Summary Of the Markets Today:

• The Dow closed up 60 points or 0.16%,
• Nasdaq closed down 0.36%,
• S&P 500 closed down 0.07%,
• Gold $2018 up $1.00,
• WTI crude oil settled at $78 up $0.63,
• 10-year U.S. Treasury 4.145% up 0.013 points,
• USD index $101.46 down $0.13,
• Bitcoin $41,900 up $1,954,
• Baker Hughes rig count up 1 to 621

---

Click here to read our current Economic Forecast – January 2024 Economic Forecast: Our Index Turns Slightly Negative

---

Today’s Economic Releases Compiled by Steven Hansen, Publisher:

Real personal income (PCE) grew 4.2% year-over-year in December 2023 – down from 4.4% the previous month. Real personal consumption expenditures improved to 3.2% year-over-year from 2.99% last month. The PCE price index was little changed at 2.6% year-over-year.  Excluding food and energy, the PCE price index was 2.9% year-over-year. These are relatively good numbers.

The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – increased to 77.3 in December. Year over year, pending transactions were up 1.3%. An index of 100 is equal to the level of contract activity in 2001. Lawrence Yun, NAR chief economist stated:

The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices. Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand.

Here is a summary of headlines we are reading today:

• US Oil, Gas Drillers Add 1 More Rig As Production Plummets
• China’s Record Solar Additions in 2023 Top Entire U.S. Solar Capacity
• Oil Tanker and Container Shipping Rates Hit Record Highs
• Russia Sees Alternative Gas Routes if Ukraine Transit Deal Isn’t Extended
• Biden Administration Halts Approvals of New LNG Export Projects
• Rising Electricity Demand Will Keep Fossil Fuels Around
• Tech layoffs balloon in January as Wall Street rally lifts Alphabet, Meta, Microsoft to records
• Crypto prices effort a comeback as bitcoin soars 5% to close out the week: CNBC Crypto World
• Microsoft Teams suffers outage affecting thousands, sparking user frustration

Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.

