Another wild ride today, as fluctuating energy prices, interest rate fears and crisis at a financial firm combine for a pretty murky market picture. The major indices finished mixed, with both the Dow and the S&P down less than a point, to 10217 and 1177 respectively. The Nasdaq performed a little better, gaining 10 points (+0.5%) to 2047. The Russell 2000 got back 2 points (+0.3%) to 623. The Dow Transports fell 1.0%, and the Utilities got crushed for a 2.8% loss. Unlike other times, investors are not rushing to bonds for safety these days. Bonds fell again, pushing rates even higher: the 5-year to 4.33% and the 10-year to 4.48%.
Market internals were better today, but not great, on good volume. The internals were negative on the NYSE with advances/declines at 7 to 12 and up/down volume at 3 to 4, but things looked a little better on the Nasdaq with advances/declines about even, and up/down volume nearly 2 to 1. New highs/lows still look pretty bad, at 16/380 on the NYSE and 29/235 on the Nasdaq.
Tech stocks made a bit of a rebound today, with computer hardware up 2.2%, followed by biotechs (+2.1%), semiconductors (+2.1%) and airlines (+1.6%). On the down side, energy stocks got trounced again, with natural gas stocks falling 3.1% to lead the pack. Then came natural resources (-2.7%), oil services (-2.7%), utilities (-2.3%), oil stocks (-2.3%), commodities (-1.6%), gold & silver stocks (-1.4%), steel stocks (-1.3%) and transportation (-1.1%).
Crude oil bounced around as traders tried to decide whether the inventory/demand data is good or bad, and oil finally ended the day down $1.04 at $63.08. Natural gas got hit hard, falling 44 cents and gasoline dropped 6 cents. The dollar gave up much of its gains from earlier in the day, but the dollar index still finished higher by 0.2% at 89.75. Gold dipped down to near $471/ounce.
BMB Note: Energy prices keep falling, which is good, but that’s not helping stocks at all. Interest rates are up - bad for most people, but good for savers. As for stocks, they’re a total mess right now. No leadership at all, and I can’t imagine where in the world you would put your money if you wanted to own stocks (bonds aren’t any fun right now either). Maybe the bounce in tech will continue, but I think that, at best, it will set up some short opportunities. We’ll see. For now, enjoy the higher returns on your cash.