Dow +284.96 at 17694.68, Nasdaq +87.38 at 4779.25, S&P+34.68 at 2070.77
- Nasdaq Composite -4.6% YTD
- Russell 2000 -0.4% YTD
- S&P 500 +1.3% YTD
- Dow Jones +1.6% YTD
Two of the best days for stocks this year helped undo two of the worst, turning the Dow & S&P positive for 2016. U.S. crude oil soared 4.2% to $49.88 a barrel, on a weakening dollar and stockpiles that tightened a bit, so that helped.
One thing to note is that the up volume for yesterday and today was no where near the down volume of Friday and Monday. This sometimes happens as buyers are not convinced and prefer to wait before stepping back in.
Biotech popped (IBB) 2%. The ETF has rallied 6.0% since notching a four-month closing low on Monday. For right now it looks like IBB may have put in a double bottom on Monday.
The U.S. Dollar Index (95.79, -0.45) extended its losing streak, weakening for the second day. The euro gained 0.4% against the dollar, while the pound finished higher by 0.7% against the buck.
All the banks just announced massive stock buybacks in after market trading after their stress tests came back. As a result, futures just popped higher. JPM 10.6B, BAC 5B, PNC 2B, BNY MELLON 2.7B, CITI 8.6B, AXP 3.3B MS 3.5B….it goes on and on.
So tomorrow the financials should have a hearty pop, none of it attributable to positive organic fundamentals, but to buybacks. But we’re used to this right? Buybacks have supported this market for years now. Built on sand, smoke and mirrors.
Blast from the past. Went bankrupt about six months later.
See you in the morning.