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                     Stocks up as Oil and US Dollar Recover

   by Jill Malandrino

   Stocks opened higher on Friday. Oil and the U.S. dollar were in
   recovery mode, following losses on Thursday that sent the S&P 500 back
   into the red for the year. The surge, the latest in a week of very
   volatile market moves, occurred despite any major news to justify it.

   Oil was up more than 6%, boosted by expectations U.S. production will
   continue to decline and optimism about the U.S. economy. Data earlier
   this week showed an unexpected drop in crude inventories and a strong
   rise in demand from refiners.

   Once again, newswires are saying it was the Federal Reserve to the
   rescue on Thursday night to help lift market sentiment. Chair Janet
   Yellen said the U.S. economy was "on a solid course, not a bubble
   economy" at a gathering with former Fed leaders Alan Greenspan, Paul
   Volcker and Ben Bernanke.

   "The main message was well-delivered, using the history of the four
   speakers, they reminded people of how many crises they had steered us
   through in the past and how worried we all were at the time and how
   crazy they seemed at the time, but how in the end, they were right and
   wise and fair and just and it all works out so BUY BUY BUY because all
   shall be well," Said Phil Davis of Phil's Stock World. "It's the same
   story we tell you every time the market goes dark and you are worried
   about the economic monsters in your closet, but it sure works to calm
   the investors down - everytime."

   Despite the recovery in early trade, stocks sold off late in the
   session, and the indexes were on track to post losses for the week. The
   S&P 500 was down just over 1% for the week, which is the biggest weekly
   decline since February. A drop in biotech shares held down the Nasdaq.

   Trading Week Ahead:

   Alcoa kicks off the unofficial start of earnings season, followed by
   the big banks on Wednesday with JPMorgan Chase. Heavyweights Bank of
   America and Wells Fargo report on Thursday, followed by Citigroup on
   Friday.

   Not only will we be listening for the individual earnings results, we
   also want to hear what management has to say about the current state of
   monetary policy and their ability to grow earnings in a low interest
   rate environment. Typically, banks perform better when interest rates
   are at a higher level as it allows them to grow margins at a better
   rate.

   According to S&P Global Market Intelligence analyst, Lindsey Bell, only
   three of 10 S&P 500 sectors are projected to have positive earnings
   growth for the first quarter, with consumer discretionary,
   telecommunications and healthcare leading the way. The energy sector
   will post a quarterly loss for the first time since the firm started
   collecting data. Other sectors with large declines in growth are
   materials, industrials and technology. Excluding the energy sector
   drag, S&P 500 earnings growth would still be negative at -3.6%.

   "With expected disappointing corporate earnings and little economic
   growth, this is not the time to be complacent in the U.S. equity
   markets. Nothing has changed over the course of this 14% rally from the
   February 11th low. This rally has been fueled by central bank
   intervention and short covering," said Steve Kalayjian of the Kalayjian
   Report.

   ''Important March economic data will be released in China this week,
   including the Consumer and Producer Price Indexes, Imports and Exports,
   and first quarter GDP. Analysts expect to see a growth rate of 6.7%.

   Global central bank rhetoric really has been the driver of the S&P 500
   and all of the major indices. The Banks of Canada and England will
   deliver their respective interest rate decisions, which will certainly
   have an impact on the market as monetary policy actions have been
   driving the markets. In addition, several Federal Reserve speakers will
   be making presentations on the economy across the U.S.

   While the Fed is not delivering any policy decisions this week, their
   commentary is picked apart by traders, analysts and economists for
   clues into future moves. Economic data such as employment and
   manufacturing reports does not seem to move the needle anymore as long
   as central banks remain accommodative. That said, there are some key
   data to be aware of in the U.S. including: March Retail Sales, Producer
   Price Index, Industrial Production, and Crude Oil and Natural Gas
   Inventory Levels.
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References

   1. http://www.voanews.com/content/stocks-up-as-oil-and-us-dollar-recover/3276992.html