Markets Take Another Beating

It's getting ugly out there!  U.S. stocks finished lower on Monday, topping off a wild ride that had the Dow Jones Industrial Average trading in a more than 300-point range on either side of neutral as investors monitored the price of oil.

The Dow moved up and down more than 100 points during Monday's session, and event that last occurred a year and a half ago, on June 12, 2013.

After falling to a low of $55.87 a barrel, crude oil futures for January delivery dropped $1.90 to $55.91 a barrel on the New York Mercantile Exchange, its lowest closing level since May 2009.

After surging 78 percent last week, the Chicago Board Options Exchange Volatility Index, a measure of investor uncertainty known as the VIX, fell 3.1 percent to 20.42.

PetSmart gained after agreeing to be purchased for about $8.25 billion by a group led by BC Partners.

Equities offered muted reaction to a gauge of home builder sentiment falling a point  in December after a large jump last month.

A Federal Reserve report had industrial production rebounding in November, after a Fed measure of manufacturing in the New York region dropped in December.

Turning negative after a 122-point jump, the Dow Jones Industrial Average fell as much as 165 points, and ended at 17,180.84, down 99.99 points, or 0.6 percent, with McDonald's leading blue-chip losses that included 25 of 30 components.

The S&P 500 declined 12.70 points, or 0.6 percent, to 1,989.63, with utilities pacing losses that extended to all 10 major industry groups.

The Nasdaq dropped 48.44 points, or 1 percent, to 4,605.16.

For every share climbing, more than three fell on the New York Stock Exchange, where nearly 980 million shares traded. Composite volume cleared 4.3 billion.

The U.S. dollar gained against other global currencies and dollar-denominated commodities including gold and oil fell.

Gold futures for February delivery shed $14.80, or 1.2 percent, to $1,207.70 an ounce.

The yield on the 10 year Treasury note used to figure mortgage rates and other consumer loans rose 3 basis points to 2.1158 percent.

Markets Can't Hold Early Gains

U.S. stocks climbed this morning, with energy companies leading Wall Street's bounce back from its worst week in more than two years, amid a round of corporate deals. Then they gave back their winning. Just like gamblers in Vegas, this is not a good sign going into this trading week.

PetSmart gained after agreeing to be purchased for about $8.25 billion by a group led by BC Partners. Emerson Electric rose as it sold a power-transmission unit to Regal-Beloit for $1.4 billion.
Equities offered muted reaction to a gauge of home builder sentiment falling a point in December after a large jump last month.

A Federal Reserve report had industrial production rebounding in November, after a Fed measure of manufacturing in the New York region dropped in December.

At the moment, the Dow is off 7 points.

The S&P 500 is down a point.

Nasdaq has lost 15.

The U.S. dollar gained against other global currencies and dollar-denominated commodities including gold and oil fell.

Crude oil futures for January delivery dropped 56 cents, or 0.1 percent, to $57.26 a barrel; gold futures for February delivery shed $12.40, or 1 percent, to $1,210.10 an ounce.

The yield on the 10 year Treasury note used to figure mortgage rates and other consumer loans rose 4 basis points to 2.1219 percent.

Fasten your seatbelt!

My Son Graduates College Today!

My oldest son graduates college today.  One moment, he was entering kindergarten and the next he was becoming a man.  Cherish every second with your kids because their childhood goes past in the blink of an eye.

A buddy asked me, "what do you think our job is as a parent (our parents would have said food on the table and a roof over our head)?  For what it's worth, here was my response:

To love unconditionally
To create a sense of security
To build self esteem
To build character
To teach values
To build independence

If your child leaves your home loving themselves, loving others, knows right from wrong, and has the life skills to survive on their own, you get a passing grade.

I'm off to watch the ceremony, a very proud dad.

Market Gets Slammed, Dow Loses 300 Points

U.S. stocks declined on Friday, with benchmark indexes headed for sizable weekly losses, as crude's ongoing slide rattled investors.

The Chicago Board Options Exchange Volatility Index, one measure of investor uncertainty, rose 1.2 percent to 20.32, up 72 percent this week.

Oil prices fell further after the International Energy Agency reduced its outlook for global demand. 

Equities around the globe dropped on Friday after November Chinese factory production slowed more than forecast.

U.S. wholesale prices declined 0.2 percent drop in the producer price index in November after a 0.2 percent rise the previous month.

Adobe Systems gained after the software maker said it would acquire stock-photo company Fotalia for $800 million and posted quarterly results that beat expectations.

Stocks only briefly trimmed losses after a measure of consumer sentiment in December exceeded expectations, rising to an eight-year high.

After a 284-point fall, the Dow Jones Industrial Average was lately down 299.23 points, or 1.7 percent, to 17,297.11, with International Business Machines  leading blue-chip losses that extended to 28 of 30 components.

The S&P 500 shed 32.66 points, or 1.7 percent, to 2,002.64, with materials falling the most among its 10 major industry groups, with all in negative terrain.

The Nasdaq declined 54.57 points, or 1.16 percent, to 4,653.60.

For every share rising, three fell on the New York Stock Exchange, where 627 million shares traded as of 3:45 p.m. Eastern. Composite volume neared 3.4 billion.

The U.S. dollar declined against the currencies of major U.S. trading partners and dollar-denominated commodities including gold and oil fell.

