The Dow Jones Industrials rebounded from a 52 points loss to close up 18 on volume of about 1.37 billion shares. The S&P 500 was up 2 points, and the Nasdaq closed up 5. Advancing issues beat decliners by 4-3 on the NYSE and by 6-5 on the Nasdaq. The 10-year Treasury note was unchanged to yield 4.11%.
Favorable economic data eventually lifted the markets inspite of higher oil prices. Crude oil finished up 57 cents at $55.57 per barrel in New York, its highest close since April 6. At mid-day Oil traded above $56 per barrel after a report revealed that U.S. stockpiles declined more than expected last week.
Oil barron, T. Boone Pickens was interviewed this morning on the financial channels, and he reiterated that oil prices would once again reach the $60/bbl mark over the next 3 months. Our 2 oil stocks (Chevron-CVX, and Schlumberger-SLB) in combination with a few I mentioned a few weeks ago have put on impressive performances.
On May 21st, I told you that I would be a buyer of the following oil stocks: Conoco-Phillips (COP), Exxon-Mobil (XOM), Chevron (CVX), Valero (VLO). Also for takeover plays I recommended : Sunoco (SUN), and Marathon (MRO). If you followed our lead, you are a very happy camper right now.
I reiterated my buy recommendation on Sears Holdings (SHLD) while it was briefly below our buy limit of $139. The shares rebounded sharply closing up 8.69 points or 6.2% at $147.45.
