Dow shot up 103, decliners over advancers 5-4 & NAZ went up 4. The MLP index was fractionally higher to the 302s. Junk bond funds were mixed & Treasuries slid lower. Oil climbed to the 66s & gold inched up 1 to 1357 (close to multi year highs).
AMJ (Alerian MLP Index tracking fund)
The $'s slump worsened as Mario Draghi voiced little concern about the €'s strength, pushing the common currency to a 3-year high. US stocks fluctuated after erasing early gains. The $ headed for its biggest weekly decline in 18 months & the € topped $1.25 for the first time since 2014 after the ECB pres said accelerating economic growth is boosting confidence that inflation will quicken. Draghi said several officials expressed concern that Treasury Secretary Seve Mnuchin's support of a weaker $ could lead to “unwanted tightening of monetary policy.” The S&P 500 was virtually unchanged. Consumer discretionary stocks fell, while materials producers advanced. European equities slumped the most since Dec 1 as the € rallied. In Asia, Japanese shares fell as the ¥ traded at the strongest since Sep. Mnuchin's endorsement of a weaker $ as a boost to US trade yesterday heaped more pressure on an already sliding greenback. Investors are also increasingly worried about the future of global trade as Pres Trump pushes his protectionist agenda. Commerce Secretary Wilbur Ross suggested at Davos that the US could enact more levies.
Dollar Extends Drop on Draghi; U.S. Stocks Mixed: Markets Wrap
US purchases of new homes declined more than projected last month & were revised down in the prior period, showing the market returned to a less exuberant pace as the year drew to a close, according to gov data. Single-family home sales fell 9.3% M/M, the most since Aug 2016, to 625K annualized pace (est 675K) after 689K rate (revised from 733K). The median sales price increased 2.6% Y/Y to $335K. Supply of homes at current sales rate rose to 5.7 months from 4.9 months & 295K new houses were on market at end of Dec. Purchases totaled 608K in 2017, up from 561K a year earlier. The strongest annual sales in a decade reflect an improvement in fundamentals including robust job growth, historically low mortgage rates & a boost in home-equity values. Steady growth in housing demand, Dec's decline notwithstanding, indicate new residential construction will remain firm into the spring selling season. New-home sales, tabulated when contracts get signed, account for about 10% of the market. They're considered a timelier barometer than purchases of previously owned homes, which are calculated when contracts close and are reported by the National Association of Realtors.
Surging Chinese demand & an improving US economy have lifted sales of Caterpillar's, a Dow stock, signature yellow mining & construction machines. Now, with the pace of growth quickening in Latin America & Europe, the company is projecting higher earnings for 2018 than currently estimated. The outlook from CAT, considered an economic bellwether, comes as industries from manufacturing to services report increased sales & orders that have fueled record equity prices & buoyed investor expectations for this year. This week, the IMF raised its estimate for 2018 global growth to the fastest in 7 years. CAT projected growth in its construction & mining-equipment businesses, forecasting increased sales to China & expansion in North America, even without a US infrastructure bill. Its 2018 forecast for EPS of $8.25-9.25 a share. The $8.75 midpoint of that range surpassed the $8.63 analyst estimate. Sales & earnings in Q4 also topped estimates. Estimates for CAT earnings had risen 16% the past 3 months, the most in the Dow, amid signs of improving demand across the globe. The company, which in Dec capped the biggest annual gain in its shares since 2003, raised its 2017 revenue projections 3 times last year. "After four challenging years, many key markets improved in 2017,” CEO Jim Umpleby said. CAT reported that retail machine sales in Q4 rose by the most since 2011, adding to evidence of momentum. Sales in the Latin America resource-industries unit more than doubled. But the stock fell 2.06.
