Dow dropped 57, decliners ahead of advancers better than 3-2 & NAZ was lower by 4. The MLP index gained 2+ to the 254s & the REIT index sold off 4+ to the 368s. Junk bond funds fluctuated & Treasuries were also sold. Oil shot up to the 65s & gold rose 1 to 1277 (more on both below).
AMJ (Alerian MLP Index tracking fund)
US stocks open lower as Chinese shares fall, oil prices gain
US home sales fell more than expected in Mar, pointing to continued weakness in the housing market despite declining mortgage rates & slowing house price gains. The National Association of Realtors said existing home sales dropped 4.9% to a seasonally adjusted annual rate of 5.21M units last month. Feb's sales pace was revised down to 5.48M units from the previously reported 5.51M units. The forecast called for existing home sales to fall 3.8% to a rate of 5.3M units. Existing home sales, which make up about 90% of US home sales, declined 5.4% from a year ago, the 13th straight year-on-year decrease in home sales. Falling mortgage rates, strengthening wage growth & slowing house price inflation have improved affordability, but housing supply remains tight, especially at the lower end of the market as land & labor shortages are making it difficult for builders to ramp up construction in this market segment. The 30-year fixed mortgage rate has dropped from a peak of about 4.94% in Nov to around 4.12%, according to data from mortgage finance agency Freddie Mac. Wage growth is also strengthening. A survey last week showed that while builders reported strong demand for new homes in Apr, they also complained about "affordability concerns stemming from a chronic shortage of construction workers & buildable lots." Last month, existing home sales fell in all 4 regions. A 6-7-month supply is viewed as a healthy balance between supply & demand. The median existing house price increased 3.8% from a year ago to $259K in Mar.
Gold prices pushed up from the 4-month low reached in recent sessions, in part as oil gains lifted the specter of inflation risk, against which gold can act as a hedge, & as stock futures pointed to a lower start for riskier assets. A firmer $ was limiting the metal’s upside, however. Gold for Jun delivery rose $5.30 (0.4%) at $1281 an ounce. It settled Thurs at $1276, the lowest finish for a most-active contract since Dec 26. Gold lost 1.5% for the holiday-shortened week, with financial markets closed for Good Friday. That marked gold's 4th weekly loss in a row, with a jump in US retail figures providing support for the $ & dulling the appeal of the precious metal. Oil prices today amid reports the U.S. will announce the end of waivers for countries to import Iranian oil, as part of a bid by the Trump administration to push Iran’s exports to zero. Stock futures fell as investors returned from a long holiday weekend to face a big week for earnings & data, along with those climbing oil prices.
Gold moves up from low of the year, tracking higher oil and weaker stocks,
Investors are selling from nervousness about earnings reports. Home building & autos, a big part of the economy, have been sluggish for months. The gov shutdown will not help maters in what is typically a tough qtr for the economy. Trade negotiations, starting with US-China, bring more negative thoughts to the minds of traders. Bigger picture is the Dow is still about 1% under its record high reached last Oct. That should make for one interesting week1
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 65.53 | +1.53 | +2.4% |
| GC=F | Gold | 1,277.40 | +1.40 | +0.1% |
Stocks were mixed as Asian equities fell amid surging oil prices & a slew of American corp earnings reports this week. Investors
will be watching as 12 components of the Dow
report earnings & revenue for the first 3 months of this year. Crude oil prices jumped as the US announced
that it will not extend waivers to buy Iranian crude oil for 5 countries --Turkey, South Korea, China, India & Japan -- when
those waivers expire in early May. The announcement, made by Secretary of State Mike Pompeo, reflects the White House goal of getting Iranian oil exports to zero. Crude
oil prices promptly surged more than 2% to more than $65 per
barrel for the first time since Nov on concerns about how the US
termination of Iranian oil will affect global supply. China's
Shanghai Composite closed down 1.7%, the Hang Seng was off 0.5% & Japan's Nikkei 225 edged slightly lower. European stocks were idle for the Easter holiday.
