The Closing Look

Stocks opened higher on Wednesday but closed mixed to mostly lower on the last trading day of the month. The big move to the upside came after oil prices spiked. OPEC cut production by 1.2 million barrels a day to help end the record supply glut. Economic data was mixed. Mortgage Applications plunged 9.4% while the refinance index plunged -16% as rates continue to move higher. ADP, the country’s largest private payrolls company, said U.S. employers added 216,000 new jobs last month, easily beating estimates for a gain of 160,000. Chicago PMI rose  to 57.6, beating estimates for 52. Elsewhere, Pending Home Sales rose 0.1%, missing estimates for a gain of 0.8%. The Fed’s Beige Book showed economic growth continued to improve across most of the country.

Gary’s Thoughts: Since radio show had glitches, here is the elongated “what we would have said!” OILS OILS OILS…on OPEC cuts…OIH,XLE,XOP broke out of bases which means a bunch of names broke out of bases. Keep in mind, oils are tricky. A few days ago, they were breaking out and then were dumped. This one looks for real but if OPEC backtracks…

Also, financials another good day as well as economically sensitive stuff…BUT ON THE OTHER HAND, and to repeat, we would avoid, reits, utilities, food,drugs,beverages,tobacco,household products, bonds, a bunch of medical stuff, a bunch of biotech and the big cap internet/tech leaders of past. You know the names.  Would also note the weak close and the very weak nasdaq/ndx today.