United States stocks rally on oil recovery

US stocks followed gains around the world, as investors cheered indications that more central-bank stimulus could be on its way in Europe and Japan.

Oil and global stocks got a boost after European Central Bank President Mario Dragi dropped heavy hints (http://www.marketwatch.com/story/4-key-takeaways-from-draghis-no-limits-statement-2016-01-21) on Thursday that more stimulus could be in store when the ECB meets in March.

For the holiday-shortened week, the Dow rose 0.7 percent, and the S&P 500 gained 1.4 percent, while the Nasdaq advanced 2.3 percent.

Still, chart watchers on Wall Street acknowledge that the USA stock market has suffered a lot of so-called “technical damage”, and that there’s been no clear evidence – at least not yet – that a major improvement in the market is developing.

On the USA economic data front, the National Association of Realtors reported that home resales rebounded strongly in December from a 19-month low and prices surged, indicating the housing market recovery remained intact.

Gains in energy stocks, one of the most beaten-down sectors so far this year, outpaced increases in other S&P 500 sectors, rising 4.3% on Friday.

Narwhal Capital Management’s holdings in SPDR Dow Jones Industrial Average ETF were worth $1,174,000 as of its most recent filing with the SEC.

Since then, the Dow has risen 2.1%. The Nasdaq Composite Index was up 91.83 points, or 2.05 percent, to 4,563.89.

US stocks rose Thursday and recovered some of their steep losses from the day before.

Some investors said better-than-expected quarterly earnings reports have also emboldened investors to re-enter the stock market.

Market speculation also is growing that the Bank of Japan may expand its stimulus program as soon as its rate review on January 28-29, when the central bank is also seen likely to cut core consumer inflation forecasts. The dollar was up 0.8% against the yen at Yen118.76.

The Dow is down 1,331.52 points, or 7.6 per cent.