REUTERS/Jim UrquhartDan McManus and his service dog Shadow hang glide together outside Salt Lake City, Utah, July 22, 2013.
Another record high for the stock market.
First, the scoreboard:
- Dow: 15,962.9, +86.7, +0.5%
- S&P 500: 1,798.1, +7.5, +0.4%
- NASDAQ: 3,985.9, +13.2, +0.3%
And now the top stories:
- In major news today, China announced that it would begin to loosen its one-child policy, which has been behind massive demographic problems in the country. The country is ageing rapidly, and children without sibling face tremendous financial burdens as they have to care for their own ageing parents. On top of that, there are way more boys than girls. “There will not be enough brides for as many as one-fifth of today‟s baby boys when they get to marrying age, heightening the risk of social tensions,” said the analysts at Nomura.
- The stock market extended its amazing 4-year long rally. “[I]f SPX closes 2013 at 1750 and US 10y yields at 3%, stocks will have beaten bonds by 37% in total return terms — the highest differential in 40 years,” said Bank of America Merrill Lynch’s John Bilton.
- With only six weeks left in the year, JP Morgan’s Tom Lee cranked up his year-end target on the S&P 500 to 1,825 from a previous target of 1,825. In our view, the case for continuing to maintain a positive stance on equities remains in place given: (i) improving economic momentum to support upward EPS revisions (pent-up demand in U.S. housing, autos, construction, capex and a recovery in the euro area); (ii) attractive relative value (particularly vs. corporate bonds), (iii) supportive monetary policy and (iv) sentiment that is not excessively bullish,” said Lee.
- The Empire State manufacturing index unexpectedly plunged to -2.21 in November from 1.52 in October. Economists were expecting an increase to 5.00. “Given the relatively small amount of manufacturing activity that takes place in the Northeast relative to other areas such as the Midwest, the recent prints in the Empire State do not yet suggest substantial downside risk to that view,” said Barclays’ Cooper Howes.
- Industrial production unexpectedly fell 0.1% in October, which was much worse than the 0.2% increase expected by economists. “Stripping out the possible weather-impact of October utility production, the report does not really disappoint,” said MillerTabak’s Andrew Wilkinson. “On a year-over-year basis industrial production remains 3.2% stronger while manufacturers are producing 3.3% more than they did in October 2012.”
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