Dow shot up 139, advancers over decliners almost 2-1 & NAZ gained 55. The MLP index fluctuated around the 251s & the REIT index was even in the 374s (just below its record highs). Junk bond funds did little & Treasuries were also purchased, taking the yield on the 10 year Treasury below 2.6%. Oil drifted back pennies in the 58s & gold went up 6 to 1301 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
The NY Fed's Empire State business-conditions index fell to a reading of 3.7 in Mar from 8.8 in the prior month. This is the lowest level in almost 2 years. The forecast called for a reading of 10. Any reading above zero indicates improving conditions. The new-orders index fell 4.5 points to 3 in Mar & the shipments index slipped 2.7 points to 7.7 (its lowest level in more than 2 years). The index for the number of employees climbed 10 points to 13.8, indicating an increase in employment, but the average workweek turned negative for the first time since 2016. Looking 6 months out, manufacturers remained fairly optimistic. This is the 3rd monthly Empire State reading below 10, suggesting that growth is quite a bit slower so far this year than in 2018. Last year, the Empire State index averaged 19.8. A slowdown in China's manufacturing sector was seen as the leading culprit. US manufacturing is slowing; the question is by how much.
Gold futures climbed to score a gain for the week, with the metal finding support in the wake of mass shootings at 2 mosques in New Zealand, as well as from a weaker tone for the $. At least 49 people were killed at a pair of mass shootings at mosques in Christchurch, New Zealand. The British Parliament yesterday voted to request an extension of the Mar 29 Brexit deadline. Gold for Apr delivery on Comex rose $7.80 (0.6%) to settle at $1302 an ounce, with prices logging a weekly rise of 0.3%. Gold also appeared to get a boost from renewed optimism over prospects for a US-China trade deal. Upbeat comments on trade were cited as a factor behind global equity gains, with China's state media citing “concrete progress” on the text of a trade agreement. Also, Chinese Premier Li Keqiang, the country's #2 leader behind Pres Xi Jinping, reiterated the gov's capacity to use stimulus to boost economic growth.
Crude-oil futures finished lower, with US prices pulling back after 4 days of consecutive gains that prompted crude to tally its best weekly gain in about a month, amid growing signs of tightening global supplies. Apr West Texas Intermediate crude shed 9¢ to settle at $58.52 a barrel, after settling at its highest level since mid-Nov yesterday. WTI tallied a weekly gain of about 4.4% based on the most-active contracts, which marked its sharpest weekly rise since the period ending in mid Feb. May Brent crude meanwhile, lost 7¢, to $67.16 a barrel, with the contract up 2.2% for the week.
The Dow managed to advance 200 this week. Another way to look at the trading is its sideways trend continued. The Dow finished where it was a month ago & down a smidgen from the end of Feb. Trade talks, Brexit & the goings on in DC have not inspired more stock buying. Without a major development, this type of trading can continue for the rest of the month (&qr)..
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
US industrial production rose a slight 0.1% in Feb, as an increase in utilities & mining offset the 2nd straight monthly drop in manufacturing. The
Federal Reserve said that the manufacturing component of the
index fell 0.4% last month, after having fallen 0.5% in
Jan. Factory production has slipped 1% during the past 12
months. The
report adds to recent evidence of a slowdown in manufacturing, a
possible byproduct of weaker global growth & the import taxes imposed
by Pres Trump. Orders for
non-transportation goods have tumbled in 2 of the past 3 months,
according to the Commerce Dept. The pace of factory growth is
slowing, according to the manufacturing index of The Institute for
Supply Management, an association of purchasing managers. In
the Fed's industrial production report, motor vehicles & parts
suffered a 0.1% slip in output. Machinery fell 1.9%.
Furniture products declined 1.5%. Non-metallic minerals &
apparel also declined. Utility output climbed 3.7% as more people used electricity. Mining rose 0.3%. Overall
industrial production has risen 3.5% from a year ago. But there
may be a slowdown coming as capacity utilization has fallen to 78.2% from 78.8% in Nov.
US industrial production rose just 0.1 percent in February
The NY Fed's Empire State business-conditions index fell to a reading of 3.7 in Mar from 8.8 in the prior month. This is the lowest level in almost 2 years. The forecast called for a reading of 10. Any reading above zero indicates improving conditions. The new-orders index fell 4.5 points to 3 in Mar & the shipments index slipped 2.7 points to 7.7 (its lowest level in more than 2 years). The index for the number of employees climbed 10 points to 13.8, indicating an increase in employment, but the average workweek turned negative for the first time since 2016. Looking 6 months out, manufacturers remained fairly optimistic. This is the 3rd monthly Empire State reading below 10, suggesting that growth is quite a bit slower so far this year than in 2018. Last year, the Empire State index averaged 19.8. A slowdown in China's manufacturing sector was seen as the leading culprit. US manufacturing is slowing; the question is by how much.
Empire State manufacturing index shows only slight activity in March
Gold futures climbed to score a gain for the week, with the metal finding support in the wake of mass shootings at 2 mosques in New Zealand, as well as from a weaker tone for the $. At least 49 people were killed at a pair of mass shootings at mosques in Christchurch, New Zealand. The British Parliament yesterday voted to request an extension of the Mar 29 Brexit deadline. Gold for Apr delivery on Comex rose $7.80 (0.6%) to settle at $1302 an ounce, with prices logging a weekly rise of 0.3%. Gold also appeared to get a boost from renewed optimism over prospects for a US-China trade deal. Upbeat comments on trade were cited as a factor behind global equity gains, with China's state media citing “concrete progress” on the text of a trade agreement. Also, Chinese Premier Li Keqiang, the country's #2 leader behind Pres Xi Jinping, reiterated the gov's capacity to use stimulus to boost economic growth.
Gold climbs back above $1,300 to score a gain for the week
Crude-oil futures finished lower, with US prices pulling back after 4 days of consecutive gains that prompted crude to tally its best weekly gain in about a month, amid growing signs of tightening global supplies. Apr West Texas Intermediate crude shed 9¢ to settle at $58.52 a barrel, after settling at its highest level since mid-Nov yesterday. WTI tallied a weekly gain of about 4.4% based on the most-active contracts, which marked its sharpest weekly rise since the period ending in mid Feb. May Brent crude meanwhile, lost 7¢, to $67.16 a barrel, with the contract up 2.2% for the week.
Oil finishes with a loss, but U.S. prices mark sharpest weekly rise in a month
The Dow managed to advance 200 this week. Another way to look at the trading is its sideways trend continued. The Dow finished where it was a month ago & down a smidgen from the end of Feb. Trade talks, Brexit & the goings on in DC have not inspired more stock buying. Without a major development, this type of trading can continue for the rest of the month (&qr)..
Dow Jones Industrials
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