Friends
It was a pretty interesting day in the markets despite the somewhat quiet day for stocks in general. First off this morning we got an ADP private payroll number (298,000) that was significantly higher than anyone could have guessed. That raises expectations for Friday’s non-farm payroll number, and also likely assures a rate hike from the Fed at next week’s FOMC meeting. Next, hedge fund manager David Tepper during his appearance on CNBC this morning expressed his favorable views on stocks, but his disdain for bonds. When asked if he was short bonds Mr. Tepper replied “you bet your heinie”. The other story today was the large drop in oil prices, with WTI crude having its worst trading day in a year.
As for stocks, by the close the Dow Jones Industrial Average was down 69 points to finish the day at 20,855. The S&P 500 was down 5 points to close at 2,362. Gold was down $6 to trade at $1,209 per ounce, while the aforementioned oil was down $2.86 to trade at $50.28 per barrel WTI.
What did we learn today? Well, the stock market is a bit sloppy at the moment, with energy hurting today’s performance, but still somewhat frustrating the bears who are waiting/hoping for Armageddon. Bond yields are inching a bit higher and might be stoked by next week’s expected rate hike. Finally, oil had an awful day and is in danger of breaking lower in the short run. Oh, and of course no one seems happy with the new health care bill introduced by the House Republicans. And we still have two more days left this week. Stay tuned.
Have a nice evening everyone.
