Dow jumped 327 (near session highs), advancers barely ahead of decliners & NAZ was off 32. The MLP index added 4+ to the 226s & the REIT index was off 3+ to 370. Junk bond funds traded higher & Treasuries saw more buying which reduced yields. Oil continued strong, finishing up 4+ to about 81, & gold recovered 34 to 2000 (more on both below).
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Gas prices could hit $4 a gallon after Opec production cut
General Motors (GM) Q1 US sales rose 18% from a year ago, to just over
600K vehicles delivered, as it continued its rebound from the supply
chain problems that limited global auto production in 2021 & early
2022. “We gained significant market share in the first quarter,
pricing was strong, inventories are in very good shape, and we sold more
than 20,000 EVs in a quarter for the first time,” GM North America
chief Steve Carlisle said. Most
of those electric vehicles were Chevrolet Bolts, but GM did sell 968 of
its brand-new Cadillac Lyriq EVs, built on the company's
next-generation Ultium EV architecture. GM has been working to ramp up
its production of its Ultium-based electric vehicles, with new
high-volume Ultium-based models including an electric Chevrolet Equinox crossover due later in 2023. GM
confirmed that it expects to build 50K EVs inH1 & “double that” in H2 of the year, as Lyriq
production ramps up & shipments of the electric version of the
Chevrolet Silverado pickup begin later this spring. With analysts increasingly concerned about high vehicle prices, GM noted
that new versions of its affordable Chevrolet Trax & Trailblazer &
Buick Encore crossovers will be arriving at dealers over the next
several months. All 3 will have starting prices below $30K, GM
said. The stock fell 41¢.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM_aid=CD3289&a_bid=6ae5b6f7
General Motors’ U.S. sales jump 18% in the first quarter
Home prices unexpectedly jump for the first time in months
Gold settled back above the $2000 mark as the $ & bond yields fell on expectations a surprise cut in OPEC+ production will spur inflation, dimming hopes the Federal Reserve will cut interest rates this year. Gold for Jun closed up $14 to settle at $2000 per ounce. The rise comes after OPEC+ made an unexpected 1.1M barrel per day cut to production to support prices & reduce global inventories, raising the cost of oil & adding inflationary pressure as the Fed & other central banks raise interest rates to slow their economies to check rising prices. The $ was last seen down 0.31 points to 102.2, making gold more affordable for intl buyers. Bond yields also, with the 10-year Treasury note down 3.9 basis points to 3.432%, while the 2-year note was down 2.1 basis points to 4.007%.
Gold Rises Back Above US$2,000 as OPEC+ Cuts Seen Fending off Lower Interest Rates
US crude prices finish 6.3% higher at $80.42 a barrel, the highest closing price since Mar 6, following a decision by Saudi Arabia & other OPEC-plus members to cut production by 1.1M barrels a day to offset weak US & global demand. The move to reduce supply came as data from the Institute for Supply Management reported US manufacturing activity contracted for a 5th consecutive month in Mar & as diesel fuel demand continues to run about 10% below year-ago levels. By reducing supply levels now, the OPEC-plus group may be trying to avoid a situation similar to that in US natural gas markets, which is burdened with inventories 21% above normal & the lowest prices in several years.
WTI Oil Finishes at a 4-Week-High on OPEC
The report above mentions US manufacturing activity was weak last month, that is why OPEC cut oil production. The US economy is less than robust & early signals are that GDP growth will be slightly negative for the rest of the year. But Dow had a good day today. Go figga!!
Dow Jones Industrials
