The price of crude oil this past week traded to new lows based on growing concern about global growth prospects, coupled with new supply from Iran.
One of the most significant stories for the stock market in 2015 has been the wholesale collapse of oil prices and the energy sector.
The first major chink in the dollar’s armor was felt by Wall Street recently when a key employment data point effectively sent the Fed off the playing field and right to the showers. The dollar has been under heavy pressure following the July 31 release of low data regarding the U.S. Employment Cost Index (ECI).
Heading into earnings season, Wall Street analysts’ views were very mixed as to how America’s leading multinational corporations would fare against a macroeconomic backdrop where the Fed is chomping at the bit to tighten rates at least once before year-end while the U.S. dollar index is turning back up in correlation with the Fed rhetoric and a weaker euro post-Greek deal.
For what lies ahead in the second half of the year, there is a lot of buzz surrounding the high-tech and biotech sectors. Last week, shares of Google (GOOGL) soared to a new 52-week high on stellar earnings, while shares of Amazon.com (AMZN) and Facebook (FB) vaulted to new all-time highs.
We’re into the seventh year of zero percent interest rates, and income investors are wondering out loud when that string will be broken by the Fed looking to hike the Fed Funds Rate as early as September.