This blog gives investors more financial information for very smart investing!
Monday, November 21, 2016
Markets rise on hopes for Trump's economy
Dow advances 88, advancers over decliners almost 3-1 & NAZ gained 47. The MLP index went up 2+ to the 304s & the REIT index was off fractionally to the 321s. Junk bond funds went up & Treasuries were sold again. Oil shot up more than 2 to the 48s (more below) & gold was a little higher, still stuck in the low 1200s.
Oil climbed to a 3-week high as Iran signaled optimism that OPEC will agree to a supply-cut deal & Iraq said it will offer new proposals to help bolster unity before next week's meeting in Vienna. Futures rose almost 5%, adding to last week's 5.3% advance. Iranian Oil Minister Bijan Namdar Zanganeh said it’s “highly probable” OPEC will reach a consensus at the talks & Iraq will make proposals to help reach an agreement.
The group's plan to trim output for the first time in 8 years is complicated by Iran's commitment to increase production & Iraq's request for an exemption to help fund its war with Islamist militants. West Texas Intermediate for Dec rose $2.03 (4.4%) to $47.72 a barrel after futures touched $47.80, the highest since Oct 31.
Oil Climbs to Three-Week High as Iran, Iraq Signal OPEC Accord Tyson Foods said that CEO Donnie Smith will step down at the end of the year & be replaced by the meat producer's pres, Tom Hayes. The company, which makes Tyson chicken, Jimmy Dean sausage & Ball Park hot dogs, also reported disappointing earnings results for Q4 & a weak outlook for the year. Smith has been CEO since 2009 & has worked for the company for 36 years. He will step down on Dec 31 & will be available to consult with Tyson for 3 years. Hayes was named pres in Jun & will continue to hold that title when he becomes CEO. Fiscal Q4 EPS was $1.03 & EPS, adjusted for pretax gains, was 96¢. The results missed expectations of $1.24. Revenue was $9.16B, down from $10.51B a year ago. For the year, the company reported EPS of $4.53 on revenue of $36.88B. TSN expects EPS for the full year ending Sep 2017 to be $4.70-4.85. That's below the $4.99 expected. The stock plunged $9.76 (14%). If you would like to learn more about TSN, click on this link:
Oracle will buy web service provider Dyn, a company the came into the public eye after it was hit by a large-scale internet attack in Oct that left dozens of popular websites unreachable for parts of the day. Dyn is among a handful of companies operating domain-name-systems that help direct traffic across the internet. Dyn's domain-name-system services are crucial cogs in helping internet users reach websites by allowing web addresses to take users to their final destinations. ORCL is rapidly building out its cloud business, particularly in the markets of selling access to web applications & selling access to tools to program & manage apps as well as analyze data, as companies shift more of their computing operations off site & into the cloud. The deal gives its clients access to unique internet performance data that can help them optimize infrastructure costs & maximize revenue. Dyn works with companies to help their websites load faster and are more reliable as their traffic flows across the web. Terms of the deal weren't disclosed. The stock was up pennies. If you would like to learn more about ORCL, click on this link:
Stocks are flying on a wing & a prayer. It's hard to believe that OPEC will bring any agreement on reducing production. In addition, there was a major find of shale oil which can raise production in the US. Significant events in the stock market do not happen in this shortened trading week. The Dow is close to 19K & looks like it wants to break thru that ceiling even though Trump is only getting warmed up to take over. That's called a disconnect, not meant to last.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.6101665338771627)
No comments:
Post a Comment