Dow soared 148 taking it above 25K, advancers over decliners 3-2 & NAZ went up 9. The MLP index was fractionally higher to the 288s & the REIT index is not reporting. Junk bond funds did little & Treasuries slid lower as stocks rallied. Oil climbed higher in the 61s (more below) & gold inched up 1 at 1319.
AMJ (Alerian MLP Index tracking fund)
Stocks rallied around the world on signs the global economic expansion that pushed benchmarks to records in 2017 remains intact. The $ slipped & Treasuries extended declines as a private report showed US employment strengthening. The Dow surpassed 25K for the first time, while the S&P 500 NAZ opened at all-time highs. Builders & carmakers led the advance in Europe, with most of the sectors in the Stoxx Europe 600 Index showing green. The MSCI Asia Pacific Index hit a record after benchmarks in Tokyo closed at their highest in more than a qtr century. US companies added more workers to payrolls than expected in Dec, data from the ADP Research Institute. The economy probably added 190K workers in Dec, based on a projection ahead of Labor Dept data due tomorrow. Core European bonds pared yesterday's gains & the € advanced toward a 3-year high as data showed economic activity in the region accelerated to the fastest pace in almost 7 years. Meanwhile, commodities steadied after a record run of gains with oil trading close to its highest in 3 years.
Payrolls at US companies increased in Dec by the most in 9 months, consistent with further progress in the labor market, according to data released from the ADP Research Institute. Private payrolls rose by 250K (190K est), exceeding all estimates, after a revised 185K increase in Nov. Payrolls in goods-producing industries, which include builders & manufacturers, rose 28K & construction employment increased 16K. Service providers added 222K to payrolls. The increase in hiring remains consistent with a tight job market that has challenged companies' ability to attract skilled & experienced workers. Steady employment growth also reflects more optimism among businesses that is starting to fuel capital investment & underscores an improving economy. The ADP figure compares with an for a 185K advance in private payrolls when the government issues its jobs report tomorros. “The job market ended the year strongly,” Mark Zandi, chief economist of Moody's Analytics, said (Moody's produces the figures with ADP). “Robust Christmas sales prompted retailers and delivery services to add to their payrolls. The tight labor market will get even tighter, raising the specter that it will overheat.”
Companies in U.S. Added 250,000 Jobs in December, ADP Says
Oil rose further above $68 a barrel to the highest since May 2015, supported by unrest in Iran that has raised concerns about supply risks, cold weather in the US which is boosting demand & OPEC-led output cuts. 6 days of anti-gov protests in OPEC's 3rd-largest producer have added a geopolitical risk premium to oil prices, although Iran's production & exports have not been affected. Brent crude, the intl benchmark, is unchanged at $67.84 a barrel after trading as high as $68.27. US crude rose 20¢ to $61.83 & also touched the highest since May 2015. Freezing weather in the US has spurred short-term demand, especially for heating oil. Aside from the spike in May 2015, oil is trading at its highest since Dec 2014, the month in which OPEC decided to stop cutting output, a move that deepened a price collapse. OPEC, supported by Russia & other non-members, began to hammer out a deal to cut supplies again in 2016, aiming to lift prices by removing a glut built up in the previous 2 years. Their cuts started a year ago & compliance has been high, aided by involuntary output declines in Venezuela, whose economy is collapsing, plus unrest in Nigeria & Libya. Producers have decided to extend the deal until the end of 2018. OPEC's cuts are helping reduce global inventories. In the US, crude stocks fell 5M barrels in the latest week, the American Petroleum Institute said.
