Dow lost 30, decliners modestly ahead of advancers & NAZ fell 25. The MLP index retreated another 2+ to the 267s & the REIT index rose 2+ to the 348s. Junk bond funds drifted lower & Treasuries were higher. Oil declined (more below) & gold climbed close to 1300.
AMJ (Alerian MLP Index tracking fund)
US stocks fell to the lowest level in 6 weeks amid growing unease about persistent low inflation. Treasuries gained, while the $ edged lower as investors await central bank speeches at Jackson Hole. The S&P 500 hit the lowest since Jul 6 following back-to-back weekly losses amid the tumult in DC that imperils the president's policy agenda. The Stoxx Euro 600 Index declined on thin trading volumes. Fed Chair Janet Yellen & ECB Pres Mario Draghi will be among the officials addressing this year's installment of the annual conference hosted by the Kansas City Fed. The summit, held at a Wyoming mountain retreat, comes as central banks in advanced economies grapple with ending years of unprecedented monetary easing, even as stubbornly tepid inflation clouds the outlook.
U.S. Stocks Fall With Dollar as Treasuries Gain: Markets Wrap
Oil traded near the highest closing level in a week as Libya halted its biggest oilfield & a forecast is for OPEC crude suipply to be on track for its its biggest drop in 5 months. Futures fell 0.4% after rising 3.7% the previous 2 sessions. Libya declared force majeure, a legal clause that allows the suspension of deliveries, on supplies from the Sharara field after it was blocked yesterday, National Oil Corp CEO Mustafa Sanalla said. OPEC is on track to curb output by 419K barrels a day to 32.8M a day in Aug, after supplies hit their highest level this year in Jul. Oil has fluctuated below $50 a barrel as investors weigh rising global output against cuts by OPEC & its allies that are taking longer than expected to drain a glut, in part because of increases in Libya & Nigeria. While the US rig count showed declines recently, American output has continued to expand, climbing to the highest level in 2 years. West Texas Intermediate for Sep delivery, which expires tomorrow, was 19¢ lower at $48.32. Prices advanced $1.42 (3%) to $48.51 on Fri, trimming the weekly loss to 0.6%. US drillers targeting crude trimmed the rig count by 5 to 763, the 2nd decline this month. The expansion in American drilling is slowing as output from major shale plays is set to climb to a record next month & the number of active rigs in fields is still near the highest since Apr 2015.
McDonald's (MCD), a Dow stock & Dividend Arstocrat, battle with one of its 2 franchisees in India escalated after the US company moved to terminate an agreement involving more than 1/3 of its restaurants in the worlds 2nd-most populous nation. Its Indian unit said it has ended the pact with Connaught Plaza Restaurants, a joint venture that operates the brand’s 169 outlets in northern & eastern parts of the country, after it breached terms relating to some restaurants. Connaught Plaza said it's considering “appropriate legal remedies.” The local partner “has failed to remedy the breaches, despite being provided with an opportunity to do so in accordance with the agreements,” MCD India Pvt. said. “We understand that this action brings uncertainty for many.” MCD will need to rebuild its brand across ½ the country as it searches for another partner for northern & eastern India. The stock went up 44¢. If you would learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
The next 2 weeks before Labor Day are traditionally quiet. Some investors will go on vacation. But with Trump's active life style, quiet doesn't mean what it used to mean. There will be plenty of bloviating by the DC crowd as Congress has to get ready for an unusually active Sep. There is plenty of work which needs to be done in a short amount of time. Jackson Hole will brinf the usual trite speeches which have little to say that is new. At least they might have a good time & maybe that will help the stock market.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 48.17 | -0.34 | -0.7% |
| GC=F | Gold | 1,297.80 | +6.20 | +0.5% |
US stocks fell to the lowest level in 6 weeks amid growing unease about persistent low inflation. Treasuries gained, while the $ edged lower as investors await central bank speeches at Jackson Hole. The S&P 500 hit the lowest since Jul 6 following back-to-back weekly losses amid the tumult in DC that imperils the president's policy agenda. The Stoxx Euro 600 Index declined on thin trading volumes. Fed Chair Janet Yellen & ECB Pres Mario Draghi will be among the officials addressing this year's installment of the annual conference hosted by the Kansas City Fed. The summit, held at a Wyoming mountain retreat, comes as central banks in advanced economies grapple with ending years of unprecedented monetary easing, even as stubbornly tepid inflation clouds the outlook.
U.S. Stocks Fall With Dollar as Treasuries Gain: Markets Wrap
Oil traded near the highest closing level in a week as Libya halted its biggest oilfield & a forecast is for OPEC crude suipply to be on track for its its biggest drop in 5 months. Futures fell 0.4% after rising 3.7% the previous 2 sessions. Libya declared force majeure, a legal clause that allows the suspension of deliveries, on supplies from the Sharara field after it was blocked yesterday, National Oil Corp CEO Mustafa Sanalla said. OPEC is on track to curb output by 419K barrels a day to 32.8M a day in Aug, after supplies hit their highest level this year in Jul. Oil has fluctuated below $50 a barrel as investors weigh rising global output against cuts by OPEC & its allies that are taking longer than expected to drain a glut, in part because of increases in Libya & Nigeria. While the US rig count showed declines recently, American output has continued to expand, climbing to the highest level in 2 years. West Texas Intermediate for Sep delivery, which expires tomorrow, was 19¢ lower at $48.32. Prices advanced $1.42 (3%) to $48.51 on Fri, trimming the weekly loss to 0.6%. US drillers targeting crude trimmed the rig count by 5 to 763, the 2nd decline this month. The expansion in American drilling is slowing as output from major shale plays is set to climb to a record next month & the number of active rigs in fields is still near the highest since Apr 2015.
McDonald's (MCD), a Dow stock & Dividend Arstocrat, battle with one of its 2 franchisees in India escalated after the US company moved to terminate an agreement involving more than 1/3 of its restaurants in the worlds 2nd-most populous nation. Its Indian unit said it has ended the pact with Connaught Plaza Restaurants, a joint venture that operates the brand’s 169 outlets in northern & eastern parts of the country, after it breached terms relating to some restaurants. Connaught Plaza said it's considering “appropriate legal remedies.” The local partner “has failed to remedy the breaches, despite being provided with an opportunity to do so in accordance with the agreements,” MCD India Pvt. said. “We understand that this action brings uncertainty for many.” MCD will need to rebuild its brand across ½ the country as it searches for another partner for northern & eastern India. The stock went up 44¢. If you would learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
McDonald's Breaks Off Agreement With India Franchisee After Dispute
The next 2 weeks before Labor Day are traditionally quiet. Some investors will go on vacation. But with Trump's active life style, quiet doesn't mean what it used to mean. There will be plenty of bloviating by the DC crowd as Congress has to get ready for an unusually active Sep. There is plenty of work which needs to be done in a short amount of time. Jackson Hole will brinf the usual trite speeches which have little to say that is new. At least they might have a good time & maybe that will help the stock market.
Dow Jones Industrials
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