Dow went up 38, advancers over decliners about 5-4 & NAZ gained 20. The MLP index added 1+ to the 274s & the REIT index was fractionally higher to the 359s. Junk bond funds pulled back & Treasuries slipped lower. Oil fluctuated in the 56s & gold rose 4 to 1253.
AMJ (Alerian MLP Index tracking fund)
Stocks rose toward records & the $ gained amid continued optimism on the economy's strength after retail sales topped estimates. The € turned lower as the ECB remained cautious about the prospects for reaching its inflation goals. The S&P 500 edged toward a fresh record, with the data on retail spending coming a day after the Federal Reserve raised its growth targets. The 10-year Treasury yield climbed with the greenback. Technology shares led stocks in Europe lower. Sterling slipped after the Bank of England kept its policy rate unchanged. Turkey's lira fell after its central bank raised a key rate less than investors expected. The data showing US retail sales rose more than forecast in Nov signaled a broad strengthening of consumer demand as the holiday shopping season got under way, bolstering optimism in the world's largest economy. The Fed raised its growth targets as the labor market tightens & the central bank still didn't see inflation accelerating, a sentiment echoed by the ECB. In comments after Europe's central bank kept rates steady, Pres Mario Draghi stopped short of declaring that the lender will meet its inflation goal in 2020, signaling that the euro-area economy isn't yet strong enough to warrant cutting monetary stimulus. That capped gains in the common currency.
US retail sales rose more than forecast in Nov & the previous month was revised higher, indicating a broad strengthening of consumer demand as the holiday shopping season got under way, according to Commerce Dept figures. Overall sales climbed 0.8% (est 0.3% gain) after a 0.5% increase in prior month (revised from 0.2% rise). Sales minus motor-vehicle dealers increased 1% after an upwardly revised 0.4% gain. The retail control group sales -- used in GDP calculations & exclude food services, auto dealers, building materials stores & gasoline stations -- also rose 0.8% following a revised 0.4% rise. 11 of 13 major retail categories showed gains. The firm advance along with the Oct revision bodes well for consumer spending, the biggest part of the economy. Solid hiring, gains in stock prices & property values, & limited inflation are expected to sustain household demand in the final stretch of this year following 2 qtrs of above-3% economic growth. Sales in the retail control group increased at a 3-month annualized pace of 6.6%, the most since Jun 2014. Economists usually look at Nov-Dec sales together to assess performance during the holiday shopping period. Early accounts of the Thanksgiving weekend -- the traditional start to the season -- had suggested consumers were willing to spend more, though brick-%-mortar stores failed to boost customer traffic while online shopping stayed popular.
Germany is set to end the year with a further acceleration in economic growth, bolstered by an unprecedented expansion in manufacturing. A Purchasing Managers' Index of factory activity unexpectedly jumped to 63.3 in Dec from 62.5 in Nov, IHS Markit said. That's the highest level since the survey began in early 1996 . A composite gauge that also includes services rose to 58.7 from 57.3, the strongest reading in more than 6½ years. With unemployment at a record low, solid global demand for its exports & continued support from expansionary ECB policy, the region's largest economy is brushing off any uncertainty related to Chancellor Angela Merkel's struggle to form a new gov. GDP probably expanded 2.6% in 2017, according to IHS Markit. Factory output, hiring intentions & new orders were all at or near record highs, according to the report. Confidence rebounded strongly after a breakdown in coalition talks weighed on optimism in Nov.
