The most awaited year, 2015 started with a blast, making the stock prices all around the world go low and crushing the oil prices to new lows.
Here are the statics:
Dow: 17,501.6, -331.3, (-1.86%)
S&P 500: 2,020.6, -37.6, (-1.83%)
Nasdaq: 4,652.6, -74.2, (-1.57%)
Here are some top news that hit on Monday:
- Last quarter of 2014 and the starting of 2015 left behind, genuinely sophisticated questions in investor’s mind: the price of oil. On January 5, Monday, as soon as the stock market opened, we saw a new low in the West Texas intermediate crude oil. The stock broke $50, making low first time since April 2009. Also, the international benchmark, Brent crude oil was gone $53 per barrel making a new low in the market. Investors all over the world were worried, and the price of oil canâ€™t just seem to find a bottom. As we look at the newly 2015, letâ€™s focus on a comment made by the very same person who nailed the interest rate call in the year 2014. DoubleLine Capital’s Jeffrey Gundlach said in last month of 2014 that if oil gets $40/barrel, â€śsomething is seriously wrong with the worldâ€ť. Well, hope for the best, we are still $10/ barrel away from that.
- On Monday, one of the most conservative firms on the Wall Street, Goldman Sachs said that its sentiment index was at the highest levels possible, which in turn can weaken the stocks for the next coming six weeks. On the other hand, Wall Street analysts agree on the one thing about the market: it is going higher. Goldman Sachs also indicated that the stock exchange will rise to 2,150 and fall again and will finish the year with a target of 2,100.
- Last week, as per Baker Hughes the number of oil rigs in US fell again with active oil rigs declining by 17 and oil and gas rigs down by 29. On the next week itself, the biggest decline came from the Texas, which saw a 12 rigs shutter production last week after a 16 rig decline last week.
- The two largest companies, Apple and Herbalife stocks fell 3% and 13% respectively, making the tech giant fall 11% since the December of last year after hitting the all-time high last fall. On the other hand, there was no news related to the decline of the herbal life stock, but there was good news for Bill Ackman, the fund manager who has $1000 million short position on the multi-level marketing firm.
- We also received the data on the auto sales of December on Monday that indicated that the sales have slowed down to an annual pace of 16.8 million vehicles in December.