Stock Market Rises; Dow Moves Closer to 20,000 – Dec. 15, 2016

Daily Stock Market News Dec. 15, 2016:  The Dow Jones continued its march closer to 20,000, despite yesterday’s interest rate hike by the Federal Reserve.  Yahoo reported today that a billion accounts may have been hacked, causing Verizon to reconsider whether or not to move forward with its bid for Yahoo. See more market news and closing prices.

stock-market-graphic- stock market

U.S. Stock Market Closing Prices Dec. 15, 2016:

Dow Jones Industrial Averages:  19,852.24  +59.71  (+0.30 percent)

S & P 500:  2,262.03  +8.75  (+0.39 percent)

NASDAQ:  5,456.85  +20.18  (+0.37 percent)

Crude Oil:  $51.07 a barrel

Current Stock Market Trending Topics:

Once again, a major data breach has made the news.  This one involved Yahoo, causing at least one Senator to vow to investigate their cyber security practices.  Verizon is reconsidering whether or not they want to move forward with the purchase of Yahoo.

Drug prices also remain in the news.  The Attorney Generals in several states are suing six companies over their drug pricing.

Economic news released in November and December, show that the current federal administration is ending on a strong note, with 75 months of steady job growth, low inflation, increasing sales, rising incomes, strong consumer sentiment and overall positive economic news.  Yesterday, the Federal Reserve raised interest rates by 0.25 basis points.  They also announced they expect to raise interest rates three more times in 2017 because they believe the economy will continue with the growing momentum it has seen over the past few years.  In another indication of that, US jobless claims fell for the second week in a row and have remained low for years.

Where is all the money coming from as the Dow pushes towards 20,000?  Most of it is coming from the sell-off in the bond market.

Stock futures remain flat after the news about the expected rate hike increases in 2017.

Investors continue to hope both OPEC and non-OPEC oil producing countries will be able to 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.

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 Affected 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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