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After being up as much as 117 points yesterday, the DJIA did an about face after the Fed released the minutes of its December meeting. The Fed minutes showed that inflation remains the "predominant" concern and additional interest rate hikes are still possible.
Yesterday in the pre-market, the Dow futures were up 76 points. The Dow actually traded down as much as 50 points intraday, which was a 167 point reversal off the high.
The big sell-off yesterday was in the oil patch as mild weather caused crude to fall $2.73 to $58.32 per barrel. Clearly, this sell-off is setting us up for one of the best buying opportunities of the year.
In the Dynamic Growth Sector Fund portfolio, we added another energy fund to the list.
DJIA: 12,474.52, up 11.37
S&P 500: 1416.60, down 1.70
Nasdaq: 2423.20, up 7.90
Home Depot announced its chief executive, Robert Nardelli was leaving. Nardelli's $210 million dollar pay package has been questioned by many institutional shareholders. Athletes, and now coaches, are following the leads of the many overpaid CEO's.
Yesterday, Miami Dolphins coach Nick Saban agreed to accept the coaching job at the University of Alabama for $40 million. I realize these numbers are mind boggling, but if you are buying tickets to these sporting events, you are picking up the tab.
The same goes for stocks. If you are buying stocks in companies where corporate executives are cashing in options and stock grants, you are transferring money from you to them. This is why I caution investors to not buy stocks when executives are cashing out.
This morning, Crude oil futures are trading down ahead of the EIA inventory report to be released later this morning. The February contract is trading at $57.67/bbl, 65 cents below Wednesday's close.
According to Bloomberg, consensus estimates for inventories are indicating a draw in crude oil inventories and a build in gasoline and heating oil stocks. I am going to be buying energy stocks and funds this morning.
