June 26 NewYork

Pinestone Investments

The DJIA rose by 14.79 points to 21409.55 while the S&P 500 Index added by 0.77 points to 2439.07.  The Nasdaq Composite Index fell by 18.101 points to 6247.149 while the Nasdaq 100 Index declined by 25.518 points to 5777.588.  The yield on 10-year Treasury declined by 0.5 basis points to 2.137 percent.  The U.S. dollar strengthened against the yen, closing at 111.86.  WTI crude futures rose by 37cents to $43.38 a barrel.  Selling in technology shares that have led markets higher in 2017 resumed Monday,as U.S. stocks failed to sustain a rally in global equities that started in Asia.  Treasurues advanced after data showing a steeper drop in durable goods than forecast raised concern about the pace of U.S. economic growth.  The Nasdaq 100 Index retreated, leaving it 1.8 percent below its June 8 high.  Most stocks in the S&P 500 Index advanced, with rate-sensitive shares pushing the gauge to a slight gain even as its largest cohort declined.  Treasuries turned higher as an unexpected drop in orders for business equipment last month signaled slowing momentum in the world’s largest economy.  The dollar advanced.   As the White House kicks off “Energy Week,” here is a look at how energy markets are faring so far this year and how the Trump admininistration stands to change them.  1) COAL:  President Donald Trump has killed a stream-water protection rule that threatened to curb coal operations, directed the Interior Department to lift a moratorium on new coal leases on federal land , and started chipping away at environmental regulations that made coal-fired power plants increasingly expensive to run.  U.S. coal production is up in 2017 from the same period a year ago amid supply cuts in China and Australia that spurred a price rally for metallurgical coal(the kind used to make steel).  2) CRUDE:  Oil prices are decreasing quickly this year, in part because U.S. production keeps rising.  WTI, the American benchmark,reached a high of $54.45 a barrel in February before sinking into a bear market last week amid concerns that a supply glut may stick around for years.  Rigs drilling for oil in the U.S. are at their highest since April 2015, and more shale supplies are heading abroad than ever before.  The Trump administration cleared the way for the controversual Dakota Access oil pipeline to start service, and granted a permit to build the Keystone XL crude pipeline from Canada into the U.S.  3) NATURAL GAS: With Cheniere ENergy Inc.’s liquified natural gas export terminal in Louisiana now online, the U.S. is sending record volumes of the heating and power-plant fuel to countries including Mexico, China, Japan, Turkey and Spain.  The White house has been ramping up efforts in recent months to promote overseas sales.  4) POWER: Trump’s decision to withdraw  from the Paris climate accord and gut the centerpiece of the Obama administration’s climate policy hasn’t stopped clean power from continuing to grow.   While the White House works to dismantle the Clean Power Plan, which would have required electcity generators across the U.S. to curb emissions, solar and wind farms now make up 10 percent of America’s power supplies, their highest share yet and up from one percent a decade ago.

Kazuhide Matsuishi

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