The Cyclicals are Out Front

The stock market is starting 2017 on the right foot. The S&P 500 has been as high as 2,263.88 this morning. However, the underlying currents of the market are quite different. Cyclical stocks like Materials and Energy are doing very well, while defensive sectors like Healthcare and Income are pretty flat. (As I write this, the Energy Sector has made an abrupt U-turn and has given back much of its gains.)

This morning, the ISM Manufacturing Index came in at a healthy 54.7. Wall Street had been expecting 53.8. The ISM has been trending higher over the past few months. Tomorrow we’ll get the minutes from the Fed’s last meeting which is the one where they raised interest rates. Then on Friday is the December jobs report.

Posted by on January 3rd, 2017 at 11:46 am


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