Friends

Growing tensions with Iran, higher oil prices, and higher bond yields was too much for stocks to endure during today’s trading session (although the Nasdaq was able to recover to show a small gain at the close). Add to that the release of the recent Fed minutes which indicated that the Fed is a very divided body right now. Some think rates should be higher; some think rates are about right or could even be lower. Future meetings should be interesting.

As for today, by the close the Dow Jones Industrial Average was down 576 points to finish the day at 52,348. The S&P 500 was down 21 points to close at 7,482. The Nasdaq Composite Index was up 51 points to close at 25,870. Gold was down $59 to trade at $4,097 per ounce, while oil was up $3.36 to trade at $73.80 per barrel WTI.

We mentioned yesterday that the conflict with Iran might be the lead story for stocks this week, but don’t sleep on bond yields inching higher. The 10-year Treasury Note is now yielding 4.57%. Often resistance becomes support so it will be interesting to see if 4.50% now holds as support for yields. It’s fascinating how narratives can change so quickly.

Have a nice evening everyone.

Jim