Markets Bounce back after the midweek mark

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Markets Bounce back after the midweek mark

Markets seemed to have rallied early Thursday turning all if not some of the losses that has been incurred during the week. All of the Major U.S. Indices seemed to have enjoyed some level of strengthening and this may be enough to strengthen some investors worries of a flatlining market. The rally is fantastic but not entirely unexpected. Investors should look to see more of these market moves in the coming weeks.

 

The S&P 500

The move as of midday Thursday was 0.65% bringing it up to 2,139.31 from 2,125.77 on Wednesday. This has corrected some of the losses that had been incurred during the week and may be a positive sign that the week may end stronger than previously thought.

The DOW JONES IND

The next positive signal for the markets is the Dow Jones (INDU:IND) where as of midday it has risen to 18,185.58 from Wednesday’s close of 18,034.77 a change of 0.82%. A big move. This has reversed half of this week’s downtrend and is a welcomed move by many investors.

NASDAQ Composite Index

On Midday Thursday the NASDAQ (CCMO:IND) has completely erased all of the downtrend incurred during the week. Putting the move into context where on monday the NASDAQ closed at 5,211.89, to a low on Tuesday of 5,155.26 and Thursday as of midday it was at 5,229.98. Will the rally continue is yet to be seen. However this is a positive signal for those who are a little more conservative in their investments.

So what is causing it?

Well the easiest answer is the rally in Apple stocks and oil. The apple rally extended to help boost stocks overall for a four day stretch. This is a major reason for the rise in the Nasdaq. In addition a rally in oil has also boosted stocks right across the board. All this happened with a dollar that held firm in value.

Will it continue?

Maybe. This is dependent on the continued rally in tech stocks and oil as well as the impact of factory output reports. There has been positive news coming from apple that its new Iphone 7 has completely sold out over the past week and this is a great sign of demand for Apple products and a sign of demand in the market. A signal that investors desperately seek no matter how incremental. The price of oil may rise in the coming week but this is not a given. What may be concerning is the report that indicates a decline in factory output more than the August forecast. The report came out early on Thursday and we have yet to see its impact on the markets.