Investment Commentary – April 6th, 2016
Market Indices as of Market Close April 6th, 2016
Dow 17,716 (1.67% YTD)
S&P 2,066 (0.58% YTD)
NASDAQ 4,920 (-1.73% YTD)
Global Dow 2,282 (2,033 52 week low /2,644 high)
10-year Treasury 1.75 (1.53 52 week low /2.50 high)
Gold 1,224 ($1,047 52 week low /high $1,288)
Oil $37.81 ($29.85 52 week low /high $65.39)
U.S. stocks end higher as oil prices surge
U.S. stocks ended higher Wednesday as oil prices logged their largest one-day gain in three weeks, driven by an unexpected drop in crude oil inventories. The S&P 500 gained 21.49 points, or 1.1%, to 2,066.66, led by strong gains in health-care and energy shares. The Dow industrials DJIA, +0.64% rose 112.73 points, or 0.6%, to 17,716.05, with Pfizer Inc. PFE, -0.12% emerging as the strongest gainer; after the company walked away from a controversial merger with Ireland-based Allergan Plc. The Nasdaq Composite COMP, +1.59% climbed 76.78 points, or 1.6%, to 4,920.72, its highest closing level of the year. Stocks remained higher after minutes from the Federal Reserve’s March meeting showed most policy makers support a cautious approach to raising interest rates.
JP Morgan Weekly Brief
The market continued to push out rate expectations as Janet Yellen, chair of the Federal Reserve (the Fed), struck a dovish tone in her latest economic outlook speech which may have surprised investors. The two indicators the Fed is mandated to target–inflation and employment–are both trending higher. But as this week’s chart shows, Yellen looks to be focusing more on international factors such as global growth, the US dollar and China. The shift in attention away from the US economy towards international factors is likely to result in less rate hikes in the short term. However, the more explicit inclusion of global drivers into the Fed’s thinking comes at the cost of more uncertainty and unpredictability down the line, as investors need to monitor more factors that could drive the pace of rate hikes.
THIS DAY IN FINANCIAL HISTORY
April 6th, 1917 America enters World War I
Two days after the U.S. Senate voted 82 to 6 to declare war against Germany, the U.S. House of Representatives endorses the declaration by a vote of 373 to 50, and America formally enters
World War I.
The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.