The market was poised to move higher but crude inventories declined less than expected, so now stocks are marking time. This is actually fine and allows for a pause that assesses commitments to the rally. As oil has lurched lower, and now all the major indices are in the red, too, it’s going to be a good chance to confirm former resistance points as support points.
We are watching the changing of the guard in the United Kingdom, and while I applaud the British Exit vote, I’m beginning to worry about Theresa May’s, the new conservative, position on trade and economy.
In the most recent economic data news, US import prices rose 0.2% in June, after rising 1.4% in May. This is the largest 3 month (Feb-May) rise since the same period in 2011. Prices for U.S. exports increased as well in June by 0.8% percent after rising 1.2% in May.
Higher fuel prices more than offset a decline in nonfuel prices. Fuel prices increased 6.2% after recording advances of 14.9% in May, 9.8 percent in April, and 8.5 percent in March. However, the price index for import fuel is down 26.0% from June 2015 to June 2016.
Gold is regaining some of its losses from yesterday and August is up over $1341 an ounce. Treasury yields are lower today. On the NYSE, decliners are leading advance 3 to 4. And the VIX, (fear index) is lower and is now around 13.4.
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