Dow went up 80, advancers over decliners 3-2 & NAZ rose 19. The MLP index advanced 2+ to the 527s for a new record & the REIT index went up a fraction in the 311s. Junk bond funds climbed higher & Treasuries were sold in the PM. Oil sank (see below) & gold under 1300 slid lower.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.04029038653234274)
The cost of living in the US climbed in Jul at the slowest pace in 5 months, indicating price pressures remain limited even as the economy picks up. The consumer price index increased 0.1%, matching the forecast, after rising 0.3% the prior month, according to the Labor Dept. Stripping out volatile food & fuel, the core measure also climbed 0.1%, less than projected. Inflation continues to run below the Federal Reserve (FED) target as sluggish global demand limits companies’ ability to charge customers more. Restrained increases gives the FED room to keep interest rates low well after the projected end of their bond-buying program in Oct. The increase in the core gauge matched the Jun advance. Overall consumer prices rose 2% in the 12 months ended Jul, following a 2.1% year-over-year advance the prior month. The core measure increased 1.9% from Jul 2013, the same as in the prior 12-month period. The 2% goal at the FED is based on the Commerce Dept’s price gauge that is tied to consumer spending. That measure climbed 1.6% in the 12 months thru Jun. Energy costs decreased 0.3% in Jul from a month earlier. Declines in fuel prices have been giving households some relief in recent weeks. Food costs advanced 0.4% in Jul, reflecting broad-based increases.
Consumer Prices in U.S. Rise at Slowest Pace in Five Months
Photo: Bloomberg
The Ukrainian gov said its forces took control of one of 4 districts in the pro-Russian separatist stronghold of Luhansk & are fighting in the city center as diplomatic efforts to end the conflict intensified. German Chancellor Merkel will visit Kiev on Sat for talks with pres Poroshenko. Russian pres Putin will take part in an Aug 26 Customs Union meeting in Minsk attended by Poroshenko, the Kremlin said today. Poroshenko is due to join an Aug 30 EU summit & a Sep 4 NATO summit in the UK. European leaders are pushing to halt the conflict that’s killed more than 2K & fractured Ukraine since Russia annexed Crimea in Mar. The war, which Ukraine & its allies say is being fueled by Putin’s support for the insurgents, has led to sanctions that have hurt trade & threatened to send Russia's $2T economy into a recession. Ukraine’s gov says it will declare a truce only if the pro-Russian rebels lay down their arms & Russia stops supplying them with weapons. Russian Foreign Minister Lavrov repeated calls yesterday for an unconditional cease-fire. German Foreign Minister Steinmeier said he believes Russia & Ukraine have shifted their positions & are both looking for a way to reach a cease-fire. “We are in a phase where we begin new approaches to bring forward the talks between the conflict partners -- and I have the impression that it’s not totally without success,” Steinmeier said. The conflict has cost Ukraine $8B. Ukraine’s central bank raised its overnight refinancing rate to 17.5% today from 15% as it seeks to support the currency.
Ukraine Says It Makes Gains Against Rebels in Luhansk
West Texas Intermediate (WTI) oil tumbled to a 7-month low as investors sold Sep crude before expiration & purchased cheaper contracts for future delivery. Brent (euro oil) traded near the lowest level in almost 14 months. The front month’s premium over the next month narrowed from the widest since 2008. Sep WTI crude futures expire tomorrow. Brent plunged yesterday as Kurdish & Iraqi forces regained control of Iraq's largest dam, stalling an advance by Islamic State militants. US crude stockpiles are estimated to fall 1.75M barrels last week & gasoline inventories may have slipped 1.55M barrels. Supplies of distillate fuel, a category including heating oil & diesel, are forecast to have decreased 300K barrels. Supplies at Cushing, OK, the delivery point for WTI traded in NY, climbed in the 2 weeks ended Aug. 8, as the Coffeyville shutdown reduced demand for crude from the nearby hub. Genscape said that Cushing stockpiles rose last week as the flow into tanks increased. Bottom line, there is a lot going on behind the fall in oil prices which will be sorted out in the coming weeks.
