Big rebound in oil prices, and thus energy stocks, helps guide US markets higher, with Chevron and Exxon Mobil alone combining for about 25% of the Dow Industrials’ advance.
Oil prices get goosed by a bullish Goldman Sachs (not the first time we’ve seen that act), and bank stocks get some help from RBC calling for a multi-year bull market for the sector. Bold calls, both. JPMorgan, BofA add about 20% of DJIA’s upside.
Tight range of trading is no surprise, as no one wants to be a hero ahead of tomorrow’s May jobs report. But we did get another curious flare higher into the close, third time since last Friday.
In his morning comments, Art Cashin at UBS mentioned traders’ puzzlement at the last-minute action seen at yesterday’s close and the big move late last Friday.
“Assuming it’s not purposeful manipulation, there may be some new operation that distorts the close,” he said. “Some suspect it may be hedging moves related to ETFs. We’ll keep asking about to see if there is a plausible explanation.”
Hope he finds one.
Financials, materials, energy all surge. DJIA climbs 74.96 to 8750.24, and Nasdaq Comp rises 24.10 to 1850.02. S&P 500 ends 10.70 higher at 942.46.