Dow rose 27, decliners a little ahead of advancers & NAZ added 11. The MLP index was flat in the 253s & the REIT index was even in the 353s. Junk bond funds were flattish & Treasuries advanced in price. Oil gave back 1+ to the 56s & gold tumbled 15 to 1266.
AMJ (Alerian MLP Index tracking fund)
Stocks fluctuated after European & Asian shares sank amid a broad risk-off mood. Treasuries climbed with the $ as investors’ focus turned to efforts to avert a US gov shutdown Sat. Advances for software companies & declines in automotive stocks left the S&P 500 bouncing between gains & losses after 3 consecutive sessions in the red. The Stoxx Europe 600 Index slipped following the Nikkei's worst selloff in 9 months. Oil declined past $57 a barrel after data showed US gasoline stockpiles expanded. The ¥ rose as European bonds rallied & stocks from developing nations sank to a 2-month low. Global markets succumbed to a bout of profit taking this week, while US equities struggled to maintain gains, as traders move out of some of 2017's biggest winners, including technology shares & emerging-market stocks. The pause in the rally comes as investors assess US tax reform developments & wrangling over spending after a Rep plan to avoid a federal shutdown Sat was thrown into disarray by infighting. Sterling weakened as efforts to rescue Brexit talks appeared to stumble. Australia's $ dropped as slower-than-expected growth spurred traders to dial back their forecasts on interest-rate increases.
US private employers created 190K jobs in Nov, down sharply from the month before & roughly in line with expectations, a report. Economists had forecast the ADP National Employment Report would show a gain of 185K jobs, with estimates ranging from 150K-240,K. Private payroll gains in Oct were unrevised at 235K. The report is jointly developed with Moody's Analytics. The ADP figures come ahead of the Labor Dep more comprehensive non-farm payrolls report on Fri, which includes both public & private-sector employment. Economists are looking for private payroll employment to have grown by 190K jobs in Nov, down from 252K the month before. Total non-farm employment is expected to have risen by 200K & the unemployment rate is forecast to stay steady at the 4.1% recorded a month earlier.
US private sector adds 190,000 jobs in November: ADP
JPMorgan (JPM), a Dow stock, CEO Jamie Dimon is among leading corp chieftains gearing up for a steady year of economic growth in 2018 of around 2.5%. But that view is mainly contingent on US policymakers getting “tax reform right,” Dimon said. His remarks accompanied the Business Roundtable’s Q4 economic outlook, which hit the highest level in 5 years. The group, representing $7Tn in annual revenues & employing more than 16M, also plans to boost capital investment by the most in 6 years. Passing tax reform, which includes lowering the corp tax rate to 20%, could help return some of that capital back to America, allowing CEOs to increase capital investments to juice productivity &, in turn, lift wages. Outgoing Fed Chair Janet Yellen shared similar concerns last week during her final testimony on the economy before Congress, noting the “sluggish pace of productivity growth in recent years”. Reversing this trend, she said, can boost wages & level out income inequality. The latest read from the BRT caps a year of building optimism among America's CEOs, which is not only being driven by the prospects of tax reform, but also by energetic efforts to reduce excessive regulation. “Business leaders no longer, in the current environment, have to anticipate the next regulatory hammer that is going to hit their industry or company,” noted BRT CEO Joshua Bolten. Despite overall optimism about successful tax reform &a regulatory rollback, plans to hire remain little changed from the prior qtr, although hovering near a 4-year high. Still, investors appear to share the optimism among CEOs as US stocks continue to hit fresh records. The S&P 500 is sitting on an annual gain of 18% & the Dow nearly 23%,
Stocks are trading sideways while waiting for those guys in DC to come up with a plan to fund the gov & then pass tax reform. Confusion is riding high, because nobody knows what the next steps are. The popular stock averages remain near record highs after an excellent rise in the last 12 months, but the future looks a little fuzzy which is weighing on traders.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 56.70 | -1.66 | -2.8% |
