The Closing Look

Stocks ended mixed on Wednesday, helped by a huge rally in crude oil. Crude oil broke out to a 15-month high after the Energy Information Administration reported a 5.3 million draw-down in inventory. Tighter supply concerns helped crude oil breakout and hit a fresh high for the year ahead of OPEC’s meeting next month (where they are projected to cap or cut supply). Elsewhere, earnings continued to be a mixed bag while economic data failed to impress. Housing starts came in at 1.047M, missing estimates for 1.180M which put pressure on a slew of housing stocks. Finally, the Fed’s Beige Book showed moderate economy activity.

Gary’s Thoughts: Financials and oils day with a somewhat disappointing finish. Intel did not affect the semis in the least as the SOX bounced right off the 50 day moving average. Major indices remain nauseatingly range-bound.