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
The Dow is climbing while the rest of the stock market is taking a rest. At Davos, there is a lot of anticipation about what Trump will say & many of the thoughts are negative. The US & global economies are doing well. And investors like the earnings reports they have seen. Those guys in DC have been quiet for a couple of days, but the need to fund gov spending is important & the deadline is only a couple for weeks away. Neither side is showing signs of blinking. That's one reason why demand for gold continues to be strong.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 66.21 | +0.60 | +0.9% |
| GC=F | Gold | 1,354.10 | -2.20 | -0.2% |
The $'s slump worsened as Mario Draghi voiced little concern about the €'s strength, pushing the common currency to a 3-year high. US stocks fluctuated after erasing early gains. The $ headed for its biggest weekly decline in 18 months & the € topped $1.25 for the first time since 2014 after the ECB pres said accelerating economic growth is boosting confidence that inflation will quicken. Draghi said several officials expressed concern that Treasury Secretary Seve Mnuchin's support of a weaker $ could lead to “unwanted tightening of monetary policy.” The S&P 500 was virtually unchanged. Consumer discretionary stocks fell, while materials producers advanced. European equities slumped the most since Dec 1 as the € rallied. In Asia, Japanese shares fell as the ¥ traded at the strongest since Sep. Mnuchin's endorsement of a weaker $ as a boost to US trade yesterday heaped more pressure on an already sliding greenback. Investors are also increasingly worried about the future of global trade as Pres Trump pushes his protectionist agenda. Commerce Secretary Wilbur Ross suggested at Davos that the US could enact more levies.
Dollar Extends Drop on Draghi; U.S. Stocks Mixed: Markets Wrap
US purchases of new homes declined more than projected last month & were revised down in the prior period, showing the market returned to a less exuberant pace as the year drew to a close, according to gov data. Single-family home sales fell 9.3% M/M, the most since Aug 2016, to 625K annualized pace (est 675K) after 689K rate (revised from 733K). The median sales price increased 2.6% Y/Y to $335K. Supply of homes at current sales rate rose to 5.7 months from 4.9 months & 295K new houses were on market at end of Dec. Purchases totaled 608K in 2017, up from 561K a year earlier. The strongest annual sales in a decade reflect an improvement in fundamentals including robust job growth, historically low mortgage rates & a boost in home-equity values. Steady growth in housing demand, Dec's decline notwithstanding, indicate new residential construction will remain firm into the spring selling season. New-home sales, tabulated when contracts get signed, account for about 10% of the market. They're considered a timelier barometer than purchases of previously owned homes, which are calculated when contracts close and are reported by the National Association of Realtors.
U.S. New-Home Sales Declined More Than Forecast in December
Surging Chinese demand & an improving US economy have lifted sales of Caterpillar's, a Dow stock, signature yellow mining & construction machines. Now, with the pace of growth quickening in Latin America & Europe, the company is projecting higher earnings for 2018 than currently estimated. The outlook from CAT, considered an economic bellwether, comes as industries from manufacturing to services report increased sales & orders that have fueled record equity prices & buoyed investor expectations for this year. This week, the IMF raised its estimate for 2018 global growth to the fastest in 7 years. CAT projected growth in its construction & mining-equipment businesses, forecasting increased sales to China & expansion in North America, even without a US infrastructure bill. Its 2018 forecast for EPS of $8.25-9.25 a share. The $8.75 midpoint of that range surpassed the $8.63 analyst estimate. Sales & earnings in Q4 also topped estimates. Estimates for CAT earnings had risen 16% the past 3 months, the most in the Dow, amid signs of improving demand across the globe. The company, which in Dec capped the biggest annual gain in its shares since 2003, raised its 2017 revenue projections 3 times last year. "After four challenging years, many key markets improved in 2017,” CEO Jim Umpleby said. CAT reported that retail machine sales in Q4 rose by the most since 2011, adding to evidence of momentum. Sales in the Latin America resource-industries unit more than doubled. But the stock fell 2.06.
If you would like to learn more about CAT, click on this link:
club.ino.com/trend/analysis/stock/CAT?a_aid=CD3289&a_bid=6ae5b6f7
Caterpillar Tops Estimates Again With a Bright Outlook for '18
The Dow is climbing while the rest of the stock market is taking a rest. At Davos, there is a lot of anticipation about what Trump will say & many of the thoughts are negative. The US & global economies are doing well. And investors like the earnings reports they have seen. Those guys in DC have been quiet for a couple of days, but the need to fund gov spending is important & the deadline is only a couple for weeks away. Neither side is showing signs of blinking. That's one reason why demand for gold continues to be strong.
Dow Jones Industrials
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