After an initial drop, bond yields moved higher, investors had a sigh of relief and stocks recovered a lot of yesterday’s losses. Those sinking bond yields were giving investors heartburn so when that tide turned today, market participants got a little more confident that yesterday’s stock losses were overdone. The covid variant stories are not likely to go away any time soon, but the real effects on the economy will be monitored by investors as they attempt to determine if the great reopening is on track or will it be diverted at some point.
For the day, the Dow Jones Industrial Average was up 549 points to close at 34,511. The S&P 500 was up 64 points to finish the day at 4,323. The Nasdaq Composite Index was up 223 points to close at 14,498. Gold was up $1 to trade at $1,809 per ounce, while oil was up $.90 to trade at $67.32 per barrel WTI.
With regards to stocks, yesterday’s losers were today’s winners. The economically sensitive sectors such as financials, industrials and materials all moved higher after suffering losses yesterday. Was this just another brief and minimal pullback similar to what we have seen over the past year? With interest rates extremely low, investors have continuously gone right back to stocks after “selloffs”. Let’s see if corporate earnings have the power to move the market averages the rest of this week and next. Stay tuned.
Have a nice evening everyone.