Tom
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The stock market took a day off from the recent rally up to new highs in the big three indices, and the Dow temporarily touched 40,000 for the first time ever, but we did see some profit talking as the day wore on, and that's nothing too surprising. The bulls still have the ball in their court and if the bears have any fire power in them, they haven't shown it yet. Bond yields and the dollar had relief rallies, but they may be finding support, which could make or break the rally in stocks depending
The stock and bond markets got another dose of good economic news as the relief of the latest CPI data gave investors another reason to believe that inflation may be under control. It's not falling, but going up less quickly, and that was enough to see new highs in the indices as investors can rule out any new rate hikes, and perhaps increase the chances of a rate cut in June. Bond yields and the dollar dropped sharply and that has been the recipe for a rally in the equities market.
A late afternoon rally took the indices from slight losses to hefty gains on Tuesday as investors ignored the hotter than expected PPI number to push the S&P 500 closer to its highs for the year, and in the case of the Nasdaq, making new highs. Small caps and the I-fund had good days as yields and the dollar were down - again a surprise given the inflationary data.
Stocks were mixed, flattish, lifeless yet buoyant, all at the same time yesterday while awaiting this week's inflationary data. The Dow had its first losing day after 8 straight gains, the S&P 500, small caps, and the I-fund were flat - probably the most flat that I have ever seen all three funds on the same day. Bonds were up as yields moved slightly lower, and the meme stocks made an appearance yesterday.
The boring stocks led the market on Friday as the Dow made it 8 straight winning sessions in a row led by companies like McDonald's, Honeywell, Verizon, and American Express. Meanwhile the Nasdaq was down, small caps were down, market breadth was negative and it was directly related to yields rising and, as you'll see below, that's going to be the key in the next couple of weeks as the indices approach or test their prior highs.
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S&P500 (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
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Yahoo Finance Realtime TSP Fund Tracking Index Quotes |
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