Friends
Stocks continued to squeeze higher today as the S&P 500 flirted with 5000 for a few minutes before closing below that historic mark. As more Fed officials confirm that lower interest rates are in our future, it appears that market participants are becoming more comfortable that the direction of rates is down no matter when that actually begins.
By the close, the Dow Jones Industrial Average was up 156 points to finish the day at 38,677. The S&P 500 was up 40 points to close at 4,995. The Nasdaq Composite Index was up 147 points to close at 15,756. Gold was down $1 to trade at $2,051, while oil was up $.78 to trade at $74.09 per barrel WTI.
The conditions are good for higher stocks prices, but the issue is that valuations are already a bit stretched. But always remember that valuation is not a timing mechanism. It matters in the long run, but not necessarily at any particular moment in time. Let’s see if the bulls can keep up the momentum into the end of the week.
Have a nice evening everyone.
