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Markets Keep Post-Election Rally Heated

Originally published: 12.16.16 by Margot Crabtree


Wall Street continued its scorching climb and handily weathered the expected interest rate hike by the Federal Reserve as our trading session ended Dec. 15, 2016.

Banks were the unfettered winners of the recent run-up. The Commerce Department said that home construction rocketed ahead 25.5 percent in October, the largest increase since July 1982. New construction is at its top level since August 2007.

The National Association of Home Builders/Wells Fargo October builder sentiment index was unchanged at 63, in line with expectations, but in November shot up to 70, the strongest reading since July 2005. The National Association of Realtors said that October’s sales of existing homes rose 2 percent, the strongest rate since February 2007. 

The Federal Reserve reported that manufacturing production rose 0.2 percent in October. The Commerce Department said that durable goods increased 4.8 percent in October, the strongest increase since October 2015, with a 94.1 percent bump in orders in the volatile commercial aircraft category.

The Institute for Supply Management’s national factory activity index increased 1.3 percent, to 53.2 in November, the highest reading since June. Techs floundered in mid-session, but soon recovered, and the Dow industrials kept hitting new highs.

The Conference Board reported that consumer confidence rose


to its best level in more than nine years, to 107.1 in November, from 100.8 in October. The Commerce Department said that wholesale inventories fell 0.4 percent in October, while sales rose 1.4 percent. This trend could indicate a greater demand for factory orders in the future.

The Labor Department reported that U.S. productivity rose in the third quarter by 3.1 percent, the fastest rate in two years, following three quarters of downturns.

“I think the market is just going through a period of rational exuberance,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management. “The prospect for faster economic growth and the normalization of interest rates — these aren’t bad things for the stock market.”

Exchange
Symbol
Company Name
Price
12/15/16
Price
11/15/16
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 32.75 32.30 0.45 1.39% 33.09 19.06 52760 1727890
NYSE ABB ABB Ltd. 20.97 21.22 -0.25 -1.18% 22.92 15.74 2140000 44875800
NYSE AOS AO Smith Corp. 48.61 47.53 1.08 2.27% 51.49 30.15 147700 7179697
NYSE FIX Comfort Systems USA, Inc. 34.20 32.00 2.20 6.88% 34.95 24.22 36910 1262322
NYSE DOV Dover Corp. 76.03 71.56 4.47 6.25% 78.27 50.91 155350 11811260.5
NASD ELON Echelon Corp. 5.26 4.30 0.96 22.33% 6.70 4.17 4430 23301.8
NYSE DD E. I. DuPont de Nemours & Co. 74.89 68.64 6.25 9.11% 75.67 50.88 869340 65104872.6
NYSE EME EMCOR Group, Inc. 72.53 70.24 2.29 3.26% 73.44 40.98 60650 4398944.5
NYSE EMR Emerson Electric Co. 56.18 55.78 0.40 0.72% 58.28 41.25 642780 36111380.4
NYSE FCAU Fiat Chrysler 8.73 7.52 1.21 16.09% 9.51 5.45 1290000 11261700
NYSE F Ford Motor Co. 12.58 12.04 0.54 4.49% 14.38 11.02 3900000 49062000
NYSE GM General Motors Co. 36.24 33.43 2.81 8.41% 37.74 26.69 1530000 55447200
NYSE HON Honeywell International, Inc. 116.34 113.12 3.22 2.85% 120.02 93.71 762120 88665040.8
NASD HDSN Hudson Technologies, Inc. 7.66 7.66 0.00 0.00% 8.50 2.64 34070 260976.2
NYSE IR Ingersoll-Rand Plc 77.23 75.92 1.31 1.73% 79.21 47.08 258330 19950825.9
NYSE JCI Johnson Controls, Inc. 42.42 44.50 -2.08 -4.67% 48.97 28.94 935800 39696636
NYSE LII Lennox International Inc. 157.30 151.14 6.16 4.08% 164.57 105.65 43050 6771765
NYSE LXU LSB Industries, Inc. 8.19 8.28 -0.09 -1.09% 15.50 3.68 27910 228582.9
NYSE MTW Manitowoc Co., Inc. 5.90 5.00 0.90 18.00% 17.40 3.65 138770 818743
NYSE MLI Mueller Industries, Inc. 40.54 35.97 4.57 12.71% 41.04 23.09 57380 2326185.2
NYSE NWL Newell Rubbermaid, Inc. 46.68 47.05 -0.37 -0.79% 55.45 33.26 482400 22518432
OTC NSANY Nissan Motor Co. Ltd. 19.80 18.55 1.25 6.74% 21.30 16.57 3970000 78606000
NASD OFLX OmegaFlex, Inc. 50.57 41.33 9.24 22.36% 50.83 27.51 10090 510251.3
NYSE PH Parker-Hannifin Corp. 143.00 140.02 2.98 2.13% 145.44 83.32 133400 19076200
NYSE RBC Regal-Beloit Corp. 72.20 69.45 2.75 3.96% 75.60 47.77 44760 3231672
NYSE ROK Rockwell Automation 136.21 133.48 2.73 2.05% 139.64 87.53 128240 17467570.4
OTC SIEGY Siemens Aktiengesellschaft  120.66 116.73 3.93 3.37% 124.10 86.58 808280 97527064.8
NYSE SPXC SPX Corp.  24.39 22.48 1.91 8.50% 25.95 7.62 41890 1021697.1
NYSE TXN Texas Instruments 73.45 71.03 2.42 3.41% 75.25 46.73 999490 73412540.5
NYSE UTX United Technologies Corp. 107.68 100.16 7.52 7.51% 109.83 83.39 823410 88664788.8
NYSE WSO Watsco, Inc. 150.77 144.89 5.88 4.06% 159.55 106.58 27530 4150698.1

