By Markus Heitkoetter
Trading got off to an interesting start after the World Bank dished out some bad news.
The World Bank cut its global 2016 GDP forecast to 2.4% from 2.9%. It also lowered the U.S. growth forecast to 1.79% from 2.7%.
You’d think that the bad news would shock traders and send stocks lower.
But not this time!
It appears as though traders liked the news…hoping that growth concerns would be one more reason for the Fed to delay the next rate hike.
At the end of the session the S&P rallied to a new 2016 high and closed and its highest level in 10 months. It was the third consecutive winning day for the S&P.
Here’s where the major indices ended the day:
The S&P finished with a 0.3% gain. Up 7 points, the S&P ended at 2,119.
The DOW ended 0.4% higher. Adding 67 points, the DOW closed at 18,005.
The NASDAQ was up 0.3%. With a 13 point gain, the NASDAQ finished at 4,975.
With today’s gains, the S&P is within striking distance of its all-time high. The S&P is now just 15 points away from the record set back in May 2015!
The DOW had some good news as well – The DOW closed above 18,000 for the first time since April.
Crude Oil (CL) was also on the move today. With its 3rd overnight rally in a row, CL ended with a 1.6% gain and close of $51.18.
Today’s Crude Oil Inventories were in-line with expectations. The inventory release showed a 3.2 million decline in U.S. stockpiles.
Crude Oil oscillated back and forth after the release, but eventually ended the day near session highs. With today’s gains, CL is up 5.0% for the week!
Tomorrow’s economic calendar features Unemployment Claims at 8:30am ET.