Thursday, December 29, 2016

Markets waver with one day left in 2016

Dow was off 13 advancers over decliners 4-3 & NAZ fell 6.  The MLP index was fractionally lower to the 314s & the REIT index climbed 3+ to the 336s.  Junk bond funds were a little higher & Treasuries were finally purchased.  Oil was down chump change in the 53s (near yearly highs) & gold advanced to the mid 1100s (more on both below).

Dow Jones Industrials

3 Stocks You Should Own Right Now - Click Here!

Live 24 hours gold chart [Kitco Inc.]

Oil futures ended lower, snapping a 4-day win streak after weekly data showed a rise in US crude inventories.  West Texas Intermediate crude for Feb delivery fell 29¢ (0.5%) to close at $53.77 a barrel.  Oil attempted to turn higher after the Energy Information Administration reported a 600K barrel rise in inventories last week but soon returned to negative territory.

Oil Settles Lower After Rise In U.S. Crude Inventories

Gold futures closed at their highest level in just over 2 weeks as a leading dollar index pulled off of 14-year highs.  Gold for Feb delivery rose $16.80 (1.5%) to $1157 ounce, its 4th straight advance.  Gold remains down about 1.4% for Dec.

Gold Futures Extend Rally o Fourth Session, Close Up 1.5%

Long-term US mortgage rates edged up this week to the highest levels in more than 2 years.  Investors are bidding up rates under the belief that inflation & economic growth will rise with the incoming Trump administration.  Long-term mortgage rates have risen 9 straight weeks.

Current avg Last week 52-week high 52-week low
30-year fixed 4.32% 4.30% 4.32% 3.41%
15-year fixed 3.55% 3.52% 3.55% 2.72%
5-year adjustable 3.30% 3.32% 3.32% 2.68%


US mortgage rates rise to highest level in more than 2 years

After the rough start in Jan, the Dow is up 1.9K in 2016, much of that after Trump's election.  Since the presidential election, the S&P 500 has unexpectedly pulled ahead of global peers.  Fueling the optimism, Trump has promised to enact economic policies, such as a $1T infrastructure spending spree, diminished regulation on industry like the financial sector & corp tax cuts to encourage growth.  Enthusiasm in the US stock market has diminished since mid Dec.  The new month (year) will provide the test to show if the rally has legs.

Dow Jones Industrials

No comments: