OPEC stoked market optimism in late September by reaching a provisional agreement to limit production while leaving the exact details to be determined in the regularly meeting scheduled for today. As November 30 approached, the optimism waned; it appeared that the positions of individual cartel members still significantly diverged. Specifically, Iran and Iraq wanted exemptions from the output cut. Read more about Oil Snaps Back 11-30-16
With the Thanksgiving holiday just ahead, market participants are in a jovial mood. The S&P 500, the Dow Jones Industrial Average, the Nasdaq Composite, and the Russell 2000 all set record highs this week. It’s the first time all four market indices have closed at record highs on the same day since the last day of the 1990s. Read more about Be Wary of the Rally 11-23-16
Post-election market action has been marked by a drastic section rotation. Financial and healthcare stocks were buoyed by the Trump victory: he’s less likely to slap additional regulations on the sectors. Defense and cyber-security stocks, too, have caught fire thanks to expectations that Trump will focus on strengthening the nation’s defense and cyber capabilities. Meanwhile, commodities and related stocks, which before the election of Trump already outperformed the general stock market, have enjoyed even stronger tailwinds since. Read more about A Week Later 11-16-16
As the results from the polls poured in last night and showed an increasing likelihood of a monumental upset, stock futures cratered in the after market. However, the president-elect gave a gracious and conciliatory victory speech in the wee hours of the morning that calmed a lot of nerves on Wall Street. Major market indexes are firmly in the green. Biotech and bank stocks, both of which benefit from a Clinton loss/Trump victory, are particularly strong performers today. Read more about Night Jitters Turn Into Morning Calm 11-09-16
A new layer of uncertainty has washed over the markets in recent days, as Donald Trump has made significant gains against Hillary Clinton, whose lead in national polls has disappeared. The latest national polls suggest a dead heat, which makes the outcome of next Tuesday’s presidential election very much up in the air.
While both candidates are historically unpopular with voters, as far as Wall Street is concerned, Clinton is at least a known quantity. Market participants regard Trump, on the other hand, as a wild card whose policies—should he win the White House—are unclear. Read more about Uncertainty Rises 11-02-16
Oil has risen to a 15-month high, propelled by today’s surprising U.S. crude inventory drop to the lowest level since January. Additionally, on the heels of OPEC’s provisional agreement to control output, many non-members of the oil cartel appear willing to cooperate. Russia has already signaled that it will work with OPEC. Although OPEC’s proposed reduction doesn’t amount to much, the fact that the oil producers now want to work together to support oil prices has lifted the oil market sentiment in anticipation of higher prices. Read more about Hoping For a Rational OPEC 10-19-16