WTI Falls to Seven-Month Low as Investors Sell September Futures
Stocks had another good day. The economic news was favorable, &, more importantly the intl fighting has calmed down a bit with the edge going to the good guys. There may be a truce in Ukraine & Iraqi forces, with the aid of American warplanes, look like they are learning how to fight off ISIL. There were rockets fired from Gaza, but they did not cause damage to Israel & that truce may hold. The decline for the Dow in early Aug followed by a recovery, mirrors the ups & downs of tensions in intl fighting. Dow is up 350 this month & bulls would like to take it to a new record.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLU14.NYM | ....Crude Oil Sep 14 | ....94.57 |  ...1.84 | (1.9%) |
The cost of living in the US climbed in Jul at the slowest pace in 5 months, indicating price pressures remain limited even as the economy picks up. The consumer price index increased 0.1%, matching the forecast, after rising 0.3% the prior month, according to the Labor Dept. Stripping out volatile food & fuel, the core measure also climbed 0.1%, less than projected. Inflation continues to run below the Federal Reserve (FED) target as sluggish global demand limits companies’ ability to charge customers more. Restrained increases gives the FED room to keep interest rates low well after the projected end of their bond-buying program in Oct. The increase in the core gauge matched the Jun advance. Overall consumer prices rose 2% in the 12 months ended Jul, following a 2.1% year-over-year advance the prior month. The core measure increased 1.9% from Jul 2013, the same as in the prior 12-month period. The 2% goal at the FED is based on the Commerce Dept’s price gauge that is tied to consumer spending. That measure climbed 1.6% in the 12 months thru Jun. Energy costs decreased 0.3% in Jul from a month earlier. Declines in fuel prices have been giving households some relief in recent weeks. Food costs advanced 0.4% in Jul, reflecting broad-based increases.
Consumer Prices in U.S. Rise at Slowest Pace in Five Months
The Ukrainian gov said its forces took control of one of 4 districts in the pro-Russian separatist stronghold of Luhansk & are fighting in the city center as diplomatic efforts to end the conflict intensified. German Chancellor Merkel will visit Kiev on Sat for talks with pres Poroshenko. Russian pres Putin will take part in an Aug 26 Customs Union meeting in Minsk attended by Poroshenko, the Kremlin said today. Poroshenko is due to join an Aug 30 EU summit & a Sep 4 NATO summit in the UK. European leaders are pushing to halt the conflict that’s killed more than 2K & fractured Ukraine since Russia annexed Crimea in Mar. The war, which Ukraine & its allies say is being fueled by Putin’s support for the insurgents, has led to sanctions that have hurt trade & threatened to send Russia's $2T economy into a recession. Ukraine’s gov says it will declare a truce only if the pro-Russian rebels lay down their arms & Russia stops supplying them with weapons. Russian Foreign Minister Lavrov repeated calls yesterday for an unconditional cease-fire. German Foreign Minister Steinmeier said he believes Russia & Ukraine have shifted their positions & are both looking for a way to reach a cease-fire. “We are in a phase where we begin new approaches to bring forward the talks between the conflict partners -- and I have the impression that it’s not totally without success,” Steinmeier said. The conflict has cost Ukraine $8B. Ukraine’s central bank raised its overnight refinancing rate to 17.5% today from 15% as it seeks to support the currency.
Ukraine Says It Makes Gains Against Rebels in Luhansk
West Texas Intermediate (WTI) oil tumbled to a 7-month low as investors sold Sep crude before expiration & purchased cheaper contracts for future delivery. Brent (euro oil) traded near the lowest level in almost 14 months. The front month’s premium over the next month narrowed from the widest since 2008. Sep WTI crude futures expire tomorrow. Brent plunged yesterday as Kurdish & Iraqi forces regained control of Iraq's largest dam, stalling an advance by Islamic State militants. US crude stockpiles are estimated to fall 1.75M barrels last week & gasoline inventories may have slipped 1.55M barrels. Supplies of distillate fuel, a category including heating oil & diesel, are forecast to have decreased 300K barrels. Supplies at Cushing, OK, the delivery point for WTI traded in NY, climbed in the 2 weeks ended Aug. 8, as the Coffeyville shutdown reduced demand for crude from the nearby hub. Genscape said that Cushing stockpiles rose last week as the flow into tanks increased. Bottom line, there is a lot going on behind the fall in oil prices which will be sorted out in the coming weeks.
WTI Falls to Seven-Month Low as Investors Sell September Futures
Stocks had another good day. The economic news was favorable, &, more importantly the intl fighting has calmed down a bit with the edge going to the good guys. There may be a truce in Ukraine & Iraqi forces, with the aid of American warplanes, look like they are learning how to fight off ISIL. There were rockets fired from Gaza, but they did not cause damage to Israel & that truce may hold. The decline for the Dow in early Aug followed by a recovery, mirrors the ups & downs of tensions in intl fighting. Dow is up 350 this month & bulls would like to take it to a new record.
Dow Jones Industrials
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