The Market in Perspective

Here are the headlines moving the markets.
	Italian Grid Operator Increases Investments to $12.5 Billion Italy is enhancing its overall energy security by significantly increasing investments in both energy transition and conventional hydrocarbon infrastructure. By 2027, the Italian grid operator SNAM will invest approximately $12.5 billion or 11.5 billion euros in its energy transition business, covering transport, liquefied natural gas infrastructure, and storage. This represents a 15% increase from its previous strategic plan (2026), with a primary focus on improving the overall flexibility of its energy system. According to SNAM, EUR 7.4 billion… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Italian-Grid-Operator-Increases-Investments-to-125-Billion.html
	Uzbekistan Eyes Deepened Economic, Energy, and Security Ties with China Uzbek President Shavkat Mirziyoev is in Beijing to meet with Chinese leader Xi Jinping for a high-profile state visit intended to lay the groundwork for strong ties between the two countries. In an article signed by Mirziyoev that appeared in Chinese state media ahead of the trip, the Uzbek leader praised China’s model of economic development and said relations between the two countries are experiencing “new historical heights” that will allow him to use the January 23-25 trip to “develop a new long-term agenda” for… Read more at: https://oilprice.com/Geopolitics/International/Uzbekistan-Eyes-Deepened-Economic-Energy-and-Security-Ties-with-China.html
	Shell To Convert German Refinery To Base Oil Manufacturing Shell plans to convert its oil refinery at the Wesseling site in Germany into a production unit for base oils, the UK-based supermajor said on Friday. Shell Deutschland GmbH has taken a final investment decision (FID) to turn the Wesseling site at the Energy and Chemicals Park Rheinland into a manufacturing facility for Group III base oils, used in making high-quality lubricants such as engine and transmission oils.  Crude oil processing will end at the Wesseling site by 2025 but will continue at the Godorf site at the Rheinland… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Shell-To-Convert-German-Refinery-To-Base-Oil-Manufacturing.html
	US Oil, Gas Drillers Add 1 More Rig As Production Plummets The total number of active drilling rigs for oil and gas in the United States rose this week, according to new data that Baker Hughes published on Friday. The total rig count rose by 1 to 621 this week, compared to 771 rigs this same time last year. The number of oil rigs rose by 2 this week after falling 2 last week, settling at 499–down by 110 compared to this time last year. The number of gas rigs fell by 1 this week to 119, a loss of 41 active gas rigs from this time last year. Miscellaneous rigs stayed at 3. Meanwhile, U.S. crude oil production… Read more at: https://oilprice.com/Energy/Energy-General/US-Oil-Gas-Drillers-Add-1-More-Rig-As-Production-Plummets.html
	China’s Record Solar Additions in 2023 Top Entire U.S. Solar Capacity China installed a record-high solar power capacity last year, with additions in 2023 alone topping the current capacity of the entire U.S. solar fleet. China added as much as 216.9 gigawatts (GW) of solar power capacity in 2023 – a record high, obliterating its previous record of 87.4 GW of solar power additions 2022, according to data from the National Energy Administration cited by Bloomberg. Per estimates by BloombergNEF, the Chinese additions in 2023 alone were higher than the whole U.S. solar capacity fleet of 175.2 GW. Last year,… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Chinas-Record-Solar-Additions-in-2023-Top-Entire-US-Solar-Capacity.html
	Electricity Deficit Widens in Kazakhstan Despite Rising Production Energy officials in Kazakhstan have forecast that electricity shortfalls will deepen in the coming two years, thereby increasing reliance on imports and heightening the risk of unscheduled blackouts. News outlet LS reported on January 25, citing Energy Ministry data, that power consumption this year is expected to reach 120.6 billion kilowatt hours, while production will lag behind at 118.3 kilowatt hours. Demand and production will both grow in 2025, but the deficit will widen to 3.3 billion kilowatt hours, the ministry is predicting. Some relief… Read more at: https://oilprice.com/Energy/Energy-General/Electricity-Deficit-Widens-in-Kazakhstan-Despite-Rising-Production.html
