Dow rose 30 (off the highs), advancers over decliners 2-1 & NAZ lost 5. The MLP index added a fraction to the 275s & the REIT index went up 2+ to the 353s. Junk bond funds crawled higher & Treasuries gained. Oil climbed in the 47s & gold climbed again (more on both below)
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.43607897877169066)
Oil prices rose as the $ fell & as US petroleum industry braced for Hurricane Harvey, which could become the biggest storm to hit the US mainland in more than a decade. The $, in which oil is priced, fell after Fed Chair Janet Yellen made no reference to US monetary policy in her speech at Jackson Hole, Wyoming. Harvey became a Category 2 storm as it crossed the Gulf of Mexico with winds of 110 mph (175 kph), 145 miles (235 km) off Port O'Connor, Texas, the National Hurricane Center said. Refineries, terminals, production platforms & other infrastructure have begun preparations or shutdown procedures with the hurricane set to make landfall on the central Texas coast tonight or early on Sat as a Category 3 hurricane. Texas is home to 5.6M barrels of refining capacity & Louisiana has 3.3M barrels. The NHC, which has warned that catastrophic flooding were expected across portions of southern & southeastern Texas, expects Harvey to move slowly & linger over Texas for days. Some tracking models show the storm could circle back out over Gulf waters after making landfall & then take aim at Houston midweek, giving the nation's 4th most populous city a double dose of rain & wind. US crude futures were up 31¢ (0.7%) at $47.74. Gasoline futures were up over 1%, their strongest levels in 4 months, & were the highest in 2 years for this time of year. US gasoline crack spreads, a key measure of margins, are at strongest in 5 years for this time of year. A little less than 10% of offshore US Gulf of Mexico crude output capacity & nearly 15% of natural gas production had been halted yesterday. The Port of Corpus Christi, Texas, was closed to vessel traffic & Corpus Christi oil refineries also began shutting down. Beyond the storm's potential impact on the oil industry, crude remains in ample supply globally despite efforts led by OPEC to hold back production to prop up prices.
Oil rises as dollar falls, U.S. Gulf Coast braces for hurricane
Gold prices climbed , finding support as the $ dropped to a 3-week low after Janet Yellen failed to discuss monetary policy at the Jackson Hole symposium. December gold added $5.90 (0.5%) to settle at $1297 an ounce, the highest finish for a most-active contract since Jun 5.
Baker Hughes reported that the number of active US rigs drilling for oil fell by 4 to 759 rigs this week. The total active rig count, which includes oil & natural-gas rigs, also declined by 6 to 940. Oil prices showed little reaction, with Oct West Texas Intermediate crude up 23¢ (0.5%) from Thursday at $47.65 a barrel.
A closely-watched survey shows business confidence in Germany, Europe's largest economy, slipped slightly in Aug but that it remains relatively strong. The Ifo Institute said that its index edged down to 115.9 in Aug from Jul's record high of 116. The drop came due to slightly less positive assessments of the current economic situation, which fell to 124.6 from 125.5 the previous month. That was partially offset by greater optimism over the short-term future, with expectations rising to 107.9 from 107.3. The monthly survey is based upon about 7K responses from German firms.
Pres Trump plans to make a public push to overhaul the nation's tax system next week in Springfield, Missouri. The White House says he will be making the stop in southwest Missouri on Wed to begin selling his administration's calls to change the tax system. Administration officials have said Trump plans to hold events around the country in the coming weeks to promote the tax overhaul. The White House has expressed hope that the changes can be approved in Congress by the end of the year & will be working with the leaders of congressional tax-writing committees after the Labor Day holiday. Administration officials have said that lowering personal & business tax rates will lead to Ms of new jobs & spur faster economic growth.
