Super Tuesday for Stocks
Yesterday turned out to be Super Tuesday for the stock market too, as investors bought equities with gusto. The Dow popped 349 points for its second best day of the year, the S&P 500 almost 2 1/2%, while the Nasdaq logged its greatest day of 2016 with a whopping 2.9% gain. Despite the additional certainty from the primaries, traders may have more on their minds than the elections: The U.S. economy is picking up (last month’s manufacturing data, durable goods and auto sales all came in better than expected). (SA)
A top global credit ratings agency has warned of a possible downgrade of China’s sovereign debt, a sign of increasing investor concern about the country’s rising debt and dwindling foreign exchange reserves. Moody’s Investor service announced today that the agency had changed its outlook to negative from stable. Moody’s currently rates China’s government at Aa3, its fourth highest credit rating (FT)
Even if OPEC members win their struggle with U.S. shale over market share, they still have another big problem to get over before they can expect a meaningful rise in prices – and that’s current oil stockpiles. The International Energy Agency forecasts that inventories will continue to build until the end of 2017, and then would take years to unwind. The oil price squeeze isn’t just hurting U.S. shale producers, with Middle Eastern oil ministers telling reporters that they’re now facing dollar shortages as revenue from oil dries up. (Bloomberg)
S&P 500 futures are down 6 and NASDAQ futures are down 10. The MSCI International Index is up .4% –
Oil is down 44 cents at $33.96 a barrel. Gold is up $2 at $1232 a Troy ounce
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.
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