Dow advanced 98, advancers over decliners about 3-2 & NAZ added 21. The MLP index dropped 1+ to the 297s. Junk bond funds fell & Treasuries were little changed. Oil was about even in the 63s & gold slid back 1 to 1336.
AMJ (Alerian MLP Index tracking fund)
Stocks opened higher as earnings season continued & another major bank reported healthy results. The $ rose, while Treasuries declined & gold extended the Tues drop, with Congress appearing closer to a deal to avert a gov shutdown after Jan 19. S&P 500 gained after Bank of America (BAC) beat estimates & indicated that it could benefit from the US tax overhaul by reducing pressure to cut future costs. The Stoxx Europe 600 Index was down slightly. Support came from the weaker €, which was dragged down by some verbal intervention from the ECB, while the ¥ & Swiss franc were among the other major currencies falling against the greenback. Traders appear to be taking a pause, perhaps questioning the pace of gains in global equity markets since the start of 2018. After sales updates from many retailers, the earnings season is ramping up, with money managers eager for good news to help maintain the rally. Meanwhile bond investors are mulling the potential for monetary policy in the US to tighten faster than expected & settling their nerves after last week's selloff. The notion of a bear market doesn't seem to have endured, the yield curve steepening bartely lasted a day. West Texas crude slipped before US gov data forecast to show crude stockpiles fell for a 9th week.
US factory production rose for a 4th straight month in Dec, capping the strongest qtr since 2010 & underscoring a resurgence in manufacturing that's primed for further advances, Federal Reserve data showed. Factory output rose 0.1% (est 0.3% gain) after rising an upwardly revised 0.3%. Total industrial production, which also includes mines & utilities, increased 0.9% (est 0.5% rise) after a revised 0.1% decrease. Capacity utilization, measuring the amount of a plant that is in use, rose to 77.9% (est 77.4%) from 77.2%. The smaller-than-expected Dec gain in manufacturing output reflected a 0.1% drop in production of nondurable goods, including petroleum & chemicals. Output of durable goods rose a solid 0.3%. Factory output increased at a 7% annualized rate in Q4, the strongest since 2010. Combined with national & regional surveys of purchasing managers, the figures indicate manufacturing was robust at the end of the year. Stronger consumer spending, increased business investment & more shipments of merchandise to overseas customers are providing plenty of fuel for the nation’s producers. What's more, the lowest business inventory-to-sales ratio in 3 years could translate into increased production in coming months. Factory output climbed 1.3% in 2017, the strongest annual reading in 5 years. The Fed's monthly data are volatile & often get revised. Manufacturing, which makes up more than 75% of total industrial production, accounts for about 12% of the US economy. It increased 2.4% in Dec from the same month a year earlier.
Sentiment among America's homebuilders eased in Jan to the 2nd-highest level since 2005, a sign the housing market will continue to make strides this year, according to the National Association of Home Builders/Wells Fargo. The housing Market Index fell to 72 (matching est) from the Dec 74 reading that was the strongest since 1999. Measure of 6-month sales outlook slipped to 78 from a 12-year high of 79. Current sales gauge for single-family homes cooled to 79 from 80. The first builder-sentiment reading for 2018, albeit a decline from a 18-year high, is consistent with other reports that indicate residential construction will build on recent growth, as a solid job market, relatively low mortgage costs & rising confidence help propel housing demand. Hurdles for builders still include climbing costs of construction supplies, as well as shortages of workers & ready-to-build land. Last month's tax-cut legislation that limited deductions for mortgage interest & property taxes could also hurt sales in some areas, even if it gives an overall boost to the economy. The outlook gauge suggests “housing demand should grow in 2018,” Robert Dietz, chief economist at NAHB, said. “As the overall economy strengthens, owner-occupied household formation increases and the supply of existing home inventory tightens, we can expect the single-family housing market to make further gains this year.” “Builders are confident that changes to the tax code will promote the small business sector and broader economic growth,” NAHB Chairman Randy Noel, a custom home builder, said. “Our members are excited about the year ahead, even as they continue to face building-material price increases and shortages of labor and lots.” Gauge of prospective buyer traffic fell to 54 from 58
The stock market digested the news which brought selling yesterday, & the bulls are back. They like earnings. The mess in DC relating to a gov shutdown does not bother traders, at least for the moment. They figure those guys will come up with a temp patch, whatever. The Dow just needs another 100 to close above 26K & that could be done today or tomorrow based on the way the bulls are behaving.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 63.56 | -0.17 | -0.3% |
| GC=F | Gold | 1,335.50 | -1.60 | -0.1% |
Stocks opened higher as earnings season continued & another major bank reported healthy results. The $ rose, while Treasuries declined & gold extended the Tues drop, with Congress appearing closer to a deal to avert a gov shutdown after Jan 19. S&P 500 gained after Bank of America (BAC) beat estimates & indicated that it could benefit from the US tax overhaul by reducing pressure to cut future costs. The Stoxx Europe 600 Index was down slightly. Support came from the weaker €, which was dragged down by some verbal intervention from the ECB, while the ¥ & Swiss franc were among the other major currencies falling against the greenback. Traders appear to be taking a pause, perhaps questioning the pace of gains in global equity markets since the start of 2018. After sales updates from many retailers, the earnings season is ramping up, with money managers eager for good news to help maintain the rally. Meanwhile bond investors are mulling the potential for monetary policy in the US to tighten faster than expected & settling their nerves after last week's selloff. The notion of a bear market doesn't seem to have endured, the yield curve steepening bartely lasted a day. West Texas crude slipped before US gov data forecast to show crude stockpiles fell for a 9th week.
