construction spending


Stocks surged at the open this morning on better than expected economic data. The Dow is currently up 187 pts and the SPX is up .9%. Tech and healthcare sectors are leading the way, up over 1% in early trading. Banks, transports and biotechs are particularly strong. The VIX Index sank back toward 13.3, indicating waning investor fears. So far, the trading session can be characterized as broadly risk-on. Commodities are trading mostly higher. The Bloomberg Commodity Index is up .5% today, and 6% so far on the year. Crude oil rose to nearly $58/barrel, the highest level since November. Bonds are mostly selling off, with the exception of high-yield (or junk). After dipping to a 2+ month low, the 10-year Treasury yield ticked up to 2.62% today. Since the stock market bottomed on Christmas Eve, the 10-year yield is up only 7 basis points (or .07%). Typically, a huge run-up in stocks is accompanied by a sharp rise in yields. After all, better prospects for stocks usually causes investors to sell bonds. Not this time, and it’s mostly due to the Federal Reserve’s abrupt pause on monetary tightening.

*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.