Bond Yields Stabilize, Stocks Back in ‘Rally’ Mode

Bond Yields Stabilize, Stocks Back in ‘Rally’ Mode


FLASH: Infrastructure, healthcare and defense stocks stand to rally in the wake of President Trump being cleared by Special Counsel Robert Mueller of conspiring with Russia in the 2016 US Presidential election.

Financial analysts are saying such stocks could run North as President Trump shifts his focus back to policy-making, both against and, in some cases, with the Democrats.

As for the 3 sectors in the spotlight, President Trump recently said he and House Speaker Nancy Pelosi are still talking about an elusive infrastructure deal.

Strategas has an infrastructure basket consisting of about 20 companies in traditional highway infrastructure that could benefit from any deal. The portfolio was created in Y 2008 to play the Fed’s QE stimulus in Y 2009, and the elements have gained with the passage of highway bills over the years, according to Strategas.

All 11 S&P 500 sectors finished higher with gainers ranging from 0.4% (consumer discretionary) to 1.5% (energy).

Stocks ran up at the open as investors came in to buy the dip in equities while bond yields edged up from this year’s lows.

The 2-yr yield and the 10-yr yield had been up as much as 4bpts each from their Unchanged marks, but spent most of intra-day action in a steady retreat. The pullback in yields coincided with the pullback in equities.

Tuesday, the major US stock market indexes came in at: DJIA +140.90 at 25657.73, NAS Comp +53.98 at 7691.51, S&P 500 +20.10 at 2818.46

Volume: Trade on the NYSE came in at 820-M/shares exchanged

  • NAS Comp +15.9% YTD
  • Russell 2000 +13.3% YTD
  • S&P 500 +12.4% YTD
  • DJIA +10.0% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish in here.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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