Your Monday Market Blip 5/16/16

Your Monday Market Blip 5/16/16

Stocks did well to begin the trading week. The Dow closed Monday up 175 points to 17,710 on heavy trading volume.

Shares of Apple Computer moved up after news got out that old Warren Buffet himself had been buying shares for the first time. Apparently he likes the dividend just as much as the iphone.

Goldman Sachs has been bearish on oil for some time but suddenly reversed itself and now thinks oil prices could move higher. The reason for the reversal is a feeling that the market has moved from a state of oversupply to a deficit thanks to major supply disruptions in markets such as Nigeria, Canada and Venezuela. WTI crude today was up 3.5% to $47.84 per barrel.

While central bank NIRP policies may have contributed to gold’s gains this year, some countries’ banks -- notably in China, Russia and Kazakhstan -- have also been substantial and consistent buyers. The World Gold Council estimates that nations are expected to buy 400 to 600 tons this year, compared with 566.3 tons in 2015, according to Alistair “Cook” Hewitt, head of market intelligence. Gold today gained $3.30 an ounce to $1,276. It had been higher during the day but the rally faded as US stocks moved higher.