Stocks Rise as BofA Continues Strong Bank Earnings: Markets Wrap
US factory production rose for a 4th straight month in Dec, capping the strongest qtr since 2010 & underscoring a resurgence in manufacturing that's primed for further advances, Federal Reserve data showed. Factory output rose 0.1% (est 0.3% gain) after rising an upwardly revised 0.3%. Total industrial production, which also includes mines & utilities, increased 0.9% (est 0.5% rise) after a revised 0.1% decrease. Capacity utilization, measuring the amount of a plant that is in use, rose to 77.9% (est 77.4%) from 77.2%. The smaller-than-expected Dec gain in manufacturing output reflected a 0.1% drop in production of nondurable goods, including petroleum & chemicals. Output of durable goods rose a solid 0.3%. Factory output increased at a 7% annualized rate in Q4, the strongest since 2010. Combined with national & regional surveys of purchasing managers, the figures indicate manufacturing was robust at the end of the year. Stronger consumer spending, increased business investment & more shipments of merchandise to overseas customers are providing plenty of fuel for the nation’s producers. What's more, the lowest business inventory-to-sales ratio in 3 years could translate into increased production in coming months. Factory output climbed 1.3% in 2017, the strongest annual reading in 5 years. The Fed's monthly data are volatile & often get revised. Manufacturing, which makes up more than 75% of total industrial production, accounts for about 12% of the US economy. It increased 2.4% in Dec from the same month a year earlier.
U.S. Manufacturing Output Rose in December for Fourth Month
Sentiment among America's homebuilders eased in Jan to the 2nd-highest level since 2005, a sign the housing market will continue to make strides this year, according to the National Association of Home Builders/Wells Fargo. The housing Market Index fell to 72 (matching est) from the Dec 74 reading that was the strongest since 1999. Measure of 6-month sales outlook slipped to 78 from a 12-year high of 79. Current sales gauge for single-family homes cooled to 79 from 80. The first builder-sentiment reading for 2018, albeit a decline from a 18-year high, is consistent with other reports that indicate residential construction will build on recent growth, as a solid job market, relatively low mortgage costs & rising confidence help propel housing demand. Hurdles for builders still include climbing costs of construction supplies, as well as shortages of workers & ready-to-build land. Last month's tax-cut legislation that limited deductions for mortgage interest & property taxes could also hurt sales in some areas, even if it gives an overall boost to the economy. The outlook gauge suggests “housing demand should grow in 2018,” Robert Dietz, chief economist at NAHB, said. “As the overall economy strengthens, owner-occupied household formation increases and the supply of existing home inventory tightens, we can expect the single-family housing market to make further gains this year.” “Builders are confident that changes to the tax code will promote the small business sector and broader economic growth,” NAHB Chairman Randy Noel, a custom home builder, said. “Our members are excited about the year ahead, even as they continue to face building-material price increases and shortages of labor and lots.” Gauge of prospective buyer traffic fell to 54 from 58
Homebuilder Sentiment in U.S. Cools in January From 18-Year High
The stock market digested the news which brought selling yesterday, & the bulls are back. They like earnings. The mess in DC relating to a gov shutdown does not bother traders, at least for the moment. They figure those guys will come up with a temp patch, whatever. The Dow just needs another 100 to close above 26K & that could be done today or tomorrow based on the way the bulls are behaving.
Dow Jones Industrials
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