The Midday Market

The Buy List is having a very good day so far. Right now, we’re up about 0.54% while the S&P 500 is off around 0.36%. Energy stocks are being hit pretty hard. Our big winner so far is Frontier Airlines (FRNT) which is up nearly 4%. Brown & Brown (BRO) has made a new high, and Commerce Bancorp (CBH) is very close to a new high.
The yield curve finally—and very briefly—inverted, meaning that short-term interest rates were higher than long-term rates. I see that the yield on the five-year Treasury is very close to the yield on the ten-year Treasury. This means that investors aren’t being rewarded for lending their money for longer terms. The price for taking “time risk” is zero.
As the 2005 trading year is almost over, it will be interesting to see if the Dow can hold onto its slight gain. Right now, the index is up about 80 points for the year. The S&P 500 is currently up about 4.5% for the year.
Two other things to note: The Wall Street Journal reported that holiday sales were pretty strong. Also, Overstock.com (OSTK) gave an earnings warning. Something tells me this company will not have a smooth future.

Posted by on December 27th, 2005 at 11:55 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.