 

 
Price 12/15/16
Price 11/15/16
Net Change
Percent Change
HVACR Business Stock Index 1,379.05 1,258.71 120.34 9.56%
Dow Jones Industrial Average 19,852.24 18,923.06 929.18 4.91%
S&P 500 Index 2,262.03 2,180.39 81.64 3.74%
NASDAQ Composite 5,456.85 5,275.62 181.23 3.44%

 

Gainers/Losers
$ Gainer OmegaFlex, Inc. 9.24
$ Loser Johnson Controls, Inc. -2.08
 
% Gainer OmegaFlex, Inc. 22.36%
% Loser Johnson Controls, Inc. -4.67%
 
Advancers 26
Decliners 4
Unchanged 1

 

The HVACR Business Stock Index rocketed ahead 120.34 points, or 9.56 percent, and closed at 1379.05. Advancing issues tromped declining issues by a 26-to-4 count.OmegaFlex jumped 9.24 points, or 22.36 percent.

The OFLX board of directors announced a special dividend of $0.85 per share. This dividend is paid on Jan. 6, 2017 to shareholders of record as of Dec. 26, 2016.

“The company has had an excellent sales year, and currently presides over a strong balance sheet, with no debt and a significant cash reserve,” said OmegaFlex President and CEO Kevin Hoben. “There are opportunities for capital investment in 2017, but the board determined that it is appropriate to return some cash to the shareholder.”

OFLX closed at 50.57, and was the top dollar and percentage gainer.Johnson Controls slid 2.08 points, or 4.67 percent.

Investment firm Gabelli & Co. cut its rating on JCI to “hold” from “buy.” Its price target is $50. Citigroup initiated coverage on Johnson Controls with a rating of “buy.” Its price objective is $54. JCI closed at 42.42, and was the top dollar and percentage loser.

Shares of DuPont rose 6.25 points, or 9.11 percent. Zacks Investment Service upgraded DD to “buy” from “hold.” Its price objective is $79. DuPont ended at 74.89.

 


Margot Crabtree is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit  www.tradetrendsonline.com

 




About Margot Crabtree

Margot is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit tradetrendsonline.com.

 

 




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