The Bond Market Is Holding Up

The stock market is down again today. The S&P 500 is currently holding around 1,966. What’s interesting is that the small-caps have been in serious retreat. The little guys have been trailing the market since the beginning of the month. The Russell 2000 broke 1,200 last week. It’s now close to 1,170. Remember that that index tends to be weighted towards domestic manufacturers.

I continue to be surprised by the strength of the bond market. Despite more evidence of a stronger jobs market, and a wee bit more inflation, Treasury yields are holding firm. The yield on the 10-year had bounced up to 2.7% last week, but it’s now back down to 2.57%.

There’s not much going on in the market until earnings season begins later this month. Alcoa ($AA) is the first major company to report after today’s close. But after that, there’s not much until Wells Fargo ($WFC) reports on Friday.

Shares of Amazon ($AMZN) are weak today. The stock plunged from $408 in January to $284 by May. It’s been trying to rally since then. I’ve always thought Amazon was way overpriced and I’ve been consistently wrong about that.

Posted by on July 8th, 2014 at 10:18 am


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