Dow went up 42, advancers over decliners about 2-1 & NAZ rose 43. The MLP index did little in the 259s & the REIT index was a slightly higher to the 354s. Junk bond funds drifted lower & Treasuries were flat. Oil dropped, again, to the 55s (more below) & gold plunged 26 to 1255.
AMJ (Alerian MLP Index tracking fund)
Applications for unemployment benefits in the US declined to a 5-week low, consistent with a resilient labor market, Labor Dept figures showed. Jobless claims decreased by 2K to 236K (est 240K). The 4-week average, a less-volatile measure than the weekly figure, dropped to 241K from the prior week's 242K. Continuing claims fell by 52k to 1.91M in the latest week. Applications for jobless benefits below the 300K are considered consistent with a steady job market. Claims hovering near the lowest level in more than 4 decades also show employers are reluctant to reduce staff amid the current shortage of qualified workers. The unemployment rate among people eligible for benefits held at 1.4%. A report tomorrow is projected to show payrolls increased by almost 200K in Nov, while the jobless rate held at an almost 17-year low of 4.1%.
The $ advanced for a 4th day & oil rebounded from its worst selloff in 2 months, while US stocks edged higher as investors evaluated the outlook for a final tax bill. The S&P 500 snapped a 4-day losing streak as it eked out a gain, with technology shares the best performers as traders speculated that losses over the past few weeks were excessive. European stocks fluctuated & gold fell to the lowest in 4 months. Brazil's real & stocks dropped amid growing skepticism a pension overhaul will be passed this year. After a runup in shares tied to speculation that the US tax overhaul would boost corp profits, stocks have drifted as investors await the details of a final bill. Focus has also started to turn to efforts to avert a gov shutdown at the end of the week. Senate Majority Leader Mitch McConnell named 8 Rep lawmakers to be part of the conference committee responsible for negotiating a final tax bill with GOP House lawmakers. West Texas oil rose past $56 a barrel after falling the most in 2 months yesterday. The Australian $ dropped to the lowest since Jun after trade data missed estimates. Asian equities were mixed, with stocks rising in Japan, Hong Kong & Australia while falling in China & South Korea.
General Electric (GE), a Dow stock, announced it will cut 12K jobs in its power business. The company said the headcount cuts, which will affect both professional & production employees mostly outside the US, will position GE Power to reach its announced target of $1B in structural cost reductions in 2018. The move aligns with GE’s effort to reduce overall structural costs by $3.5B in 2017 & 2018. “This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services,” said Russell Stokes, CEO of GE Power. “Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond.” The changes were driven by challenges in the power marketplace worldwide, including gas & coal, which have softened. It added that volumes are significantly lower in products & services due to overcapacity, lower utilization, fewer outages, the rising amount of steam plant retirements & the overall growth in renewables. “GE Power is right-sizing the business for these realities and is focused on improving operational excellence and reducing its footprint and structure, which will help drive significant improvements in cash flows and margins,” the company said. The stock rose 37¢.
If you would like to learn more about GE, click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3289&a_bid=6ae5b6f7
Stocks are back to meandering. Not much to do while Congress stumbles around trying to figure out what to do. They know tax reform & funding the gov are top priorities. Now all they have to do is get the work done & that looks like a huge task with all the bickering going on. But the bulls are not selling stocks in a meaningful way. Gold, negative bets on stocks, is weak, sort of an encouraging sign for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 56.39 | -1.97 | -3.4% |
| GC=F | Gold | 1,256.10 | -26.20 | -2.0% |
Applications for unemployment benefits in the US declined to a 5-week low, consistent with a resilient labor market, Labor Dept figures showed. Jobless claims decreased by 2K to 236K (est 240K). The 4-week average, a less-volatile measure than the weekly figure, dropped to 241K from the prior week's 242K. Continuing claims fell by 52k to 1.91M in the latest week. Applications for jobless benefits below the 300K are considered consistent with a steady job market. Claims hovering near the lowest level in more than 4 decades also show employers are reluctant to reduce staff amid the current shortage of qualified workers. The unemployment rate among people eligible for benefits held at 1.4%. A report tomorrow is projected to show payrolls increased by almost 200K in Nov, while the jobless rate held at an almost 17-year low of 4.1%.
Jobless Claims at Five-Week Low Show Resilient U.S. Job Market
The $ advanced for a 4th day & oil rebounded from its worst selloff in 2 months, while US stocks edged higher as investors evaluated the outlook for a final tax bill. The S&P 500 snapped a 4-day losing streak as it eked out a gain, with technology shares the best performers as traders speculated that losses over the past few weeks were excessive. European stocks fluctuated & gold fell to the lowest in 4 months. Brazil's real & stocks dropped amid growing skepticism a pension overhaul will be passed this year. After a runup in shares tied to speculation that the US tax overhaul would boost corp profits, stocks have drifted as investors await the details of a final bill. Focus has also started to turn to efforts to avert a gov shutdown at the end of the week. Senate Majority Leader Mitch McConnell named 8 Rep lawmakers to be part of the conference committee responsible for negotiating a final tax bill with GOP House lawmakers. West Texas oil rose past $56 a barrel after falling the most in 2 months yesterday. The Australian $ dropped to the lowest since Jun after trade data missed estimates. Asian equities were mixed, with stocks rising in Japan, Hong Kong & Australia while falling in China & South Korea.
Dollar Rises to Two-Week High as U.S. Stocks Climb: Markets Wrap
General Electric (GE), a Dow stock, announced it will cut 12K jobs in its power business. The company said the headcount cuts, which will affect both professional & production employees mostly outside the US, will position GE Power to reach its announced target of $1B in structural cost reductions in 2018. The move aligns with GE’s effort to reduce overall structural costs by $3.5B in 2017 & 2018. “This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services,” said Russell Stokes, CEO of GE Power. “Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond.” The changes were driven by challenges in the power marketplace worldwide, including gas & coal, which have softened. It added that volumes are significantly lower in products & services due to overcapacity, lower utilization, fewer outages, the rising amount of steam plant retirements & the overall growth in renewables. “GE Power is right-sizing the business for these realities and is focused on improving operational excellence and reducing its footprint and structure, which will help drive significant improvements in cash flows and margins,” the company said. The stock rose 37¢.
If you would like to learn more about GE, click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3289&a_bid=6ae5b6f7
GE to cut 12,000 jobs worldwide
Stocks are back to meandering. Not much to do while Congress stumbles around trying to figure out what to do. They know tax reform & funding the gov are top priorities. Now all they have to do is get the work done & that looks like a huge task with all the bickering going on. But the bulls are not selling stocks in a meaningful way. Gold, negative bets on stocks, is weak, sort of an encouraging sign for stocks.
Dow Jones Industrials
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