Market is higher again today, as global markets continued to rally overnight on the back of yesterday’s session. Despite the overbought situation, the trend has no doubt been higher. Both the DOW and S&P are comfortably in the green for 2016. Only the NAS is still lower. European stocks are at new highs for the year. The news isn’t necessarily good out there, but stocks have been quite strong. The 2 biggest drivers continue to be the price of oil and the Fed. They’re both tied to the Dollar. Higher oil has provided tremendous relief to the stress in the financial system, particularly in the junk bond market. The Fed has been clear that they will continue to be slow in raising rates, and sluggish economic data supports it. The March retail sales reported this morning were disappointing. Economic growth remains sluggish. The Dollar has been weak, which helps crude and keeps the Fed at bay. It also helps US exports, which will be a major focus this Earnings Season. JP Morgan reported a solid Q1 this morning, and it’s driving Financial stocks higher.
Have a great day.
-Mike
