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04Jan2018 Market Update: The DOW Passes 25,000 For The First Time Ever After Strong Jobs Data, Other Major Indexes Scaled New Highs After Upbeat Sentiment Following Indications Of Robust Growth Globally

Written by Gary

The Dow Jones Industrial Average broke above the 25,000 level for the first time today (SPY +0.5%). It has been just 23 days since it hit 24,000, registering the shortest span ever between 1,000 point milestones.


Here is the current market situation from CNN Money

North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 1.37% while U.S.'s S&P 500 is up 0.49% and Mexico's IPC is up 0.32%.

Traders Corner - Health of the Market

What Is Moving the Markets

Here are the headlines moving the markets.

Dow tops 25,000 on strong private hiring, global growth hopes

(Reuters) - The Dow Jones Industrial Average broke above the 25,000 level for the first time on Thursday and other major indexes scaled new highs after strong U.S. private jobs data added to upbeat sentiment following indications of robust growth globally.

U.S. private payrolls growth accelerates; jobless claims up

WASHINGTON (Reuters) - U.S. private employers stepped up hiring in December and planned layoffs by American-based companies fell sharply, pointing to sustained labor market strength that likely keeps the Federal Reserve on course to increase interest rates in March.

SEC warns bitcoin, cryptocurrency investors at risk

WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission warned Thursday that investors should "exercise caution" with cryptocurrencies like bitcoin, noting state and federal regulators may not be able to recoup any lost investments from illegal actors.

Oil hits highest since 2015 as Iran unrest spooks market

NEW YORK (Reuters) - Oil rose on Thursday to its highest since May 2015 on concern about supply risks due to unrest in Iran and additional support from OPEC-led output cuts and demand-boosting cold weather in the United States.

Tesla Model 3 delay raises cashflow risks, but analysts upbeat

(Reuters) - Tesla Inc shares fell as much as 3.6 percent on Thursday, setting the company up to lose nearly $1.9 billion in market value after it pushed back a production target for its much-anticipated Model 3 sedan yet again.

U.S. private sector adds 250,000 jobs in December, biggest rise since March

(Reuters) - U.S. private employers added 250,000 jobs in December, marking the biggest monthly increase since March, a report by ADP Research Institute showed on Thursday.

U.S. derivatives regulator announces meetings to review futures based on cryptocurrencies

WASHINGTON (Reuters) - The leading U.S. derivatives regulator announced Thursday it would be holding a pair of meetings to review the process for allowing futures based on cryptocurrencies to come to market.

Intel extends losses as worries over chip security linger

(Reuters) - Intel Corp shares fell as much as 5 percent on Thursday, marking their biggest one-day drop in more than a year, a day after a report said mobiles and computers using its chips were vulnerable to being hacked.

Brookfield Business Partners to buy Westinghouse for $4.6 billion

(Reuters) - An affiliate of Canada's Brookfield Asset Management Inc plans to acquire Westinghouse Electric Co LLC, the bankrupt nuclear services company owned by Toshiba Corp , for $4.6 billion.

Macy's Announces 5,000 Job Cuts, Closure Of 7 More Stores; Stock Tumbles

The Amazon juggernaut continues to crush brick and mortar retailers.

On Thursday morning, former retail giant Macy's, announced that was preparing to fire 5,000 job cuts, including closure of seven previously unidentified stores and other cuts at remaining locations, as it seeks stability in a tumultuous climate for "physical retail." The retailer's cost reductions come as it announced that its comparable holiday sales rose a modest 1.1% for the Nov/Dec period relative to 2016.

Although the company described its holiday sales as "solid," the performance trailed fellow department-store chain J.C. Penney, which posted a 3.4% increase Thursday. Macy's also narrowed its FY 2018 (ending Jan. 2018) year comp. sales view to a decline of 2.4%-2.7% on owned basis, down 2%-2.3% on owned plus licensed basis and total sales down 3.6%-3.9%. This was in line with the latest forecast given in November, which called for sales down 2.2%-3.3% on owned basis, down 2%-3% on owned plus licensed basis and total sales down 3.2%-4.3%.

And while Macy's continues to struggle with margin compression and inventory (mis)management, clearly the far bigger problem is the secular decline for the company (thank you Amazon) with Macy's today announcing it was closing 11 stores in FY19 (year ending Jan. 2019), vs the 4 announced previously, part and parcel with the 5,000 laoffs, as well as the company's intentions to "further streamline some non-store functions."

Macy's disclosed the following seven locations for shuttering which it had previously not identified for closure:



Miami (Downtown), Miami

The Oaks, Gainesville, Fla.

