OPEC Starting To Worry About Oil Prices
The market is higher this morning as tech stocks are bouncing. Most of the big tech stocks have had big pullbacks, and a bounce is certainly in order. I bought some QQQQ yesterday in anticipation of some sort of relief rally unfolding.
Amazon.com (AMZN) is up nicely after the company announced a $1 billion stock buyback. It also said that it may redeem $1 billion of its outstanding debt as well. They certainly have the cash to do it.
Oil prices are higher also, above $89, after OPEC said that it may cut output next month to keep crude oil prices above $80 per barrel, according to Bloomberg. I guess they're finally starting to worry about falling prices, and the potential effect of slowing economic growth and demand.
The U.S. Senate came to an agreement on the fiscal stimulus package, and the President is expected to sign it next week. There have been comments that checks could be in the hands of consumers as early as May. Do you know what you will do with your check? I'm thinking....iPhone!
Energy stocks are leading the action, along with semis. Drug stocks, biotechs, and financials are lagging so far. Given the underperformance of tech ytd, I'm betting that they can play catch-up for a little while.