Stocks Finish Mixed
The SPX closed basically flat on the day, while the COMP was drilled courtesy of Mister Softee (MSFT). Volume ran below yesterday's levels, so there was not distribution day. And breadth improved from yesterday's poor readings.
Despite the strong 1Q GDP report (4.8%), bond yields finished slightly lower at 5.07%. Oil also finished a bit lower at $71.50. Nonetheless, energy stocks were today's big winners. Financials also added handsomely to yesterday's gains, making for a powerful 2-day move. Thank g-d for diversified portfolios.
There looks like a bit of a rotation out of brokers, which have had a great run, and into banks and diversified financials. But I don't expect the damage to the brokers to last, as the earnings momentum in the group is simply too strong.
Sentiment indicators were about neutral. The put/call ratio closed at 0.86, the VXO was flat, and the VXN was up slightly.