Friends
Stocks were able to hold on to most of their early gains today, unlike last Friday. Given that Apple was not part of the advance, it is interesting to see that stocks can rise without a general or two to lead the way. Again, we see the yield curve continue to attempt to steepen as rates on two year paper drift lower while 10 year and longer maturities see their yields drift higher. All eyes this week will be on the July CPI number which will be released on Thursday.
As for today, by the close the Dow Jones Industrial Average was up 407 points to finish the day at 35,473. The S&P 500 was up 40 points to close at 4,518. The Nasdaq Composite Index was up 85 points to close at 13,994. Gold was down $4 to trade at $1,971 per ounce, while oil was down $.44 to trade at $82.38 per barrel WTI.
We are winding down earnings season this week, and in general, corporations scored well on their report card. The problem is that while earnings are hanging in there, they are not rising. But as we know share prices have been rising resulting in P/E expansion (increased valuations). Stretched valuations may cause the bulls problems in the near term, but for today, some of the previous laggards helped to stop the recent losing streak. Let’s see how the week unfolds.
Have a nice evening everyone.
