Dow dropped 205, decliners over advancers about 5-4 & NAZ lost 64. The MLP index was pennies lower to the 246s & the REIT index fluctuated. Junk bond funds slipped lower & Treasuries rose in price. Oil was fractionally higher to the 56s (more below) & gold jumped up 10 to 1210.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
club.ino.com/trend/analysis/stock/M?a_aid=CD3289&a_bid=6ae5b6f7
The £ rebounded from its lows of the day tonday after Prime Minister Theresa May said she had obtained enough support for her proposed Brexit deal to move forward. Sterling traded 0.2% higher at $1.2999 after breaking below $1.29 earlier in the day. “I firmly believe that the draft withdrawal agreement was the best that could be negotiated,” May told reporters. “The choices before us were difficult,” May added. “But the collective decision by Cabinet was that the government should agree the draft withdrawal agreement and the outlying political declaration.” “This is a decisive step which enables us to move on and finalize the deal in the days ahead,” May added. The deal reportedly keeps the UK within the customs union of the EU for an unspecific amount of time. The draft deal also includes commitments over UK citizens' rights after Brexit & a proposed 21-month transition period after Britain's departure on Mar 2019. The £ first started falling earlier in the day after the UK police minister said May would not deliver a statement to the media regarding the country's divorce from the EU. The currency quickly recovered those losses after it was reported that May would in fact deliver a short statement on the matter later in the day. But the currency later fell to its lows of the day after a correspondent reported that UK officials are considering a “no confidence” vote tomorrow “Brexiteer anger” rises.
Pound rebounds against the dollar as Theresa May secures support for Brexit deal
US crude rebounds 1%, settling at $56.25 after record 12-day losing streak
Mortgage application volume fell 3.2% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 22% lower compared with the same week one year ago. Mortgage applications to purchase a home fell 2.3% for the week to the lowest level since Feb 2017. Purchase volume was 3% lower compared with a year ago. While tight supply of homes for sale had been plaguing buyers for much of this year, listings are increasing, but so are prices and interest rates, weakening affordability. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453K or less) increased to 5.17% from 5.15%, with points increasing to 0.55 from 0.51 (including the origination fee) for loans with 20% down payments, the highest level since 2010. Applications to refinance a home loan, which are highly rate sensitive, fell 4.3% for the week & were 40% lower compared with a year ago --- the lowest level in nearly 18 years. While homeowners now have more collective home equity than they ever have in history, thanks to higher home values, fewer are willing to tap that equity thru a refinance, because it would require giving up their rock-bottom interest rate. Since rates sat so low for so long, there is a shrinking pool of borrowers who could now benefit from a refinance, cash-out or not.
Weekly mortgage applications drop 3.2%, hit by tanking stocks and rising rates
Oil is still in its bear market & today's recovery was modest. There was talk that the producers might cut back production. The rest of the market is also struggling. Apple (AAPL) stock, which is in 2 major indices, is in bear market as its market for ePhones looks to be maturing. There was a mini rally late in the day, but sellers returned in the last ½ hour of trading. The Dow is less than 100 above the important 25K support level after falling a massive 1K in the last 4 days.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Macy's (M) sales & profit,
as well as same-store sales, surged in Q3 on both strong
digital revenue & improved brick-&-mortar performance. The
company, which also boosted its EPS outlook by 15¢, reported net sales of $5.4B, up from $5.28B in the
year-earlier qtr, & EPS of 27¢, up from 21¢. Adjusted net income attributable to shareholders climbed to $83M from $65M. Sales from stores that have been open at least one year rose 3.1%
on an owned basis & 3.3% on an owned-&-licensed basis. The
Aug-Oct period marked the 4th straight qtr of
comparable-store sales improvement. "Macy’s, Bloomingdale’s and Bluemercury all
performed well,” CEO Jeff Gennette said. “Our strategic
initiatives are gaining momentum and delivering results. Another
double-digit quarter from our digital business and a strong stores
performance combined to help us exceed expectations. We continue to see
an improved trend in brick and mortar across the fleet with particularly
strong results from our Growth50 stores.” The
company hiked its comparable-sales outlook for fiscal 2018 to a gain of
2.3-2.5% from a range of 2.1-2.5%.
Full-year EPS is now expected to be $4.10-4.30 from a previous range
of $3.95-4.15. Asset sales for the 3
months ended Nov 3 declined to $42M pretax ($31M after
tax) in Q3 compared to $65M pretax ($40M after tax) in Q3-2017. Macy's
has approximately 130K employees & operates 690 department
stores in 44 states, Puerto Rico, Guam DC The stock pulled back 2.57 (7%), good news was not good enough.
