Now, that’s what I call a follow through. Emboldened by a spike in oil prices and a more reasonable stance by Greek officials with regards to their debt problem, traders were in the buying mood today right from the opening bell. Stocks jumped to early triple digit gains, and the bulls were able to add to the gains as the session wore on.
By the close, the Dow Jones Industrial Average was up 305 points to finish the day at 17,666. The S&P 500 was up 29 points to close at 2050. Gold was down $16 to trade at $1260 per ounce, while oil was up $2.89 to trade at $52.46 per barrel WTI.
Well, February is off to a terrific start. The spike in oil seems to be a result of the quick action by energy firms to slash cap ex budgets. Rig counts are falling, which may be leading oil traders to expect a quicker supply contraction. Is it just a head fake? We will see.
Auto sales were very good from the likes of Ford and Chrysler, and that helped offset the lousy Factory Orders number. On the economic front, traders will likely focus on the employment picture that will become evident as the week progresses.
Have a nice evening everyone.