Your Tuesday Market Blip 1/5/16

Your Tuesday Market Blip 1/5/16

With the help of Mr. Smith and Mr. Wesson, the markets found support as the Dow ended the day up 9 points at 17,158. Trading volume was lower on the day. The NASDAQ index fell as shares of Apple were lower on rumors of iphone production cutbacks in Asia.
After yesterday’s “Crappy New Year” selloff, the markets are holding at support but IBD has moved its market indicator from rally to correction. Several market gurus are lowering 4th quarter GDP estimates after the Atlanta Fed lowered its Q4 GDP estimates to 0.7% which is off significantly from Q3’s reading of 2.1%. Service sector growth is currently the upside driver for the economy with gurus hoping it will negate the effects of a sluggish trade and factory sector.
December car sales were reported today with the following sales results: GM sales up 6%, Ford up 8%, Fiat/Chrysler up13%, Toyota up 11% and VW off 9%. According to Autodata, 2015 was a record year as total light vehicle sales were 17.47 million units. This surpasses the prior record set in 2000. The single bestselling vehicle was the Ford F-150 pickup.
WTI crude fell 2.7% to trade near $35.70 per barrel. Experts think oil is cheap but will not bottom until production cutbacks and global demand trends balance out. Some guys like Kyle Bass think energy stocks will not show any rebound action for another year or two and expect industry buyouts and bankruptcy’s to peak in 2016.
According to the Puget Sound Business Journal, the recent lifting of the oil export ban will benefit Washington’s 5 refineries and bring more oil trains to and through the state as Asian buyers can now ship crude from west coast ports. Alaska will also benefit.