If you would like to learn more about Macy's, click on this link:club.ino.com/trend/analysis/stock/M?a_aid=CD3289&a_bid=6ae5b6f7
Macy's posts 3Q earnings, sales beat on strong digital performance
The £ rebounded from its lows of the day tonday after Prime Minister Theresa May said she had obtained enough support for her proposed Brexit deal to move forward. Sterling traded 0.2% higher at $1.2999 after breaking below $1.29 earlier in the day. “I firmly believe that the draft withdrawal agreement was the best that could be negotiated,” May told reporters. “The choices before us were difficult,” May added. “But the collective decision by Cabinet was that the government should agree the draft withdrawal agreement and the outlying political declaration.” “This is a decisive step which enables us to move on and finalize the deal in the days ahead,” May added. The deal reportedly keeps the UK within the customs union of the EU for an unspecific amount of time. The draft deal also includes commitments over UK citizens' rights after Brexit & a proposed 21-month transition period after Britain's departure on Mar 2019. The £ first started falling earlier in the day after the UK police minister said May would not deliver a statement to the media regarding the country's divorce from the EU. The currency quickly recovered those losses after it was reported that May would in fact deliver a short statement on the matter later in the day. But the currency later fell to its lows of the day after a correspondent reported that UK officials are considering a “no confidence” vote tomorrow “Brexiteer anger” rises.
Pound rebounds against the dollar as Theresa May secures support for Brexit deal
Oil prices rose finally, ending the longest
ever losing streak for US crude, on the growing prospect of OPEC &
allied producers cutting output at a meeting next month. Prices
recovered, with Brent inching back above $67 after a report that
OPEC & its partners are discussing a proposal to cut output by up to
1.4M barrels per day (bpd), a larger figure than officials had
mentioned previously. West Texas Intermediate (WTI) crude oil future ended the session up 56¢ (1%) at $56.25 per barrel after WTI fell 7% to a one-year low on yesterday. Intl benchmark Brent crude futures were up 51¢ at $65.08 per barrel. Brent plunged 6% to settle at an 8-month low in the previous session. The
price of Brent has fallen by more than 20% since early Oct
on concern about excess supply & slowing demand, one of the biggest
declines since a price collapse in 2014. US crude had declined for a
record 12 consecutive sessions to the lowest since Nov 2017. The selling leading up to today was further exacerbated as traders unwound long oil - short natural gas trade,
market participants said. As oil crashed from the high touched in
Oct, natural gas futures soared as much as 56% during that
time to a 4½ year high. Oil markets are being pressured from two sides: a surge in supply
from OPEC, Russia, the US & other producers; & increasing
concerns about a global economic slowdown. In its monthly report,
the Intl Energy Agency (IEA) said the implied
stock build for H1-2019 is 2M bpd. The IEA
left its forecast for global demand growth for 2018 & 2019 unchanged
from last month at 1.3M barrels per day (bpd) & 1.4M
bpd, respectively, but cut its forecast for non-OECD demand growth, the
engine of expansion in world oil consumption. That surge in onshore output has helped overall US crude production
hit a record 11.6M bpd, making the US the world's
biggest oil producer ahead of Russia & Saudi Arabia. The US output is expected to climb above 12M bpd in H1-2019. The
rise in US production is contributing to higher stockpiles. Official
storage data is due on tomorrow from the EIA, with analysts expecting a 3M barrel rise in crude inventories.
US crude rebounds 1%, settling at $56.25 after record 12-day losing streak
Mortgage application volume fell 3.2% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 22% lower compared with the same week one year ago. Mortgage applications to purchase a home fell 2.3% for the week to the lowest level since Feb 2017. Purchase volume was 3% lower compared with a year ago. While tight supply of homes for sale had been plaguing buyers for much of this year, listings are increasing, but so are prices and interest rates, weakening affordability. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453K or less) increased to 5.17% from 5.15%, with points increasing to 0.55 from 0.51 (including the origination fee) for loans with 20% down payments, the highest level since 2010. Applications to refinance a home loan, which are highly rate sensitive, fell 4.3% for the week & were 40% lower compared with a year ago --- the lowest level in nearly 18 years. While homeowners now have more collective home equity than they ever have in history, thanks to higher home values, fewer are willing to tap that equity thru a refinance, because it would require giving up their rock-bottom interest rate. Since rates sat so low for so long, there is a shrinking pool of borrowers who could now benefit from a refinance, cash-out or not.
Weekly mortgage applications drop 3.2%, hit by tanking stocks and rising rates
Oil is still in its bear market & today's recovery was modest. There was talk that the producers might cut back production. The rest of the market is also struggling. Apple (AAPL) stock, which is in 2 major indices, is in bear market as its market for ePhones looks to be maturing. There was a mini rally late in the day, but sellers returned in the last ½ hour of trading. The Dow is less than 100 above the important 25K support level after falling a massive 1K in the last 4 days.
Dow Jones Industrials
No comments:
Post a Comment