Friends
Stocks were mixed today as we saw a reaction to the recent rise in interest rates. On the buy side of the ledger were financials and industrials and on the negative side of the ledger were the big growth stock names. We saw this same type of action early in the year when rates had moved higher. But, remember rates fell once again in the spring and the big growth names found sponsorship while the value names sold off. So, is today’s move a precursor of things to come if interest rates continue to move higher?
By the close, the Dow Jones Industrial Average was up 72 points to finish the day at 34,870. The S&P 500 was down 12 points to close at 4,443. The Nasdaq Composite Index was down 77 points to close at 14,969. Gold was down $1 to trade at $1,750 per ounce, while oil continues to move higher up $1.45 to trade at $75.43 per barrel WTI.
We have seen a lot of rotation this year from growth to value, back to growth and back to value. This has basically helped keep the market averages near all-time highs despite individual names experiencing more dramatic moves. If rates continue to move higher it will be interesting to see how much damage that would do to growth names and how much of a tail wind it would be to value names. I guess we’ll all find out together. Stay tuned.
Have a nice evening everyone.
