Friends
Today’s CPI number came in as expected and this afternoon’s 10 year treasury auction went off without a hitch, both leading to a calming of the bond market (rates stopped going up). With the fixed income markets neutralized for the moment, stocks rallied with the Dow once again leading the way. Nasdaq mostly stopped going down, but it still feels like there is some work to do to rebuild confidence in growth stocks.
By the close, the Dow Jones Industrial Average was up 464 points to finish the day at 32,297. The S&P 500 was up 23 points to close at 3,898. The Nasdaq Composite Index was down 5 points to close at 13,068. Gold was up $7 to trade at $1,724 per ounce, while oil was up $.74 to trade at $64.75 per barrel WTI.
It’s amazing to see the Dow pushing to new all-time highs while the former league leader Nasdaq struggles mightily. We just are not use to seeing that, are we? The big question is are these all-star growth stocks done for the time being and are we pricing in the economic recovery already in the value names? I guess we’ll find out together.
Have a nice evening everyone.
