Thursday, January 19, 2017

Lower markets waiting for Trump's speach tomorrow

Dow gave back 72, decliners over advancers 3-1 & NAZ lost 15.  The MLP index fell 1+ to the 319s & the REIT index was off 3+ to the 339s.  Junk bond funds drifted lower & Treasuries were weak.  Oil was fractionally higher in the 51s & gold fell but remains above 1200.

AMJ (Alerian MLP Index tracking fund)

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Live 24 hours gold chart [Kitco Inc.]

ECN pres Mario Draghi said that actions the bank has taken in Dec have succeeded in improving the economic climate, but he pledged to do more if the improvement proved transitory.  He also said economic growth in the euro zone would be held back by the lack of structural reforms by member states & that such moves should be stepped up.  "A very substantial degree of (monetary policy) accommodation is needed," he said after the ECB had left interest rates&  asset purchases unchanged.  "If the outlook becomes less favorable ... we stand ready to increase our asset-purchase program in terms of size or duration," he added.  Euro zone price growth edged above 1% for the first time in 3 years last month, although this was largely due to a stabilization in oil prices.  With inflation in Germany hitting 1.7% in Dec, ECB critics in the country have been calling for an early end to the central bank's money-printing program.

ECB succeeding on euro zone economy, but risks remain and more help available

Manufacturing activity across the mid-Atlantic continued to expand in Jan, as general activity, new orders, shipments & employment all indicated expansion.  Firms reported their own prices were higher in Jan, & their optimism about future manufacturing growth continued to improve.  Respondents reported an increase in manufacturing employment this month.  The employment index rose to 12.8 from 3.6 in Dec.  The Federal Reserve Bank of Philadelphia said its index of general business activity covering the regional factory sector grew to 23.6 from 19.7 in Dec & remained positive.  Being above zero separates expansion from contraction   The reading was above expectations of 15.8.  The Philadelphia Fed's report is one in a monthly string of factory surveys conducted by regional Fed banks, meant to provide snapshots of the manufacturing sector's health ahead of the Institute for Supply Management's national reading.  More than 60% of firms said underlying demand for their goods increased & a similar number also said their total production for the qtr was up.  Across the Philadelphia region, a gauge of new orders increased to 26 from 14.9 last month as a shipments index decreased to 20.5 from 21.7.  An index of future business prospects was at 56.6 compared with 48.7 previously.

Mid-Atlantic Manufacturing Activity Soars in January

Union Pacific (UNP) reported Q4 EPS of $1.39.  The results surpassed expectations of $1.34.  The railroad posted revenue of $5.17B, also beating forecasts. Analysts expected $5.14B  The stock jumped up 2.47.  If you would like to learn more about UNP, click on this link:

Union Pacific beats Street 4Q forecasts

Union Pacific (UNP)

Stocks mostly meandered today with a slight bias for selling.  But Dow has backed up to a little over 19.7K, taking it further away from 20K.  Trump takes over tomorrow & everybody is waiting to hear what he has to say about going forward.  The stock rally since the election has priced in the best of all worlds.  Tomorrow investors will have a better idea about the future of the economy.

Dow Jones Industrials

stock chart  

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