November 14, 2017

Stocks opened lower this morning (Dow -58 points; SPX -.22%). Telecom, materials and energy sectors are all down about 1% in early trading. Utilities and consumer staples are the only sectors in the green. It’s been a whole week since the SPX last made a fresh high. The VIX Index is up around 11.5 and VIX December futures are trading up around 12.8. So uncertainty about congressional action on tax reform is having an effect on capital markets. And commodities are trading down after some disappointing Chinese economic news. Copper is down 2% and WTI crude oil is trading down 2% to about $55.50/barrel. The Int’l Energy Agency (IEA) modestly reduced its global oil demand forecast for 2017 and 2018. The dollar is weaker today and interest rates are slightly lower. The 5-year and 10-year Treasury yields edged down to 2.07% and 2.38%, respectively. 


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