Markets Up 375 As Weak Dollar Trends Dominate The Week

Markets ended the week in the black, rising 2% to close above 18,000. The Dow was up 376.41 points this week, closing at 18,127.65 on Friday after Monday's 17,751.24 open. The S&P 500 gained 52.75 points on the week, opening Monday at 2,055.35 and closing Friday at 2,108.10. The NASDAQ closed at 5,026.24 on Friday afternoon and gained 129.15 this week, up from Monday's 4,897.27 opening.

In overseas trading this week, the big story was the recovery of Hong Kong's Hang Seng market, which has fallen big in the past month.
The Hang Seng gained 785.27 on the week, closing Friday at 24,389.22. The Hong Kong exchange is important because it's China's de facto marketplace, where overseas investors are edging into the Asian giant's increasingly modern and capitalistic economy.

There's More To Tiger Media's 400% Gains Than Meets The Eye.  For all intents and purposes Tiger Media (IDI) looked like a huge micro-cap gainer this week, after share prices more than quadrupled.

In reality, the gains in price came on the back of a 5:1 share consolidation -- something like the reverse of a stock split -- where investors saw their total number of shares fall as prices went up. Looking at the company in that light, Tiger actually underperformed slightly on the consolidation. Tiger Media gained almost 5 points on the week, opening at $1.17 per share and closing in Friday at $6.05.

Weak Dollar Trends Dominate The Week.  As we reported on Thursday, the market this week has moved in line with the sorts of trends that we see when the US Dollar is weak. Gold rose over $30 per troy ounce and managed to put together something like a rally for the first time in months.

Companies and commodities which export overseas were up, and importers like Walmart (WMT) struggled some as stock from China and elsewhere became marginally more expensive. Cocoa, which is one of the largest import commodities, reversed a losing trend this week. One of the surest measures of the strength of the US Dollar, 10-year bond yields, fell nearly 0.15% over 5 days.

The 5 Biggest Penny Movers Of The Week.  This week was big for micro-cap stocks, although the largest gains are still coming from the health services sector as in previous weeks. Other big movers came from consumer durables, tech, and green energy.

Vascular Biogenics (VBLT), which is looking into ways to cure heart disease, was the big winner with 5-day gains of 78% to close at $5.75 per share. Tech company Nxt-Id (NXTD) gained 50% and jumped to $3.87 per share. Sterling Construction (STRL), a homebuilder, rose 48% to $4.46 per share. Recro Pharma (REPH) gained 45% over 5 days and closed out Friday at $8.64, pushing into small-cap territory. The last penny mover this week was New Concept Energy (GBR), which gained 42% to end the week at $2.32.

Biogen Is This Week's Big Winner.  Trading this week saw Biogen (BIIB) up big, and has been following the company closely over the past 5 days. The Biotech giant has moved from below $420 per share on Monday to $475.98 at the end of trading on Friday, for a 15% gain of 62.63 points. That makes Biogen the biggest mover of the week in sheer dollar values.

The company was up this week on news of a promising new Alzheimer's treatment, which is undergoing clinical trials shortly. Biotech in general is booming as well, so this was an excellent time for Biogen to break through.

Oil Recovers To End The Week At $46.  There's no doubt that oil is still struggling, but it recovered late this week. After trending downward from $50 to as low as $42 per barrel, the price of crude oil reversed and ended the week slightly above $46 per barrel.

Domestic energy companies, which have taken a beating in recent months, gained slightly on the news. Transocean (RIG) was up 10% this week and closed at $14.99 per share. Seadrill Ltd (SDRL) gained 8% on the week, and Diamond Offshore (DO) added 3.63% to their share price.
Published on Mar 20, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2016. Content published with author's permission.

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