Your Wednesday Market Blip 12/30/15

Your Wednesday Market Blip 12/30/15

Markets took a break today falling 117 points to 17,603 on light trading volume. The pullback was due to falling oil prices (good for consumers) and a 0.9% drop in pending home sales surprising the gurus who had expected a 0.5% gain. The fall in pending home sales was attributed to higher prices and super tight inventory figures.
Warren Buffett, AKA “the Oracle of Omaha” has had a rough year in the markets. Shares of Berkshire Hathaway are down 11% in 2015 thanks to rail operations that transport both oil and coal. Buffett also owns manufacturing which has been affected by a shrinking oil industry. IBM, which is also a big Buffett holding, has fallen as competition from Amazon and Microsoft has relegated big blue from the “dog with fleas” listing to the “road kill” category. After this year’s tough slog maybe Berkshire shareholders should switch from Warren Buffet to Jimmy Buffet AKA “the Mayor of Margaritaville”.
Oil prices appear to be locked in a tight trading range as reports of cold weather on the way are offset by rising stockpiles of crude and distillates. WTI crude today fell 2.6% to $36.85 as the latest IEA stockpile data showed a surprise 2.6 million barrel increase. The oil experts were surprised since they had expected a decline of over 2 million barrels. Oil stocks were lower on the news. Looking forward to 2016 there are some experts still holding out hope that prices will rise. Eugene Weinberg, an analyst at Commerzbank said that despite short term setbacks they expect prices to rise next year as US production slows and demand growth continues to creep higher.
This is the final blip of the year! Have a good evening and lets look ahead to a vibrant 2016!