Markets fluctuate on mixed economic data

Dow gained 20, decliners over advancers 4-3 & NAZ gave back 20.  The MLP index added 1 to the 303s & the REIT index lost 3 to the 324s.  Junk bond funds were a little lower & Treasuries fell again, taking the yield on the 10 year Treasury near 2.4%.  Oil climbed a little higher in the 48s & gold sank below the important resistance level of 1200.

AMJ (Alerian MLP Index tracking fund)

CL=F

Light Sweet Crude Oil Futures,J

47.66

-0.37

-0.8%

GC=F

Gold Futures,Dec-2016

1,187.20

-24.00

-2.0%

Start Using the Leverage of Options and the Power of MarketClub Today!

Four Days, Four Trades, +40% Average Returns
Learn to trade options with MarketClub!

Consumer confidence rose more than previously reported to a 6-month high in Nov, showing Americans became more optimistic about their finances & the economy after Trump won the presidential election.  The Univ of Mich said its final index of sentiment rose to 93.8 from 87.2 in Oct, after a preliminary reading of 91.6 that reflected pre-election views.  The split was stark between respondents in the month's survey before & after the Nov 8 vote, with sentiment rising 8.2 points in the post-election group from the pre-election cohort.  The lift suggests that Americans were heartened on the whole by Trump's victory, with broad gains in confidence across incomes, ages & regions.  At the same time, the increase may reflect a “honeymoon” period that could fade unless actual economic conditions improve, said Richard Curtin, director of the survey.  “President-elect Trump appears to appreciate the importance of his first hundred days; the key issue is whether his economic policies will resonate with the nation’s consumers,” he said.  “The honeymoon may be shorter than usual given the intensity of the opposition, although President-elect Trump has proven himself to be a skilled communicator.”  The current conditions index rose to a 4-month high of 107.3 from a one-year low of 103.2 in the prior month.  The gauge of expectations 6 months from now gained 8.4 points to 85.2, the biggest jump in 4 years, from a 2-year low of 76.8 in Oct.

• Consumer Sentiment in U.S. Jumps After Trump Election Victory 

Orders for US business equipment climbed in Oct for the 4th month in the last 5 & sales also advanced, indicating corporate investment may be starting to thaw.  Bookings for non-military capital goods excluding aircraft, a proxy for future spending on items like computers, engines & communications gear, rose 0.4%, Commerce Dept data showed.  The forecast called for a 0.3% gain.  Demand for all durable goods, items meant to last at least 3 years, jumped 4.8% on a surge in orders for commercial aircraft.  The figures signal a gradual turn in investment spending that has suffered from contraction in the energy sector, an inventory overhang & weak export demand.  While a recent surge in the $ may become a headwind for equipment makers, prospects of more infrastructure development improve the outlook for capital outlays in the coming year.  The jump in total bookings was the biggest in a year & included more orders for fabricated metals, machinery, computers & electrical equipment.  The forecast for all durable goods orders was for a 1.7% gain.

• Orders for U.S. Capital Goods Rise for Fourth Month in Last Five 

Filings for unemployment benefits in the US rebounded last week from a 4-decade low while remaining consistent with a firm labor market.  Jobless claims rose 18K to 251K, according to the Labor Dept.  The forecast called for 251K applications. In the previous week that included the Veterans Day holiday, applications slumped to 233K, the lowest since 1973.

Companies have balked at outright dismissals as a tighter job market leaves fewer skilled workers available for open positions.  Filings for unemployment benefits have been below 300K for 90 straight weeks, the longest streak since 1970.  The 4-week average of claims declined to 251K, the lowest since the first week of Oct, from 253K in the prior week.  The number of people continuing to receive jobless benefits climbed 60K to 2.04M.  The unemployment rate among people eligible for benefits ticked up to 1.5% from 1.4%.

• U.S. Jobless Claims Rebound After Plunging to Four-Decade Low

Stocks are meandering on low volume & indecisive economic data.  Dow rose to a new record high & is up about 1K since Trump's victory.  Emotions are driving this market & nobody knows where they will take stocks.

Dow Jones Industrials