	North Dakota Oil Production Climbing Back Faster Than Anticipated North Dakota’s production of crude oil is returning to full force at a quicker pace than first suggested by authorities, new data from the state’s regulator showed on Friday. Crude oil production in the Peace Garden State is now down by between 30,000 and 80,000 bpd after extreme cold led to operational challenges. Associated natural gas production—the natural gas produced as a byproduct of crude oil production—was estimated to be down 0.10 and .22 Bcfd. Extreme weather cut crude oil production in North Dakota by hundreds… Read more at: https://oilprice.com/Latest-Energy-News/World-News/North-Dakota-Oil-Production-Climbing-Back-Faster-Than-Anticipated.html
	Oil Tanker and Container Shipping Rates Hit Record Highs One month ago, when it first became apparent that the Red Sea blockage by Iranian proxies would prove to be a prolonged affair, we warned that “Red Sea Blockage Means A New Round Of Surging Cost-Push Inflation”, which got confirmation just a few days later when we showed the sudden spike in container shipping rates that used the Suez Canal as a transit choke point. That, as we strongly suspected, was just the beginning, and according to Bloomberg, a key Clean Tanker rate tracked by the Baltic Exchange, has exploded to almost $100,000 a day on the… Read more at: https://oilprice.com/Energy/Energy-General/Oil-Tanker-and-Container-Shipping-Rates-Hit-Record-Highs.html
	Russia Sees Alternative Gas Routes if Ukraine Transit Deal Isn’t Extended Russia could use alternative routes to send natural gas via pipeline to Europe if the current Russia-Ukraine gas transit deal is not extended beyond its expiry date at the end of 2024, Kremlin spokesman Dmitry Peskov said on Friday. Peskov, however, warned that there would be logistics changes along the supply chain of gas from Russia to Europe. Russian gas deliveries to Europe have fallen off a cliff since the Russian invasion of Ukraine, but some European customers in central Europe continue to receive Russian gas via the route through Ukraine… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Russia-Sees-Alternative-Gas-Routes-if-Ukraine-Transit-Deal-Isnt-Extended.html
	Strong Economic Data Boosts Bullish Sentiment in Oil Markets The bullish case for oil prices was strengthened dramatically this week, with strong U.S. economic data helping to push Brent well past the $80 mark.  Friday, January 26, 2024The stronger-than-expected performance of the US economy has boosted oil prices to their highest level this year, not many analysts were expecting a 3.3% GDP growth in Q4. Continuous Houthi strikes in the Red Sea and surging product freight rates have added impetus to the bullish cause, and even China’s timid reaching out to Iran to rein in the Yemeni… Read more at: https://oilprice.com/Energy/Energy-General/Strong-Economic-Data-Boosts-Bullish-Sentiment-in-Oil-Markets.html
	Biden Administration Halts Approvals of New LNG Export Projects The Biden Administration said on Friday it is pausing all pending decisions on U.S. LNG export projects until the Department of Energy can update the underlying analyses for authorizations. The move was hailed as a “historic win” by environmentalists and slammed as “a win for Russia” by the U.S. oil lobby. During the temporary pause – which is expected to affect four planned LNG export projects – DOE will carry out a new updated review on the impact of such projects on health and communities.   “The… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Biden-Administration-Halts-Approvals-of-New-LNG-Export-Projects.html
	OPEC+ Plans to Keep Oil Production Cuts Unchanged The OPEC+ group doesn’t have any plans to alter the current oil production policy and cuts when the alliance’s monitoring panel meets next week, OPEC+ delegates told Bloomberg on Friday. OPEC’s Joint Ministerial Monitoring Committee (JMMC), which takes stock of oil market developments and recommends actions to the full ministerial meetings, is scheduled to hold an online meeting on February 1. Part of the current oil production cuts only started at the beginning of January, so OPEC+ will need more time to review and assess what… Read more at: https://oilprice.com/Latest-Energy-News/World-News/OPEC-Plans-to-Keep-Oil-Production-Cuts-Unchanged.html
	Rising Electricity Demand Will Keep Fossil Fuels Around 1. Oilfield Services Majors Enjoy International Boom- The world’s largest oil services majors, SLB and Halliburton, have boosted their quarterly dividend as their Q4 performance beat expectations thanks to an improving international drilling portfolio. – Halliburton generated $1.1 billion in free cash flow this past quarter, its best quarter in more than two decades, prompting it to lift its quarterly dividend to $0.17 per share, whilst SLB hiked its dividend to $0.275 per share. – Both oil services giants have signaled a slowdown in US shale… Read more at: https://oilprice.com/Energy/Energy-General/Rising-Electricity-Demand-Will-Keep-Fossil-Fuels-Around.html
