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
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| 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.