Harvey is providing plenty of drama this weekend. But the stock market is taking it all in stride. Trump has done a good job avoiding slings & arrows, something the stock market likes to see. The chart below the Dow is still doing quite well & with Trump pushing for tax reform next week, buyers should be encouraged to bid up stock prices. Best wishes for those affected by Harvey.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Oil prices rose as the $ fell & as US petroleum industry braced for Hurricane Harvey, which could become the biggest storm to hit the US mainland in more than a decade. The $, in which oil is priced, fell after Fed Chair Janet Yellen made no reference to US monetary policy in her speech at Jackson Hole, Wyoming. Harvey became a Category 2 storm as it crossed the Gulf of Mexico with winds of 110 mph (175 kph), 145 miles (235 km) off Port O'Connor, Texas, the National Hurricane Center said. Refineries, terminals, production platforms & other infrastructure have begun preparations or shutdown procedures with the hurricane set to make landfall on the central Texas coast tonight or early on Sat as a Category 3 hurricane. Texas is home to 5.6M barrels of refining capacity & Louisiana has 3.3M barrels. The NHC, which has warned that catastrophic flooding were expected across portions of southern & southeastern Texas, expects Harvey to move slowly & linger over Texas for days. Some tracking models show the storm could circle back out over Gulf waters after making landfall & then take aim at Houston midweek, giving the nation's 4th most populous city a double dose of rain & wind. US crude futures were up 31¢ (0.7%) at $47.74. Gasoline futures were up over 1%, their strongest levels in 4 months, & were the highest in 2 years for this time of year. US gasoline crack spreads, a key measure of margins, are at strongest in 5 years for this time of year. A little less than 10% of offshore US Gulf of Mexico crude output capacity & nearly 15% of natural gas production had been halted yesterday. The Port of Corpus Christi, Texas, was closed to vessel traffic & Corpus Christi oil refineries also began shutting down. Beyond the storm's potential impact on the oil industry, crude remains in ample supply globally despite efforts led by OPEC to hold back production to prop up prices.
Oil rises as dollar falls, U.S. Gulf Coast braces for hurricane
Gold prices climbed , finding support as the $ dropped to a 3-week low after Janet Yellen failed to discuss monetary policy at the Jackson Hole symposium. December gold added $5.90 (0.5%) to settle at $1297 an ounce, the highest finish for a most-active contract since Jun 5.
Gold Logs Highest Settlement Since Early June, Up 0.5% For The Week
Baker Hughes reported that the number of active US rigs drilling for oil fell by 4 to 759 rigs this week. The total active rig count, which includes oil & natural-gas rigs, also declined by 6 to 940. Oil prices showed little reaction, with Oct West Texas Intermediate crude up 23¢ (0.5%) from Thursday at $47.65 a barrel.
Baker Hughes Data Show U.S. Oil-rig Count Down a Second Week In a Row
A closely-watched survey shows business confidence in Germany, Europe's largest economy, slipped slightly in Aug but that it remains relatively strong. The Ifo Institute said that its index edged down to 115.9 in Aug from Jul's record high of 116. The drop came due to slightly less positive assessments of the current economic situation, which fell to 124.6 from 125.5 the previous month. That was partially offset by greater optimism over the short-term future, with expectations rising to 107.9 from 107.3. The monthly survey is based upon about 7K responses from German firms.
German business confidence falls slightly in August
Pres Trump plans to make a public push to overhaul the nation's tax system next week in Springfield, Missouri. The White House says he will be making the stop in southwest Missouri on Wed to begin selling his administration's calls to change the tax system. Administration officials have said Trump plans to hold events around the country in the coming weeks to promote the tax overhaul. The White House has expressed hope that the changes can be approved in Congress by the end of the year & will be working with the leaders of congressional tax-writing committees after the Labor Day holiday. Administration officials have said that lowering personal & business tax rates will lead to Ms of new jobs & spur faster economic growth.
Trump to push tax overhaul in Missouri next week
Harvey is providing plenty of drama this weekend. But the stock market is taking it all in stride. Trump has done a good job avoiding slings & arrows, something the stock market likes to see. The chart below the Dow is still doing quite well & with Trump pushing for tax reform next week, buyers should be encouraged to bid up stock prices. Best wishes for those affected by Harvey.
Dow Jones Industrials
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