Stocks continue to trade mixed as the Dow closed up 21 points to 18,868 on heavier trading volume. Bank stocks continue to lead the way.
South Korean electronics giant Samsung Electronics, announced it was buying Connecticut based Harman International Industries for $8 Billion smackers. The deal is an attempt by Samsung to get into the car business since Harmon makes in-car entertainment and connected auto services. Let’s just hope that the person they put in charge of this deal is not the same guy who invented the exploding Galaxy 7 smart phone.
Interest rates continue to move higher as does the US dollar. 10 year US Treasuries now yield 2.2% and mortgage rates are also pushing the 4% barrier. Bank stocks continue to move up and the odds of a Federal Reserve rate hike in December are now over 80%. The US dollar continues to gain strength and the euro has moved from about 1.12 to the dollar to 1.07 since the election While the Mexican peso is fallen to about 21 to the dollar from 18 or so. A strong dollar will push material prices lower but make US exports more expensive.
WTI crude oil continues to trade lower falling to $42 per barrel before leveling off at $43.50 as traders fear another year of glut. Gold prices stabilized a bit and traded both sides of the fence before closing with a $4 loss to $1,220 an ounce.
The Scout Troop had its 75th anniversary celebration last night. 400 people were in attendance and the lunkheads were well dressed and well behaved as several adults droned on about days gone by. After vespers the scouts attacked the food tables but several moms came to the rescue and drove them back to a defensive line near the punch bowl. It was a really cool event.