Dow advanced 70 (nearing 25K), advancers over decliners 3-2 & NAZ went up 40. The MLP index rose 4+ to the 285s & the REIT index did little in the 355s. Junk bond funds were off a tad & Treasuries crawled higher from depressed levels. Oil climbed to the 61s & gold added 1, its 11 straight day of rising.
AMJ (Alerian MLP Index tracking fund)
The $ snapped its longest losing streak since Sep, US stocks opened at record highs & Treasuries gained ahead of the release of minutes from the Federal Reserve Dec policy meeting. The S&P 500 rose past 2700 for the first time, while the NAZ also reached a record. European stocks rose following a positive session in Asia & bonds gained as the region's new investment regulations finally took effect. The Stoxx Europe 600 climbed as automakers rebounded from the Tues slump, & tech & energy stocks advanced. Japanese markets remained closed. Emerging-market shares also gained for a 2nd session. European bonds rose after strong investor interest in an Irish debt sale & the € retreated for the first time in 6 days. Investors are expected to trade cautiously today, at least in Europe, as the biggest shake-up to market regulations in a decade begins. The MiFID II rules are one of the most seismic regulatory shifts in history, affecting everything from investment research to trade execution.
US manufacturing expanded in Dec at the fastest pace in 3 months, as gains in orders & production capped the strongest year for factories since 2004, the Institute for Supply Management said. The factory index climbed to 59.7 (est 58.2) from 58.2 a month earlier (readings above 50 indicate expansion). The gauge of new orders advanced to 69.4, the highest in nearly 14 years, from 64 & the measure of production increased to 65.8, the strongest since 2010, from 63.9. The survey-based measure of factory activity, the year's 2nd-highest behind Sep, when storm-related supply delays boosted the index, brings the 2017 average to 57.6, the best in 13 years. The latest gain extends a string of strong readings that's been fueled by more domestic business investment, improving global economies & steady spending by American households. The acceleration in bookings indicates production will remain robust in coming months as factories race to limit mounting order backlogs amid declining customer inventories. Increasing export orders underscore improvement in global markets. The figures suggest manufacturing strength will persist into early 2018, even after the ISM's semi-annual survey of purchasing managers published last month showed factories anticipate growth in capital spending to slow this year.
Manufacturing in U.S. Accelerates to Cap Best Year Since 2004
US construction spending increased more than expected in Nov, hitting a record high, driven by a surge in investment in private residential & nonresidential projects. The Commerce Dept said that construction spending rose 0.8% to an all-time high of $1.257T. Oct's construction outlays were revised down to show a 0.9% rise instead of the previously reported 1.4% gain. The forecast construction called for spending increasing 0.5% in Nov. Construction spending advanced 2.4% on a year-on-year basis. In Nov, spending on private residential projects soared 1.0% to the highest level in 11 years (before the recession) after rising 0.3% in Oct. The increase was in line with a recent jump in homebuilding & supports the view that housing would boost economic growth in Q4 after being a drag to gross domestic product since Q2. The strong construction spending report suggests Q4 GDP growth estimates, which are currently just below a 3.0% annualized rate, could be raised (the economy grew at a 3.2% pace in Q3). Spending on nonresidential structures rebounded 0.9% in Nov after falling 0.2% in the prior month. Overall, spending on private construction projects climbed 1.0% to a record high, following a 0.3% increase in Oct. Outlays on public construction projects rose 0.2% after jumping 3.5% in Oct. Spending on state & local gov construction projects rose 0.7% & federal gov construction spending tumbled 4.8%.
The stock market continues to do well, aided by good economic data. The popular averages are in a rally mode, setting records every day or 2. Meanwhile, the primary alternative investment gold has risen to the low 1300s. Economic data reported later this week (including the Dec jobs number which comes out on Fri) should keep attracting investors. The Dow just needs about 100 to hit the magical 25K level.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 61.06 | +0.69 | +1.1% |
| GC=F | Gold | 1,318.30 | +2.20 | +0.2% |
The $ snapped its longest losing streak since Sep, US stocks opened at record highs & Treasuries gained ahead of the release of minutes from the Federal Reserve Dec policy meeting. The S&P 500 rose past 2700 for the first time, while the NAZ also reached a record. European stocks rose following a positive session in Asia & bonds gained as the region's new investment regulations finally took effect. The Stoxx Europe 600 climbed as automakers rebounded from the Tues slump, & tech & energy stocks advanced. Japanese markets remained closed. Emerging-market shares also gained for a 2nd session. European bonds rose after strong investor interest in an Irish debt sale & the € retreated for the first time in 6 days. Investors are expected to trade cautiously today, at least in Europe, as the biggest shake-up to market regulations in a decade begins. The MiFID II rules are one of the most seismic regulatory shifts in history, affecting everything from investment research to trade execution.
Dollar Halts Slide; U.S. Stocks at Record Highs: Markets Wrap
US manufacturing expanded in Dec at the fastest pace in 3 months, as gains in orders & production capped the strongest year for factories since 2004, the Institute for Supply Management said. The factory index climbed to 59.7 (est 58.2) from 58.2 a month earlier (readings above 50 indicate expansion). The gauge of new orders advanced to 69.4, the highest in nearly 14 years, from 64 & the measure of production increased to 65.8, the strongest since 2010, from 63.9. The survey-based measure of factory activity, the year's 2nd-highest behind Sep, when storm-related supply delays boosted the index, brings the 2017 average to 57.6, the best in 13 years. The latest gain extends a string of strong readings that's been fueled by more domestic business investment, improving global economies & steady spending by American households. The acceleration in bookings indicates production will remain robust in coming months as factories race to limit mounting order backlogs amid declining customer inventories. Increasing export orders underscore improvement in global markets. The figures suggest manufacturing strength will persist into early 2018, even after the ISM's semi-annual survey of purchasing managers published last month showed factories anticipate growth in capital spending to slow this year.
Manufacturing in U.S. Accelerates to Cap Best Year Since 2004
US construction spending increased more than expected in Nov, hitting a record high, driven by a surge in investment in private residential & nonresidential projects. The Commerce Dept said that construction spending rose 0.8% to an all-time high of $1.257T. Oct's construction outlays were revised down to show a 0.9% rise instead of the previously reported 1.4% gain. The forecast construction called for spending increasing 0.5% in Nov. Construction spending advanced 2.4% on a year-on-year basis. In Nov, spending on private residential projects soared 1.0% to the highest level in 11 years (before the recession) after rising 0.3% in Oct. The increase was in line with a recent jump in homebuilding & supports the view that housing would boost economic growth in Q4 after being a drag to gross domestic product since Q2. The strong construction spending report suggests Q4 GDP growth estimates, which are currently just below a 3.0% annualized rate, could be raised (the economy grew at a 3.2% pace in Q3). Spending on nonresidential structures rebounded 0.9% in Nov after falling 0.2% in the prior month. Overall, spending on private construction projects climbed 1.0% to a record high, following a 0.3% increase in Oct. Outlays on public construction projects rose 0.2% after jumping 3.5% in Oct. Spending on state & local gov construction projects rose 0.7% & federal gov construction spending tumbled 4.8%.
US construction spending rises to record high in November
The stock market continues to do well, aided by good economic data. The popular averages are in a rally mode, setting records every day or 2. Meanwhile, the primary alternative investment gold has risen to the low 1300s. Economic data reported later this week (including the Dec jobs number which comes out on Fri) should keep attracting investors. The Dow just needs about 100 to hit the magical 25K level.
Dow Jones Industrials
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