Will Exxon Mobil Corp Save The Day Again?
Exxon Mobil Corp.(NYSE:XOM) is the leading stock in the stock market. Many people believe Apple Inc.(NYSE:AAPL), and Amazon.com Inc.(NYSE:AMZN) are the stocks that the stock market follows. While this might be true to some extent it is Exxon Mobil Corp. that still has the largest market capitalization in the stock universe at $362 billion. Exxon Mobil Corp. is also a major Dow Jones Industrial component. Remember the Dow Jones Industrial Average is price cap weighted index not a market cap weighted index like the S&P 500 Index. Therefore, this stock still carries a lot of weight in the stock market especially the higher it trades.
Lately, when we have seen Exxon Mobil Corp. rally the stock market indexes have followed closely behind. Yesterday Exxon Mobil Corp. soared higher after making a 10:00 am low and the stock market actually followed the stock. Certainly a declining U.S. Dollar index will always help to inflate the stock markets higher, however, Exxon Mobil rallied before the dollar began to decline. Therefore, Exxon Mobil Corp. is a leading indicator especially during the intra-day.
Today Exxon Mobil Corp. is trading higher by 0.25 cents while the Dow Jones Industrial is trading lower by more than 100.00 points. Can this large cap integrated energy stock lift the market up after an early decline? We shall see soon enough since this is a stock market barometer stock. Please note if Exxon Mobil Corp. starts to decline the stock markets will usually decline as well. It works both ways with this stock. 
Questions and Answers
Today the major market indexes followed their usual pattern. The SPDR S&P 500 ETF NYSE:SPY) dipped lower during the first half hour of the day only to rally higher on light volume for the rest of the session so far. There were a couple of factors in the market that were telling us that the markets would trade this way. The first was the light trading volume ahead of tomorrow's highly anticipated FOMC meeting.
The market has been on a one way path for months now, each sell off being negated by another move higher a day later. Yesterday, the markets were selling sharply into the 3:00pm ET time frame, only to have massive buy programs hit to push the markets back higher into the State of the Union address. Today, the markets have inched higher ahead of the Federal Reserve policy announcement on interest rates at 2:15pm ET.
The markets sold for the second straight day, dropping sharply as commodities took the brunt of the sell off. The SPDR S&P 500 ETF (NYSE:SPY) opened slightly lower on the day and then collapsed, much like yesterday. The SPY is trading at $127.40, -0.85 (-0.66%). The key to the drop today was continued fear from China. The Shanghai Index has dropped approximately 7% this week amid fears that China will continue to raise interest rates. Just last night, China reported stronger than expected GDP.
After a wild, huge volume day on Friday, the markets returned to "normal". The volatility of Friday has been sucked out, volume dry and the drama ancient history. The Middle East and Northern Africa continues to be caught up in riots and protests but the U.S. markets seem to be shrugging it off as key stocks lead the market higher and the Dollar drops. Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $128.25, +0.53 (+0.41%).
The markets are floating to the positive side today after the Non Farm Payrolls and Unemployment Report turned out to be a non event. The Non Farm Payrolls number came in at -95,000. The market had expected a flat number. While at first glance, this number seems very negative, the key number inside the Non Farm Payrolls was the Private Sector Employment which gained 64,000. Initially the markets flushed lower, then recovered quickly to move back to the flat line.
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