RELIEF RALLY

Stocks opened higher this morning in an attempt to recover from a week-long 5% correction. The Dow is currently up 219 pts and the SPX is up 1.25%. Ten of eleven market sectors are in the green, led by tech (+1.9%), financials (+1.5%) and energy (1.7%). The VIX Index—a common gauge of fear among traders—fell back to 18.5. Oil prices also recovered after a series of attacks on Saudi oil tankers and pumping stations, presumably by Iran in retaliation for trade sanctions. WTI crude is back up around $61.80/barrel. Bonds are little changed this morning. The 10-year Treasury yield edged up to 2.42%.


*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.

TRADE WAR ESCALATION

Stocks gapped down at the open after China escalated the trade war with fresh tariffs on US goods. The Dow is currently down 624 pts and the SPX is down 2.5%. The US stock market is now down about 5% from its recent all-time high. The worst performing sectors today are tech, industrials and consumer discretionary—those considered hardest hit by trade tariffs. The only sector with gains today is utilities. The VIX Index jumped up to 20.6 but VIX June futures are trading at 18.6. Commodities are mostly lower. Bloomberg’s Commodity Index (BCOM) is down .6% today, but still up slightly on the year. WTI crude oil fell back to $61/barrel. Bonds are not surprisingly rising in value. The 10-year Treasury yield fell back to 2.39% and the next real support level is March’s low of 2.37%.


*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.

HIGHER TRADE TARIFFS COME AT LAST

The major stock market averages opened lower as the trade war with China escalated. The Dow is down 290 pts and the SPX is down 1.4%. The pattern over the last few trading sessions has been a sharp decline in the morning following by a recovery in the afternoon. We’ll see if that pattern persists today; my guess is that traders won’t want to be “long” going into the weekend. Tech and healthcare are the worst performing sectors at the moment, down about 1.8%. Utilities is the only sector in the green. The VIX Index continues to hover around 20, which is typically considered the lower threshold of elevated fear among traders. Overseas things are looking better. European markets closed flat. China’s Shanghai Composite Index actually closed up by 3%! Commodities are trading mostly higher. Copper, gold and iron ore are up a bit. WTI crude oil is flat at $61.60/barrel. Bonds are following the same pattern we’ve seen through the week. Treasuries are up in price, down in yield; high yield corporates (junk) are down in price, up in yield. The 10-year Treasury yield is all the way back down to 2.43%. So bonds are painting a risk-off picture, if only temporarily.


*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.

TRADE WAR JITTERS CONTINUE

Stocks headed lower again this morning on (what else?) trade war headlines. The Dow is currently down 350 pts and the SPX is down .7%. All eleven major market sectors are lower, led by tech (-1.2%) and materials (-1.3%). The VIX Index spiked to nearly 22, suggesting traders are getting nervous. European markets closed down by nearly 2% and Asian markets were down nearly that much overnight. China’s Shanghai Composite Index was down 1.5% last night and has fallen almost 13% since April 19th. Commodities are down today, except for gold. WTI crude oil is down 1% to trade around $61.50/barrel. Bonds moved higher as the 10-year Treasury yield fell back to 2.44%. Junk bonds, however, are down about .4%.


*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.

STOCKS MIXED, AT THE MERCY OF TRADE HEADLINES

Stocks opened mixed this morning at the mercy of trade-related headlines. The Dow is currently up 70 points and the SPX is flat. The Nasdaq is down slightly The VIX Index back down just a bit to 19. Strangely enough, the utilities sectors is down by more than 1% in early trading. The materials and communications services sectors are down modestly. On the other hand, real estate, industrials and consumer discretionary sectors are up about .3%. Most commodities are trading lower today, save oil. Iron ore is down 1%, copper is down .6%. WTI crude bounced back 1% to trade at $62/barrel on a lower than expected crude inventory report. Bonds are again mixed, with corporates flat and Treasuries up. The 10-year Treasury yield fell back to 2.46%. However, look at junk bonds. The SPDR High Yield Bond ETF (JNK) is actually higher on the day, suggesting the renewed trade fight isn’t the end of the world.


*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.

TRADE WAR REDUX?

Tough trade talk is again knocking the stock market around this morning. The Dow is currently down 440 pts and the SPX is off 1.6%. All eleven market sectors are in the red, let by tech (-2%). Several industry groups are down more than 2%, including semiconductors, transports, and biotechs. The VIX Index, a measure of investor fear, jumped to 20 for the first time since January. European stock markets closed down by 1-2% in today’s session. Obviously, crude oil fell on the news. WTI crude is trading back down around $61.30/barrel. Bonds are mixed. Corporates are flat to down, whereas lower-risk Treasury bonds are up on the day. The 10-year Treasury yield is back down to 2.46%.


*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.

TROUBLE WITH TRADE

The major stock market averages gapped down at the open after news that US-China trade talks are breaking down. The Dow is currently down 220 pts and the SPX is down .95%. Consumer discretionary, industrials, tech and materials sectors are all down more than 1%. The VIX Index spiked briefly to 19 before falling back to 16. WTI crude oil dipped slightly to $61.60/barrel. The US dollar strengthened and gold is modestly higher today. Bonds are trading higher (except for junk). The 10-year Treasury yield fell back to 2.48%.


