Reply To: Traders Market Weekly: Inflation and Bank Earnings


Dow 33449.64 +519.63 (1.58%)
Nasdaq 10457.27 +152.11 (1.48%)
SP 500 3868.35 +60.25 (1.58%)
10-yr Note +34/32 3.577

NYSE Adv 2605 Dec 362 Vol 252 mln
Nasdaq Adv 3190 Dec 1142 Vol 2.5 bln

Strong: Consumer Staples, Energy, Materials, Utilities, Industrials, Financials, Real Estate

Moving the Market

— Positive reaction to the better than feared December Employment Situation Report

— Relative weakness in the mega cap space weighing on index performance

— Big pullback in Treasury yields from earlier highs

— S&P 500 pushing past resistance at 3,850

Value stocks are outpacing growth stocks today, but both spaces enjoy sizable gains. The Russell 3000 Growth Index is up 1.5% versus a 1.8% gain in the Russell 3000 Value Index.

The S&P 500 financials sector (+1.9%) is one of today’s “worst” performers. Components Bank of America (BAC 34.45, +0.38, +1.0%) and JPMorgan (JPM 137.37, +2.02, +1.5%) exhibit decent gains despite both receiving a downgrade today to Hold from Buy at Deutsche Bank.

Treasury yields plunge as market reached new highs

Every S&P 500 sector pushed into positive territory as the market reached new highs. Materials (+2.9%) sits atop the leaderboard while health care (+0.6%) brings up the rear.

The recent upside moves coincided with Treasury yields taking a turn lower. The 2-yr note yield is down 16 basis points to 4.29% and the 10-yr note yield is down 14 basis points to 3.58%.

The CBOE Volatility Index is down 4.0% or 0.90 to 21.56.

Small and mid cap stocks outpace larger peers

Small and mid cap stocks are faring better than their larger peers today. The Russell 2000 (+1.7%) and the S&P Mid Cap 400 (+1.9%) show bigger gains than the three major averages.

The U.S. Dollar Index plunged after this morning’s data releases, down 0.7% to 104.31.