S&P 500 Snaps Four-Day Losing Streak; Libyan Unrest Boosts Global Oil; Gold Rises for Fourth Time in Five Sessions
S&P 500 Snaps Four-Day Losing Streak (Bloomberg)
After losing almost three percent over the past four sessions, the S&P 500 rallied on Tuesday, as some retailers reported estimate-beating growth. “We had some pretty good retail earnings, it just shows the consumer is not dead and that things are moving in the right direction,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said. “Everyone is still focused on Fed tapering. We remain cautiously bullish with pretty full exposure to stocks.”
Libyan Unrest Boosts Global Oil (Reuters)
As U.S. oil fell more than one percent, violence at a major Libyan port on Tuesday heightened concerns about a potential disruption of Libya’s oil supply. Global oil prices rose slightly, overcoming anticipation of possible tapering by the U.S. Federal Reserve. “We were down early on tapering concerns, and what seemed to turn the momentum around were concerns about clashes in Libya,” said Phil Flynn, an analyst with Price Futures Group in Chicago.
Gold Rises for Fourth Time in Five Sessions (Bloomberg)
As the dollar index fell, gold futures recovered from early losses to rise 0.5% on Tuesday. Investors await the release of the Federal Open Market Committee’s minutes to discover if the Fed will continue its inflationary policies. “The dollar is supporting the gold market,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said. “People will be looking for a clear indication from the Fed tomorrow.”