The markets opened with a nearly 100-point jump before stocks and exchange traded funds (ETFs) reversed course after the Fed sounded the alarm on rising oil prices.

  • Federal Reserve Chairman Ben Bernanke said rising oil prices could be problematic for the economy if the uptrend continues. He did stress, however, that the most likely outcome would be a jump in consumer prices instead of runaway inflation. United States Brent Crude (NYSEArca: BNO) has shot up 10.6% in just 10 days; today, it’s up nearly 2%.
  • Egypt’s stock exchange was expected to open today, but that was delayed until Sunday, sending the Market Vectors Egypt (NYSEArca: EGPT) up more than 3% in early trading.
  • Manufacturing in the United States rose to its highest level in nearly seven years, a sign that economic recovery continues to improve. The report pushed Global X Silver Miners (NYSEArca: SIL) up more than 1% in early trading.
  • The U.S. dollar strengthened this morning on the bullish manufacturing report, as well: PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP) is tempering losses after months of trading lower.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.