This week has been hectic for the markets. Tons of big news have emerged out of Washington and it has most definitely helped to drive up volatility. Some of the news has been great for investors, while other headlines have pushed stock prices down significantly. What news should the savvy investor know about this week? The most notable news stories from the week will be explored in greater depth below.
Bitcoin Continues Climb
There is no doubt that Bitcoin has been on an incredibly climb as of late. During the past 24 hours, the digital currency has climbed another twenty percent. Now, the price of a single Bitcoin rests around $15,000. Investors that have taken the risk on the relatively unknown commodity are definitely pleased with the news. However, others have to be worried that the price could easily drop just as quickly. Bitcoin has shown incredible volatility and that could be good for some investors.
GE Plans Job Cuts
GE has been in a world of hurt during the past few years. The company has cut its dividend and its stock has dropped to record lows. The biggest news to come out of the company this week is the fact that the company will now carry out employee separations. The company has announced that it would be cutting 12,000 jobs or roughly 18% of its workforce. That is going to take a significant tow on Americans and foreigners alike. As for investors, the move could signal a turnaround and it will likely give the stock price a temporary boost.
Tax Bill Fight Looms
Republicans in the House and Senate have worked diligently to get their tax bill passed before the end of the year. However, that is beginning to look less and less likely. After the House passed a version and the Senate passed another, the bill has not gotten stuck in negotiations from both sides. While the current tax bills being proposed are not great for the consumer, they could prove helpful for businesses across the United States. They could also help the dollar rise and play into the hands of those involved in foreign exchange trading.
Investors will most definitely want to keep their eyes on the tax bill to see how things play out and whether or not they can time their trades to benefit from any coming news.
Oil Prices Fall And Climb
Oil prices have expected great volatility during the past few weeks. At one point, oil was nearly $58 a barrel. However, the prices quickly feel on higher than expected stockpiles. On Thursday, the energy sector received great news. It was announced that the United States crude oil stockpiles had fell by 5.6 million barrels during the weeks of December the 1st. This helped to push the stockpiles down below the seasonal levels of the past two years. Unfortunately, an unexpected rise in fuel inventories offset this to some degree.
Nevertheless, oil prices are climbing Thursday morning and that is a great sign for thirsty energy investors.