For the second day in a row the Dow posted solid gains prompting IBD to signal that markets are back in rally mode. The Dow gained 145 points on heavy trade to close at 17,851. The leaders today were energy stocks.
Oil jumped 2.24% to close near $49.71 per barrel for WTI crude. Oil stockpile levels were reported and they experienced a larger drawdown than expected. Analysts were thinking the drawdown would be 2.5 million barrels but it was about double that at 5.1 million. Oil is now sitting at a level not seen since October 2015. April demand for oil was also the strongest in over a year.
Gold continued to pull back falling $4.90 an ounce to $1,224. The rising prospects of a fed rate hike continues to push oil lower.
I will be in Boston tomorrow and Friday but will be back next week. Cleo will run the office while I am away. Monday is Memorial Day and the markets will be closed.