Your Tuesday Market Blip 1/26/16

Your Tuesday Market Blip 1/26/16

The Dow bounced back on heavy volume from yesterday’s Wall Street snow covered correction. The Dow gained 282 points to 16,167. We are in a “yo – yo” market. Apple Computer reports earnings after the close today.
US economic data continues to be spotty. US consumer confidence rose to 98.1 and the expectations index also climbed from 83 to 85.9. Meanwhile US home prices in November were up 5.8% for the year according to the Case Shiller US home price index in the largest 20 city gain since July 2014. Portland Oregon led the way with an 11.1% yearly home price increase. Way to go stump town! Household formation numbers continue to rise as millennials leave the nest in search of a spouse, house, yard and kids.
The Federal Reserve will hold its interest rate policy meeting this week and the expectation is that rates will remain unchanged. The big argument facing the Fed is whether the US economy is headed for recession or just experiencing sector shocks caused by a strong dollar and low oi prices. While only her hairdresser knows for sure, Janet Yellen is in a tough spot and the gurus feel she will most likely hold rates steady for now.
Could McDonald’s recent announcing of an expansion into Russia be helping ease global tensions? Oil prices rallied big today as comments from the Iraqi oil minister noted that Saudi Arabia and Russia are starting to creep toward an understanding regarding current suicidal production rates. Should an actual deal arise from the oily swamp of overproduction we could see prices stabilize or even rebound. Never underestimate the power of a hamburger! WTI closed up 3% to $31.26.