US stock mostly weaker, but a midafternoon bounce take some of the pain away, even as the Libyan revolt continues.
DJIA drops 37 (0.3%) to 12069, S&P 500 eases 1 to 1306, but Nasdaq Comp rises 15 (0.6%) to 2738. After rising over $103/barrel, Nymex crude lately down around $96/barrel, and when crude changed direction, so did everything else. Still, it’s the Dow’s third consecutive losing session, and it’s the biggest three-day decline since August.
Indexes bounced back after the Dow crossed under the 12000 mark; crude also rebounded after some government reports that existing oil stockpiles could absorb the disruption in Libyan oil. Kind of an odd spark for a rally, since we already knew that.
Kind of a weird bounce, at that. Had the feel of one of those technical moves, and the fact that people are attributing it to the stockpiles thing seems odd. It was just stocks and oil, either. I’m looking at a report about Canadian bonds that’s talking about the reversal as well, and another about eurodollar futures. Whatever moved the market moved all the markets.
This is what our colleague Jerry DiColo wrote about oil’s move:
Crude futures retreated sharply from a fresh two-and-a-half year high Thursday, as U.S. and other officials said current oil stockpiles were adequate to meet any supply disruptions.
They’re talking, of course, about any Libyan disruptions. Still, it would’ve been news if the Saudis or the U.S. or anybody said they couldn’t handle any Libyan disruptions. So the move today very likely has more to do about some kind of market dynamic than any fundamental change in the picture.