Two consecutive days the market is popping. Oil? The Fed?
- Wall Street opened higher on Wednesday, extending gains from Tuesday, as oil prices rose and investors got more comfortable with the prospect of an interest rate hike as early as this summer.
Really? The market lost interest in the Fed soap opera last December. The US economy and the market survived that rate hike and the market has built the next one in.
- Easing concerns over several major global risks and stronger US economic data helped stock markets rise robustly for a second day.
Well, one global risk anyway. Brexit is a way bigger deal than the Fed raising rates, and big money knows this. So, when strong US economic data coincides with the latest UK poll showing increasing sentiment for Britain to remain in the EU, money flows into the market.
As to rising oil prices pushing the market upward, well, traders do have some say in a market with lots of sidelined money. But don’t count on oil reaching its former glory.
- Less than six months after the lifting of Western sanctions, Iran is close to regaining normal oil export volumes.
True, the massive Canadian fire and African-oil export issues give traders opportunity, but the reality of it is quite different. Saudi Arabia and Iran are mortal enemies, and both now are going after market share, and with the price near $50, US drillers are more solvent.
- HP Enterprise (HPE) to merge IT services unit with Computer Sciences
Here’s a story to check out. No, not Computer Sciences (CSC).
- Hewlett Packard Enterprise says it predicts to gain $33 billion in annual revenue from the spinoff.
HPE could be a turnaround bet as it focuses more tightly and garners capital for investment into its cloud structure. Just sayin’ …