18 Dec 2014
Wall Street rallies for second day as euphoria takes the market; Dow up +400 pts
FXStreet (San Francisco) - Santa Claus is coming to town. US stocks market rallied on Thursday as investors welcomed the decision of the Federal Reserve to be patient in rising rates and they are assuming that main street will have extra money for shopping because the weakness of oil prices.
Janet Yellen said on Wednesday: Cheap oil is good for America. And the market took her word as massive purchases of shares mostly in techs (+2.89%), Health Care (+2.55%), Industrials (+2.27%) and Consumer (+2.27%) shares. Market players did not choose energy stocks at all, because oil prices are affecting the books of the energy companies, but investors are betting on a great holidays season.
In addition, the American Petroleum Institute (API) reported the best November in 7 years as the "total U.S. petroleum deliveries (a measure of demand) rose last month by 1.9 percent from November 2013 to average 19.9 million barrels per day, the highest level for the month in seven years," as the official report said.
Gasoline demand grew 1.9% YoY in November, the highest deliveries for the month since 2007.
On the international deck, Swiss National Bank imposed negative deposit rates of -0.25% as a joint effort to lower 3-month LIBOR rate below zero. European investors assumed it as an early signal for a sovereign QE program from the European Central Bank.
The Dow Jones rallied 421.28 points, the first time the DJIA posted an over 400 points gains since November 2011. Wednesday and Thursday have been the best 2-day gain for the Dow and the S&P 500 since January 2013. The Nasdaq rose triple digit gains.
All sectors finished Thursday up for the day; however Consumer discretionary (+1.62%), Telecomm (+1.65%) and Energy (1.73%) shares were the 'laggards'. Small caps in the figure of the Russell 2000 advanced 1.48% to 1,192.16.
On big caps, Oracle $ORCL rose 10.18% on the day as reaction to better than expected results. Microsoft $MSFT climbed 3.89%, Apple $AAPL advanced 2.96% and the investment firm Berkshire Hathaway rose 2.92%.
To put the story in context. Yesterday I drove from Miami to the Space Coast in Central Florida. It was the first time in 10 years I spent $20 dollar in gas for the whole trip, 50% less than the amount spent this year on that trip. Can you imagine what people will do with this extra money at Christmas time?
Janet Yellen said on Wednesday: Cheap oil is good for America. And the market took her word as massive purchases of shares mostly in techs (+2.89%), Health Care (+2.55%), Industrials (+2.27%) and Consumer (+2.27%) shares. Market players did not choose energy stocks at all, because oil prices are affecting the books of the energy companies, but investors are betting on a great holidays season.
In addition, the American Petroleum Institute (API) reported the best November in 7 years as the "total U.S. petroleum deliveries (a measure of demand) rose last month by 1.9 percent from November 2013 to average 19.9 million barrels per day, the highest level for the month in seven years," as the official report said.
Gasoline demand grew 1.9% YoY in November, the highest deliveries for the month since 2007.
On the international deck, Swiss National Bank imposed negative deposit rates of -0.25% as a joint effort to lower 3-month LIBOR rate below zero. European investors assumed it as an early signal for a sovereign QE program from the European Central Bank.
The Dow Jones rallied 421.28 points, the first time the DJIA posted an over 400 points gains since November 2011. Wednesday and Thursday have been the best 2-day gain for the Dow and the S&P 500 since January 2013. The Nasdaq rose triple digit gains.
All sectors finished Thursday up for the day; however Consumer discretionary (+1.62%), Telecomm (+1.65%) and Energy (1.73%) shares were the 'laggards'. Small caps in the figure of the Russell 2000 advanced 1.48% to 1,192.16.
On big caps, Oracle $ORCL rose 10.18% on the day as reaction to better than expected results. Microsoft $MSFT climbed 3.89%, Apple $AAPL advanced 2.96% and the investment firm Berkshire Hathaway rose 2.92%.
To put the story in context. Yesterday I drove from Miami to the Space Coast in Central Florida. It was the first time in 10 years I spent $20 dollar in gas for the whole trip, 50% less than the amount spent this year on that trip. Can you imagine what people will do with this extra money at Christmas time?