Dow rose 97 to another record, advancers over decliners almost 2-1& NAZ gained 29. The MLP index was fractionally lower to the 216 & the REIT index added 2+ to 402. Junk bond funds fluctuated & Treasuries drifted lower. Oil inched higher in the 61s (3 month high) & gold was steady at 1484 (around recent highs).
AMJ (Alerian MLP Index tracking fund)
Stocks opened in record territory, the first session after the US-Mexico-Canada Agreement sailed thru the House of Representatives. The trade deal now heads to the Senate, where it's expected to pass before being sent to Pres Trump. The final reading of Q3 GDP showed the US economy expanded at a 2.1% pace, matching expectations. The reading was unrevised from the 2nd estimate, released last month. All 3 of the major averages were trading higher & on track for their 4th straight week of gains. On the commodities front, gold was flat at $1484 an ounce & West Texas Intermediate crude oil was down 0.7% at $60.75 a barrel. Treasuries were lower, causing the yield on the 10-year note to climb by 2.7 basis points to 1.935%. All 3 of the major averages finished in record territory yesterday, the session after the House of Representatives voted to impeach Pres Trump. The Dow booked its first close of up 10K points since Trump's election win in 2016. In Europe, markets were higher across the board with Germany's DAX & France's CAC both higher by 0.7%. Britain's FTSE inched higher after the Bank of England named Andrew Bailey its next governor. Overnight, Asian markets were mixed as China's Shanghai Composite fell 0.4% & Hong Kong's Hang Seng gained 0.3%.
The US economy grew as expected in the 3 months thru Sep, according to new data published that kept stock futures pointing to a slightly higher open. GDP increased at a 2.1% annualized rate in Q3, the Commerce Dept said, matching the expectations. The reading was unchanged from Q2 which was published last month. The initial reading, in Oct, showed growth of 1.9%, compared with 2% in the previous period. The report had upward revisions to personal consumption expenditures & nonresidential fixed-income investment, which were offset by a drop in private inventory investment. Investors will get their first look at GDP trends in Q4 & for all of 2019 when the Commerce Dept releases its next reports on Jan 30, 2020.
Consumer sentiment rose slightly in Dec as Pres Trump's impeachment had a “barely noticeable impact” on economic expectations, the Univ of Mich's Surveys of Consumers said. The index of consumer sentiment reached 99.3 for the month. That's just above the of 99.2 & surpasses Nov's 96.8. Current economic conditions also improved among consumers while overall expectations ticked higher in Dec. Richard Curtin, chief economist for the Surveys of Consumers, said most of this month's uptick in sentiment came from upper income households, “with those in the top third of the income distribution gaining 7.5% from last month.” He also said the impeachment hearing “had a barely noticeable impact on economic expectations, as it was mentioned by just 2% of all consumers in the December survey.” Traders have also looked past the impeachment proceedings. In fact, the S&P 500 is up more than 7% since House Speaker Nancy Pelosi announced a formal inquiry in Sep
Consumer sentiment rises for December despite Trump’s impeachment
Pres Trump said he had a “very good talk” with Chinese leader Xi Jinping about the trade deal. The pres tweeted that China has started “large scale” purchases of US agricultural products, & a formal deal signing in being arranged. Trump added he also talked to Xi about North Korea & Hong Kong. Officials from the US & China announced last week they have agreed on the text of a phase one trade deal that includes some tariff relief, increased agricultural purchases & certain structural changes to intellectual property & technology issues. Details on the agreement have not been released, however. China did not specify how much US farm goods it will buy, while the US said China pledged to buy a total of $40B in farm goods over a 2-year period. Treasury Secretary Steve Mnuchin said yesterday that trade negotiators would sign the deal in early Jan. Trump has said the US would begin negotiations on the next phase of the trade deal “immediately,” rather than waiting until after the 2020 election.
Buyers continue to feel good. More economic data is looking good along with a report of a phone between the 2 leaders was warmly greeted by investors. Maybe this is part of a "Santa Clause rally."
