Stocks opened the week with a light volume pullback of 14 points to 18,528. The unusual thing about the market these days is the high level of skepticism among the gurus. No one seems to think markets should go higher or even be where they are and the expectation of a pullback is on everyone’s mind. I guess we are only happy when we are miserable.
Wal-Mart will announced a $3.3 billion dollar deal to purchase online retailer Jet.com. Amazon has been eating Wal-Mart’s lunch and as a result the good folks at Wally’s World are undergoing a major restructuring to try and get back on track and at least hold its own against online retailers which are springing up like weeds. Outfits such as WayFair, Casper, Amazon, Ebay and Alibaba are changing the way retail is done and Wal-Mart is finally waking up and smelling the coffee. Eric “Shifty” Schiffer of DigitalMarketing.com called the deal a “survival engine” for Wal-Mart.
WTI crude oil moved higher as speculation rose that OPEC is working to limit overproduction and thus ease the global supply glut. WTI gained about 2.5% and closed the day just under the $43 per barrel mark.
Gold eased back a few of bucks and closed at $1,341 an ounce. What was interesting was that while gold was lower the shares of gold miners were generally higher. Another interesting development in the gold arena was a deal between Venezuela and a Spokane, WA based gold company called Gold Resources. The deal stipulated that Venezuela pay $770 million to Gold Resources in a settlement of a disput resulting from the seizure of a gold mine in Venezuela by the gubment of Hugo “Whats mine is mine and whats yours is mine” Chavez. While Gold Resources stock was higher on the news the gurus asked the question…”Where will Venezuela get the money?” Gold Resources employees can be reached for comment at the Davenport where they are hoisting $100 dollar bottles of sparkling wine.