Dow jumped up 174 to a new record, advancers over decliners 5-4 & NAZ climbed 83. The MLP index gave back 1 to the 224s & the REIT index was little changed near 401. Junk bond funds hardly budged & Treasuries dipped lower. Oil fell 1 to the 58s & gold dropped 11 to 1549.
AMJ (Alerian MLP Index tracking fund)
Stocks opened at record highs as investors moved past the recent escalation of temsions in the Middle East. The S&P 500, Dow & NAZ were all trading in record territory after shrugging off Iran's missile attack on US forces on Tues evening. Futures for the major averages suffered steep losses as footage of the attacks crossed the airwaves, but stocks reversed into positive territory as Pres Trump de-escalated tensions with a White House speech yesterday. Meanwhile, commodities attempted to find their footing after seeing sharp reversals following Trump's speech West Texas Intermediate crude oil, the US benchmark, was unchanged at $59.61 a barrel after plunging nearly 5% the previous day. Meanwhile, Brent crude oil, the intl benchmark was down 0.2% at $65.30 a barrel after yesterday's steep slide. Gold remained under pressure, trading down 0.6% near $1551 an ounce, after sliding off an almost 7-year high of $1613. All of the major European averages rallied with Germany's DAX up 1.2% , France's CAC higher by 0.2% & Britain's FTSE gaining 0.4%. Markets closed higher across Asia. Japan's Nikkei led the way higher, closing up 2.3% while China's Shanghai Composite & Hong Kong's Hang Seng added 0.9% & 1.7%, respectively.
A top Federal Reserve official said the central bank's monetary policy is in a “good place,” & will remain there so long as the economy stays on a favorable track. “I believe that monetary policy is in a good place and should continue to support sustained growth, a strong labor market, and inflation running close to our symmetric 2 percent objective,” Fed Vice Chair Richard Clarida said. Policymakers cut interest rates 3 times at consecutive meetings between Jul & Oct, setting the benchmark federal funds rate at a range of 1.5-1.75%, a decision that Clarida described as “well timed” in helping keep the record-long economic expansion insulated from a global growth slowdown. The US economy is beginning the year in a good place, Clarida said, pointing to record-low unemployment, which is at a ½-century low, solid growth & stable inflation. “As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy likely will remain appropriate,” he added. In Dec, officials voted unanimously to hold the rate steady — & indicated they had no intentions to reverse those cuts anytime soon. Minutes from the Federal Open Market Committee's Dec 11.-12 meeting reinforced that notion, with most policymakers agreeing that interest rates will be on hold for “a time.” Still, officials still saw some downside risks to their assessment & said they were prepared to move rates up or down as necessary. “There are some indications that headwinds to global growth may be beginning to abate,” Clarida said.
Pres Trump said yesterday the US will go after the Iranian economy, which is already under strain, following missile attacks launched by the rogue regime on military bases housing US forces in Iraq. “As we continue to evaluate options in response to Iranian aggression, the United States will immediately impose additional punishing economic sanctions on the Iranian regime,” Trump said in an address to the nation from the White House. “These powerful sanctions will remain until Iran changes its behavior.” Trump also said the US will never allow Iran to get a nuclear weapon & that he plans to ask NATO to become more involved in the Middle East. “Our great American forces are prepared for anything,” Trump added. “Iran appears to be standing down, which is a good thing for all parties concerned and a very good thing for the world.” While sanctions have so far failed to bring Iranian leadership to the negotiating table, they have caused the country's economy to suffer. Moody's said that Iran is not exporting much oil, “if any”, as a result of sanctions already in place & tightened sanctions will “make matters worse for the Iranian economy.” According to the Tehran Times, as of Aug, inflation in the country had risen 41.6% year over year. The IMF said in Oct that it expected Iran's economy would shrink by 9.5% in 2019, amid tighter US sanctions. Unemployment, especially among youths, is also sky-high at 10.6%. Sanctions have cut funding to Hezbollah & Hamas, Rep Florida Sen Rick Scott said. Trump pulled out of the Iran nuclear deal in May 2018. Sanctions in place have focused on strangling the country's oil industry – largely considered the lifeblood of its economy. The sanctions have scared off a lot of intl business as well. The Pentagon confirmed Tues that Iran launched more than 12 ballistic missiles at bases in Iraq where American troops are based. No Americans were harmed during the attacks & only “minimal damage was sustained at our military bases,” Trump said yesterday. The missile attacks were said to be retaliation after a US airstrike killed a top Iranian military official last week. The Dept of Defense said the action was taken at the direction of the president & in order to protect US personnel abroad by deterring future attack plans. According to the gov, Soleimani was developing plans to attack American diplomats & service members in the region. He was previously behind other attacks on bases in Iraq throughout recent months.
