(As of 7:15 am, PST)
Oil made another big move upward this morning and the
markets are responding favorably once again to the ups and downs of the
commodity. Oil is up over 6% to over $31 per barrel on news that Baker Hughes
reported a decline in oil rigs Friday. The gain in oil has prompted gains in
energy sector stocks here in the U.S. and across Europe. In early trading, both
the Dow and S&P 500 are up nearly 1.25% as were most European and Asian
markets over night. Last week was the first week of the year where the major
indices posted gains for the week. Although oil will more than likely be the
major market driver once again, there will be a slew of economic news this week
to keep investors occupied. Some of the important data points that will be
reported as the week rolls along are consumer confidence, existing home sales,
new home sales, initial claims, durable goods orders, the second estimate of Q4
GDP and personal income and spending. If oil continues to rebound and the other
economic reports are positive, it will be interesting to see how the Fed
responds in regards to raising interest rates at its upcoming March meeting.
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