Friends
On what figured to be a sparsely attended trading session, stocks were directionless for most of the morning, but as the day wore on things did improve. Stocks ended up nicely for the day, but what was more interesting was, and has been, the move in bonds. The 10-year Treasury Note which had been trading at 3.5% just weeks ago has now rallied to yield less than 2.90%. That is quite a reversal in the trend for higher rates. The move in bonds is indicative of the recession, or at least economic slowdown, narrative. But given the Fed is firmly in the fighting inflation stance there is a lot of wood to chop with regards to where yields are going eventually.
As for stocks, by the close the Dow Jones Industrial Average was up 321 points to finish the day at 31,097. The S&P 500 was up 39 points to close at 3,825. The Nasdaq Composite Index was up 99 points to close at 11,127. Gold was down a $1 to trade at $1,807 per ounce, while oil was up $2.69 to trade at $ 108.45 per barrel WTI.
Going into the holiday weekend, let’s just enjoy the nice move up in stocks today without over analyzing it to death. We’ll be back with you on Tuesday. In the meantime…
Have a great 4th of July weekend everyone.