Novato (Furniture), Novato, Calif.

Honey Creek Mall, Terre Haute, Ind.

Birchwood Mall, Fort Gratiot Township, Mich.

Fountain Place, Cincinnati

Burlington Town Center, Burlington, Vt.

The retailer also said Thursday ...

What's Behind The Canadian Rig Count Crash

Authored by Nick Cunningham via OilPrice.com,

The U.S. rig count has been on the rise for months, despite some recent hiccups, but Canada's rig count recently plunged amid low oil prices.

Canada's rig count fell from 210 to 136 for the week ending on December 29, a massive drop off. That took the rig count to a six-month low. Obviously, the losses were concentrated in Alberta, where most of the rigs tend to be. Alberta's rig count sank from 162 to 118 in the last week of 2017. But Saskatchewan also saw its rig count decimated—falling from 43 in mid-December to just three at the close of the year.

1

The losses can likely be chalked up to the meltdown in prices for Canadian oil. Western Canada Select (WCS), a benchmark that tracks heavy oil in Canada, often trades at a significant discount to oil prices in the United States. But the WCS-WTI discount became unusually large in November and December for a variety of reasons. The outage at the Keystone pipeline led to a rapid buildup in oil inventories in Canada, and storage hit a record high in December.

Also, Canada's oil industry has been unable to build new pipelines to get the landlocked oil from Alberta to market. Alberta oil producers are essentially hostage to their buyers in the U.S., and with oil production now bumping up against a ceiling in terms of ...

Russia Slams US "Attempts To Interfere" In Iran After Macron Warns Of "Conflict Of Extreme Brutality"

Russia has joined China in calling for a policy of non-interference in Iran's domestic affairs after a week of unrest has gripped multiple major cities and towns across the country in what started as protests over economic grievances, but which have since increasingly turned to riots and calls for President Rouhani and the clerical regime to step down, resulting in the deaths of at least 22 people, including at least one police officer who was shot dead.

In remarks given to Russia's TASS news agency Russian Deputy Foreign Minister Sergey Ryabkov expressly warned the US "against attempts to interfere in the internal affairs of the Islamic Republic of Iran," while stressing, "What is happening there is an internal affair, which attracts the attention of the international community." Russia's stance is similar to that of China's voiced previously on Tuesday. When asked about the Iran protests at a regularly scheduled press conference, China's foreign ministry spokesperson Geng Shuang simply gave a one-sentence answer, saying, "China hopes that Iran can maintain stability and achieve development."

NY Declares State Of Emergency: JFK, La Guardia Close Due To Huge Winter Storm

Update: The MTA is closing all above ground subway service, Long Island Railroad Service and all Metro-North Service at 4 pm EST.

US railway operator Amtrak is running on a reduced schedule, and interstate buses are also being cancelled, according to the BBC.

The weather pattern has already brought snow to the US South as far down as Florida.

* * *

Flights at JFK airport have been temporarily suspended "due to strong winds and whiteout conditions" caused by Winter Storm Grayson.

Due to strong winds and whiteout conditions, flights at JFK have been temporarily suspended. Travelers are urged to contact their airline carriers for updates on resumption of service

— Kennedy Airport (@JFKairport) January 4, 2018

"Travelers are urged to contact their airline carriers for updates on resumption of service," the JFK Twitter account advised.

JFK

New York Gov. Andrew Cuomo declared an official weather emergency in New York City, Long Island and Westchester County on Thursday as the storm is expected to drop up to a foot of snow on ...

Bitcoin Isn't a Currency, It's a Commodity---Price It That Way

Bitcoin enthusiasts call it a currency, but it has a lot in common with gold. And if bitcoin is a digital precious metal, investors should start pricing it that way, by watching the fundamentals.

Tesla's Model 3 Story Is Getting Old

The company's news on delivery of its Model 3 sedans in the fourth quarter badly missed the mark and continued a history of company forecasts poor enough to be construed as misleading.

Dominion Pounces on Scana's Nuclear Woes

Dominion Energy's bid for Scana comes partly at the expense of ratepayers and shareholders stung by a nuclear plant debacle.

Why divorcing over 50 can be especially awful

Your nest egg is going to have to stretch a lot farther.

Marijuana stocks tank on news Trump administration to rescind state protections from pot prosecutions

A strong rally in cannabis-related stocks this week that marked the start of sales of recreational marijuana in California came to a screeching halt Thursday after the U.S. Dept. of Justice threw a spanner in the works.

The 5 states where child care is least affordable

Families aren't supposed to spend more than 7% of their income on child care, but many do.

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To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

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