German Factories Work at Record Speed as Strong 2017 Concludes
Stocks keep marching ahead, aiming for anothe3r record close which has become common this year. The retail sales data was encouraging, pointing to a good holiday season at retail. Now all that needs to happen to make the bulls happy is for tax reform to be passed by Congress. That continues to be fuzzy & probably won't be decided one way or the other until Christmas eve at the earliest. The Dow just needs 375 to reach 25K (something that would have been difficult to imagine a year ago!!.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 56.48 | -0.12 | -0.2% |
| GC=F | Gold | 1,254.40 | +5.80 | +0.5% |
Stocks rose toward records & the $ gained amid continued optimism on the economy's strength after retail sales topped estimates. The € turned lower as the ECB remained cautious about the prospects for reaching its inflation goals. The S&P 500 edged toward a fresh record, with the data on retail spending coming a day after the Federal Reserve raised its growth targets. The 10-year Treasury yield climbed with the greenback. Technology shares led stocks in Europe lower. Sterling slipped after the Bank of England kept its policy rate unchanged. Turkey's lira fell after its central bank raised a key rate less than investors expected. The data showing US retail sales rose more than forecast in Nov signaled a broad strengthening of consumer demand as the holiday shopping season got under way, bolstering optimism in the world's largest economy. The Fed raised its growth targets as the labor market tightens & the central bank still didn't see inflation accelerating, a sentiment echoed by the ECB. In comments after Europe's central bank kept rates steady, Pres Mario Draghi stopped short of declaring that the lender will meet its inflation goal in 2020, signaling that the euro-area economy isn't yet strong enough to warrant cutting monetary stimulus. That capped gains in the common currency.
U.S. Stocks Rise, Euro Slips on ECB Inflation View: Markets Wrap
US retail sales rose more than forecast in Nov & the previous month was revised higher, indicating a broad strengthening of consumer demand as the holiday shopping season got under way, according to Commerce Dept figures. Overall sales climbed 0.8% (est 0.3% gain) after a 0.5% increase in prior month (revised from 0.2% rise). Sales minus motor-vehicle dealers increased 1% after an upwardly revised 0.4% gain. The retail control group sales -- used in GDP calculations & exclude food services, auto dealers, building materials stores & gasoline stations -- also rose 0.8% following a revised 0.4% rise. 11 of 13 major retail categories showed gains. The firm advance along with the Oct revision bodes well for consumer spending, the biggest part of the economy. Solid hiring, gains in stock prices & property values, & limited inflation are expected to sustain household demand in the final stretch of this year following 2 qtrs of above-3% economic growth. Sales in the retail control group increased at a 3-month annualized pace of 6.6%, the most since Jun 2014. Economists usually look at Nov-Dec sales together to assess performance during the holiday shopping period. Early accounts of the Thanksgiving weekend -- the traditional start to the season -- had suggested consumers were willing to spend more, though brick-%-mortar stores failed to boost customer traffic while online shopping stayed popular.
U.S. Retail Sales Jump More Than Forecast in Broad Advance
Germany is set to end the year with a further acceleration in economic growth, bolstered by an unprecedented expansion in manufacturing. A Purchasing Managers' Index of factory activity unexpectedly jumped to 63.3 in Dec from 62.5 in Nov, IHS Markit said. That's the highest level since the survey began in early 1996 . A composite gauge that also includes services rose to 58.7 from 57.3, the strongest reading in more than 6½ years. With unemployment at a record low, solid global demand for its exports & continued support from expansionary ECB policy, the region's largest economy is brushing off any uncertainty related to Chancellor Angela Merkel's struggle to form a new gov. GDP probably expanded 2.6% in 2017, according to IHS Markit. Factory output, hiring intentions & new orders were all at or near record highs, according to the report. Confidence rebounded strongly after a breakdown in coalition talks weighed on optimism in Nov.
German Factories Work at Record Speed as Strong 2017 Concludes
Stocks keep marching ahead, aiming for anothe3r record close which has become common this year. The retail sales data was encouraging, pointing to a good holiday season at retail. Now all that needs to happen to make the bulls happy is for tax reform to be passed by Congress. That continues to be fuzzy & probably won't be decided one way or the other until Christmas eve at the earliest. The Dow just needs 375 to reach 25K (something that would have been difficult to imagine a year ago!!.
Dow Jones Industrials
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