For a second day in a row we got a rally in oil, and today’s was even better. There’s no certainty that if oil has bottomed then stocks have bottomed, but in recent trading, stocks have been moving lock step with oil. Now, of course, we have no idea if we have seen the bottom in oil, but at least this bounce gives the energy sector a chance to catch its breath. As indicated, stocks rallied with oil today and despite some attempts by the bears to trim those gains, the bulls were able to hold the line.
By the close, the Dow Jones Industrial Average was up 210 points to close at 16,093. The S&P 500 was up 37 points to close at 1906. Gold was mostly unchanged to trade at $1098 per ounce, while oil was up $2.48 (over 8%) to trade at 32.01 per barrel WTI.
It has been quite a start to 2016, one for the record books, unfortunately. Corrections and bear markets have been part of the investing process forever, but since they come in so many different shapes, sizes and forms we tend to always think that “it’s different this time”. Through the decades and even centuries, it has never been” different this time”. We always emerge from the downturn and move to new highs. Again, the way it plays out varies, but the outcome is the same. Anyway, we have a Fed meeting and a barrage of earnings releases to deal with next week. Stay tuned.
Have a great weekend everyone.