Stock Market Rally Continues; Dow Jones Rises Another 65 Points – Dec. 8, 2016

Daily Stock Market News Dec. 8, 2016:  After the Dow Jones hit another new high this morning, it continued to climb during the day.  The market benefited from the news that the European Central Bank was holding its key interest rate at the current level.  See more news and today’s closing market numbers.

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U.S. Stock Market Closing Prices Dec. 8, 2016:

Dow Jones Industrial Averages:  19,614.81  +65.19  (+0.33 percent)

S & P 500:  2,246.19  +4.84  (+0.22 percent)

NASDAQ:  5,417.36  +23.59  (+0.44 percent)

Crude Oil:  $51.05 a barrel

Current Stock Market Trending Topics:

The Dow Jones opened at another record high this morning as the November-December 2016 rally continued.  Investors were encouraged by the news that the European Central Bank would keep its interest rate steady, extend its quantitative easing program for another year and reduce purchases to 60 billion euros per month from 80 billion euros.

The major cause of the November-December stock market rally has been the transfer of investor dollars into sectors which they believe will do best under the new administration … often at the expense of the bond market, which has lost billions.  The other reason for the rally has been because the economic news released in November and early December, based on pre-election data.  It has shown that the current federal administration is ending on a strong note, with 74 months of steady job growth, low inflation, increasing sales, rising incomes and overall positive economic news.  This morning another good report was released, showing a further decline in our already low number of first time jobless claims.

China’s economy continues to expand and its imports are increasing.  However, the outlook is clouded by concern over the possibility of trade wars with the U.S. after Trump moves into the White House.  The hope is that he will tone down his anti-China rhetoric, to the benefit of both countries.

Because of all this good economic news however, the Federal Reserve is widely expected to raise interest rates, now that the election is over.  They will be meeting next week on December 13 and 14, and whatever decision they make is expected to impact the stock market … although investors have anticipated this rate increase for so long, it may already have been figured into stock prices.  Already, mortgage rates have been rising.

Investors will also be watching to see if OPEC can stick with their agreement on production caps.  If they do, the price of oil is expected to stay above $50 a barrel and could go up above $60 a barrel in coming months.  Some analysts are holding little hope, however, that the current deal will cause prices to rise.  Today, the price of oil rose back up to $51.05 a barrel.

Here’s a little more information about what was happening in the market as it opened this morning.

The Economic Events Which Will Affect the Stock Market in December:

  • December 2 – Employment Situation Report for Nov., 2016 – The U.S. economy added 178,000 jobs in November and unemployment dropped from 4.9 percent to 4.6 percent.  This is the lowest rates since August 2007.  November was the 74th consecutive month American added jobs. Wages also rose 2.5 percent.
  • December 13 – U.S. Import and Export Price Indexes for Nov., 2016
  • December 14 – Producer Price Index for Nov., 2016
  • December 13 and 14 – Meeting of the Federal Reserve to discuss raising interest rates
  • December 26 – Stock Market closed because of the Christmas holiday

The Economic Events Which Will Affect the Stock Market in November:

  • November 4 – Employment Situation Report for Oct., 2016 – The U.S. labor market posted a solid month of gains, adding 161,000 jobs for the month of October and causing the unemployment rate to dip back down to 4.9 percent. Worker pay increases accelerated last month, up .10 cents an hour to $25.92 in October.  That is 2.8 percent higher than October, 2015, a year ago.  This was the fastest annual increase since June 2009.
  • November 8 – Presidential Election, 2016 – After Donald Trump’s surprise upset victory in the presidential election last week, the stock market has been extremely volatile, with the Dow Jones hitting a new all-time high last Thursday.
  • November 11 – Veterans Day – Stock Market open
  • November 15 – U.S. Import and Export Price Indexes for Oct., 2016 – U.S. import prices rose 0.5 percent in October. An increase of only 0.4 percent had been expected.  Export prices were up 0.2 percent, not quite as high as the 0.3 percent increase in September.
  • November 16 – Producer Price Index for Oct., 2016 – U.S. producer prices were unchanged in October. The cost of goods rose, but the cost of services declined, balancing each other out.
  • November 17 – Consumer Price Index for Oct., 2016 – Consumer prices rose +0.4 percent in October. This indication of inflation will be one of the factors the Fed will consider before raising interest rates again.
  • November 24 – Thanksgiving Day – Stock Market closed.
  • November 25 – Day after Thanksgiving – Stock Market open for half day.

Resources: / / MSN Money / Market Watch / YahooFinance / Bloomberg / Reuters and other public news sources

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