Dow rose 133, advancers over decliners 3-1 & NAZ gained 56. The MLP index added 1+ to the 252s & the REIT index was up 1+ to the 272s. Junk bond funds were mixed & Treasuries slid lower in price. Oil jumped 1+ to 58 (more below) & gold went up 9 to 1307.
AMJ (Alerian MLP Index tracking fund)
Stocks higher after upbeat comments on US-China trade
Orders for long-lasting durable goods rose in Jan for the 3rd month in a row & business investment posted the biggest increase since last summer, indicating a key segment of the economy is still expanding at a steady if unspectacular pace. Orders rose 0.4% in Jan, according to a gov report delayed because of the partial federal shutdown earlier this year. The forecast called for a 0.1% decline. If transportation is stripped out, orders dipped 0.1% owing to decline in bookings for new cars & trucks. Orders rose in Jan for commercial aircraft, machinery, transportation equipment & networking gear. Along with a 1% decline in autos & parts, orders also fell for industrial metals & computers. A key measure of business investment, known as core orders, rose 0.8% in Jan to mark the biggest increase since last Jul. Investment had fallen sharply in the prior 2 months. Companies pared investment toward the end of the year as interest rates rose & ongoing trade dispute with China disrupted supply chains & business planning. The yearly rate of investment rose slightly to 3.1% in Jan, but it's down sharply from recent peak of almost 10%. By most measures the industrial side of the economy has gotten off to a slower start in 2019. A weaker global economy & stronger $ have curbed exports & are likely to limit growth in the months ahead, even if the trade dispute with China is resolved. Rising manufacturing inventories bear watching: That might be a sign that sales continue to soften.
The Energy Information Administration (EIA) reported that US crude supplies fell by 3.9M barrels for the latest week. That ran counter to a climb of 3.3M barrels expected. The American Petroleum Institute yesterday had reported a 2.6M barrel decline. Supplies of gasoline dropped by 4.6M barrels, while distillates edged up by 400K barrels last week, according to the EIA. The survey had shown expectations for supply declines of 3.5M barrels for gasoline & 2.5M barrels for distillates. Apr West Texas Intermediate crude was up $1.14 (2%) at $58.01 a barrel after trading at $57.79 before the data.
Economic data & optimism on the US-China trade talks are bringing out stock buyers. However Q1 economic data is sluggish & trade talks are iffy, at best. The Dow needs to rise another 1K for a new record & that seems far away after trending sideways for a month. Gold, negative best on stocks, is still in demand.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 57.79 | +0.92 | +1.6% |
| GC=F | Gold | 1,309.10 | +11.00 | +0.9% |
Stocks rose after US Trade Representative Robert Lighthizer told a Senate panel that US-China trade talks were near their conclusion & European stocks posted gains. "Our hope is that we are in the final weeks of having an agreement," he told the Senate Finance Committee yesterday. His comments, plus soft inflation data, helped
offset concerns about the UK's Brexit issues & prospects for the
global economy to slow its rate of growth. British
lawmakers rejected Prime Minister Theresa May's revised Brexit deal,
raising uncertainty about what happens on Mar 29 when -- without a
deal -- the nation will automatically leave the EU,
terminating trading arrangements that have been in effect since Britain
has been in the EU. Investors also remained
concerned about the ECB's downward revisions in its
forecast for global economic growth & inflation. At the heart of that
downward revision are signs that China's rate of growth is slowing, the
result of the US-China trade dispute. Asian stocks ended the day lower. Japan's Nikkei
225 closed down 1%, the Hang Sang ended lower by 0.4% & the Shanghai Composite was off 1.1%. European
equities traded higher. The FTSE 100 was up 0.2%, Germany's DAX
was flat & France's CAC 40 added 0.4%.
