The 10-Year Breaks 2.5%

Today is shaping up to be an interesting day of trading. The 10-year bond topped 2.5% for the first time in more than two years. Bear in mind that in July, the 10-year yield dipped to a low of 1.34%. The yield has nearly doubled in just a few months.

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The Dow now has a real shot of hitting 20,000 before the end of the year. The index has been as high as 19,824 today. Of course, the equally weighted Dow is a rather poor index, but it still gets a lot of attention.

On our Buy List, HEICO (HEI) is due to report earnings tomorrow. The stock is down a bit today.

Oil is doing very well today. Crude touched its highest level in 17 months thanks to the Saudis saying they’ll cut production more than originally announced.

Of course we have the Fed meeting this week. The futures market thinks there’s a 100% chance of a rate hike. That’s pretty high. I think traders are already looking past 2016 and into 2017 when the next hike will come. For now, June seems to be the consensus.

Posted by on December 12th, 2016 at 11:50 am


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