Your Weekly Market Blip 1/22/16

Your Weekly Market Blip 1/22/16

Stocks rallied for a second straight day on lighter volume with the Dow gaining 210 points to 16,093. This was the first positive week for the trading year. Hope springs eternal!
In the “Interesting market stats” file, an article on CNBC noted that during Wednesday’s market selloff, 43% of NYSE listed issues hit their 52 week lows. The article said this has only happened four times since 1987 and that medium market returns since these events indicate a significant upside bias from an oversold position. While I noticed several huge reversals on Wednesday, which is positive, this article seems to confirm my observation. Please remember however that markets can go either way so while these signs are positive they cannot predict the future and we could see more downside. Caution is advised in these most unusual times.
General Electric reported earnings before the bell today and the numbers, while beating estimates, did not “wow” the gurus. There is nothing worse than an “unwowed guru”. GE posted a 14% increase in net income on a 19% revenue decline. The revenue decline was due to weakness in the energy services division and the shaving off of certain finance segments as the company transitions to a pure industrial company leading the “internet of things” revolution.
The National Association of Realtors reported that existing home sales jumped 14.7% in December to post the best annual sales pace since 2006. The gains came despite slim pickings (not the actor) as the inventory is now under 4 months and the lowest since 2005. The median price rose 7.6% to $224,100.
WTI crude oil continued to rebound gaining 8.8% to $32.15 per barrel. The recent pop was due to cold weather on the east coast, short covering and a continued drop in the rig count.