Oil at highest since 2015, as Iran unrest spooks market
Strong jobs data brought out more stock buyers, taking the Dow above 25K. Optimism is riding high for more growth around the world, part of the reason that oil is at its highest levels in years. But those guys in DC have a lot of work to get done, starting with funding the budget for the rest of the fiscal year. The House will return next week & funding for the budget runs out on Jan 19. For the time being, growing economies win out over dysfunctional DC.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 61.80 | +0.17 | +0.3% |
| GC=F | Gold | 1,319.20 | +0.70 | +0.1% |
Stocks rallied around the world on signs the global economic expansion that pushed benchmarks to records in 2017 remains intact. The $ slipped & Treasuries extended declines as a private report showed US employment strengthening. The Dow surpassed 25K for the first time, while the S&P 500 NAZ opened at all-time highs. Builders & carmakers led the advance in Europe, with most of the sectors in the Stoxx Europe 600 Index showing green. The MSCI Asia Pacific Index hit a record after benchmarks in Tokyo closed at their highest in more than a qtr century. US companies added more workers to payrolls than expected in Dec, data from the ADP Research Institute. The economy probably added 190K workers in Dec, based on a projection ahead of Labor Dept data due tomorrow. Core European bonds pared yesterday's gains & the € advanced toward a 3-year high as data showed economic activity in the region accelerated to the fastest pace in almost 7 years. Meanwhile, commodities steadied after a record run of gains with oil trading close to its highest in 3 years.
Stocks Rise on Global Growth Outlook; Bonds Drop: Markets Wrap
Payrolls at US companies increased in Dec by the most in 9 months, consistent with further progress in the labor market, according to data released from the ADP Research Institute. Private payrolls rose by 250K (190K est), exceeding all estimates, after a revised 185K increase in Nov. Payrolls in goods-producing industries, which include builders & manufacturers, rose 28K & construction employment increased 16K. Service providers added 222K to payrolls. The increase in hiring remains consistent with a tight job market that has challenged companies' ability to attract skilled & experienced workers. Steady employment growth also reflects more optimism among businesses that is starting to fuel capital investment & underscores an improving economy. The ADP figure compares with an for a 185K advance in private payrolls when the government issues its jobs report tomorros. “The job market ended the year strongly,” Mark Zandi, chief economist of Moody's Analytics, said (Moody's produces the figures with ADP). “Robust Christmas sales prompted retailers and delivery services to add to their payrolls. The tight labor market will get even tighter, raising the specter that it will overheat.”
Companies in U.S. Added 250,000 Jobs in December, ADP Says
Oil rose further above $68 a barrel to the highest since May 2015, supported by unrest in Iran that has raised concerns about supply risks, cold weather in the US which is boosting demand & OPEC-led output cuts. 6 days of anti-gov protests in OPEC's 3rd-largest producer have added a geopolitical risk premium to oil prices, although Iran's production & exports have not been affected. Brent crude, the intl benchmark, is unchanged at $67.84 a barrel after trading as high as $68.27. US crude rose 20¢ to $61.83 & also touched the highest since May 2015. Freezing weather in the US has spurred short-term demand, especially for heating oil. Aside from the spike in May 2015, oil is trading at its highest since Dec 2014, the month in which OPEC decided to stop cutting output, a move that deepened a price collapse. OPEC, supported by Russia & other non-members, began to hammer out a deal to cut supplies again in 2016, aiming to lift prices by removing a glut built up in the previous 2 years. Their cuts started a year ago & compliance has been high, aided by involuntary output declines in Venezuela, whose economy is collapsing, plus unrest in Nigeria & Libya. Producers have decided to extend the deal until the end of 2018. OPEC's cuts are helping reduce global inventories. In the US, crude stocks fell 5M barrels in the latest week, the American Petroleum Institute said.
Oil at highest since 2015, as Iran unrest spooks market
Strong jobs data brought out more stock buyers, taking the Dow above 25K. Optimism is riding high for more growth around the world, part of the reason that oil is at its highest levels in years. But those guys in DC have a lot of work to get done, starting with funding the budget for the rest of the fiscal year. The House will return next week & funding for the budget runs out on Jan 19. For the time being, growing economies win out over dysfunctional DC.
Dow Jones Industrials
No comments:
Post a Comment