	Geopolitical Risk and Economic Optimism Push Oil Prices Higher Middle East Tensions Escalate Oil markets witnessed a significant surge this week, with WTI crude oil climbing 5.26%, its highest level since December. This rally is attributed to a combination of strong U.S. economic indicators and escalating tensions in the Middle East. Shipping disruptions in the Red Sea, intensified by recent incidents involving Maersk-operated ships and U.S. military supplies, are heightening concerns over supply chain stability. Yemen’s Houthi leader’s declaration to target ships linked to Israel exacerbates the situation,… Read more at: https://oilprice.com/Energy/Energy-General/Geopolitical-Risk-and-Economic-Optimism-Push-Oil-Prices-Higher.html
	Houthi Attacks in the Red Sea Force More Vessels to Reroute Politics, Geopolitics & Conflict The conflict in the Red Sea continued unabated this week, with the Houthis targeting Maersk vessels and their U.S. Navy warship escorts through the Bab el-Mandeb Strait off the coast of Yemen. The Houthis, looking to score some additional credibility, claimed to have directly hit the U.S. warship escorts – a claim that was denied by U.S. Central Command. The vessels were targeted, but there were no direct hits. Maersk has been rerouting most vessels to avoid the Red Sea, with a single remaining class of vessel… Read more at: https://oilprice.com/Energy/Energy-General/Houthi-Attacks-in-the-Red-Sea-Force-More-Vessels-to-Reroute.html
	Tech layoffs balloon in January as Wall Street rally lifts Alphabet, Meta, Microsoft to records So far in January, some 23,670 workers have been laid off, the most in any month since March, according to the website Layoffs.fyi. Read more at: https://www.cnbc.com/2024/01/26/tech-layoffs-jump-in-january-as-alphabet-meta-microsoft-reach-high.html
	Intel has worst day since 2020 on weak outlook Intel’s revenue guidance for the first quarter was below every analyst’s estimate. Read more at: https://www.cnbc.com/2024/01/26/intel-on-pace-for-worst-day-since-2020-on-weak-outlook-.html
	Fed’s favorite inflation gauge rose 0.2% in December and was up 2.9% from a year ago The core personal consumption expenditures price index was expected to increase 0.2% monthly in December and 3% from a year ago. Read more at: https://www.cnbc.com/2024/01/26/pce-inflation-december-2023-.html
	S&P 500 and Nasdaq fall Friday to snap six-day win streak, but both notch weekly gains: Live updates The S&P 500 slipped, but the major averages captured weekly gains. Read more at: https://www.cnbc.com/2024/01/25/stock-market-today-live-updates.html
	Jurors reach verdict in Trump sex defamation trial The trial on defamation damages for E. Jean Carroll is winding up days after Donald Trump defeated Nikki Haley in the New Hampshire GOP primary. Read more at: https://www.cnbc.com/2024/01/26/trump-e-jean-carroll-defamation-trial-closing-arguments.html
	Wall Street is barreling toward a big week ahead with mega-cap earnings, Fed meeting in focus The bulk of the “Magnificent Seven” names will have high bars to clear when they report earnings next week. Read more at: https://www.cnbc.com/2024/01/26/wall-street-is-barreling-toward-a-big-week-ahead-with-megacap-earnings-fed-meeting-in-focus-.html
	Merck, Johnson & Johnson CEOs agree to testify in Senate hearing on high drug prices The CEOs of Merck, Johnson & Johnson and Bristol Myers Squibb will testify at the hearing on drug prices, Sen. Bernie Sanders said. Read more at: https://www.cnbc.com/2024/01/26/merck-jj-ceos-agree-to-testify-in-senate-hearing-on-drug-prices-.html
	JPMorgan Chase shuffles top leaders as race to succeed Jamie Dimon drags on The top JPMorgan executives involved in the changes are considered frontrunners to succeed Jamie Dimon as CEO. Read more at: https://www.cnbc.com/2024/01/25/jpmorgan-chase-shuffles-top-leaders-under-jamie-dimon.html
	Crypto prices effort a comeback as bitcoin soars 5% to close out the week: CNBC Crypto World CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Andy Bromberg, the CEO of the crypto wallet Beam, explains why he thinks spot bitcoin ETFs move away from the original ideals of crypto. He also discusses his company’s new acquisition of an app that allows people to pay for online purchases using stablecoins. Read more at: https://www.cnbc.com/video/2024/01/26/crypto-prices-effort-late-stage-comeback-close-out-week-cnbc-crypto-world.html
