There were a lot of crosscurrents in the markets today. Quality “blue chip” type stocks were being snapped up by traders while at the same time momentum driven “previously high flying” growth stocks were being sold hand over fist. The divergence showed up in the averages, as the Dow enjoyed a nice gain but NASDAQ was decisively negative. The general market mood was helped by a perceived softening stance by Mr. Putin, and a not unexpected dovish Q &A conducted on the Hill with Ms. Yellen.
By the close, the Dow Jones Industrial Average was up 117 points to finish the day at 16,518. The S&P 500 was up 10 points to close at 1878. Gold was down $18 to trade at $1290 per ounce, while oil was up $1.25 to trade at $100.75 per barrel WTI.
If you are inclined to look at the glass half full, you might be encouraged by the rotation happening in the market (money moving from outrageously valued growth stocks to more stable value names), but if you are prone to look at things in a more negative light, you might wonder how all the damage in these momentum names cannot possibly spill over to the rest of the market. Also, the bear will point out that moving to “safer” names simply indicates a fear of a weakening economy. Well, that’s what makes a market, doesn’t it?
Have a nice evening everyone.