Dow climbed 69, advancers over decliners 2-1 & NAZ gained 14. The MLP index rose 2 to over 360 & the REIT index climbed 1+ to the 322s. Junk bond funds were mixed to higher & Treasuries were a little lower. Oil (see below) finished under 43 & gold also slid lower (see below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.10494506102573886)
Thanks largely to increased production of autos, industrial production climbed 0.6% in Jul, according to the the Federal Reserve. There were also upward revisions of 0.1% each in Feb, May & Jun. Excluding the 10.6% surge in autos, manufacturing production rose 0.1%, mining output rose 0.2% while utilities output fell 1%. Capacity utilization for the industrial sector increased 0.3 percentage point to 78%. Economists expected a 0.4% rise in industrial production & a utilization rate of 78.1%.
J.C. Penney reported a loss per share of 45¢ in fiscal Q2. The loss per share, adjusted for one-time gains & costs, was 41¢, surpassing the loss of 50¢ that was expected. The department store operator posted revenue of $2.88B, also topping forecasts of $2.86B. Its shares have increased 25% YTD, but the stock has dropped 14% in the last 12 months. Today, the stock rose 45¢. If you would like to learn more about JCP, click on this link:
club.ino.com/trend/analysis/stock/JCP?a_aid=CD3289a_bid=6ae5b6f7
US crude oil steadied after falling to its lowest in almost 6½ years as huge stockpiles & refinery shutdowns heightened concerns about global oversupply. Oil had already tumbled more than 3% yesterday, driven by a report that stocks at Cushing Oklahoma, the delivery point for US crude futures, rose more than 1.3M barrels in the latest week. US crude hit an intraday low of $41.35 a barrel, its lowest since Mar 2009, before recovering to $42.86, up 63¢ on the day. Brent crude traded at $49.17, down 5¢ off its 2015 low of $45.19 reached in Jan. US crude is much weaker than the North Sea benchmark, partly due to refinery outages sapping US demand. The largest of those refineries at 413K-barrels-per-day (bpd) facility in Whiting, Indiana, shut 2/3 of its capacity for repairs that could last a month or more.
For a 2nd time this week, China surprised markets. This time, it was in gold. China, the world’s biggest producer & consumer of bullion, said on Fri that it owns about 1677 metric tons of the metal. The previous update came in Jul after China had been silent on the size of its hoard for 6 years. Most analysts expected the next report would take years. Instead, it happened in 29 days. The unexpected update of China’s reserves adds to a week that’s already seen the first major devaluation of the yuan since 1994. More regular gold reporting from China shows a shift to transparency as the country improves data quality, increases its presence in commodities trading & promotes the yuan on the international stage. China increased its gold reserves by 1.1% in Jul (about 19 tons) according to data from the central bank today. On Jul 17, the central bank said it owned 1658 tons, roughly 600 tons more than when it last updated in 2009.
This was another slow Fri with very low volume. Traders left early for a long weekend. Not much to make of the markets today. Dow was up 100 this week but is down more than 200 in Aug (still in the red YTD).
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLV15.NYM | ....Crude Oil Oct 15 | ....43.28 |  ...0.30 | (0.7%) |
Thanks largely to increased production of autos, industrial production climbed 0.6% in Jul, according to the the Federal Reserve. There were also upward revisions of 0.1% each in Feb, May & Jun. Excluding the 10.6% surge in autos, manufacturing production rose 0.1%, mining output rose 0.2% while utilities output fell 1%. Capacity utilization for the industrial sector increased 0.3 percentage point to 78%. Economists expected a 0.4% rise in industrial production & a utilization rate of 78.1%.
Surge In Auto Production Lifts Industrial Output By 0.6% In July
J.C. Penney reported a loss per share of 45¢ in fiscal Q2. The loss per share, adjusted for one-time gains & costs, was 41¢, surpassing the loss of 50¢ that was expected. The department store operator posted revenue of $2.88B, also topping forecasts of $2.86B. Its shares have increased 25% YTD, but the stock has dropped 14% in the last 12 months. Today, the stock rose 45¢. If you would like to learn more about JCP, click on this link:
club.ino.com/trend/analysis/stock/JCP?a_aid=CD3289a_bid=6ae5b6f7
Penney reports 2Q loss
J.C. Penney (JCP)
US crude oil steadied after falling to its lowest in almost 6½ years as huge stockpiles & refinery shutdowns heightened concerns about global oversupply. Oil had already tumbled more than 3% yesterday, driven by a report that stocks at Cushing Oklahoma, the delivery point for US crude futures, rose more than 1.3M barrels in the latest week. US crude hit an intraday low of $41.35 a barrel, its lowest since Mar 2009, before recovering to $42.86, up 63¢ on the day. Brent crude traded at $49.17, down 5¢ off its 2015 low of $45.19 reached in Jan. US crude is much weaker than the North Sea benchmark, partly due to refinery outages sapping US demand. The largest of those refineries at 413K-barrels-per-day (bpd) facility in Whiting, Indiana, shut 2/3 of its capacity for repairs that could last a month or more.
U.S. Crude Prices Steady Near 6-1/2 Year Low
For a 2nd time this week, China surprised markets. This time, it was in gold. China, the world’s biggest producer & consumer of bullion, said on Fri that it owns about 1677 metric tons of the metal. The previous update came in Jul after China had been silent on the size of its hoard for 6 years. Most analysts expected the next report would take years. Instead, it happened in 29 days. The unexpected update of China’s reserves adds to a week that’s already seen the first major devaluation of the yuan since 1994. More regular gold reporting from China shows a shift to transparency as the country improves data quality, increases its presence in commodities trading & promotes the yuan on the international stage. China increased its gold reserves by 1.1% in Jul (about 19 tons) according to data from the central bank today. On Jul 17, the central bank said it owned 1658 tons, roughly 600 tons more than when it last updated in 2009.
China Surprises for a Second Time This Week With More Gold Data
This was another slow Fri with very low volume. Traders left early for a long weekend. Not much to make of the markets today. Dow was up 100 this week but is down more than 200 in Aug (still in the red YTD).
Dow Jones Industrials
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