Thursday, April 6, 2017

Markets crawl higher ahead of Trumps big meeting with Xi

Dow added 14, advancers over decliners 3-1 & NAZ also went up 14.  The MLP index rose 3+ to the 326s & the REIT index gained 2+ to the 347s.  Junk bond funds remained higher & Treasuries had a modest advance.  Oil climbed in the 51s & gold rose to 1253 (more on both below).

AMJ (Alerian MLP Index tracking fund)

Live 24 hours gold chart [Kitco Inc.]

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Crude rose as investors weighed record stockpiles against OPEC-led efforts to reduce the global oversupply.  Futures climbed over 1.2 %.  American crude output rose for a 7th week & supplies expanded, gov showed.  Refineries utilized the most capacity since Jan.  Prices rallied above $50 a barrel a week ago after some OPEC countries supported a possible extension of their 6-month deal trimming output.  The increase in US stockpiles is reviving concern they'll counter output curbs led by OPEC.  OPEC Secretary-General Mohammad Barkindo said he's “cautiously optimistic that the market is already rebalancing.”  Production halts in the UK North Sea Canada have since helped bolster prices over the past week.  West Texas Intermediate for May delivery rose 58¢ (1.1%) to $51.73.  US crude production increased by 52K barrels to 9.2M barrels a day last week, according to the Energy Information Administration.  The gain left output at the highest level since Jan 2016.  Inventories rose 1.6M barrels to 535.5M barrels, the highest level in weekly EIA data compiled since 1982.  Supplies at Cushing, Oklahoma, the delivery point for WTI futures & the nation's biggest oil-storage hub, increased 1.41M barrels to a record 69.1M.  Refineries processed 16.4M barrels a day in the latest week, up 203K barrels from the prior week & the highest since Jan, the EIA data show.

Crude Rises as Traders Weigh OPEC Cuts Versus Record U.S. Supply

Gold settled higher, its 4th gain out of 5 sessions, ahead of Trump's meeting with Chinese counterpart Xi Jinping & on concerns that tax reform faces a rockier-than-expected road.  Gold for Jun delivery settled up $4.80 (0.4%) at $1248 an ounce, on the heels of a surge following late yesterday comments from House Speaker Paul Ryan that tax reform efforts could prove to be difficult.

Gold Settles Higher Ahead Of Trump-Xi Meeting

Tanger Factory Outlet Centers (a REIT raised its annual div 5.4%, to $1.37 from $1.30.   SKT is a REIT that owns 45 upscale outlet shopper centers & has been increasing the annual div (yielding 4.2%) for the last 23 years.  The stock was up 12¢.  If you would like to learn more about SKT, click on this link:

Tanger Factory Outlet Raises Dividend By 5.4%

Tanger Factory Outlet Centers (SKT)

As big as the Mar  jobs report is, Trump's meeting with Pres Xi should get the lion's share of attention.  Resolving issues trade between the 2 countries is enormous & the US is running a whopper size deficit.  North Korea, supported by China, has been getting a lot of attention in recent weeks.  Stocks have held up well this week, but the press briefing at the conclusion of these meetings will move the stock market.  Ryan's comments about tax reform, a key market driver, could be expected.  Moving forward will be tougher than healthcare because there will be somebody to quibble over every line item on the tax form.

Dow Jones Industrials

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