Friends
It was the revenge of the nerds today. The stodgy old Dow Jones Industrial Average was the big winner today led by Salesforce but joined in by many of the other 29 stocks in the index. The glamorous Nasdaq was actually down for the day. Remember, while the S&P and the Nasdaq have shined this year, up until recently the Dow had been left behind. Is this a broadening out of the market as we head towards to 2023 finish line? Instead of 7 or 8 stocks carrying the load are we going to see many of the left behind names finally participate in the move higher? We will see.
As for today, by the close the aforementioned Dow Jones Industrial Average was up 520 points to finish the day at 35,950. The S&P 500 was up 17 points to close at 4,567. The Nasdaq Composite Index was down 32 points to close at 14,226. Gold was down $10 to trade at $2,036 per ounce, while oil was down $1.86 to trade at $76.00 per barrel WTI.
If indeed the market is broadening out, it can act as another way of digesting earlier market gains. If the big growth companies that have led the way this year take a break and value and small cap fill the void, you could see the market stay strong through year end, as many are predicting. But it would be more likely after the gains this year, and the tax consequences of selling before year-end, that this year’s big winners remain the winners into year end. In the meantime, let’s see how the week finishes out tomorrow.
Have a nice evening everyone.
