Today’s Trading Activity – Stocks Inched Higher as Markets Overshadowed by Solar Eclipse
Aug 21, 2017
A last minute rally helped the Dow and S&P eclipse last Friday’s closing levels by 0.1% and overshadow a 0.05% loss for the Nasdaq. The shifts within the various S&P sectors reflected the movements in other asset classes. Sectors generally thought to be negatively correlated with rates, such as real estate and telecom, led the gains while the financials sector, considered to be positively correlated with rates, faltered. Treasury yields ended the day almost where they started the U.S. session, with the 2-year yield down 0.4 bps at 1.30% and the 10-year yield 1.2 bps lower at 2.18%. Yields made the day’s net move as European markets opened ahead of U.S. trading. The S&P’s energy sector dropped to last place as crude fell more than 2% and gave back the lion’s share of Friday’s rally. The Dollar was the worst performing currency Monday, falling in every major pairing. Senator McConnell and Treasury Secretary Mnuchin pledged to raise the debt ceiling and spoke broadly about tax reform in a joint appearance, but it was Monday’s solar eclipse that dominated the news cycle (and likely weighed on worker productivity).