Dow climbed 74, advancers over decliners 3-2 & NAZ gained 22. The MLP index inched fractionally higher in the 276s. Junk bond funds were mixed & Treasuries finally found a few buyers. Oil was off pennies but still above 60 & gold lost 4 to 1353 following its recent rally.
AMJ (Alerian MLP Index tracking fund)
Stocks extended a global rally as equities rebounded from the worst of this month's correction & the $ slumped toward a 3-year low. The S&P 500 climbed for a 5h consecutive day, topping 2700 as the Dow rose past 25K following gains in Europe & Asia. The yield on 10-year Treasuries held near 2.9% & the ¥ climbed to a 15-month high, while South Africa's rand traded at its strongest level in almost 3 years after Pres Zuma resigned. Stock investors brushed off a report on US wholesale prices that underscored signs of stronger inflation even as a growing number of economists now expect the Federal Reserve to step up the pace of its interest-rate increases this year. A report yesterday showing faster consumer-price increases gave rise to debate on the breakdown in the greenback's correlation to interest rates, as currency investors focused instead on the US's twin deficits. Japan's Finance Minister Taro Aso's comments that the ¥"s gain isn't abrupt enough to require intervention supported the Japanese currency's rally. Hong Kong equities sealed their best 3-day run in more than 2 years in shortened trading ahead of the Lunar New Year holiday.\
U.S. Stocks Are Surging; Dollar Slumps
Confidence among American homebuilders held steady in Feb near the highest level since 1999, suggesting that demand for housing is expected to remain strong, according to data from the National Association of Home Builders/Wells Fargo. Housing Market Index was unchanged at 72 from the prior month (matching est). The measure of 6-month sales outlook climbed 2 points to 80, highest since 2005. The current sales gauge for single-family homes cooled to 78 from 79; index of buyer traffic unchanged at 54. The report signals that home construction will continue to pick up as economic conditions remain favorable. A solid job market and rising wages will keep supporting demand for houses. At the same time, mortgage rates have been increasing in recent weeks & could become a headwind, & rising material prices & shortages of labor remain hurdles for builders. In addition, the recent tax legislation has the potential to reduce demand in some areas because of limits on deductions for mortgage interest & on state & local taxes. The gauge of future sales indicates that “consumer demand for housing should grow in the months ahead,” Robert Dietz, chief economist at NAHB, said. “With ongoing job creation, increasing owner-occupied household formation, and a tight supply of existing home inventory, the single-family housing sector should continue to strengthen at a gradual but consistent pace.” Readings greater than 50 indicate more respondents reported good market conditions.
3 measures of price pressures for American businesses showed they're facing higher production costs, adding to evidence that inflation is creeping up in the US economy. The Empire State Manufacturing prices-paid index increased 12.4 points to 48.6 in Feb, the highest level since 2012, according to the survey published by the Federal Reserve Bank of NY. The prices received index was little changed at 21.5, which the report said was a “level pointing to continued moderate selling price increases.” “Input price increases picked up noticeably,” according to the report. “The index for future prices paid stayed close to last month’s multi-year high.” A separate survey released from the Philadelphia Fed showed prices paid in that region also surging in Feb, reaching the highest level since 2011. The Labor Dept said in a report that US wholesale prices rose in Jan on costs of energy & hospital services. The producer-price index increased 0.4% from the prior month, matching the estimate, after no change the prior month.
More Evidence Shows That Prices Are Rising in the U.S.
Traders are hoping to extend the Dow's winning streak to 5 days by the close. Go figgah!! Inflation & higher interest rates spooked investors last week. Now data supporting those fears is not getting attention. It's back to the strong economy is the prime driver for stocks because all news is considered "good." By another measure the Dow is back to where it was at the start of the year (& it has been drifting lower in the last hour)..
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 60.46 | -0.14 | -0.2% |
| GC=F | Gold | 1,355.60 | -2.40 | -0.2% |
Stocks extended a global rally as equities rebounded from the worst of this month's correction & the $ slumped toward a 3-year low. The S&P 500 climbed for a 5h consecutive day, topping 2700 as the Dow rose past 25K following gains in Europe & Asia. The yield on 10-year Treasuries held near 2.9% & the ¥ climbed to a 15-month high, while South Africa's rand traded at its strongest level in almost 3 years after Pres Zuma resigned. Stock investors brushed off a report on US wholesale prices that underscored signs of stronger inflation even as a growing number of economists now expect the Federal Reserve to step up the pace of its interest-rate increases this year. A report yesterday showing faster consumer-price increases gave rise to debate on the breakdown in the greenback's correlation to interest rates, as currency investors focused instead on the US's twin deficits. Japan's Finance Minister Taro Aso's comments that the ¥"s gain isn't abrupt enough to require intervention supported the Japanese currency's rally. Hong Kong equities sealed their best 3-day run in more than 2 years in shortened trading ahead of the Lunar New Year holiday.\
U.S. Stocks Are Surging; Dollar Slumps
Confidence among American homebuilders held steady in Feb near the highest level since 1999, suggesting that demand for housing is expected to remain strong, according to data from the National Association of Home Builders/Wells Fargo. Housing Market Index was unchanged at 72 from the prior month (matching est). The measure of 6-month sales outlook climbed 2 points to 80, highest since 2005. The current sales gauge for single-family homes cooled to 78 from 79; index of buyer traffic unchanged at 54. The report signals that home construction will continue to pick up as economic conditions remain favorable. A solid job market and rising wages will keep supporting demand for houses. At the same time, mortgage rates have been increasing in recent weeks & could become a headwind, & rising material prices & shortages of labor remain hurdles for builders. In addition, the recent tax legislation has the potential to reduce demand in some areas because of limits on deductions for mortgage interest & on state & local taxes. The gauge of future sales indicates that “consumer demand for housing should grow in the months ahead,” Robert Dietz, chief economist at NAHB, said. “With ongoing job creation, increasing owner-occupied household formation, and a tight supply of existing home inventory, the single-family housing sector should continue to strengthen at a gradual but consistent pace.” Readings greater than 50 indicate more respondents reported good market conditions.
U.S. Homebuilder Sentiment Remains Near Highest Level Since 1999
3 measures of price pressures for American businesses showed they're facing higher production costs, adding to evidence that inflation is creeping up in the US economy. The Empire State Manufacturing prices-paid index increased 12.4 points to 48.6 in Feb, the highest level since 2012, according to the survey published by the Federal Reserve Bank of NY. The prices received index was little changed at 21.5, which the report said was a “level pointing to continued moderate selling price increases.” “Input price increases picked up noticeably,” according to the report. “The index for future prices paid stayed close to last month’s multi-year high.” A separate survey released from the Philadelphia Fed showed prices paid in that region also surging in Feb, reaching the highest level since 2011. The Labor Dept said in a report that US wholesale prices rose in Jan on costs of energy & hospital services. The producer-price index increased 0.4% from the prior month, matching the estimate, after no change the prior month.
More Evidence Shows That Prices Are Rising in the U.S.
Traders are hoping to extend the Dow's winning streak to 5 days by the close. Go figgah!! Inflation & higher interest rates spooked investors last week. Now data supporting those fears is not getting attention. It's back to the strong economy is the prime driver for stocks because all news is considered "good." By another measure the Dow is back to where it was at the start of the year (& it has been drifting lower in the last hour)..
Dow Jones Industrials
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