The Dow Jones jumped 196 points Monday in a volatile session. Why the rise? Oil prices surged again after a massive strike at U.S. refineries created supply concerns.
Today's Scorecard:
Dow: 17,361.04, +196.09, +1.14%
S&P 500: 2,020.85, +25.86, +1.30%
Nasdaq: 4,676.69, +41.45, +0.89%
The S&P 500 Volatility Index (VIX), the market's fear gauge, fell by 7.5% on the day.
What Moved the Markets Today: The ISM manufacturing index hit 53.5 in January, well below expectations of 54.5. Meanwhile, consumer spending in December saw its largest decline since 2009 despite falling energy prices. Finally, U.S. crude oil prices jumped more than 3%, hitting their highest level in almost a month.
Now, check out the other top market stories - plus get our new profit tip for investors:
Oil Profits: Energy shares soared on Monday following the swift rise in crude oil prices. Shares of SandRidge Energy Inc. (NYSE: SD) were up more than 9.9%, while shares of Denbury Resources Inc. (NYSE: DNR) were up more than 12%.
Money Morning Tip of the Day: Earnings reports are better than traders would have you believe.
Today's tip comes from Money Morning Chief Investment Strategist Keith Fitz-Gerald:
Markets took a sharp dip last week with investors reacting to dour earnings reports from major U.S. companies and sagging durable goods orders. Bellwether companies Caterpillar and Microsoft both disappointed, seemingly adding to the misery.
However, as usual, traders can't see the forest for the trees.
Trading action is really about a much stronger dollar, because it makes U.S. goods more expensive and naturally drags down earnings while also diminishing the value of foreign revenue. It's temporary at best.
The truth of the matter is that more than 70% of companies that have reported to date have beaten analyst estimates, profit margins are still growing, and sales are very much on the increase - at least when we're talking about companies tied into the Unstoppable Trends I discuss in my Total Wealth publication.
Go here for more profit tips and stock picks from Keith Fitz-Gerald.