Tuesday, January 13, 2015

Markets rally on jobs opening data

Dow soared 247, advancers over declines almost 4-1 & NAZ added 81. The MLP index inched up pennies in the 428s after yesterday's plunge & the REIT index went up 1+ to 346.  Junk bond funds did little & Treasuries pulled back.  Oil slid lower again & gold went higher.

AMJ (Alerian MLP Index tracking fund)

CLK15.NYM...Crude Oil May 15...47.67 Down ...0.69  (1.4%)

GCF15.CMX...Gold Jan 15........1,237.60 Up ...4.90 (0.4%)

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Jobs openings climbed in Nov to the highest level in almost 14 years as the strengthening US economy fueled demand for labor heading into year-end.  The number of positions waiting to be filled rose 142K to 4.97M, the most since Jan 2001, according to the Labor Dept.  The pace of hiring cooled & fewer Americans quit their jobs.  Gains in hiring, waning dismissals & rising confidence underscore a vibrant labor market that in 2014 marked its strongest performance since 1999.  Today’s data, among the gauges watched by Federal Reserve, will help policy makers assess the progress on employment & growth as it considers when to begin raising interest rates.

Job Openings in U.S. Rise to Highest Level in Almost 14 Years

China’s Export
Photo:   Bloomberg

China's export machine remained a prop for the economy as overseas shipments climbed more than estimated last month.  Exports rose 9.7% in Dec from a year earlier, exceeding the 6% estimate.  Imports fell 2.4%, compared with projections for a 6.2% decline, leaving a trade surplus of $49.6B, the customs administration said.  An economic revival in the US is bolstering China’s factories even as demand at home is weighed by a property slump & spare capacity.  GDP climbed 7.4% last year, the slowest expansion since 1990.  The US remained China’s largest export market for the 3rd year in 2014.  The EU was the biggest trading partner as China bought more goods from Europe than the US.  For the full year, China’s exports climbed 6.1% & imports rose 0.4%, missing the gov target for trade growth of 7.5%.  For Dec, exports to the US climbed 9.9% from a year earlier, while shipments to South Korea surged 31%.  Exports to Japan fell for a 5th straight month.

China Export Machine Delivers Again in Prop for Growth: Economy

The US will provide as much as $2B in loan guarantees this year to Ukraine as it tries to avoid default after being ravaged by a separatist conflict in its easternmost regions.  The US Treasury said that the US plans to give Ukraine a $1B loan guarantee in H1-2015, as long as its gov stays on track to implement reforms agreed to with the IMF.  The Obama administration will potentially work with Congress to provide an additional $1B loan guarantee in late 2015, according to the Treasury.  Ukraine needs $15B on top of a $17B bailout from the IMF to stay afloat, according to the EU.  The gov is seeking to unlock the next tranche of an IMF loan by the end of Jan.  The US pledge follows EU aid of €1.8B ($2.1B) & €500M from Germany this month.  The US said it will be willing to seek the 2nd $1B loan guarantee in late 2015 “if Ukraine continues to make concrete progress on its reform agenda and if conditions warrant.”  Ukraine’s foreign reserves fell to the lowest in more than a decade in Dec as the central bank dipped into its stash to help the gov pay off Russian energy debt & buy natural gas.  IMF officials are in Kiev to negotiate a new support package with the Ukrainian gov.

U.S. Plans as Much as $2 Billion in Fresh Support for Ukraine

Stocks are having a good day, taking Dow into the black for Jan.  Strength in techs are being helped by Apple (AAPL), up 3+ today.  Whatever the earnings for multi nationals turn out to be, the strong dollar will be a negative.  Aloca (AA) had a good earnings report last night, but the stock is down 25¢ while the market is rallying today.

Dow Jones Industrials

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