A weak 20-year Treasury auction and the fact that interest rates in general continue to push higher (not to mention hawkish comments by a Fed governor) put a damper on the stock rally we had seen so far this week. Earnings continue to come in better than expected with Netflix and United Airlines both shining after the close yesterday. But the drumbeat of continuous higher interest rates is a difficult headwind for stocks.
As for today, by the close the Dow Jones Industrial Average was down 99 points to finish the day at 30,423. The S&P 500 was down 24 points to close at 3,695. The Nasdaq Composite Index was down 91 points to close at 10,680. Gold was down $21 to trade at $1,634 per ounce, while oil was up $2.60 to trade at $85.42 per barrel WTI.
Over the next few weeks, we will see whether the inflation/interest rate concerns overshadow the potentially better than expected earnings season. Of course, there is still a long way to go with regards to earnings seasons and I still would expect a landmine or two to be waiting as the things play out over the next couple of weeks. Stay tuned.
Have a nice evening everyone.