Market Wrap: Iran Gets Testy in Hormuz; Shale M&A Wins the Day; Fed Aims for Transparency

Market wrap-up for January 3rd.

End of the Day: Dow Jones up up 179.8 to 12,397.38; Nasdaq up 43.6 to 2,648.72; S&P 500 up 19.5 to 1,277.06

The following is a brief summary of events moving markets today:

• See these guns, the U.S. of A.? They're real: Oil prices continued higher as concerns over Iran testing its weaponry in the Strait of Hormuz may cause elevated tensions between Western nations and Iran that may lead to crude oil supply disruptions. Today, Iran's General Ataollah Salehi issued a warning for the U.S. carrier USS John C. Stennis not to return to the area.
  
  Crude oil popped above $100 per barrel, ending the session up $4.24 to $103.07 on the Comex.
  
  
• The shales have it: A little M&A occurred in the oil and gas exploration sector Tuesday, to the tune of about $4.5 billion. According to releases:
  • Total S.A. (NYSE: TOT), invested $2.32 billion with Chesapeake Energy Corp. (NYSE: CHK) for Utica Shale assets.
    
    
  • Sinopec Int'l invested about $2.2 billion with Devon Energy (NYSE: DVN) in exchange for one-third of Devon’s interest in five new venture plays.
• Economic data pops higher: Construction spending in the U.S. ticked higher in December, according to new data from the Department of Commerce. Spending rose 1.2 percent in December, compared with consensus estimates calling for just a 0.5 percent gain.
  
  Also, Institute for Supply Management (ISM) data said it's manufacturing index moved from 52.7 in November to 53.9 in December. For more color, click here.
  
  
• Growth still in Macau, but slowing: Games of fortune revenue in Macau rose again in December, this time at a 25 percent rate.
  
  For the year, revenue increased a comfortable 42.2 percent to 267.867 billion pactas, compared with growth of 57.8 percent in 2010.
  
  
• See? They're trying at least: The Fed said it would begin publishing federal funds rate projections in order to provide market participants with more clarity.
  
  For more color on the rate publication, click here.

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