Stocks higher after upbeat comments on US-China trade
US producer prices barely
rose in Feb, resulting in the smallest annual increase in more
than 1½ years, in the latest sign of benign inflation that supports
the Federal Reserve's wait-&-see approach to further interest rate hikes this year. The
Labor Dept said its producer price index (PPI) for final
demand edged up 0.1% last month, lifted by a rebound in the cost
of gasoline. The PPI had dropped for 3 straight months. In the 12 months thru Feb, the PPI rose
1.9%, the smallest gain since Jun 2017 & followed a
2.0% increase in Jan. The
forecast called for the PPI rebounding 0.2% in Feb & advancing 1.9% on a year-on-year basis. A
key gauge of underlying producer price pressures that excludes food,
energy & trade services rose 0.1% last month after climbing 0.2% in Jan. Core PPI increased 2.3% in the
12 months thru Feb, the smallest rise since Dec 2017,
after advancing 2.5% in Jan. Data showed consumer prices rising moderately in Feb, with the
consumer price index posting its smallest annual gain in nearly 2½
years. Slowing domestic & global growth are
keeping inflation contained even as a tight labor market boosts wage
growth. An improvement in productivity is curbing labor costs for
companies & the $ strength last year is weighing on prices of
imported goods. The Fed has pledged to be
"patient" before tightening monetary policy further after the central
bank raised interest rates 4 times in 2018. Last
month, wholesale energy prices rose 1.8%, with gasoline prices
rebounding 3.3%. Energy prices dropped 3.8% in Jan.
Wholesale food prices fell 0.3% after dropping 1.7% in the prior month. Overall,
the cost of wholesale goods increased 0.4% in Feb after
tumbling 0.8% in Jan. Core goods edged up 0.1% after
rising 0.3% in Jan. The cost of services was unchanged in Feb after rising 0.3% in the prior month.
US producer prices rise less than expected in February
Orders for long-lasting durable goods rose in Jan for the 3rd month in a row & business investment posted the biggest increase since last summer, indicating a key segment of the economy is still expanding at a steady if unspectacular pace. Orders rose 0.4% in Jan, according to a gov report delayed because of the partial federal shutdown earlier this year. The forecast called for a 0.1% decline. If transportation is stripped out, orders dipped 0.1% owing to decline in bookings for new cars & trucks. Orders rose in Jan for commercial aircraft, machinery, transportation equipment & networking gear. Along with a 1% decline in autos & parts, orders also fell for industrial metals & computers. A key measure of business investment, known as core orders, rose 0.8% in Jan to mark the biggest increase since last Jul. Investment had fallen sharply in the prior 2 months. Companies pared investment toward the end of the year as interest rates rose & ongoing trade dispute with China disrupted supply chains & business planning. The yearly rate of investment rose slightly to 3.1% in Jan, but it's down sharply from recent peak of almost 10%. By most measures the industrial side of the economy has gotten off to a slower start in 2019. A weaker global economy & stronger $ have curbed exports & are likely to limit growth in the months ahead, even if the trade dispute with China is resolved. Rising manufacturing inventories bear watching: That might be a sign that sales continue to soften.
Durable-goods orders rise in January for third straight month as investment rebounds
The Energy Information Administration (EIA) reported that US crude supplies fell by 3.9M barrels for the latest week. That ran counter to a climb of 3.3M barrels expected. The American Petroleum Institute yesterday had reported a 2.6M barrel decline. Supplies of gasoline dropped by 4.6M barrels, while distillates edged up by 400K barrels last week, according to the EIA. The survey had shown expectations for supply declines of 3.5M barrels for gasoline & 2.5M barrels for distillates. Apr West Texas Intermediate crude was up $1.14 (2%) at $58.01 a barrel after trading at $57.79 before the data.
U.S. oil prices top $58 as EIA reports a nearly 4 million-barrel drop in U.S. crude supplies
Economic data & optimism on the US-China trade talks are bringing out stock buyers. However Q1 economic data is sluggish & trade talks are iffy, at best. The Dow needs to rise another 1K for a new record & that seems far away after trending sideways for a month. Gold, negative best on stocks, is still in demand.
Dow Jones Industrials
No comments:
Post a Comment