Buzz on Business for Monday, December 4th, 2023

Five or six weeks ago we expressed some bearish sentiments about Gold as it appeared to assault $2000 an ounce and a new all-time high. Higher high and lower close and triple-tops never work, I said. I was wrong!

Market Roundup

• • Stocks: The Dow Jones Industrial Average closed above 36,000 for the first time since January 2022, the S&P 500 closed at a new high for the year, and the Nasdaq Composite also closed higher.

• • Rates: Rates were up pretty much across the board on Friday. The two-year Treasury closed at 4.59%, the yield on the twenty-year was up three ticks and closed at 4.59%, and for those of you playing along at home, the two and twenty-year Treasuries now yield the same, 4.59%.

• • Oil: Oil traded in a tight range but managed to gain twenty-seven cents and starts the day and week at $74.61 a barrel.

• • Gold: Gold closed at a new all-time high at $2,090, up $32.50 a troy ounce.

Fed Outlook

Jerome Powell spoke again on Friday. Lately, Fed officials seem to have been softening their outlook on rates. One interest rate hawk on the FOMC seemed to say that the battle with inflation, while not over, has been won and that further tightening would not be necessary. But that’s not what Chairman Powell said. He hewed a tougher line and seemed to imply that further rate hikes were necessary. The market ignored him and rallied strongly throughout the day. The odds of another hike in rates anytime next year have fallen to less than five percent.

Economic Calendar

Not much that’s too exciting on the earnings or economic calendar this week. But the markets have a way of manufacturing their own excitement.

We will be watching this remarkable rally this week.