Oil Breaks Out And Is Positive For Stock Market
The stock market continues to rejoice in the new year. The S&P 500, Dow Jones Industrial Average and NASDAQ are all sharply higher on the day. The upside is being fueled by optimism on the global economy. This is mainly stemming from Europe. As the Euro gains traction, the Dollar has fallen sharply. The weakness in the Dollar is helping commodities push higher. Oil is having a monster day with the United States Oil Fund LP (ETF) (NYSEARCA:USO) trading at $39.45, +1.34 (+3.52%). This big jump in oil is partly due to the weak Dollar and optimism on the global economy and also due to issues with Iran. Threats are continuing to be floated from the Iranian military over the Straights of Hormuz.
The higher oil price is actually helping stocks today. Dow Jones Industrial leaders like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) are sharply higher. They are key components of the Dow, thus helping the markets gain.