By Markus Heitkoetter
￼During the first 30 minutes of trading, stocks crashed through yesterday’s lows and it looked like it was going to be another rough day.
But just after 10am ET stocks made an impressive turnaround, and then rallied pretty much the rest of the day.
How big was the rally? The DOW managed a 407 point move off of session lows. The S&P jumped 55 points.
Here’s where the major indices closed the day:
The S&P closed 1.7% higher. Up 32 points, the S&P ended at 1,922.
The DOW was up 1.4%. Adding 228 points, the DOW closed at 16,379.
The NASDAQ ended with a 2.0% gain. Up 89 points, the NASDAQ ended at 4615.
Why the turnaround? 3 reasons stood out today:
Stocks have been in oversold conditions for awhile now. Its been a tough January, but traders have been waiting all month for a rally and time to buy.
Crude Oil (CL) influenced today’s move as well. Up 2.5%, CL helped energy stocks. In fact, the DOW’s best performers were Chevron (CVX up 5.1%), and Exxon (XOM up 4.6%).
Fed Member James Bullard made comments this morning, indicating that the Fed probably won’t be as aggressive with rates hikes in 2016. And low interest rates are good for the stock market.
After today’s rally, the S&P and DOW are flat for the week. But the NASDAQ is still negative, down 0.6% for the week as we head into the last trading day of the week.
We have an active economic calendar tomorrow with Retail Sales, PPI, and Empire State Manufacturing at 8:30am ET followed by Preliminary Consumer Sentiment at 10:00am ET.