Today was a very peculiar day for stocks. After early softness, stocks rallied and then gave back that rally, at least in the S&P. But there were some strange divergences as many popular, momentum type stocks found themselves under some serious selling pressure, while industrials and energy shares continue to shine in this recent rally. It really seems to be a case of investors buying the ones that were most beaten up, anticipating a turn that may or may not be developing.
By the close, the Dow Jones Industrial Average was up 67 points to close at 17,073. The S&P 500 was up 1 point to close at 2001. Gold was down $3 to trade at $1,267 per ounce, while oil was up $1.96 to trade at $37.88 per barrel WTI.
Bonds continue to sell off a bit after the somewhat stronger non-farm payroll number last week, and that combined with stronger oil prices have contributed to the strength in the previously unwanted financial, industrial and energy shares. Again, today’s action was fragmented, as it appears that, at least in the near term, a bit of a rotation is developing. That can be healthy and created new interest from previously disinterested market participants. Let’s see how this week develops.
Have a nice evening everyone.