates

Intel (INTC)

stock chart

This was another lackluster day in the markets.  The political news in DC about the Senate changing rules to let a simple majority confirm nominees by the pres is important.  From the start of the country, it used to be a 2/3 majority & then was reduced to 60%.  Those federal judges can have a major impact on the economy.  This change aggravates the deeply divided DC atmosphere.  The greatest concerns in the short run are getting federal spending & borrowing squared away.  That looks farther off now than ever.  But Dow set another new record & is up an astonishing 3K YTD.

Dow Jones Indsutrials

stock chart

I’m a huge fan of INO & from what I have seen so far, their service Marketclub!  This isn’t a stripped down version, everything in MarketClub is available to you. I don’t want to give everything away, but you’ll have unlimited access to my favorite three tools: Trade Triangles, Smart Scan & Alerts!
The best part is that the MarketClub customer support team will be providing UNLIMITED support!
You can call or email for an instant response to any question, comment or concern.

Here’s that link:

I’d recommend you jump on this now.

No comments: