Oil prices climbed 2% today on expectations that OPEC member countries would agree to deepen production cuts at a scheduled meeting next week. The industrial sector was also up 1.3% in trading today on very strong earnings from General Electric and Boeing.
Analysts reported that the broader market sentiment was driven by much stronger than expected earnings from Deer and Company (DE), which beat earnings estimates by 46% sending them up 7.5% in trading today. I view this as unlikely – their market cap is relatively low to have had that strong an impact on investor sentiment. More likely I think is decreasing volatility as news of Michal Flynn’s pending investigation fade from the national attention. Volatility late last week was far up from a normal range, and despite strong gains Thursday and Friday the week closed down 0.6%. Today is more of that return to normalcy as uncertainty continues to fade.