Wednesday, June 8, 2016

Good news for the markets Tuesday came from crude oil prices, which surpassed the psychological $50 per barrel threshold for the first time since 11 months ago. Brent crude, the benchmark of global oil prices, hit $52.19 while the WTI reached $51.07.

We see the positive effects in the market with bullish sentiment taking a seat at the table near-term market outlook. You need look no further, in fact, than this morning’s Profit from the Pros, where Steve Reitmeister asks the intriguing question: Are We on a Tractor Beam to 2135?

We’ve seen since oil prices’ free-fall how many aspects of the global economy these prices affect. From industrial manufacturing to the burgeoning solar power industry, lower oil prices have keep pressure on the companies’ stocks. Now with oil rising again, we are seeing some of that pressure lifted. If you were one of those ‘sell in May and go away’ people, you might be missing out.

The reasons behind the rise in oil prices is mixed, however: while demand in China is on the upswing — considered by anyone following global economics to be a very good thing — supply disruptions in Nigeria (by a nefarious group calling themselves Niger Delta Avengers) is an unwelcome development.

Elsewhere this morning, Target (TGT Quick QuoteTGT - Free Report) has announced an increase in dividend yield of roughly 7 percent, which has put pre-market trading for the big-box retailer up a percentage point so far, whereas Apple (AAPL Quick QuoteAAPL - Free Report) has raised $1.4 billion from a Taiwanese bond issuance. This is the most cash ever raised by Apple in the country, which is home to many Apple component suppliers.

Mark Vickery
Senior Editor