Financial Markets Summary
Tuesday, November 22, 2016
- The U.S. dollar, after moving higher for ten consecutive days, took a breather yesterday. However, it broke out of the multi-year trading range last week reaching levels that the dollar hasn’t been at since the first quarter of 2003.
- Oil has proven to be resilient while moving sideways since June. Various news stories coming from producing countries during that time haven’t been able to sway oil into a defined trend.
- The rapid rise in interest rates last week sent the five and ten year yields to the largest percentage increase in yields during a two-week period in history. Yesterday, Federal Reserve Chair Janet Yellen seemed to make her strongest case yet for a December interest rate increase by the Federal Reserve.
- The stock market continues to dazzle with the Russell 2000 extending its streak of consecutive daily gains to 12. It is the longest streak since 2003.
- Yesterday was the first time since 12/31/99 that the S&P 500, Dow Jones Industrial Average, Russell 2000 and S&P 400 Midcap all closed at new highs. Historically, what follows all-time highs in the S&P 500 are more all-time highs.
- Gold is retesting the June lows. It is becoming more significant that it holds the support level at $1200 an ounce. It closed yesterday near the $1213 an ounce level. Last week’s low was $1201.30.
Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.
Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice. The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness. References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service. Past performance is not a guarantee of future results.