Afternoon Note
The market is trading in a very narrow range, which is different than the last four weeks, and that’s refreshing. The composition of winners versus losers sees momentum behind reopening names, especially airlines. There is a cautious aura to the day with Utilities, Real Estate and Consumer Staples higher all session.
There is some confusion from the Biden economic team, as the White House Council of Economic Advisers Chair Rouse admitted there is a small risk of inflation as a result of the massive rescue plan. I’m sure she will be more circumspect tomorrow.
The big move lower in Energy and Financials underscores the fact that momentum more than value is the big driver of the market these days.
S&P 500 Index |
-0.16% |
|
Communication Services XLC |
-0.07% |
|
Consumer Discretionary XLY |
+0.50% |
|
Consumer Staples XLP |
+0.17% |
|
Energy XLE |
-2.04% |
|
Financials XLF |
-1.21% |
|
Health Care XLV |
+0.14% |
|
Industrials XLI |
-0.18% |
|
Materials XLB |
-0.66% |
|
Real Estate XLRE |
+0.61% |
|
Technology XLK |
+0.03% |
|
Utilities XLU |
+0.92% |
Overall, I like this action or inaction. There isn’t a sense of panic, even though bond yields continue to edge higher.
If we are seeing the baton move back to mega growth names that powered the NASDAQ higher for years, and stumbled more recently, it will begin slow, then take off like a rocket. Meanwhile, I suspect bond yields will stabilize with the ten year between 1.50% and 1.60%.
All eyes are on Jay Powell on Wednesday, which makes taking big bets more prohibitive. But the market will take a guess in the next 48 hours, ahead of the conclusion of the FOMC gathering.
Comments |
Midcaps coming in strong today. Thanks for you daily commentary. slim on 3/15/2021 2:46:32 PM |
Slow and steady is good! Thanks Charles. Lorin K on 3/15/2021 3:25:51 PM |
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