Dow jumped up 157, advancers over decliners better than 2-1 & NAZ gained 48. The MLP index went up 1+ to 285 & the REIT index rose 2+ to the 328s. Junk bond funds climbed higher & Treasuries retreated. Oil advanced to the 37s & gold did little.
Consumer confidence rebounded more than forecast in Dec as Americans grew more optimistic about the current state of the economy & job market. The Conference Board’s sentiment index climbed to 96.5 from a revised Nov reading of 92.6 (higher than previously estimated). The forecast called for 93.5. The combination of a strong labor market & cheap fuel costs have buoyed household finances, giving consumers the ability to purchase everything from cars to clothing & holiday gifts. Faster growth in wages would usher in bigger gains in confidence & may provide another boost to consumer spending, the biggest part of the economy. “As 2015 draws to a close, consumers’ assessment of the current state of the economy remains positive, particularly their assessment of the job market ,” the Conference Board said. The share of Americans who see greater job availability in the next 6 months increased, & fewer expected their incomes to decline. The report is in sync with the University of Michigan’s final reading for Dec. That gauge climbed to 92.6, the highest since Jul. The Conference Board report showed confidence jumped most for those who are younger than 35 years old, where optimism reached the highest level since Jan. It was little changed for those 35-54 & declined for those 55 & older. The measure of consumer expectations for the next 6 months rose to 83.9 from 80.4 in Nov. 12.9% anticipated more jobs will be available, up from 12% a month earlier. About 9.7% projected their incomes would decrease in the next 6 months, down from 11.8%, the fewest since Mar. Buying plans were mixed, with fewer saying they expected to purchase automobiles & houses, & more saying they will purchase a major appliance or take a vacation.
America’s merchandise trade deficit shrank to $60.5B in Nov from $61.3B the prior month, advanced data issued by the Commerce Dept. The 1.3% narrowing from Oct will help shape economists’ tracking estimates of Q4 GDP. The Nov deficit was in line with than the forecast of $60.7B. The advance goods trade figures for Oct gave a misleading signal, with the estimate showing the deficit had shrunk to $58.4B from $59.1B in Sep. The complete report a week later showed the gap had instead widened to $61.3B from Sep revised report of $59.4B.
China stocks rebounded from the biggest drop in a month as financial companies advanced & turnover waned before year-end holidays. The Shanghai Composite Index gained 0.9% to 3,563 after meandering in the AM session on low volume. The gauge tumbled 2.6% on Mon after data showed falling industrial company profits & concern grew that a new system for IPOs will weaken demand for existing stocks. The Shanghai gauge has climbed 22% from its Aug low as the state intervened to stem a $5T equity-market rout & investors speculated the gov will do more to boost growth. Policy makers have signaled they will increase fiscal spending & introduce measures to stimulate the housing market as the economy expands at its weakest pace in 2 decades. Technology stocks have led the rebound on bets China will succeed in transitioning to a consumer-led economy from one dependent on investment. Even after the biggest-ever destruction of Chinese stock-market value this year, the Shanghai Composite is up 10%, extending last year’s 53% jump.
Chinese Stocks Rally on Thin Volume as Financial Companies Climb
Stocks are rising, but on low volume with some traders away on holiday. The consumer confidence data was encouraging but there are major headwinds for stocks out there. Oil is a major part of the economy & it is in a severe recession, that could get worse & interest rates with be raised next year. For the time being, the bulls may be able to take stocks higher, putting Dow in the black by year-end.
Dow Jones Industrials
| CLG16.NYM | ...Crude Oil Feb 16 | ...37.70 |  ...0.89 | (2.4%) |
| GCZ15.CMX | ...Gold Dec 15 | .....1,079.70 | ...9.20 | (0.9%) |
Consumer confidence rebounded more than forecast in Dec as Americans grew more optimistic about the current state of the economy & job market. The Conference Board’s sentiment index climbed to 96.5 from a revised Nov reading of 92.6 (higher than previously estimated). The forecast called for 93.5. The combination of a strong labor market & cheap fuel costs have buoyed household finances, giving consumers the ability to purchase everything from cars to clothing & holiday gifts. Faster growth in wages would usher in bigger gains in confidence & may provide another boost to consumer spending, the biggest part of the economy. “As 2015 draws to a close, consumers’ assessment of the current state of the economy remains positive, particularly their assessment of the job market ,” the Conference Board said. The share of Americans who see greater job availability in the next 6 months increased, & fewer expected their incomes to decline. The report is in sync with the University of Michigan’s final reading for Dec. That gauge climbed to 92.6, the highest since Jul. The Conference Board report showed confidence jumped most for those who are younger than 35 years old, where optimism reached the highest level since Jan. It was little changed for those 35-54 & declined for those 55 & older. The measure of consumer expectations for the next 6 months rose to 83.9 from 80.4 in Nov. 12.9% anticipated more jobs will be available, up from 12% a month earlier. About 9.7% projected their incomes would decrease in the next 6 months, down from 11.8%, the fewest since Mar. Buying plans were mixed, with fewer saying they expected to purchase automobiles & houses, & more saying they will purchase a major appliance or take a vacation.
Consumer Confidence in U.S. Rose More Than Forecast in December
America’s merchandise trade deficit shrank to $60.5B in Nov from $61.3B the prior month, advanced data issued by the Commerce Dept. The 1.3% narrowing from Oct will help shape economists’ tracking estimates of Q4 GDP. The Nov deficit was in line with than the forecast of $60.7B. The advance goods trade figures for Oct gave a misleading signal, with the estimate showing the deficit had shrunk to $58.4B from $59.1B in Sep. The complete report a week later showed the gap had instead widened to $61.3B from Sep revised report of $59.4B.
Goods Trade Deficit in U.S. Shrank to $60.5 Billion in November
China stocks rebounded from the biggest drop in a month as financial companies advanced & turnover waned before year-end holidays. The Shanghai Composite Index gained 0.9% to 3,563 after meandering in the AM session on low volume. The gauge tumbled 2.6% on Mon after data showed falling industrial company profits & concern grew that a new system for IPOs will weaken demand for existing stocks. The Shanghai gauge has climbed 22% from its Aug low as the state intervened to stem a $5T equity-market rout & investors speculated the gov will do more to boost growth. Policy makers have signaled they will increase fiscal spending & introduce measures to stimulate the housing market as the economy expands at its weakest pace in 2 decades. Technology stocks have led the rebound on bets China will succeed in transitioning to a consumer-led economy from one dependent on investment. Even after the biggest-ever destruction of Chinese stock-market value this year, the Shanghai Composite is up 10%, extending last year’s 53% jump.
Chinese Stocks Rally on Thin Volume as Financial Companies Climb
Stocks are rising, but on low volume with some traders away on holiday. The consumer confidence data was encouraging but there are major headwinds for stocks out there. Oil is a major part of the economy & it is in a severe recession, that could get worse & interest rates with be raised next year. For the time being, the bulls may be able to take stocks higher, putting Dow in the black by year-end.
Dow Jones Industrials
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