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 61.30 | +0.08 | +0.1% |
| GC=F | Gold | 1,483.40 | -1.00 | -0.1% |
Stocks opened in record territory, the first session after the US-Mexico-Canada Agreement sailed thru the House of Representatives. The trade deal now heads to the Senate, where it's expected to pass before being sent to Pres Trump. The final reading of Q3 GDP showed the US economy expanded at a 2.1% pace, matching expectations. The reading was unrevised from the 2nd estimate, released last month. All 3 of the major averages were trading higher & on track for their 4th straight week of gains. On the commodities front, gold was flat at $1484 an ounce & West Texas Intermediate crude oil was down 0.7% at $60.75 a barrel. Treasuries were lower, causing the yield on the 10-year note to climb by 2.7 basis points to 1.935%. All 3 of the major averages finished in record territory yesterday, the session after the House of Representatives voted to impeach Pres Trump. The Dow booked its first close of up 10K points since Trump's election win in 2016. In Europe, markets were higher across the board with Germany's DAX & France's CAC both higher by 0.7%. Britain's FTSE inched higher after the Bank of England named Andrew Bailey its next governor. Overnight, Asian markets were mixed as China's Shanghai Composite fell 0.4% & Hong Kong's Hang Seng gained 0.3%.
Stocks spike to all-time highs as markets celebrate USMCA clearing the House
The US economy grew as expected in the 3 months thru Sep, according to new data published that kept stock futures pointing to a slightly higher open. GDP increased at a 2.1% annualized rate in Q3, the Commerce Dept said, matching the expectations. The reading was unchanged from Q2 which was published last month. The initial reading, in Oct, showed growth of 1.9%, compared with 2% in the previous period. The report had upward revisions to personal consumption expenditures & nonresidential fixed-income investment, which were offset by a drop in private inventory investment. Investors will get their first look at GDP trends in Q4 & for all of 2019 when the Commerce Dept releases its next reports on Jan 30, 2020.
US economy grows 2.1% in summer quarter
Consumer sentiment rose slightly in Dec as Pres Trump's impeachment had a “barely noticeable impact” on economic expectations, the Univ of Mich's Surveys of Consumers said. The index of consumer sentiment reached 99.3 for the month. That's just above the of 99.2 & surpasses Nov's 96.8. Current economic conditions also improved among consumers while overall expectations ticked higher in Dec. Richard Curtin, chief economist for the Surveys of Consumers, said most of this month's uptick in sentiment came from upper income households, “with those in the top third of the income distribution gaining 7.5% from last month.” He also said the impeachment hearing “had a barely noticeable impact on economic expectations, as it was mentioned by just 2% of all consumers in the December survey.” Traders have also looked past the impeachment proceedings. In fact, the S&P 500 is up more than 7% since House Speaker Nancy Pelosi announced a formal inquiry in Sep
Consumer sentiment rises for December despite Trump’s impeachment
Pres Trump said he had a “very good talk” with Chinese leader Xi Jinping about the trade deal. The pres tweeted that China has started “large scale” purchases of US agricultural products, & a formal deal signing in being arranged. Trump added he also talked to Xi about North Korea & Hong Kong. Officials from the US & China announced last week they have agreed on the text of a phase one trade deal that includes some tariff relief, increased agricultural purchases & certain structural changes to intellectual property & technology issues. Details on the agreement have not been released, however. China did not specify how much US farm goods it will buy, while the US said China pledged to buy a total of $40B in farm goods over a 2-year period. Treasury Secretary Steve Mnuchin said yesterday that trade negotiators would sign the deal in early Jan. Trump has said the US would begin negotiations on the next phase of the trade deal “immediately,” rather than waiting until after the 2020 election.
Trump says he had a ‘very good talk with President Xi’ about China trade deal
Buyers continue to feel good. More economic data is looking good along with a report of a phone between the 2 leaders was warmly greeted by investors. Maybe this is part of a "Santa Clause rally."
Dow Jones Industrials
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