	Nikki Haley touts $1.2 million in donations after Trump vows to blacklist her donors Former President Donald Trump declared that anyone who donates to Nikki Haley from now on will be “permanently barred from the MAGA camp.” Read more at: https://www.cnbc.com/2024/01/26/nikki-haley-touts-1point2-million-in-donations-after-trump-vows-to-blacklist-her-donors.html
	George Carlin’s estate sues over AI-generated stand-up special titled ‘I’m glad I’m dead’ The actor’s family called the video “casual theft of a great American artist’s work.” Read more at: https://www.cnbc.com/2024/01/26/george-carlins-estate-sues-over-ai-generated-stand-up-special-titled-im-glad-im-dead.html
	Here are some important items for taxpayers to consider before filing their 2023 tax return Tax season officially opens Jan. 29. Here are three key things taxpayers need to know for 2023 tax returns, according to experts. Read more at: https://www.cnbc.com/2024/01/26/here-are-key-items-for-taxpayers-to-consider-before-filing-a-tax-return.html
	These are the stocks hedge funds are betting against the most even as the 2024 market rallies Some hedge funds are betting against a handful of retailers and auto companies. Read more at: https://www.cnbc.com/2024/01/26/these-are-the-stocks-hedge-funds-are-betting-against-the-most-even-as-the-2024-market-rallies.html
	Post Office accused of cover-up over secret Horizon documents BBC obtains unredacted minutes showing government knew of plan to sack experts who found Horizon IT bugs. Read more at: https://www.bbc.co.uk/news/business-68079300?at_medium=RSS&at_campaign=KARANGA
	Government announces second probe of Telegraph sale The investigation comes after the UAE-backed bidder made last minute changes. Read more at: https://www.bbc.co.uk/news/business-68109127?at_medium=RSS&at_campaign=KARANGA
	Ex-Tory peer Michelle Mone’s assets frozen A spokesperson for Baroness Mone said it was “deplorable” private matters were being conducted in public. Read more at: https://www.bbc.co.uk/news/business-68087776?at_medium=RSS&at_campaign=KARANGA
	YES Bank Q3 result preview: Profit may jump multifold; muted NII growth seen YES Bank Q3 result preview: YES Bank reported a 12% growth in its advances at Rs 2.17 lakh crore in the third quarter, compared with Rs 1.94 lakh crore in the last year period. On a sequential basis, deposits rose 4%. Read more at: https://economictimes.indiatimes.com/markets/stocks/earnings/yes-bank-q3-result-preview-profit-may-jump-multifold-muted-nii-growth-seen/articleshow/107164224.cms
	Wall Street muted at open after inflation data; Intel tumbles The Dow Jones Industrial Average fell 42.45 points, or 0.11%, at the open to 38,006.68. The S&P 500 opened lower by 5.25 points, or 0.11%, at 4,888.91, while the Nasdaq Composite dropped 35.64 points, or 0.23%, to 15,474.85 at the opening bell. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/wall-street-muted-at-open-after-inflation-data-intel-tumbles/articleshow/107172842.cms
	Buy IT midcaps on dips; may consider HDFC Bank at around Rs 1,300: Sandip Sabharwal Sandip Sabharwal says largecap IT stocks do not interest him. Some selective midcap IT companies are doing very well, like those which have distinct business or like KPIT Technologies or like BirlaSoft reported very strong results, etc. There, investors can selectively invest on corrections. Read more at: https://economictimes.indiatimes.com/markets/expert-view/buy-it-midcaps-on-dips-may-consider-hdfc-bank-at-around-rs-1300-sandip-sabharwal/articleshow/107162592.cms
	Microsoft Teams suffers outage affecting thousands, sparking user frustration Microsoft Corp.’s Teams suffered an outage Friday, prompting users to take to social media to voice their frustration at the workplace-communications platform. Read more at: https://www.marketwatch.com/story/microsoft-teams-suffers-outage-sparking-user-frustration-41d3ec6b?mod=mw_rss_topstories
	AI ‘baby bubble’ in stocks? BofA says higher real rates are needed to pop it. A “baby bubble” is forming in the U.S. stock market, fueled by “monopolistic tech” and investor enthusiasm around artificial intelligence, according to BofA Global Research. Read more at: https://www.marketwatch.com/story/ai-baby-bubble-in-stocks-bofa-says-higher-real-rates-are-needed-to-pop-it-3b074dab?mod=mw_rss_topstories
	5 real risks that could crush stocks in 2024 — and why they won’t Market bears will be wrong about recession, inflation, oil prices, consumer spending and investor sentiment. Read more at: https://www.marketwatch.com/story/5-real-risks-that-could-crush-stocks-in-2024-and-why-they-wont-488078e3?mod=mw_rss_topstories