Stocks continue to creep higher in the face of nervous nellies who think the current rally is over done. At the close the Dow was up 42 to 18,096. Trading volume was on the high end making this another accumulation day by the biggies.
Oil prices fell a bit after workers in Kuwait returned to the job but then rallied into the close. The recent strike in Kuwait had cut production by about half and now that it is over things there should return to “normal”. WTI oil moved higher gaining another 3.7% to almost $43 per barrel. Global demand growth has been steady while production is all over the place considering the entrance of Iran, Middle East turmoil and the exit of many US producers. Global investment firm Allianz is prediction oil will be in the $60 to $70 range sometime later this year or next.
Intel reported earnings last night and overall it was a solid report as revenue was up 7% and net income gained 3%. The company did well in the “internet of things” division as well as security and data centers. Intel however hit the panic button and announced a restructuring as it moves away from the PC business. This change will result in the removal of 12,000 jobs and some consolidation of R&D facilities. Going forward Intel lowered its guidance a tad and will continue to emphasize the “internet of things”, which I guess is better than the “internet of stuff” and data centers.
Gold was unchanged today and silver gained a point to close at an 11 month high.