Friends
The interest rate on the 10 year Treasury note moved up over 1.62% this morning which sent the Nasdaq tumbling once again. The value heavy Dow Jones Industrial Average was the winner today, and we have seen this pattern for a couple of weeks now. Interest rates up, growth stocks down, value stocks up.
By the close, the Dow Jones Industrial Average was up 293 points to finish the day at 32,778. The S&P 500 was up 4 points to close at 3,943. The Nasdaq Composite Index was down 78 points to close at 13,319. Gold was basically unchanged trading at $1,722 per ounce, while oil was down $.42 to trade at $65.60 per barrel WTI.
With interest rates still working their way higher (albeit from extremely low levels), the big growth darlings of the past years are struggling lately. In the meantime value names that were left for dead last year continue to climb. It will be fascinating to see how long this will last. Of course, all this just proves the point that it’s always good to be diversified, with both growth and value in your portfolio.
Have a great weekend everyone.