US stocks open lower as Chinese shares fall, oil prices gain
The US announced that it will not extend waivers to buy Iranian crude oil for 5 countries --Turkey, South Korea, China, India & Japan -- when those waivers expire in early May. The
announcement, made by Secretary of State Mike Pompeo, reflects the
White House goal of getting Iranian oil exports to zero and was couched
as a way of supporting. "We want the Iranian people to know that we are listening to them and standing with them," he said. Crude
oil prices promptly jumped more than 2% to more than $65 per
barrel for the first time since Nov on concerns about how the U.S.
termination of Iranian oil wavers will affect global supply. In early trading, West Texas Intermediate,
the benchmark American crude, climbed to $65.45, a 2.3%
jump, its highest level since Oct 2018. "The
United States, Saudi Arabia, and the United Arab Emirates, three of the
world’s great energy producers, along with our friends and allies, are
committed to ensuring that global oil markets remain adequately
supplied," the White House said. "The
Trump Administration and our allies are determined to sustain and
expand the maximum economic pressure campaign against Iran to end the
regime’s destabilizing activity threatening the United States, our
partners and allies, and security in the Middle East." Pres Trump tweeted that the US & other big oil producers will more than make up for any loss of Iranian oil. It was not immediately clear if any of the 5 nations would be given additional time to
wind down their purchases or if they would be subject to US sanctions
on May 3 if they do not immediately halt imports of Iranian oil. The other 2 countries are China &
India. The US had previously granted 8
nations a 180-day waiver to keep buying Iranian crude oil provided that
they take steps to cut purchases & eventual end them altogether. Price increases are expected to continue.
US ending Iranian oil waivers sends crude oil prices soaring
US home sales fell more than expected in Mar, pointing to continued weakness in the housing market despite declining mortgage rates & slowing house price gains. The National Association of Realtors said existing home sales dropped 4.9% to a seasonally adjusted annual rate of 5.21M units last month. Feb's sales pace was revised down to 5.48M units from the previously reported 5.51M units. The forecast called for existing home sales to fall 3.8% to a rate of 5.3M units. Existing home sales, which make up about 90% of US home sales, declined 5.4% from a year ago, the 13th straight year-on-year decrease in home sales. Falling mortgage rates, strengthening wage growth & slowing house price inflation have improved affordability, but housing supply remains tight, especially at the lower end of the market as land & labor shortages are making it difficult for builders to ramp up construction in this market segment. The 30-year fixed mortgage rate has dropped from a peak of about 4.94% in Nov to around 4.12%, according to data from mortgage finance agency Freddie Mac. Wage growth is also strengthening. A survey last week showed that while builders reported strong demand for new homes in Apr, they also complained about "affordability concerns stemming from a chronic shortage of construction workers & buildable lots." Last month, existing home sales fell in all 4 regions. A 6-7-month supply is viewed as a healthy balance between supply & demand. The median existing house price increased 3.8% from a year ago to $259K in Mar.
US existing home sales fall more than expected in March
Gold prices pushed up from the 4-month low reached in recent sessions, in part as oil gains lifted the specter of inflation risk, against which gold can act as a hedge, & as stock futures pointed to a lower start for riskier assets. A firmer $ was limiting the metal’s upside, however. Gold for Jun delivery rose $5.30 (0.4%) at $1281 an ounce. It settled Thurs at $1276, the lowest finish for a most-active contract since Dec 26. Gold lost 1.5% for the holiday-shortened week, with financial markets closed for Good Friday. That marked gold's 4th weekly loss in a row, with a jump in US retail figures providing support for the $ & dulling the appeal of the precious metal. Oil prices today amid reports the U.S. will announce the end of waivers for countries to import Iranian oil, as part of a bid by the Trump administration to push Iran’s exports to zero. Stock futures fell as investors returned from a long holiday weekend to face a big week for earnings & data, along with those climbing oil prices.
Gold moves up from low of the year, tracking higher oil and weaker stocks,
Investors are selling from nervousness about earnings reports. Home building & autos, a big part of the economy, have been sluggish for months. The gov shutdown will not help maters in what is typically a tough qtr for the economy. Trade negotiations, starting with US-China, bring more negative thoughts to the minds of traders. Bigger picture is the Dow is still about 1% under its record high reached last Oct. That should make for one interesting week1
Dow Jones Industrials
No comments:
Post a Comment