Stocks continue to rally and tech finally bounced higher. The Dow closed up 54 to 18,923 on lighter trading volume.
Microsoft announced a partnership with Elon Musk’s artificial intelligence group called OpenAI which will utilize Microsoft’s Azure Cloud system to run large scale AI experiments and hopefully further its safe use in applications for things like medicine and autonomous driving. I was excited when I saw the headlines but after reading the article I was a bit disappointed since I had hoped that the deal would include sending Steve Ballmer to Mars on one of Elon’s SpaceX rockets. Oh well.
The Chinese yuan fell against the US dollar to its lowest mark since 2008. Since the election the US dollar has surged against EM currencies as the prospects of higher US interest rates and an “America First” trade policy has rattled foreign currency markets. China appears content to let the yuan fall since it makes their exports more price competitive.
OPEC posted record production in October (33.64 million barrels per day) and is now trying to keep the hope of production cuts alive as it heads toward a November 30th meeting in Vienna. Waffling and disagreements between Saudi Arabia, Iraq and Iran are not helping matters plus rising US production and the election of Donald Trump appear to be adding uncertainty to OPEC’s resolve. At the close today WTI crude oil shot higher by 5.8% to $45.81 per barrel.