*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.

POST FED MEETING HANGOVER

Stocks opened lower this morning (Dow -104 pts; SPX -.58%). There is a bit of pouting among traders in the wake of yesterday’s Fed meeting (see below). Interest rates are rising, and that means bank stocks are up and utilities & real estate are down. Commodities are mostly lower in early trading. Copper has lost about 5% over the last two days. WTI crude oil tumbled more than 3% today to trade around $61.30/barrel. US oil stockpiles are at a two-year high while the volume of US production is at record levels. Bonds are falling in price as a result of the Fed meeting. The 10-year Treasury yield snapped back to 2.55%. Apparently, some traders had positioned with the expectation that the Fed would discuss cutting interest rates in the near future. That seems terribly misguided but appears to have been the case.


*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.

MIXED SIGNALS ON THE ECONOMY

The major stock market averages opened slightly higher after Apple’s (AAPL) surprise earnings announcement (sell below). The Dow is currently up 39 pts and the SPX is just above flat. Not surprisingly, the tech sector is leading the way, up .8% in early trading. The defensive sectors are giving up yesterday’s gains (except, oddly, for real estate). The energy sector is down .8% on lower oil prices. WTI crude oil fell back to $63.40/barrel following a report showing higher than expected crude stockpiles. Bonds are gaining ground again today as yields tick lower. The 10-year Treasury yield is back down to 2.48%.


*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.

ARE EARNINGS ENOUGH TO SUSTAIN 2019 RALLY?

Stocks opened sharply lower this morning (Dow -123 pts; SPX -.4%). Communications services—down 2.5%--is the worst performing sector entirely as a result of Alphabet’s (GOOGL) earnings announcement. Other groups like biotechs, banks and transports are also trading lower. Defensive sectors are catching a bid. The VIX Index jumped to 14 for the first time in three weeks. European markets closed down modestly. The dollar is a bit weaker against a basket of foreign currencies and that is giving a little support to commodities. WTI crude oil up .5% to trade around $64/barrel. Bonds are rising in price, falling in yield. The iShares 20+ Year Treasury Bond ETF (TLT) is up .3% today and up 1.6% so far this year. The 10-year Treasury yield is back down to 2.51%.


*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.

GREEN SHOOTS FOR THE ECONOMY

Stocks opened pretty flat this morning, waiting for the flood of earnings announcements scheduled this week. Today, the Dow is flat and the SPX is up .2%. The financial sector jumped 1.3% in early trading in reaction to rising interest rates (see below). The communications services sector is up .6% on a pop in telecom stocks. On the other hand, utilities and REITs—which are sensitive to interest rates—are down .5% to .7% today. Commodities are trading mostly lower. Copper plunged more than 5%--a big move for one day. We’ve heard that Chinese authorities are pulling back on economic stimulus, believing they’ve succeeded in stabilizing their economy. WTI crude oil is flat at $63.30/barrel. Bonds are selling off, especially at the long end. The 10-year US Treasury yield backed up to 2.53%. But the big news on the interest rate front is a surprise steepening of the yield curve. You may recall I’ve flagged the flat yield curve as a potential problem for the market and economy. The difference between short-term and long-term interest rates has been very small, suggesting slowing economic growth. Specifically, the difference between the 2-year and 10-year Treasury yields has been in the range of just .10% to .20% for about five months now. But late last week the gap started to widen, breaking out of that range. This could be good news and it bears watching.


*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.

GDP AND EARNINGS DISAPPOINTING

The major stock market averages fell at the open but quickly pared losses. The Dow is currently up 33 points and the SPX is up .17%. Nine of eleven market sectors are higher in early trading, led by materials (+1%) and consumer staples (+.6%). But energy and tech sectors are down sharply. WTI crude oil plunged 4% to trade around $62.40/barrel after President Trump complained to OPEC that oil prices are too high. That’s the problem with oil—it really is the purview of traders, not investors. Price fluctuations are driven more by headlines and politics than by actual supply and demand. You get far more volatility than is warranted. Copper is down today along with China’s stock market after the Chinese government signaled less economic stimulus going forward. Bonds are faring well today as yields dip. The 10-year Treasury yield has fallen back to 2.50% from 2.60% a week ago.


*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.

MARKET EXHAUSTED, TAKES A BREATHER

Stocks are mixed in early trading (Dow -33 pts; SPX -.2%). The energy sectors is slumping 1.2%. Banks, biotechs and telecom stocks are also falling. Defensive sectors are faring better, but there’s little conviction in today’s trade. Investors are busy digesting the flow of earnings announcements.


*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.

