Benefits of low oil finally making an economic impact

The sudden drop in low oil prices whacked energy sector earnings and resulted in a pullback in many of the marginal shale oil projects. While the bad news had an immediate economic impact, the benefits of low oil have taken a while to work through the system.

The good news is beginning to be seen in the latest consumer data.  Retail sales and auto sales have really picked up in the last few months and today's consumer sentiment reading rose to a final June reading of 96.1, a five-month high and much higher than the 86.9 average reading in the year leading up to the recession.

The positive economic trend will help corporate earnings which in turn will help propel equity markets forward in the second half of the year.