Rates Tick Higher But Stocks Rise

Dow: +112.58…
Nasdaq: +26.36… S&P: +9.24…

U.S. Treasuries traded lower today after the Institute of Supply Management released its Non-Manufacturing Index for September which came in at 57.1 (consensus was around  53). After falling to a six-year low in August, this was the biggest month-on-month increase for the index ever, this caused the market to mark up the odds of a rate hike at the November 1-2 FOMC meeting.

Also dominating the bond market market chatter was the report today that there is a consensus developing at the ECB’s governing council to taper its asset purchase program before actually ending it. The analyst community has been generally dismissive of the idea that asset purchases will diminish at any time before the scheduled expiration date for the program in March 2017.

With regard to the Fed and the FOMC…………we’ve seen this movie before and we wont know what will happen until it happens. They do say though that bond market is always right, and right now they are selling treasuries because they think a hike could be coming sooner than later.

With that said, the market took it well and energy and banks led today and technology was just up slightly.

We saw some great action on the P&L today as REN finally broke out on huge volume. The stock was up 19.5% and went out pretty much on the high of the day.

NRP was up almost 9% and finally broke above the key 29.85 level.

Another oil that jumped today was SGY which was +5.3%

YRD popped over 7% and finally closed above its 50 day moving average today, so I’m looking for some continuation there. New addition ARDX triggered today and popped over 6%.

NFLX had another great day and added almost 4% after Monday’s big breakout.

It was a pretty good day for the home team, lets see if the bulls can press tomorrow.

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