Friends
Stocks tried to move higher on the first morning of trading for the new quarter, but when the 10-year Treasury note yield inched higher and touched 4.70%, stocks sold off. Remember, it can be confusing when market commentators talk about a move in bonds. When rates rise what actually is happening is that bonds are selling off. In other words, bond prices are going down. So, when I say that rates are rising, always remember that what that means is bond prices are going lower.
Anyway, for the day the Dow Jones Industrial Average was down 74 points to close at 33,433. The S&P 500 was basically flat for the day to close at 4,288. Nasdaq was up 88 points to close at 13,307. Gold was down $20 to trade at $1,845 per ounce, while oil was down $2.01 to trade at $88.78 per barrel WTI.
Indeed, the stock market seems to take its cue each day from the direction of the bond market. If rates continue to move higher it will be difficult for the bulls to muster a rally in the 4th quarter, unless earnings come in much better than expected. We will get a chance to find out as earnings season begins soon. In the meantime, keep an eye on the yield on the 10-year Treasury note.
Have a nice evening everyone.
