Once again, we saw the same pattern of trading every day this week. Early morning rallies continue to fade as the trading session wears on. Again, we had a tasty triple digit gain in the Dow this morning fueled by a much better than expected ADP Private Payroll number (which might tee up a big non-farm payroll number on Friday), and an even better ISM non-manufacturing (service sector) number- the strongest reading of this number since 2008. Simply put, the economy is humming.
As for stocks, by the close the Dow Jones Industrial Average was up 54 points to close at 26,828. The S&P 500 was up 2 points to close at 2,925. Gold was down $4 to trade at $1,202 per ounce, while oil was up $1.11 to trade at $76.34 per barrel WTI.
The reason that stocks faltered a bit later in the day might be attributed to the big move in bonds with the 10-year Treasury Note seeing its yield climb to 3.17%- the highest it has been since 2008. It seems logical that with the strength we are seeing in the economy that interest rates would be rising. What is surprising is why they haven’t until now. Anyway, let’s see if this week’s patterns continue tomorrow.
Have a nice evening everyone.