Stock Market Slips Slightly; Home Construction Drops – Dec. 16, 2016

Daily Stock Market News Dec. 16, 2016:  Amid reports that home construction dropped from its previous nine-year high, all three major U.S. stock indices slipped a bit today.  The value of the dollar also rose to a 14 year high.  See today’s economic news and closing prices.

stock-market-graphic- stock market

U.S. Stock Market Closing Prices Dec. 16, 2016:

Dow Jones Industrial Averages:  19,843.41  -8.83 (-0.04 percent)

S & P 500:  2,256402  -5.61  (-0.25 percent)

NASDAQ:  5,437.16  -19.69  (-0.36 percent)

Crude Oil:  $51.94 a barrel

Current Stock Market Trending Topics:

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.  This morning, however, the housing construction report showed that housing starts fell in November from the nine-year high they saw the month before.  In fact, overall construction activity fell broadly.

The value of the dollar has reached an almost 14 year peak after the Federal Reserve announced they expect three additional interest rate hikes 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.  An announcement out of Russia this morning indicates that they are embracing the new pr0duction cuts and the international attempt to maintain or increase the price of oil.

The price of oil moved higher today, with investors encouraged by the idea that the oil producing nations will stick with the agreed production caps.

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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