The KUIK Market Update for Monday, December 21:
Markets are up.
Index Direction Change Units Time
Dow Up 115 points 17,244 7:44 AM
S&P500 Up 0.8% percent 2,021
Nasdaq Composite Up 0.8% percent 4,963
30 Year Treasury Unchanged – Basis Points 2.91 Annual Yield
The Wall Street Journal reports China will focus on reducing industrial overcapacity, slashing its glut of unsold homes, and mitigating financial risks under a new economic plan for 2016. It addresses persistent problems that are hurting growth in the world’s second-largest economy. China is set to report its slowest annual economic growth rate in 25 years.
February crude is off 0.6% to to $35.84 a barrel on the New York Merc the outlook is bleak for oil producers as the massive oversupply and a strong dollar batters the market. Goldman Sachs believes $20 oil is possible in 2016. Analysts at London’s Barclays bank said it’s possible the daily crude surplus could “overwhelm” available storage capacity. The U.S. shale oil sector is still relatively strong. The number of rigs rose by 17 last week, suggesting the free fall in production predicted for early 2016 won’t occur. A longer production tail-off is more likely. U.S. oil production is expected to fall from its current levels of about 9.1 million barrels a day to 8.6 million barrels a day by mid-2016.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/china-set-to-unveil-2016-economic-growth-plan-2015-12-21
http://www.marketwatch.com/story/brent-oil-tumbles-to-lowest-level-since-2004-2015-12-21
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