Crude futures for January delivery declined $2.14, or 3.6 percent, to $57.84 a barrel, settling below $58 a barrel for the first time since May 2009. The February gold contract fell $3.10, or 0.3 percent, to $1,222.50 an ounce on the New York Mercantile Exchange.

The yield on the 10 year Treasury note used to figure mortgage rates and other consumer loans dropped 7 basis points to 2.0984 percent.

The scariest part of today is that the markets were falling as the trading day was closing.  At least we have the weekend to sort things out.

Markets Predictably Open Down

U.S. stocks are down this morning, with benchmark indexes headed for sizable weekly losses, as crude's slide continued and after Chinese industrial production came in below expectations.  When the markets lost much of their gains at the end of the day, yesterday, this open was predicable.  

Oil prices fell further after the International Energy Agency reduced its outlook for global demand. 

Equities around the globe dropped after November Chinese factory production slowed more than forecast.

U.S. wholesale prices declined 0.2 percent drop in the producer price index in November after a 0.2 percent rise the previous month.

A report at 9:55 a.m. Eastern could illustrate consumer confidence improved in December.

Adobe Systems gained after the software maker said it would acquire stock-photo company Fotalia for $800 million and posted quarterly results that beat expectations.

The Dow Jones Industrial Average dropped 108.21 points, or 0.6 percent, to 17,488.13.  It's now down 74.

The S&P 500 shed 11.60 points, or 0.6 percent, to 2,023.73.  

The Nasdaq declined 32.35 points, or 0.7 percent, to 4,675.90.  The Nasdaq is now only down about 14.

For every share rising, about six fell on the New York Stock Exchange, where 57 million shares traded as of 9:35 a.m. Eastern. Composite volume hit 152 million.

The Chicago Board Options Exchange Volatility Index, one measure of investor uncertainty, has surged nearly 70 percent this week.

The U.S. dollar declined against the currencies of major U.S. trading partners and dollar-denominated commodities including gold and oil fell.

Crude futures for January delivery declined $1.11, or 1.9 percent, to $58.81 a barrel, and the February gold contract fell $3.10, or 0.2 percent, to $1,222.50 an ounce on the New York Mercantile Exchange.

The yield on the 10-year Treasury note used to figure mortgage rates and other consumer loans dropped four basis points to 2.1211 percent.

Estate Planning

I am getting ready to shoot a video on estate planning.  I thought my notes might be of interest so some of you.

Planning Your Estate

     Estate planning is not just for the rich

          We all have an estate

     Inheritance tax rates

          Top rate is 40%

          First $5.43 million excluded from estate taxes in 2015

     Basic estate planning tools

          Benefits of a will

               Select your heirs

               Make gifts

               Name an executor

               Appoint guardians

               Specify funeral wishes

               Pet arrangements

               Reduce legal expenses

               Avoids in-fighting

          Financial power of attorney 

               Manage your financial affairs

                    Avoids conservatorship court process

          Living will

               What to do if you are placed on life support or can't speak for yourself

                   Revocable

     Trusts

          Four parts

               Grantor

               Trustee

               Property

               Beneficiaries

         Revocable living trust

              Can be modified or terminated

              Takes effect upon death

              You keep control over assets

              Avoids probate

                   Months, sometimes years to settle

                   3-5% of estate

         A-B or bypass trust

              Money left to spouse is not taxed

                   When surviving spouse dies, there are tax consequences if their estate exceeds exclusion amount

              A-B trust maximizes exclusion

              Trust income can be used by surviving spouse

     Marital transfers

          Unlimited without gift or estate taxes

     Gifting

          $14,000 per person, per year

     Charitable contributions

     Irrevocable life insurance trust

          Trust pays premiums

          Proceeds are not taxable to estate

     Family limited partnership

          Helps with succession of assets

          Taxes can be shifted to lower tax bracket members

     Qualified Family Owned Business Interests Exclusion

          Family owned businesses avoid estate taxes

Markets Roar, Then Meow

U.S. stocks advanced on Thursday, cutting weekly losses, but euphoria over increased retail sales in November faded as oil fell to another five-year low and renewed worries of a government shutdown.  The way the market gave up its gains throughout the day, concerns me over the market's near term direction.
After spiking more than 50 percent during the last three sessions, the CBOE Volatility Index on Thursday fell 1.4 percent to 18.27.
After a 225-point jump, the Dow Jones Industrial Average was lately up 131.71 points, or 0.7 percent, at 17,664.86, with Walt Disney leading blue-chip gains that included 28 of its 30 components.
The S&P 500 added 16.24 points, or 0.8 percent, to 2,042.38, with utilities and consumer discretionary the best performing of its 10 major industry groups, all of which advanced.
The Nasdaq gained 37.01 points, or 0.8 percent, to 4,721.04.
For every four shares falling, roughly five rose on the New York Stock Exchange, where 579 million shares traded as of 3:45 p.m. Eastern. Composite volume neared 3.3 billion.
On the New York Mercantile Exchange, oil futures for January delivery fell 99 cents, or 1.6 percent, to $59.95 a barrel, its lowest since July 2009.  Gold futures for February delivery dropped $3.80, or 0.3 percent, to $1,225.60 an ounce.
The U.S. dollar  gained against other global currencies and the yield on the 10 year Treasury note added 2 basis points to 2.1850 percent.