Equity Market Gets New Life After Drop In Crude Oil...

Is free fall in crude going to continue?
HBJ Capital think, Yes, It will.....because crude was already inflated, it was waiting for anyone who can trigger massive selling, when was the big question and we believe it is now......So, will the global economy gets back to track? No, we doubt that because not only crude was the factor for slowdown, it was one of that.

Wall Street turned higher Wednesday as another drop in oil prices helped offset concerns about a jump in inflation last month. The Dow Jones industrial average rose more than 100+ points.

Stocks drew support from oil prices that pulled back for a second straight day on concerns that a slowing economy will damp demand. Light, sweet crude fell $4.84 to $133.90 on the New York Mercantile Exchange, compounding a drop of $6.44 on Tuesday.

Investors also remain worried about the economy and specifically the financial sector. This week has brought fresh attention to potential trouble spots in the mortgage market. Fannie Mae and Freddie Mac, the government-chartered mortgage giants, remain a concern, as do regional banks that could have bad mortgage debt on their books.

But, for the moment, investors were pleased by the drop in oil. "I think the pullback in oil is significant. The market and the market participants clearly had digested what the impact was going to be if oil prices had stayed at that level," said Dan Genter, president and chief investment officer of RNC Genter in Los Angeles.

While Wednesday's advance likely indicates some enthusiasm among investors it can also reflect simple bargain hunting and traders laying down a few bets rather than any great change in conviction. With many quarterly reports due in the coming weeks, many investors remain uncertain about the health of the economy.

Wall Street is also awaiting minutes from the last meeting of the Federal Open Market Committee, the arm of the Fed that sets interest rates. The Fed last month broke a string of reductions by leaving rates unchanged at its last meeting, a recognition that lower rates had weighed on the dollar and led to increases in commodities such as oil and food. The minutes are due at 2 p.m. EDT.