Egyptian Turmoil Strikes Fear Into Oil Markets
The big news yesterday was that domestic markets shrugged off the crisis in Egypt while oil (NYSE:USO) prices didn’t and hit two year highs.
West Texas Intermediate rose +2.69% to $91.90 while Brent Crude passed $100 for the first time since 2008. To put this in perspective, Brent Crude was $70 as recently as five months ago, a gain of approximately 40%.
At home, Exxon (NYSE:XOM) blew away earnings estimates while the Chicago PMI came in at 68.8, a 20 year high and exceeding expectations.
As we’ve been discussing, we can expect significant volatility this week as the crisis in Egypt unfolds and important economic reports roll in.
Daily Moves for Major ETFs:
Dow Jones Industrials: (NYSE:DIA) +0.49%
Russell 2000: (NYSE:IWM) +0.70%
NASDAQ 100: (Nasdaq:QQQQ) +0.48%
S&P 500 Index: (NYSE:SPY) +0.77%
MSCI Emerging Markets:(NYSE:EEM) +1.06%
MSCI China (NYSE:FXI) +1.24%
Gold (NYSE:GLD) -0.31%
7-10 Year Treasuries: (NYSE:IEF) -0.39%
20+ Year Treasuries: (NYSE:TLT) -0.76%
VIX: (NYSE:VXX) -2.54%
U.S. Dollar (NYSE:UUP) -0.58%
Disclosure: No positions in ETFs or stocks discussed in this article.
John Nyaradi is the author of Super Sectors: How To Outsmart the Markets Using Sector Rotation and ETFs.
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