SPX +1.53%
The markets continued making gains following economic data that showed industrial production is stronger-than-expected.
Commodities put together another broad-based rally. Commodities are in line to have a good year based on a weaker dollar, a rebound in Asia, global procurement policies, and the spreading tide of trade protectionism.
Arch Coal (ACI) jumped 10.32% on higher prices for natural gas (coal’s competing fuel) and speculation that steep output from China will increase. Gas and coal are both used to generate electricity. Metallurgical coal is used to make steel.
Steel output in China reached a record 52.3 million metric tons last month, the National Bureau of Statistics said Sept. 11 in Bejing. That’s 3.2% higher than the 50.7 million tons in July and the fourth straight monthly gain, according to data compiled by Bloomberg.
BHP Billiton Ltd, the world’s largest mining company, said improving economic conditions in China will help drive demand for commodities including coal and iron ore.
Arch Coal is up a whopping 43% since September 2.
The VIX fell for a third day, closing at 23.69 and approaching its lowest close in more than a year. The index measures the cost of using options as insurance against declines in the S&P 500. The VIX has averaged 20.24 over its 19-year history.
Quick Hits
Peter J. Lazaroff, Investment Analyst
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