Your Tuesday Market Blip 12/29/15

Your Tuesday Market Blip 12/29/15

Stocks traded well up as we head into New Year’s Eve and the official dropping of the ball in the big apple! The Dow gained 192 points to close at 17,720 on heavier trading volume.
People are starting to talk about what 2016 will bring in terms of market returns and it seems that there is no consensus at all other than more of the same with a slight uptick in the markets if oil prices can stabilize. Housing, jobs and autos are expected to add to the economy while energy exports could help put a floor under natural gas and oil prices. Only time will tell but one thing is for sure and that is that billions will be spent on the election as inta-candidate epithets will undoubtedly fly over the course of the year. The political industrial complex is gearing up for a potential banner year.
Oil and gas prices rose as weather forecasters were predicting cold weather hitting the east coast in the next few days. WTI crude was up 2.7% at $37.80 a barrel. Heating oil jumped 4% and natural gas gained 6.4% as traders covered short positions and went long ahead of a cold front moving toward Jersey City. While this price spike is good for producers, price weakness is expected to rule the day as the global oil glut marches on. Saudi Arabia announced austerity measures to help hold down the rising internal deficit throwing light on the weakness of many OPEC nations which produce oil and not much else.
The latest S&P/Case-Shiller home price data came in with a 5.2% year over year increase for the month of October. It was the fourth straight month of accelerating gains with Portland, OR, San Francisco and Denver leading the charge. Portland is at the top of the list only because they won the MLS cup! Tight inventories and a home construction labor shortage are fueling higher prices.