China's gov says its economy czar will go to DC next week for the signing of an interim trade deal. The Commerce Ministry officially confirmed that Vice Premier Liu He would attend the signing. A ministry spokesman, Gao Feng, said a delegation led by Liu would be in DC from Mon-Wed. The signing is set for Jan 15 at the White House. Under the “Phase 1” deal, China agreed to buy more American farm exports & DC postponed additional planned tariff hikes on Chinese imports. The 2 sides have yet to release details. In regular briefings, it had been reported that negotiating teams from both sides were remaining in close communication on the arrangements involving the deal and its signing. Pres Trump launched the trade war against Beijing more than a year ago over allegations of unfair trade practices, which included allegations that China stole intellectual property & Chinese companies unfairly benefited from subsidies.
The bulls afe firmly in charge of the stock market with popular averages reaching new highs. The Dow is less than 100 away from the next milestone of 29K. Meanwhile, while safe haven gold is lower it is still close to its multi year highs reached this week. Tensions with Iran have calmed down in what is a confusing story but the China deal is moving forward with with signing the first phase scheduled for next Wed..
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 59.28 | -0.33 | -0.6% |
| GC=F | Gold | 1,552.20 | -8.00 | -0.5% |
Stocks opened at record highs as investors moved past the recent escalation of temsions in the Middle East. The S&P 500, Dow & NAZ were all trading in record territory after shrugging off Iran's missile attack on US forces on Tues evening. Futures for the major averages suffered steep losses as footage of the attacks crossed the airwaves, but stocks reversed into positive territory as Pres Trump de-escalated tensions with a White House speech yesterday. Meanwhile, commodities attempted to find their footing after seeing sharp reversals following Trump's speech West Texas Intermediate crude oil, the US benchmark, was unchanged at $59.61 a barrel after plunging nearly 5% the previous day. Meanwhile, Brent crude oil, the intl benchmark was down 0.2% at $65.30 a barrel after yesterday's steep slide. Gold remained under pressure, trading down 0.6% near $1551 an ounce, after sliding off an almost 7-year high of $1613. All of the major European averages rallied with Germany's DAX up 1.2% , France's CAC higher by 0.2% & Britain's FTSE gaining 0.4%. Markets closed higher across Asia. Japan's Nikkei led the way higher, closing up 2.3% while China's Shanghai Composite & Hong Kong's Hang Seng added 0.9% & 1.7%, respectively.
Stocks put Middle East tensions in rearview mirror, surge to record highs
A top Federal Reserve official said the central bank's monetary policy is in a “good place,” & will remain there so long as the economy stays on a favorable track. “I believe that monetary policy is in a good place and should continue to support sustained growth, a strong labor market, and inflation running close to our symmetric 2 percent objective,” Fed Vice Chair Richard Clarida said. Policymakers cut interest rates 3 times at consecutive meetings between Jul & Oct, setting the benchmark federal funds rate at a range of 1.5-1.75%, a decision that Clarida described as “well timed” in helping keep the record-long economic expansion insulated from a global growth slowdown. The US economy is beginning the year in a good place, Clarida said, pointing to record-low unemployment, which is at a ½-century low, solid growth & stable inflation. “As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy likely will remain appropriate,” he added. In Dec, officials voted unanimously to hold the rate steady — & indicated they had no intentions to reverse those cuts anytime soon. Minutes from the Federal Open Market Committee's Dec 11.-12 meeting reinforced that notion, with most policymakers agreeing that interest rates will be on hold for “a time.” Still, officials still saw some downside risks to their assessment & said they were prepared to move rates up or down as necessary. “There are some indications that headwinds to global growth may be beginning to abate,” Clarida said.
