Stock Market Rally, Despite Commodity Prices
This morning commodities are dropping rapidly on the market. Much of the drop in commodities such as oil and gold is being blamed on profit taking. And while falling commodities prices can hurt some companies — and by extension the stock market — this is not the case today. There is a stock market rally on today.
MarketWatch has some of the latest information on stock market indexes this morning:
The Dow Jones Industrial Average climbed 116.91 points to 12,216.57, with 26 of its 30 components trading higher. …
The S&P 500 gained 11.23 points to 1,309.65, while the Nasdaq Composite edged up 17.49 points to 2,227.45.
Oil prices are dropping, and that is probably helping the stock market, along with some positive earnings news. Oil prices dipped below $100 a barrel, in a move that should help buoy company stocks, as it means lower prices for energy.
The financial sector is especially enjoying a rally right now, with Citigroup (C), American Express (AXP), American International Group (AIG) and JPMorgan (JPM) all forging forward. The financial sector, with some help from federal regulators, seems to be shaking off some of the debacles of a few days ago and recovering to a certain extent.
However, it remains to be seen whether oil prices will remain low, and whether the financial sector makes a full recovery. Some analysts feel that the stock market may have bottomed out, while others worry that the bottom has yet to be found. This is common among analysts since, at its core, the stock market is unpredictable.
Carefully check your investment portfolio. If you have stocks that are strong in fundamentals don’t panic, and hold on. If you have some weak stocks, it might be a good day (while the market rallies) to sell some of those with a low likelihood of recovery.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.
Tags: stock market rally, stock market news, commodity prices, financial sector,
oil prices, oil prices economy, stock investing blog
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