Markets Down And Oil Up – What The Markets Are Telling You
As an investor, who has watched the markets carefully over the last year, you’ve likely noticed a trend. The markets have been up and down, while oil has plummeted. However, that trend is beginning to shift and investors will want to take note immediately. Oil prices are higher than they’ve been in seven months and many forecast $50 oil in the near future. Usually, the two work hand-in-hand with one another. If oil rises, the markets will also rise. Recently though, this hasn’t been true. The markets have remained low, while oil has climbed closer and closer to that fifty-dollar mark.
Despite the current dreadful nature of the markets, some investors have been able to find hidden gems amongst the rubble. Sand Storm Holdings can provide you with financial news, which can help you find those hidden gems. With the current state of oil prices, it might be time to invest in those once-dwindling oil companies, such as Penn West Petroleum, Denbury, or BP.
One of the biggest factors plaguing the market is undoubtedly the interest rate and a potential future increase. However, this isn’t the only thing investors need to be worried about. The jobless claims report also took a toll on the market. By looking at these numbers, it is easy to see that the economy has remained stagnant. Not much has really happened in terms of growth and this has given concern to many investors. The Tuesday release of the Fed’s minutes was yet another factor that kept stocks from climbing out of their rut.
Tuesday, a U.S. Federal policymaker was reported to have said that the interest rate will probably increase at least 3 times this year. Consumers should expect to see the first rate hike as early as June. Since, the hike in December, interest rates have been holding steady. The U.S. Central Bank hopes to be able to have more confidence in the economy’s health, before the rates are raised. The data released on Tuesday, shows the U.S. economy advancing forward, with consumer prices, industrial production, and housing starts.
Robert Kaplan, Dallas Federal President admits that prefers to wait, so the economy’s health can be assessed thoroughly, before making a rash decision. However, he told reporters that he will also advocate a rate hike at the next policy meeting.
Despite the concerns, there has been some great news for some investors and their associated companies. Although consumer spending has been lower, some companies have still managed to return surprising earnings. Home Depot released their earnings report on Tuesday and it resulted in their investors cheering simultaneously. Other companies have also managed to score higher earnings than initially expected. The major discount clothing retailer, TJ MAXX, posted higher earnings. Children’s Place, which specializes in children’s clothing, did the same. So, investors shouldn’t give up all hope just yet.
Unfortunately, the American stock market is not alone. Canadian investors are also at a loss. On May the 18th, Canadian futures were down as much as .15%. The numbers closely reflect the global markets and will likely continue, until the volatility is eradicated. Investors can only hope the upcoming reports regarding foreign investments in Canadian securities turns things around to their favor.