Investors look toward 2017 as the Dow scrapes the 20,000 ceiling

Energy and financials components of the Dow Jones Industrial Average have fueled the unprecedented climb toward 20,000, due to investor expectations for an incoming Trump administration. The Dow is currently trading at 19,959, down 16.05 points, or 0.08%. The Nasdaq-100 is down 0.24% from the open today, dropping 13.38 points to 5470. The S&P 500 is trading at 2,268, down 2.67 points, or 0.12%.

Using the ^GSPC symbol to analyze the S&P 500, our prediction model shows slight pullbacks with a late reversal at the end of the 10-day window.  The predicted close today is 2269.56, with predicted support and resistance at 2261.29 (± 3.89) and 2272.48 (± 3.91), respectively.  

Oil

Crude oil futures have edged up above $52, currently trading at $53.11 which is down 0.39% from today’s open. Figures from the American Petroleum Institute are showing declines in US stockpiles, and investors are looking toward January for more global production cuts to take effect.  

Looking at USO, a crude oil tracker, our 10-day prediction model shows slight declines during the end-of-year lighter trading sessions. The fund is currently down 0.17% at 11.6. Today’s prediction sees support at 11.56 (± 0.09) and resistance at 11.75 (± 0.10). The predicted close for today is 11.66.  

Gold

Gold is on a slight rebound today as the US dollar course-corrects after reaching a 14-year high following Janet Yellen’s optimistic remarks on the US job market.  The non-fiat metal is currently trading at $1134.60. Most do not expect this to hold, however, as a new year of higher interest rates and bond yields will prove more attractive to investors.

Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, we see three trading sessions of positive movement followed by sheds for the remainder of the prediction window. The yellow-metal proxy is currently trading at 107.87 which is down 0.38, or 0.07%. Today’s predicted low is 107.61 (± 0.40) and the predicted high is 108.32 (± 0.40). The predicted close today is 107.83.  

Treasuries

Treasury bonds and their returns are seeing stability into the end of this year. Using the iShares 20+ Year Treasury Bond ETF (TLT) in our Stock Forecast Tool, we see this volatility in the 10-day prediction window.

TLT, an ETF which tracks 20+ year bond returns, is currently down 0.01 points, or 0.08% at 117.91. The predicted close today is 118.75 with a low and high of 117.57 (± 0.56) and 119.32 (± 0.57), respectively. Vector movements are overall positive with some low-momentum oscillations.

Volatility

The CBOE Volatility Index (VIX) is down 1.66% at 11.26 with consistent positive vector movements predicted. The 10-day model shows vector values making compounding gains to today’s conditions. The predicted close today is 11.64. Today’s predicted lows and highs are 11.45 (± 0.20) and 13.09 (± 0.23), respectively. Predicted 10-day figures show support contained between ~11 and ~12. Predicted resistance stays between ~13 and ~15.

Other news

The Swiss Competition Commision, a financial regulatory entity, has concluded an investigation into a group of global banks which conspired to rig rates and other financial products dating back to a period before the financial crisis. The fines amount to a total of $96.3 million. The banks facing these penalties are: J.P. Morgan Chase & Co., Royal Bank of Scotland Group PLC, Deutsche Bank AG, Citigroup Inc., Barclays PLC, Société Générale SA, and Credit Suisse Group AG.

Coca Cola Co. is set to acquire a 54.5% stake in Coca-Cola Beverages Africa from Anheuser-Busch InBev SA for $3.15 billion. This is seen by many as a defensive move against AB InBev, which may be targeting Coke for a takeover.