Your Tuesday Market Blip 11/15/15

Your Tuesday Market Blip 11/15/15

Energy and financials led markets higher today as oil rebounded and traders, pundits, economists and gurus all consume gallons of coffee while waiting for an announcement from the Fed regarding interest rates. The rate decision is expected to come out about 11 am pacific time. The Dow gained more ground today rising 156 points on light volume to close at 17,524.
The Labor Department reported core inflation figures at 2.02% which topped the Feds target and is the highest reading since mid-2012. A drop in energy prices of 14% for the year was offset by a rise in consumer prices of about a half point. The report lent further support for the Feds to raise rates for the first time since the crisis in ‘08.
WTI crude continued to rebound off recent lows. Some traders feel the 2015 low in oil prices was put in yesterday when oil fell below $35 per barrel. Today’s move higher was regaining lost ground from an oversold position and at the close WTI crude oil traded up 2.6% to about $37.13 per barrel. One problem that oil has these days is natural gas. Nat Gas is the cleanest of all the fossil fuels and is replacing coal for power generation and oil in the transportation sector. FedEx is planning on replacing its current fleet of diesel trucks with CNG (compressed natural gas) and even the State of Washington is looking at going with CNG to power our local ferry fleet. The Port of Aberdeen is currently in talks with an outfit that wants to build a CNG plant at the old Satsop nuc site near Elma to supply CNG filling stations that are coming to the area. The US is independent when it comes to nat gas so any growth in this area will be good.