We’ve been waiting all week for the market to calm down. The Tech mini-pullback started a week ago in the middle of the day on Friday, the 9th. Monday of this week was a bad day. Tuesday was somewhat of a comeback, and Wednesday saw the Fed move higher, even though the 10-year Treasury dropped like a stone that day before the announcement at 2 PM Eastern, closing at 2.13%. Unreal low. Remember that interest rates in many parts of Europe and Japan are in negative territory. Can they go lower here? You bet. Watch the 10-year like a hawk. This will tell you what is going to happen to stocks. The market likes lower rates.
In any case, the market was calm Thursday and today, with things starting out lower today but rallying as it closed. A few of the Tech stocks came back nicely. Amazon announced they are buying Whole Foods for $14 billion and the stock RALLIED $23. Usually the stock of the company doing the buying goes down. Cloudera (CLDR) was up big today, up 7%. We still believe in this one. Google (GOOG) did not come back this week – disappointing. Apple was weak too, down $2 today to $142. And Microsoft was flat at $69. Facebook, however is hanging in there nicely at $150.
So all in all, we saw mostly good news to close the week.
More this weekend in our Weekly newsletter.