| GC=F | Gold | 1,266.60 | -15.70 | -1.2% |
Stocks fluctuated after European & Asian shares sank amid a broad risk-off mood. Treasuries climbed with the $ as investors’ focus turned to efforts to avert a US gov shutdown Sat. Advances for software companies & declines in automotive stocks left the S&P 500 bouncing between gains & losses after 3 consecutive sessions in the red. The Stoxx Europe 600 Index slipped following the Nikkei's worst selloff in 9 months. Oil declined past $57 a barrel after data showed US gasoline stockpiles expanded. The ¥ rose as European bonds rallied & stocks from developing nations sank to a 2-month low. Global markets succumbed to a bout of profit taking this week, while US equities struggled to maintain gains, as traders move out of some of 2017's biggest winners, including technology shares & emerging-market stocks. The pause in the rally comes as investors assess US tax reform developments & wrangling over spending after a Rep plan to avoid a federal shutdown Sat was thrown into disarray by infighting. Sterling weakened as efforts to rescue Brexit talks appeared to stumble. Australia's $ dropped as slower-than-expected growth spurred traders to dial back their forecasts on interest-rate increases.
U.S. Stocks Fluctuate as Risk-Off Mood Lifts Bonds: Markets Wrap
US private employers created 190K jobs in Nov, down sharply from the month before & roughly in line with expectations, a report. Economists had forecast the ADP National Employment Report would show a gain of 185K jobs, with estimates ranging from 150K-240,K. Private payroll gains in Oct were unrevised at 235K. The report is jointly developed with Moody's Analytics. The ADP figures come ahead of the Labor Dep more comprehensive non-farm payrolls report on Fri, which includes both public & private-sector employment. Economists are looking for private payroll employment to have grown by 190K jobs in Nov, down from 252K the month before. Total non-farm employment is expected to have risen by 200K & the unemployment rate is forecast to stay steady at the 4.1% recorded a month earlier.
US private sector adds 190,000 jobs in November: ADP
JPMorgan (JPM), a Dow stock, CEO Jamie Dimon is among leading corp chieftains gearing up for a steady year of economic growth in 2018 of around 2.5%. But that view is mainly contingent on US policymakers getting “tax reform right,” Dimon said. His remarks accompanied the Business Roundtable’s Q4 economic outlook, which hit the highest level in 5 years. The group, representing $7Tn in annual revenues & employing more than 16M, also plans to boost capital investment by the most in 6 years. Passing tax reform, which includes lowering the corp tax rate to 20%, could help return some of that capital back to America, allowing CEOs to increase capital investments to juice productivity &, in turn, lift wages. Outgoing Fed Chair Janet Yellen shared similar concerns last week during her final testimony on the economy before Congress, noting the “sluggish pace of productivity growth in recent years”. Reversing this trend, she said, can boost wages & level out income inequality. The latest read from the BRT caps a year of building optimism among America's CEOs, which is not only being driven by the prospects of tax reform, but also by energetic efforts to reduce excessive regulation. “Business leaders no longer, in the current environment, have to anticipate the next regulatory hammer that is going to hit their industry or company,” noted BRT CEO Joshua Bolten. Despite overall optimism about successful tax reform &a regulatory rollback, plans to hire remain little changed from the prior qtr, although hovering near a 4-year high. Still, investors appear to share the optimism among CEOs as US stocks continue to hit fresh records. The S&P 500 is sitting on an annual gain of 18% & the Dow nearly 23%,
Tax reform can lift the U.S. economy, if lawmakers don't blow it: CEOs
Stocks are trading sideways while waiting for those guys in DC to come up with a plan to fund the gov & then pass tax reform. Confusion is riding high, because nobody knows what the next steps are. The popular stock averages remain near record highs after an excellent rise in the last 12 months, but the future looks a little fuzzy which is weighing on traders.
Dow Jones Industrials
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