Friends

All of sudden we’re getting sizable moves in the stock market. Had we held the gains, today would have been the third 200 point plus Dow day (both up and down) that we’ve seen in a week. That these moves have been in both directions is a factor of the uncertainty in the market place over the economy, corporate earnings, and yes politics. Last week it was a series of weak earnings reports from retailers (we have more retailers reporting this week), that set a sour tone to the trading week. Let’s see if this week’s earnings releases are any better.

As for stocks, the rally started at the open of the trading session and increased in strength in the afternoon (faltering just a bit at the close). For the day, the Dow Jones Industrial Average was up 175 points to close at 17,710. The S&P 500 was up 20 points to finish the day at 2066. Gold was up $2 to trade at $1,275 per ounce, while oil was up $1.73 to trade at $47.94 per barrel WTI. This week marks the anniversary of the highs one year ago. We are down about 3% on the S&P since last May’s highs. Of course, at one time along the way we were down a whole lot more than 3%.

Yes, indeed, Goldman Sachs is all of a sudden a little more bullish in the short term on oil. Not sure if they still think it’s going to $20 per barrel eventually, but for now their tune has changed a bit. Oil and stocks had been trading in lock step for some time but had somewhat separated in recent weeks. Today, however, they were back arm in arm. As mentioned, we get more news from retailers this week in addition to economic data which includes the CPI number tomorrow, the FOMC minutes on Wednesday, jobless claims and the Philly Fed on Thursday, and finally existing home sales on Friday. Today, was a good start to the week. Let’s see if the bulls can make it more than a one day wonder.

Have a nice evening everyone.

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