And With That Development, the GOP Should Fire the Dem Senate Parliamentarian
Top Dem Answered Questions About NYC's Lunatic Mayoral Candidate in Predictable Fashion
Wow: Liberal Wisconsin Supreme Court Hands Dems a Major Defeat on Congressional Maps
Here's What the Trump Administration Plans to Do Once Kilmar Abrego Garcia Is...
They Strip-Searched, Shackled, and Detained This Grandmother – They Had the Wrong Suspect
Top Putin Ally Backs Off Claim That Russia Could Supply Iran With Nukes...
Precision Over Panic: Never Underestimate American Lethality
Another Company Chooses to Invest Stateside
China Plays Dirty in Rare-Earth Magnet Trade
New Poll Gives Swing State Governor Some Bad News
Unmasked: Former High-Ranking NYS Employee Indicted for COVID-19 PPE Fraud
'This Is Bulls**t': NSF Employees Protest HUD Relocation
Homan Won’t Let Far-Leftist Running For NYC Mayor Keep ICE Away
Democrats Rush to Support LaMonica McIver As She Pleads 'Not Guilty'
A Democrat State Rep. Was Caught Shoplifting. Here's the Catch.
OPINION

S&P Closes Near All-Time High

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
AP Photo/Mark Lennihan

Yesterday, growth was down, and yet, the S&P 500 still eked out a gain to close within 0.2% the all-time high.

S&P 500 Index

+0.37%

 

Communication Services XLC

+0.20%

 

Consumer Discretionary XLY

 

-0.07%

Consumer Staples XLP

+0.58%

 

Energy XLE

+0.81%

 

Financials XLF

+0.80%

 

Health Care XLV

+1.43%

 

Industrials XLI

+0.63%

 

Materials XLB

+0.80%

 

Real Estate XLRE

+1.53%

 

Technology XLK

 

-0.28%

Utilities XLU

+1.58%

 
Advertisement

“Looking Good, Billy Ray.”

“Feeling Good, Lewis.”

-Trading Places, circa 1983

The Fear & Greed Index is surging to the right above, up significantly in the past week, month, and above the year ago level.

The CBOE Market Volatility Index (VIX), a.k.a. the fear index (VIX), is near the lowest level of the year as optimism replaces anxiety.

Great Signs

A few days ago, I featured the iShares U.S. Transportation exchange-traded Fund (ETF), which was coming to the end of a descending triangle. That’s exactly what happened, and now it’s building up speed. I feel so much more comfortable with broad market rallies when transportation stocks corroborate the move.

Union Pacific Corporation (UNP) is the largest holding at 17% and holding up, but other large components have struggled:

  • United Parcel Service (UPS): 16%
  • FedEx (FDX): 4%
  • UBER Technologies (UBER): 4%
  • Southwest Airlines (LUV): 4%

There is a good chance those laggards have bottomed, and rails and truckers can keep leading.

IYT

Brighter Shade of Beige Book

The Beige Book was released yesterday, and it had some interesting tidbits and words we’ve all heard too much:

  • Shortage: 74 times
  • Delays: 40 times
  • Disruptions: 38 times
  • Wage Pressure: 8 times
  • Bottlenecks: 7 times
Advertisement

Who knew the Beige Book could have made for a great drinking game?

Portfolio Approach

There are no sector weighting changes this morning.


Today’s Session

The Philly Fed report this morning came in slightly less than expected as prices continue to be an issue.

to see the charts, click here, and here.

We are seeing this play out in the five-year breakeven rate, which is at the highest level since 2005.

5 Year Breakeven


Earnings

Earnings are mostly mixed but still more top line misses underscore the difficulty in passing along higher costs. The problem is for those companies that miss the punishment is swift and harsh. The 4.4% decline in share price is harshest reaction to misses since 2007.

To see the chart, click here.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement