Dow climbed 156 (but well off the highs), advancers over decliners more than 3-1 & NAZ went up 43 (still under 5K). The MLP index added 3+ to 350 (a mild recovery) & the REIT index added 3+ to the 317s. Junk bond funds gained a good 2% & Treasuries declined. Oil rose to the 37s (see below) & gold slid even lower.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.8660590689319071)
Oil rose short-covering & technical support halted its slide to 11-year lows, but traders said the market remained fundamentally weak from oversupply & could be hit by a dollar rally ahead of an expected US interest rate hike. Brent & West Texas Intermediate futures rose more than $1 a barrel, up for the 2nd straight day after oil bears failed to push prices below a 7-year trough. Oil's rebound was restrained somewhat by a firm dollar ahead of expectations that the Federal Reserve will announce the first rate hike in almost a decade. A stronger greenback makes dollar-denominated oil less affordable to € holders. Credit ratings agency Moody's cut its 2016 Brent estimate to $43 from $53, citing oversupply. Danske Bank said crude could hit $25 before output declines push prices back up. Notwithstanding the global glut, analysts estimate US crude stockpiles fell 1.4M barrels last week.
Former Philadelphia Federal Reserve pres Charles Plosser thinks the Fed will “probably” raise rates tomorrow. “They’ve set a pretty strong signal, it would be pretty awkward for them to back out of it now -- although they have surprised us in the past and they tend to get cold feet sometimes,” he said. Although Plosser is concerned about China, the Middle East, oil & commodities, he’s optimistic on the economy. “I don’t think there is anything looming on the horizon that’s so devastating that the economy can’t handle it,” he said. Plosser also discussed how low gasoline prices are a “net positive” for the economy. “Consumers have been spending rather well over the last year or so… I think that the consumer is actually the strength of the economy right now,” he said. He also expects 2½-3% growth in 2016. “I think the economy is doing pretty well. We shouldn’t expect a lot more… there are always risks. But I think the forecast is pretty solid -- the U.S. is on pretty good fundamentals right now.” When asked whether there could be 3 or 4 more interest-rate hikes in the new year he said: “The Committee said it’s going to be data dependent… They want to go gradually but will they be able to? That will depend on the economy.”
Pfizer, a Dow stock, raised the quarterly div 7.1%. CEO Ian Read said the increased payout to shareholders reflected the New York company's commitment to increasing shareholder value & confidence in its business. The quarterly div was increased to 30¢ from 28¢. Last month, PFE & Dublin-based Allergan (AGN) said they would merge in an inversion deal that was initially valued at about $155B to create the world's biggest drugmaker by sales. The takeover would be the largest inversion ever, moving one of the top names in American corps to a foreign country. Such deals enable a US company to move abroad & take advantage of a lower corp tax rate elsewhere, & they have remained popular in the face of US efforts to curb them. He will lead the combined company, which will be called Pfizer PLC, with AGN CEO Brent Saunders serving as operating chief. During Oct, PFE reported better-than-expected results & lifted its 2015 guidance as the company benefited from sales of some newer drugs & folded in its recently acquired Hospira business. PFE stock was up pennies. If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Pfizer Raises Quarterly Dividend by 7.1%
The rate hike has been well advertised with leaks coming from about every member of the FOMC. The stock market has had plenty of time to adjust to this trauma (for the traders). Oil has had a major rally (for oil), but that does not seem to have much steam behind it. Dow is down in Dec & YTD. Trading should be sluggish tomorrow AM, before Janet gives her announcement in the PM.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLF16.NYM | ....Crude Oil Jan 16 | ....37.47 |  ...1.16 | (3.2%) |
Oil rose short-covering & technical support halted its slide to 11-year lows, but traders said the market remained fundamentally weak from oversupply & could be hit by a dollar rally ahead of an expected US interest rate hike. Brent & West Texas Intermediate futures rose more than $1 a barrel, up for the 2nd straight day after oil bears failed to push prices below a 7-year trough. Oil's rebound was restrained somewhat by a firm dollar ahead of expectations that the Federal Reserve will announce the first rate hike in almost a decade. A stronger greenback makes dollar-denominated oil less affordable to € holders. Credit ratings agency Moody's cut its 2016 Brent estimate to $43 from $53, citing oversupply. Danske Bank said crude could hit $25 before output declines push prices back up. Notwithstanding the global glut, analysts estimate US crude stockpiles fell 1.4M barrels last week.
Global Oil Prices Rally, Halt Slide to 11-Year Low
Former Philadelphia Federal Reserve pres Charles Plosser thinks the Fed will “probably” raise rates tomorrow. “They’ve set a pretty strong signal, it would be pretty awkward for them to back out of it now -- although they have surprised us in the past and they tend to get cold feet sometimes,” he said. Although Plosser is concerned about China, the Middle East, oil & commodities, he’s optimistic on the economy. “I don’t think there is anything looming on the horizon that’s so devastating that the economy can’t handle it,” he said. Plosser also discussed how low gasoline prices are a “net positive” for the economy. “Consumers have been spending rather well over the last year or so… I think that the consumer is actually the strength of the economy right now,” he said. He also expects 2½-3% growth in 2016. “I think the economy is doing pretty well. We shouldn’t expect a lot more… there are always risks. But I think the forecast is pretty solid -- the U.S. is on pretty good fundamentals right now.” When asked whether there could be 3 or 4 more interest-rate hikes in the new year he said: “The Committee said it’s going to be data dependent… They want to go gradually but will they be able to? That will depend on the economy.”
China, Oil Not Reason to Hold Rates Steady
Pfizer, a Dow stock, raised the quarterly div 7.1%. CEO Ian Read said the increased payout to shareholders reflected the New York company's commitment to increasing shareholder value & confidence in its business. The quarterly div was increased to 30¢ from 28¢. Last month, PFE & Dublin-based Allergan (AGN) said they would merge in an inversion deal that was initially valued at about $155B to create the world's biggest drugmaker by sales. The takeover would be the largest inversion ever, moving one of the top names in American corps to a foreign country. Such deals enable a US company to move abroad & take advantage of a lower corp tax rate elsewhere, & they have remained popular in the face of US efforts to curb them. He will lead the combined company, which will be called Pfizer PLC, with AGN CEO Brent Saunders serving as operating chief. During Oct, PFE reported better-than-expected results & lifted its 2015 guidance as the company benefited from sales of some newer drugs & folded in its recently acquired Hospira business. PFE stock was up pennies. If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Pfizer Raises Quarterly Dividend by 7.1%
Pfizer (PFE)
The rate hike has been well advertised with leaks coming from about every member of the FOMC. The stock market has had plenty of time to adjust to this trauma (for the traders). Oil has had a major rally (for oil), but that does not seem to have much steam behind it. Dow is down in Dec & YTD. Trading should be sluggish tomorrow AM, before Janet gives her announcement in the PM.
Dow Jones Industrials
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