NOTHING TO SEE HERE, CHECK BACK TOMORROW

Stocks fell at the open this morning but quickly recovered. The Dow and SPX are currently flat. Defensive, interest rate sensitive sectors (utilities, real estate) are down in early trading. The energy sector, on the other hand, is up over 1.8% on higher oil prices. Trade volume is pretty light coming off of a holiday weekend. European markets are still closed for Easter. The stock market looks kind of tired after a huge recovery rally in the first quarter. In other words, don’t expect a lot of excitement today. Earnings will provide plenty of excitement later this week. WTI crude oil shot up to $65.50/barrel, the highest since the end of October last year. That’s a direct result of the Trump Administration saying Iran’s trade sanction exemption will expire on May 2. A White House statement said the decision “is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue.” Bonds are trading a bit lower as yields tick higher. The 10-year Treasury yield is back up to 2.58%. The “yield curve” (that is, the difference between the 10-year and 2-year rates) is still pretty narrow and fragile. In fact, the spread is just .19% and has been in the range of .10% and .20% for the last 5 months. Should it break convincingly above .20%, that will likely be viewed as a bullish signal for traders.


*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.

RETAIL SALES REBOUND

Stocks opened higher this morning (Dow +100 pts; SPX +.13%). Real estate and utilities are catching a bid after a rough week. Industrials are also in the green after Honeywell’s (HON) earnings report. On the other hand, healthcare stocks continue to slide due to political risk. Popular health insurer UnitedHealth (UNH) is down 27% from its December high. Commodities are mixed; copper continues to climb (+1.4%) but oil and iron ore are flat. WTI crude oil is hovering around $63.60/barrel. Bonds are trading higher today as yields tick lower. The 10-year Treasury yield fell back to 2.56%.


*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.

HEALTHCARE ROUT

Stocks opened a bit lower this morning (Dow -23 pts; SPX -.2%). The healthcare sector is down nearly 2% today and 5.5% so far this month. The direct cause is fear over the rise of socialism in Congress. See yesterday’s update for more details. The real estate sector is down 1% today and 2.7% this month after having climbed over 17% during the first quarter. Semiconductor stocks are up over 1% after Apple (AAPL) and Qualcomm (QCOM) finally settled their legal battle over intellectual property. The energy sector is up about .5% after a report showing lower than expected crude stockpiles in the US. Commodities are mixed. Copper is now up 14% this year and a good portion of that has to do with China stimulating its economy. WTI crude is flat on the day at $64/barrel. Bonds are trading pretty flat as well. The 10-year US Treasury yield is hovering around 2.59%.


*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.

EARNINGS TO THE RESCUE?

Stocks opened higher this morning. The Dow is current up 55 pts and the SPX is up .12%. Sectors are responding to earnings announcements (see below) and interest rates. Rate sensitive sectors like real estate and utilities are down between .8% and 1.8% in early trading. The banks are up 1%. The VIX is down and commodities are up. Bonds are trading lower. The 10-year Treasury yield jumped to 2.59%. In other words, today’s session fits a risk-on template.


*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.

GOLDMAN, CITIGROUP SOUR THE MOOD

Stocks opened lower this morning (Dow -82 pts; SPX -.3%). Defensive sectors are trading modestly higher (consumer staples, utilities, healthcare). Cyclicals, on the other hand, are in the red (i.e. energy, financials, industrials). US small-caps and foreign stocks are mostly lower as well. The VIX Index rose to 12.8 but is still at a very low level. Commodities are mostly lower in early trading. WTI crude oil fell back to $63.20/barrel. Gold is down a tad. Bonds are mixed in early trading. Treasuries are up slightly whereas corporates are down. The 10-year Treasury yield is hovering around 2.55%. By the way, Germany’s 10-year sovereign bond yield ticked up to .07%, the highest in weeks. Investors are uneasy about the fact that billions of dollars of foreign sovereign bonds are trading with a negative yield. That is, investors are guaranteed to lose money. Aside of the fact that this doesn’t make any sense, it tends to encourage foreign bond investors (like pension funds and insurance companies) to buy US Treasuries instead. And that, in turn, drives our yields lower. The takeaway is that if German bond yields are rising, we can probably expect US Treasury yields to rise as well.


*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.

EARNINGS SEASON KICKOFF

The major stock market averages gapped up at the open. The Dow is currently up 200 pts and the SPX is up .4%. The financial sector surged 1.5% on better than expected quarterly results by Wells Fargo (WFC) and JP Morgan (JPM), which kicked off earnings season today. Most other sectors are also trading higher, except real estate and healthcare. Commodities are mixed—oil is moving higher but copper and iron are in the red. Gold is flat today, and so far this year. WTI crude is back up over $64/barrel. Chevron (CVX) announced a deal to acquire Anadarko (APC), and investors are wondering if this is the beginning of a wave of consolidation in the industry. Bonds are trading mostly lower as yields tick higher. The 10-year Treasury yield is back up around 2.54%. If earnings season proves better than Wall Street is forecasting, you can bet interest rates & bond yields will move higher.


*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.

WHERE TO NEXT?

Stocks opened slightly lower this morning. The Dow is currently down 50 points and the SPX is down .1%. Financials (+.3%) and industrials (+.5%) are bouncing back from yesterday’s declines. On the other hand, healthcare, energy and real estate sectors are in the red. WTI crude oil fell back to $63.50/barrel in early trading. Most other commodities are down as well, partly due to a strengthening US dollar. Bonds are also trading lower as yields tick higher. The 10-year Treasury yield bounced back up to 2.49%. Only junk bonds are holding flat.


*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.