Saturday, February 12, 2005

Friday's Action: Crude Worries Return

Oh mama! The market indices closer higher for the third straight week. Oil prices are rising again, so let's watch out where and why we decide to go long. I'm reading a great book right now called The Oil Factor--it makes me think twice about any spike in oil prices. As China demand continues its course and Russia and OPEC meet production barriers, stocks will wobble even further. Here is Friday's report:
[BRIEFING.COM] The market shrugged off early weakness and held broad-based gains into the close as a rising tide lifted most boats... Much like Wednesday's S&P futures-related sell off assigned the Nasdaq its second lowest daily performance in 2005, large S&P futures-relating buying, coupled with a unsubstantiated rumor that Kim Jong-Il was deposed in North Korea, helped light a fire under equities before noon and quickly reversed a modestly bearish bias, as all the major indices closed higher for the third week in a row... The Dow closed at its highest level in 2005 and just 72 points from a 52-week high while the S&P inched closer to breakeven for the year and the Nasdaq finished just 100 points shy of its 2004 close... Stocks were under modest pressure out of the gate, however, in the wake of Dell's (DELL 39.97 -1.60) lower than expected Q1 sales outlook; but the news became arguably more company-specific as widespread buying returned and closed virtually every sector in positive territory.

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