It was another odd day of trading with the Dow sporting a nice gain, the S&P 500 lower, and the beleaguered Nasdaq once again left holding the short straw. The culprit again was the bump up in the longer term yields which puts pressure on growth stocks, but seems to confirm a stronger economy which favors cyclicals (value).
For the day, by the close the Dow Jones Industrial Average was up 306 points to finish the day at 31,802. The S&P 500 was down 20 points to close at 3,821. The Nasdaq Composite Index was down 310 points to close at 12,609. Gold was down $20 to trade at $1,678 per ounce, while oil was down $1.43 to trade at $64.66 per barrel WTI.
Talk about how fast things can change. Year to date last year’s star performer, the Nasdaq, is now down 11%. It seems it was posting all-time highs just week’s ago. But, we have become much more used to quick changes over the past decade. Things happen very quickly nowadays. What is in favor today, can quickly be out of favor tomorrow. This rotation from growth to value might be the quickest I have ever seen in 37 years of investment advisory. Stay tuned, things are likely to remain lively.
Have a nice evening everyone.
