Stocks sank at the open in today’s holiday-shortened trading session. The Dow and SPX are currently down 140 pts and .4%, respectively. The energy sector is down 3.5% on falling oil prices. Energy is now the second-worst performing sector in 2018, behind communications services. On the other hand, transports, biotech & pharmaceuticals, semiconductors and retailers are trading higher today. The dollar is a bit stronger on the day (and up 5% so far this year), which is helping push commodity prices down. The Bloomberg Commodity Index is down 1.6% today. Bonds are trading slightly higher as yields tick downward. The 5-year and 10-year Treasury yields are now trading at 2.87% and 3.05%, respectively. And while junk bonds did very well earlier in the year, the SPDR High Yield Bond ETF (JNK) is down 4.5% since the stock market correction began in early October. All investors will be watching high-yield for signs of an economic slowdown.
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