Your Thursday Market Blip 12/10/15

Your Thursday Market Blip 12/10/15

The Dow gained 82 points to close at 17,574 on light trading volume. Markets continue to be range bound as next weeks Fed rate hike meeting approaches.
Gun makers Mr. Smith & Mr. Wesson reported earnings the other day and the numbers were well above estimates as revenue shot higher by 32% and net income gained 178%. The company increased forward guidance thanks to a surge in gun control talk and the possibility of winning a big pistol contract with the feds. Shares of S&W hit new highs on the news.
Rating agency Moody’s today upped its outlook for pipeline giant Kinder Morgan from “negative” to “stable” citing the recent announcement to reduce the dividend and channel cash into expansion and capx projects. Moody’s noted that the change in dividend policy means Kinder Morgan will not need to access bond or equity markets for the coming year.
Oil prices continue to drop with WTI crude falling 1.8% to trade near a 6 year low of $36.40 per barrel. The downward pressure came as jitters over a growing supply glut persist. The current estimates for the oversupply glut range from 500k barrels per day to 2 million bpd. Futures prices for oil and gas remain above spot prices indicating that energy prices could rise next year.
Gold meanwhile fell a half point in value to $1,071 per ounce. With next week’s possible increase in the Fed funds rate the US dollar has shown upward bias which in turn puts downside pressure on commodities. Some traders feel gold could slip below the $1,000 per ounce price level if rates are pushed higher by Janet the Yellen and her fearless band of economists.