Dow finished down 39, advancers over decliners 2-1 & NAZ gained 384. The MLP index was up 1+ to the 231s & the REIT index rose 6+ to the 406s. Junk bond funds continued in demand & Treasuries pretty much were even at the close. Oil slid back to the 76s & gold, after reaching 1975, finished down 13 to settle at 1929 (more on both below).
AMJ (Alerian MLP Index tracking fund)
tate
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
The Biden administration is set to reignite debate over gas stoves as the Dept of Energy proposed new efficiency standards for consumer cooking appliances. The proposed regulations come just weeks after the Biden White House was forced to clarify the pres does not support a ban on gas stoves following public outcry after a consumer product safety official suggested that option was "on the table." In a notice of proposed rulemaking, the Dept of Energy said it has "tentatively concluded" that new energy conservation standards for stove appliances would be technologically feasible & economically justified. The agency proposed new limitations on how much energy electric stove tops (both coil & smooth) & gas cooking tops may consume in a year. In a shift, the Dept proposes to end the prohibition on constant burning pilot lights in gas stoves, but says a stove with a constant burning pilot light would not meet the new efficiency standards. Around ½ of all models currently on the market would not comply with the proposed standards without modifications, a Dept of Energy said. The department argued that stove appliances achieving its proposed standards are already commercially available & that the benefits to consumers & the climate exceed the potential burdens. Regulators estimated that the new standard would raise the upfront cost of stove products by $32.5M per year, but save $101M annually in operating costs, while generating $67M in climate benefits & $65M in health benefits. "As required by Congress, the Dept of Energy is proposing efficiency standards for gas & electric cooktops — we are not proposing bans on either," the dept added. "The proposed standards would not go into effect until 2027 and cumulatively save the nation up to $1.7 billion. Every major manufacturer has products that meet or exceed the requirements proposed today."
Biden admin makes major push to regulate gas stoves, ovens
Ford's (F) new US vehicle sales started 2023 on a stronger footing than a year
earlier but were down 18.4% from Dec. Jan is historically one of the weakest months of the year, while Dec is one of the strongest. Still, the month-over-month decline is notable as the worst for the
automaker since a 28% drop between May & Jun of last year. Between
Dec 2021 & Jan 2022, sales declined 17.4%. For Jan, Ford reported
a 2% increase in sales from a year earlier to 146K vehicles sold. The uptick was led by sales increases of 8.8% for F-Series pickups,
25.5% for Broncos & 52% for Bronco Sport SUVs — as well as a doubling
of its electric vehicle sales, which have been and remain minimal. EVs
made up 3.6% of Ford's monthly sales. Some of the automaker’s crossovers such as the Ford Edge & Escape experienced double-digit declines from a year earlier. The stock rose 50¢.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F_aid=CD3289&a_bid=6ae5b6f7
Ford’s U.S. sales start 2023 on strong footing, boosted by F-Series and Bronco
The average rate on the 30-year fixed rate mortgage has fallen to 5.99%, according to Mortgage News Daily. The
housing market hasn't seen the rate with a 5 handle since a brief
blip in early Sep. Before that, it was in early Aug. The rate started this week at 6.21% & fell sharply yesterday after Federal Reserve Chair Jerome Powell said inflation “has eased somewhat but remains elevated,” which was a shift from previous language. That sent bond yields lower, & mortgage rates loosely follow the yield on the 10-year Treasury. “Measured
steps can continue as long as the economic and inflation data is there
to support them. This means rates can make progress down into the 5′s
but are unlikely to stampede quickly into the 4′s,” said COO Matthew Graham at Mortgage News Daily. “I’m not saying that
won’t happen--just that it would take a bit more time than some of the
rate rallies we remember from the past.” Mortgage rates peaked in
Oct with the 30-year fixed at 7.37% & have been sliding since
then. For potential homebuyers that means savings. For a consumer
purchasing a $400K home today with a 20% down payment, the monthly
payment is $293 less than it would have been in Oct. Lower rates already appear to be juicing buyer interest. Pending home sales,
which measure signed contracts on existing homes, rose in Dec for
the first time in 6 months. They gained 2% compared with Nov,
according to the National Association of Realtors.
Mortgage rates drop to the 5% range for the first time since September
Gold futures settled lower to tally back-to-back losses. Prices for the precious metal had traded higher overnight & early today, but gold gave up those gains with buyers & sellers jockeying for positions as prices pave a path toward what will likely be the last rate hike by the Federal Reserve, if there's a hike at all. Gold for Apr fell $12 (0.6%) to settle at $1930 an ounce after trading as high as $1975.
Gold futures post a second straight session loss
WTI oil prices finished down 53¢ (0.7%) lower at a new, 3-week-low of $75.88 a barrel in another wobbly, rangebound market. WTI crude prices traded as high as $77.24 intraday & as low as $74.97. The market had high expectations at the end of 2022 that the winding down of the sales of crude from the Strategic Petroleum Reserve would cause US commercial crude-oil inventories to fall & cause oil prices to spike higher, & that China's reopening would further lift the market. Instead, US inventories have seen a string of rather large weekly builds in US inventories, China's reopening is yet to fully materialize & a US economic slowdown seems to be keeping domestic fuel demand low.
Oil Ends Lower in Choppy, Rangebound Trading
There was a great deal of uneven trading in stocks & major commodities today. Investors are looking for direction. The Dow chart below shows it has been trending sideways between 33-34K for 3 about months. Recession thoughts have not gone away.
Dow Jones Industrials
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