May 8, 2018 | 2.89-Point Dow Rally Was No Small Feat

Give DaBoyz credit for levitating the Dow by 2.89 points on Tuesday. That may seem like a pittance, but it was actually quite a feat for them to eke out a small gain with the price of crude head-butting the psychologically crucial $70 level. Although there is room to disagree about how much higher oil prices might go this time around, no one doubts that anything above $70 is going to put a serious drag on the U.S. economy. Trump’s decision to jettison the nuclear deal with Iran could add 15 to 25 cents a gallon at the pump, the news media are telling us. Don’t these guys ever learn? Merely talking about a 25-cent increase in the weeks ahead all but guarantees it will happen more or less overnight. A 75-cent hike by mid-June sounds more like it. If so, don’t be surprised if the Dow is trading 2000 points lower than the current 24,360.
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Rick Ackerman May 8th, 2018
Posted In: Rick's Picks
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