The Closing Look
Stock Market Commentary:
Stocks ended higher on Monday as oil prices fell. Stocks opened higher then briefly dipped into negative territory before a late day rally in the final hour helped the Dow Jones Industrial Average finish up 124 points. Overnight, China’s Central Bank announced new #EasyMoney measures to stimulate their slowing economy. The People’s Bank of China, is entertaining the notion of removing its benchmark deposit and lending rates. Instead, the Central Bank, will create an “interest-rate corridor” to guide borrowing costs after policymakers scrapped a deposit-rate ceiling in October. As you can see, it’s never a dull moment in Central Bank land.
Gary’s Thoughts: The more China and the rest keep easing, the more markets worry something is really wrong. If 0% rates forever, printing of trillions and negative rates haven’t done the trick…As far as today, what the heck was that in the final few minutes. Just the pressing of a button for a 100 point move before you can come back from the bathroom. Low volume bounce off of oversold conditions in a shortened holiday week.