Friends
Stocks got off to a nice start this morning and basically held serve for the remaining of the trading session. The main catalyst for the rally appeared to be the slight move upward in interest rates, easing the consternation that market participants were feeling about plunging interest rates around the world. It wasn’t much of a move in rates, mind you, but at least it was in the right direction (the 10 year Treasury note trading around 1.55%).
By the close, the Dow Jones Industrial Average was up 306 points to finish the day at 25,886. The S&P 500 was up 41 points to close at 2,888. Gold was down $8 to trade at $1,522 per ounce, while oil was up $.02 to trade at $54.78 per barrel WTI.
It was a volatile week, and still a good one for the bears, but the bulls have to feel better about how things finished out the last two trading sessions. Again, the bond market is screaming something, but just what it is screaming is difficult to figure out. Is a recession looming, or are our rates plunging (bond prices rising) because of demand from around the world for any kind of positive return? The rate on the 10 year German Bund was -.74% this morning. So yes, 1.50% on a U.S. piece of paper looks pretty good in that light. Anyway, this week is done, so let’s get some rest and be ready for next week.
Have a great weekend everyone.
