Stocks bolted out the gate today and finished with solid gains as healthcare and consumer discretionary stocks like Nike led the way. Amazon hit a new high after the company released a video service to compete with YouTube. At the closing bell the Dow stood at 17,928 up 222 on lighter volume.
The gurus at Bank of America, and Morgan Stanley are worried about market volatility rising as we head into June thanks to a confluence of events that could roil the news cycle. Topping the list is the US Presidential election will be only 6 months away and history shows that markets tend to slide heading into the election. Then on June 23rd the “Brexit” vote will be held in which the UK decides if it wants to continue as a member of the EU. The current feeling favors the”stay” camp but poles show the vote could be close. Also in June the Federal Reserve will meet and decide what to do with interest rates. A rate hike could be on the table.
Between the wild fires in Canada and the extra-curricular activities in Nigeria by the Niger Delta Avengers (NDA), 2.5 million barrels of daily oil production has been taken off the table. These events are overcoming concerns of a rising stockpile in the US and driving prices higher. WTI crude oil was up 2.9% to $44.71 per barrel.
Gold reversed higher today after yesterday’s selloff. Gold closed the day up a dollar an ounce to $1,268. Silver gained seven pennies an ounce to $17.16.