Your Wednesday Market Blip 12/2/15

Your Wednesday Market Blip 12/2/15

Stocks had “no energy” today as the double whammy of falling oil prices and the rising possibility of a Fed rate hike in two weeks sent traders to the sidelines. The Dow closed down 158 to at 17,729. Trading volume was up a bit from yesterdays up tick.
All three major indexes (Dow, S&P 500 and NASDAQ) are back up at iron hard resistance levels for the umpteenth time this year. Gurus are wondering if stocks will able to break above these levels or will they continue to trade just below them. Recent economic numbers continue to justify a small Fed rate hike when they meet on the 15th and 16th of December. Countering a potential US rate hike will be the ECB which meets this Thursday and is expected to offer more stimulus to the Eurozone economy. The American’s appear ready to push rates up while the European’s could do just the opposite.
Oil prices and the global oil glut continues. With OPEC producing at levels needed to protect market share from US producers and solar energy gains, Russia has ramped up its oil production to the point where they are producing over 10 million barrels per day with a good chunk of that headed for export. Meanwhile in the US, spot oil prices are off while futures oil prices are higher giving incentive for producers to store oil in hopes of getting higher prices next year. US oil stockpiles are crazy right now sitting at 8 decade highs of over 489 million barrels. This news drove WTI prices lower and continues to put pressure on share prices of energy companies. WTI crude today closed at $40.16 per barrel off 4%.