Stocks began the week on the upside but the rally faded and the Dow closed off 3 points to 18,120. Trading volume was off significantly from Friday’s level and the recent trend of low volume rallies and high volume selloffs continues. IBD says markets are under pressure and caution is advised.
Last week we saw that household incomes grew by 5.2% yoy and this week we read that home builder confidence is also on the rise. The National Association of Home Builders (NAHB) Chairman Ed Brady said builders across the nation are seeing more buyer’s thanks in part to rising incomes. He called the gains “gradual” but expects they will continue into 2017. The housing market index or “HMI” rose to 65 from 61 at this time last year.
Venezuela today said that OPEC and non-OPEC nations were close to an agreement on stabilizing production. This news boosted energy prices as well a basic resources like mining and material stocks. European markets were higher thanks to leadership from the basic resources stocks and while this looks good on the surface, shares of Deutsche Bank remain under pressure and cut below $13 per share on heavy volume. The financial status of Europe is still murky……or should I say ...”Merkley.”
WTI crude oil today finished up 0.63% to $43.30 a barrel. Gold rose today as the US dollar weakened. The shiny stuff gained $6.40 an ounce to $1,316.