THANK YOU Mrs. Chairwoman – stocks continued their Fed induced rally on Thursday as the Dow Jones Industrial Average soared more than 400 points, helping lift stocks by nearly 5% over 2 days. A commitment to keep interest rates low for an extended period of time, and reiterating that any policy changes will be data driven, gave a sharp boost to investor confidence. Technology shares rose the most, gaining over 2.8% on Thursday, while consumer discretionary shares lagged by gaining 1.4%. Most significantly, oil stocks gained as the energy sector rallied nearly 2% while Oil prices actually fell by more than 3%. The performance divergence is an indication that investors are recognizing the value in some of the over-sold energy stocks, and that the fall in oil prices – while not necessarily over – is likely temporary. As we discussed on Fox Business yesterday afternoon Oil prices have fallen too much in recent weeks and do not reflect the economic realities of the world.
Friday’s trading is likely to be heavily influenced by the mid-morning release of the Atlanta Fed Business Inflation Expectation Index and the Kansas City Fed Manufacturing Index. Moreover, as we approach the Christmas holiday season, we think that volatility will remain at the forefront as portfolio managers and professional investors re-jig their portfolios and engage in the typical “window dressing” exercises.
Make sure to tune into Fox Business Friday evening at 6:00 PM when our President, Oliver Pursche, joins Charles Payne for the hour on Making Money with Charles Payne. And don’t miss a great Money Matters with Gary Goldberg this Saturday at 5:00 PM and Sunday at 11:00 AM on WOR 710 Radio to hear our latest economic analysis and market commentary.
Gary Goldberg, the host of Money Matters was just named 2014 Financial Broadcaster of the year by Talkers Magazine. Talkers is the premier insider magazine for the radio broadcast industry, and is viewed as “the bible” of who’s who and what’s what by radio producers and program directors. Below is a link to the award and the magazine’s site.