Oil Bears Smashed on Crude Inventory Data
Today's financial recap and tomorrow's financial outlook.
Energy stocks stole the stock market spotlight today after crude oil surged nearly 5%.
Oil was on the rise early this morning, but it ignited after crude oil inventory data showed a much smaller-than-expected build. According to Bloomberg, last week saw the biggest build in 14 years, so many traders were caught off guard.
The Energy SPDR ETF (XLE) rose 2.4%, making energy by far the best performing sector.
The S&P 500 moved 0.5% higher on the day, finishing at 2106.63, which is within striking distance of the 2119.59 all-time high set on February 25.
The NASDAQ Composite rallied 0.7% to close at 5011.02.
In addition to the oil rebound, bulls have been encouraged by an earnings season that has not been as bad as analysts expected.
While Bank of America (BAC) miseed on the top and bottom liines this morning, we saw beats from PNC (PNC), Delta Airlines (DAL), and Progressive (PGR).
And Intel (INTC) rose an impressive 4.3% today as investors found that its in-line results were more than good enough.
US Economic data was mostly lousy today. Empire Manufacturing, Industrial Production, and Capacity Utilization numbers were all worse-than-expected, while the NAHB Housing Market Index was slightly above consensus.
The Fed also released its Beige Book, noting that most regions saw economic expansion from mid-February to mid-March, as well as modest upward wage and price pressure.
The European Central Bank lefts all of its rates unchanged, as expected. During the subsequent press conference, ECB President Mario Draghi said that the bank's QE program has been effective in boosting Euro-Zone economies, and that implementation has proceeded smoothly.
Draghi's confidence in ECB QE drove European yields down sharply, with the 10-year German bund hitting a record low of 0.107%.
Thursday's Financial Outlook
We've got another data-heavy day tomorrow with housing starts, building permits, jobless claims, Philly Fed, and natural gas inventory numbers on tap.
We'll also see a number of high-profile earnings reports from major companies like Citigroup (C), Goldman Sachs (GS), BlackRock (BLK), American Express (AXP), and Schlumberger (SLB).
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