Fed’s Clarida hints at future of interest rates
Pres Trump said yesterday the US will go after the Iranian economy, which is already under strain, following missile attacks launched by the rogue regime on military bases housing US forces in Iraq. “As we continue to evaluate options in response to Iranian aggression, the United States will immediately impose additional punishing economic sanctions on the Iranian regime,” Trump said in an address to the nation from the White House. “These powerful sanctions will remain until Iran changes its behavior.” Trump also said the US will never allow Iran to get a nuclear weapon & that he plans to ask NATO to become more involved in the Middle East. “Our great American forces are prepared for anything,” Trump added. “Iran appears to be standing down, which is a good thing for all parties concerned and a very good thing for the world.” While sanctions have so far failed to bring Iranian leadership to the negotiating table, they have caused the country's economy to suffer. Moody's said that Iran is not exporting much oil, “if any”, as a result of sanctions already in place & tightened sanctions will “make matters worse for the Iranian economy.” According to the Tehran Times, as of Aug, inflation in the country had risen 41.6% year over year. The IMF said in Oct that it expected Iran's economy would shrink by 9.5% in 2019, amid tighter US sanctions. Unemployment, especially among youths, is also sky-high at 10.6%. Sanctions have cut funding to Hezbollah & Hamas, Rep Florida Sen Rick Scott said. Trump pulled out of the Iran nuclear deal in May 2018. Sanctions in place have focused on strangling the country's oil industry – largely considered the lifeblood of its economy. The sanctions have scared off a lot of intl business as well. The Pentagon confirmed Tues that Iran launched more than 12 ballistic missiles at bases in Iraq where American troops are based. No Americans were harmed during the attacks & only “minimal damage was sustained at our military bases,” Trump said yesterday. The missile attacks were said to be retaliation after a US airstrike killed a top Iranian military official last week. The Dept of Defense said the action was taken at the direction of the president & in order to protect US personnel abroad by deterring future attack plans. According to the gov, Soleimani was developing plans to attack American diplomats & service members in the region. He was previously behind other attacks on bases in Iraq throughout recent months.
Trump chokes Iran's economy after missile attack target US military forces
China's gov says its economy czar will go to DC next week for the signing of an interim trade deal. The Commerce Ministry officially confirmed that Vice Premier Liu He would attend the signing. A ministry spokesman, Gao Feng, said a delegation led by Liu would be in DC from Mon-Wed. The signing is set for Jan 15 at the White House. Under the “Phase 1” deal, China agreed to buy more American farm exports & DC postponed additional planned tariff hikes on Chinese imports. The 2 sides have yet to release details. In regular briefings, it had been reported that negotiating teams from both sides were remaining in close communication on the arrangements involving the deal and its signing. Pres Trump launched the trade war against Beijing more than a year ago over allegations of unfair trade practices, which included allegations that China stole intellectual property & Chinese companies unfairly benefited from subsidies.
China's economy czar to attend trade deal signing in Washington
The bulls afe firmly in charge of the stock market with popular averages reaching new highs. The Dow is less than 100 away from the next milestone of 29K. Meanwhile, while safe haven gold is lower it is still close to its multi year highs reached this week. Tensions with Iran have calmed down in what is a confusing story but the China deal is moving forward with with signing the first phase scheduled for next Wed..
Dow Jones Industrials
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