Thursday, December 31, 2015


Stocks open lower Thursday; Dow industrials move further into loss for 2015 with the start of trading Thursday.

Stocks are little changed for 2015:

Heading into the final day of trading, the S&P 500 sits at 2,063.36, virtually unchanged from its 2014 closing price of 2,058.90. The last time the benchmark averaged finished the year flat was 2011. Currently, the Dow is down 1%.

US Treasurys lost ground in 2015.

Treasury yields put in their lows for the year in January.
Up front, the two-year surged to fresh six-year highs after the Federal Reserve announced an interest-rate increase in December. For the year, the two-year rallied 60 basis points to 1.07%.
The 10-year yield put in its 2015 high of 2.48% in June before ending the year up 43 basis points at 2.29%.
Selling at the long end caused the 30-year yield to rise 28 basis points to 3.03%. The yield on the long bond put in its 2015 peak of 3.24% in June.

Commodities had a bad 2015.

Precious metals saw some early strength in 2015 but sold off throughout the year after their January gains. Gold sank 10% to $1,062 an ounce and silver lost 12% to $13.88 an ounce. On the industrial side, copper plunged 25% to $2.1360 a pound.

The energy complex had a rough year. Crude oil tumbled 31% to $36.74 a barrel as oil inventories swelled amid OPEC's plan to push out US shale players. An unseasonably warm fourth quarter pushed natural gas down to $1.75 per million British thermal units, but a late rally saw the energy component end 2015 down 19% at $2.37.

Despite endless financial engineering, sales for the S&P 500 have been declining for the last three quarters. And profits have declined for the first time since the 2009 expansion.

The recovery is a mirage... It isn't real... And it isn't sustainable.

Unhappy New Year: The U.S. Economy Is Stalling Out.

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