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Open on the first trading day of the new month. President elect donald trump making the rounds in his first public event since the election including a victory lap in indianapolis where carrier will keep roughly 1,000 jobs in the u. S. Both wti and brent crossing the 50 line one day after that opec meeting. But first up, it was a november to remember from a president ial election to record highs for stocks, the dow leading the three major indices with a 5. 4 gain, the russell beat them all though up 11 for its best monthly performance in five years. Weve talked many times about why that was, jim, and whether that continues. Well, look, i think that people are just saying that one of the reasons why those companies havent done well is theres too much regulation. Theyve actually bought that. Whether you think its true or not, they have bought that notion that regulation is actually going to be stripped and these companies are going to make more. Now, i think that were a little ahead of o ....
Said this in the past, i think for the fed to gradually and cautiously increase our overnight Interest Rate over time. And probably in the coming months such a move would be appropriate. That, of course, is fed chair janet yellen speaking today. Sounds like a rate hike is coming. If thats the case, what do you do with your portfolio now . Its almost a little disappointing, that the fed just decided this is the time. And data dependencywise, ive fallen on the more constructive side of it. But im not doing cart wheels over the data release. Fed is not priced in. If you look at your portfolio, those things that were dovish trades i think are extremely stretched. Those things that were defensive essentially be careful of the things that are very, very cheap. I think thats something that the market needs and some of it you could say this does feel a little bit like november when we were at 2100 on the s p and one to two rate hikes were ....
Apple, with many of the big suppliers seeing nice gains following reports of the iphone 7 production orders. The run out to a major release of the iphone model has been a great time to buy. Take a look at apple during the 5 and 6 releases. Huge gains into both. The market signaling that now is the perfect time to buy apple as we await the release of the iphone 7 in september. I think it is. We usually talk about apple, its the negative news. Negative, negative, negative. The reason the stock is going down. Finally now i think you have absolute reason for optimism. Now you have something to trade against. Now you know what your down side is in terms of risk reward. Now back up to the 110, 112. Youve got great news on the supply chain, which we havent seen in quite some time. Talking about the opportunities there. Pete talked about it for a long term. I think apples interesting. I think this universal display is even more interesting. The symbol is oled. They came off a quarter, after a ....
Look at the tenyear reaction. All of this on the eve of the big fed decision. Joining us is the chief executive officer for blackrock global fixed income. I know everybody wants to blame it on the brexit,ry, but the reality is the yield on the german bouund has been falling r 30 years so what does it tell you when the bonds of one of the biggest economies in the world are now a negative yield . So, first of all, i think youre right in terms of they have been falling for a while. Some of it is aggressive Monetary Policy and theres not enough bunds relative to what the ecb has been buying and that people use them to manage their risk and use them as hedges against credit, hedges against other sovereign risk so all of a sudden when theres a flight to quality you get the extreme moves that have created this dynamic today which, about by the way, bleeds into the u. S. Treasury market and other safe assets in the world today. Lets say ....
And weigh on an already struggling global economy. It crept into the market yesterday and remained there today, pushing the s p 500 into negative territory for the year. By the close, the Dow Jones Industrial average fell 91 points to 17,435. It had been down nearly 200. The nasdaq was up 26, the s p 500 lost 7. Domenic chu has more on todays slide. A fresh round of worries crept back in the markets as traders continue to digest headlines from the Federal Reserve and key Earnings Reports. The weakness comes a day after the fed left the door open for a possible Interest Rate increase next month and earlier today new york Federal Reserve president bill dudley reiterated the same stance. Im convinced my ow ....