Why have the markets been up for 2 days?

Question

Just because of oil prices? I dont get how the entire market is dependant on oil prices.

Answer 1

becuase it has to go down after political voting

Answer 2

All markets are dependent on products.  These products have to be able to sell to consumers. ( you and me )  These products have to first get to where we live in order for us to buy them.  So when the trucker or train company or airline or supply ship has to pay more to transport these product because of high gas prices, they pass the price on to the manufacturer who passes the price on to the consumer.

Because we have to pay more for these products, we think twice before buying them.  When we buy less the manufacturer doesn't make as much so he doesn't need as many employees.  

This cycle can continue to tumble down hill like this for a while.  However, if the prices of gas goes down, the products cost less and people spend more and manufacturers need more employees and everyone is happy again.

Answer 3

Oil prices are only part of it.  The other part is that it looks like the feds are going to bail out Fannie May & Freddie Mac.

Answer 4

Besides oil, June retail sales came in positive. Less than expected from stimulus checks, but still up.

Wells Fargo making money was a big deal. They don't have too many bad mortgages and showed the banks are not "dead".

"Even a dead cat will bounce."

Answer 5

Its partly because of lower oil prices and partly because the government says they will support Fannie and Freddie Mae which helps the banking system.  Thats the correlation anyway.  Cause is nearly impossible to prove.  But its certainly good news for whats ailing the markets and the economy.

Answer 6

Also due to Wells Fargo bank stability.

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Answer 7

oil price coming down

Wells Fargo q2 reults above mkt expectation

Jobless figures better than expected

JP Morgan figures better than market expectations

Financials maybe oversold.

Little bits of good news rather than all bad.

Answer 8

A few positive quarterly reports.  Don't try figure out short-term market moves based on "logic" - because there is none.

Answer 9

Many aspects of businesses are dependent on oil, even though the products or services might not be derived from oil. The most direct and has the widest impact, is energy and transportation. Even services needs power to run the business, and almost all goods needs to be transported or shipped to customers. With the prices down, the cost will go down. As the cost reduction trickles down to customers, buying power increases, and overall market is revitalized, meaning more profits.

Imagine this, plastic toys gets the first cost cut from oil prices because plastics are oil derivitives. The second cost cut will come from shipping (from Asia to the hubs in US and then the trucks to all the different corners). Lesser price means better sales. Better sales means better revenues and/or profits. Better income, means less or zero lay offs. Which in turns means more income to the average Joe (like you and me), means better buying power, means better economy.

I agree, this seems to be a little too optimistic and presumptuous, but if the prices continue to fall, OPEC keeps up their end of the bargain (increased capacity=increase supply=continued price drop) maybe the economy is having a break. But this is not the Happily Ever After. This cycle will come to an end if we do not find alternatives to our fuel dpendencies.