Stocks finished the week off with a rally, driven higher by a rally in energy after the International Energy Agency said oil prices have bottomed out. Bobbi Rebell reports.
A rally in oil prices jolted stocks on Friday, sending the S&P 500 to its highest close of 2016. The International Energy Agency issued a report saying the oil market may have found a bottom. That overshadowed a crude price forecast downgrade from Goldman Sachs. U.S. Light Sweet Crude hitting its highest level of 2016. But the close correlation between the oil markets and stocks worries Recon Capital Partners' Kevin Kelly: (SOUNDBITE) KEVIN KELLY, CHIEF INVESTMENT OFFICER, RECON CAPITAL PARTNERS (ENGLISH) SAYING: "We have the U.S. market trading at correlation at 90 percent with the price of oil. That's not really healthy for the markets, and we know that." For the week, stocks posted strong gains. U.S. import prices fell for the eight month in a row, but the pace of the decline is slowing as oil prices stabilize and the dollar's rally fades. General Motors is buying self-driving car startup Cruise Automation. GM says, it will use the technology and the company's people to develop vehicles that can operate without a human driver, potentially s part of ride-sharing fleets, as soon as possible. In Europe, shares closed higher thanks in part to a recovery in metal and oil prices boosting stocks in commodity companies.