Dow advanced 268 (near session highs), advancers over decliners 3-1 & NAZ went up 188.  The MLP index added 2+ to the 226s & the REIT index soared 12+ to the 391s.  Junk bond funds continued in demand & Treasuries rallied, reducing yields.  Oil rose 2+ to the 77s & gold gained 5 to 1882 (more on both below).

AMJ (Alerian MLP Index tracking fund)

Global personal computer shipments are expected to rise starting late 2023, with a new cycle of system upgrades likely to accelerate growth next year, according to research firms IDC & Canalys.  Inflation-hit & recession-wary customers have so far been delaying system upgrades, but these will be pushed into the latter part of the year and trigger PC market growth, the research firms said.  "The commercial segment has several drivers towards growth, including the approaching end of support for Windows 10 & a building refresh cycle," IDC analysts added.  The recovery will be bolstered by an education demand bump in major markets as devices deployed during the pandemic peak reach the end of their life cycle, according to Canalys analyst Ishan Dutt.  "We expect delayed purchases to begin boosting the market in late 2023, with momentum picking up in 2024."  The chip industry, too, is expected to rebound around the end of H1-2023 after a downturn, which was driven by a crash in electronics demand last year as red-hot inflation pushed consumers to be careful with spending.   PC shipments fell 16.5% to 292M units in 2022.  Q4 shipments declined 28.1%.

Global PC market seen to recover late 2023: reports

Biden’s plea to lawmakers in rare op-ed: Unite to hold tech accountable

, as well as public displays of tension between the US & China, 2 countries that nonetheless remain deeply intertwined economically. Businesses that have grown used to free, global trade have faced mounting complications, such as proliferating sanctions and export controls.  Govs are increasingly using "financial levers" to advance national security goals, said Lindsay Newman, head of geopolitical thought leadership for S&P Global Market Intelligence.  That development has clear implications for businesses.  "Where geopolitics would have been reserved for dinner-party conversation or a cocktail-party conversation, clients are coming to us and saying, ‘We need a geopolitical risk management function,’" Dr Newman said.  "The post-Cold War era is clearly over, and there are major powers out there looking to shape the future."  "We see more volatility ahead rather than less," she said.  Risk professionals have grown more wary. Geoeconomic confrontation ranks among the top 3 perceived risks over the next 2 years. The only near-term risks perceived as greater were the cost-of-living crisis & natural disasters & extreme weather.  Another survey, this time of more than 1300 exes by consulting firm Protiviti, also showed a dramatic jump in the last year in risk experts' concerns about geopolitical shifts, global trade & a potential reshaping of globalization.  The geopolitical risks weren’t necessarily top of mind for respondents to that survey—talent challenges, economic conditions& labor costs were the top 3 concerns—but they showed some of the largest jumps compared with what respondents said the previous year.

Impact of geopolitical tumult on businesses to continue in 2023, say risk experts

Gold futures rose to settle at a fresh 8-month high.  The market is laser focused on US consumer price index data due out tomorrow & if CPI comes in lower than anticipated, this could be supportive for gold.  Gold for Feb rose $2 to settle at $1878 an ounce, the highest most-active contract finish since May 6.

Gold Futures Post a Fresh 8-Month High

Oil futures climbed, with US prices up a 5th consecutive session.  Hopes of a strong rebound in Chinese oil demand, fears surrounding the coming G-7 price cap on Russian refined product & a weakening $ is providing support to oil prices this week.  Meanwhile, the Energy Information Administration report showing a massive 19M barrel build to commercial crude stocks largely reflects the continued slower pace of refinery runs following shut-ins during the recent winter storm, coupled with the passing of the ad valorem tax season, which incentivizes keeping barrels offshore until the new year & helps explain the reported surge in net-imports of crude.  The US benchmark WTI crude for Feb rose $2.29 (3.1%) to settle at $77.41 a barrel.

U.S. Oil Futures Tally a 5th Straight Session Gain

After selling in the first hour, buyers returned & took prices higher for the rest of the session.  Investors are betting on a strong inflation report tomorrow.  Meanwhile negative investors keep buying gold, up more than $200 from its recent lows.

Dow Jones Industrials