The markets continue to trade in quiet fashion as Washington DC is on vacation and financial types in New York and elsewhere have drifted out of town like cowboys in a Charles Russell painting. At the close the Dow was up 28 points to close at 24,774. Trading volume was very low.
Raw material prices are moving up as are the shares of companies that produce them. Mark Tepper, CEO of Strategic Wealth Partners commented on CNBC that “The bottom line is that there's still massive pent-up demand to increase capital investment, and this (commodities) will be a big beneficiary of that," Mark also added that “this (commodities price rise) happens to be a direct play on the expectation of increased infrastructure spending and capex as a result of the tax reform,". There is an old saying on Wall Street that “every bull market has a copper roof” meaning that when copper prices peak out it signals that the market’s best days are behind it. However with rising demand in the US, China and other parts of the globe the “copper roof” signal could be wrong. Time will tell.
Visa is reporting that this Christmas shopping season was the best on record rising 4.9% above last year. Even Amazon shoppers used their Echo’s to order 10 million more Echo’s. Companies like UPS, FedEx and the post office were busier that a one legged man in a fanny kicking contest. At one point UPS pulled office workers and sent them to deliver packages.