Friday, December 9, 2016

Markets add to rally as oil gains

Dow shot up 131 to yet another new record, advancers barely ahead of decliners & NAZ added 23.  The MLP index was about even in the 301s (after trending sideways for months) & the REIT index slid back chump change to the 337s.  Junk bond funds crawled higher & Treasuries were sold again, taking the yield on the 10 year Treasury up to 2.46%.  Oil rose to 51s & gold remained weak (more on both below).

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Live 24 hours gold chart [Kitco Inc.]

Coca-Cola, a Dow stock & Dividend Aristocrat said that Muhtar Kent would resign from his role as CEO in May 2017, to be succeeded by James Quincey, the beverage company's pres & operating chief.  Quincey is entrusted with finding a path forward for the soda giant as consumers increasingly turn away from sugar-laden drinks & toward foods seen as healthier & more natural.  KO said he has been involved with recent moves designed to fit these trends, including selling soda in smaller 7.5-ounce "mini cans" & reducing added sugar across the company's portfolio.  Quincey has risen up thru the intl ranks, an increasingly important focus for the company, since joining Coke in 1996.  During his tenure, he has led the company's presence in both Europe & Mexico.  The company signaled last fall that Quincey was a probable successor when they unexpectedly appointed him president and chief operating officer over several other higher-ranked executives.  KO has spent more than $4B to acquire minority stakes in coffee maker Keurig Green Mountain & Monster Beverage (maker of energy drinks).  The company took a 30% stake in Suja Life, a maker of organic, cold-pressed juices & acquisitions include Honest Tea, an organic tea maker & Zico coconut water.  KO has built up a dairy business in recent years as it launched Fairlife,a lactose-free milk with 50% more protein & 30% fewer calories than regular milk, in the US in late 2014. The stock rose 1.01.  If you would like to learn more about KO, click on this link:

Coca-Cola Announces C-Suite Changes, Stock Rallies 2%

Coca-Cola (KO)

Data from Baker Hughes Friday showed that the number of active US rigs drilling for oil climbed by 21 to 498 rigs this week.  That's the highest level since Jan.  The total active US rig count, which includes oil & natural-gas rigs, also jumped by 27 to 624.  Prices for oil appeared unfazed by the rig data, with Jan crude holding onto its gains, trading at $51.43 a barrel, up 59¢ (1.2%).

Baker Hughes Reports Spike In U.S. Oil-rig Count

Gold futures settled at their lowest level since Feb, posting a weekly loss for a 5th straight week amid expectations that the Federal Reserve will raise interest rates at its meeting next week.  Feb gold lost $10.50 (0.9%) for the session to settle at $1161 an ounce-the lowest finish since early February.  For the week, prices declined about 1.1%.

Gold Futures Down Five Weeks In a Row

What's there to say?  The sky is the limit!  The Trump rally is flying high on optimism, not much else.  He has only announced some of the people who will help him along with proposed changes.  Dow has vaulted 1.4K since the election.  For the time being, most portfolios are doing well.  Unfortunately all good things must come to an end when reality sets in.  Be prepared.

Dow Jones Industrials

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