Last Friday, the market mustered a positive close on the 'news' or more appropriately rumor that lawmakers had inched closer to budget/debt ceiling deal. Although this view from shattered over the weekend and futures are acting in kind this morning, Friday was nonetheless a positive day with all the sectors posting a gain.
With the fleeting end to debate in Washington, demand once again returned to the market with just nascent signs of any supply-side reactions. Nearly all sectors showed signs of positive demand.
Week Ending Oct. 11
For the most recently ended week, the S&P 500 pulled in an 80 basis point gain in value with all sector groups except for discretionary, materials, and healthcare posting gains.
The best performing sector group on the week was utilities, with much of the gain coming on the heels rumored deal in Washington. Interest rate expectations has hampered the investment money flows into this dividend-rich group, and the possibility that interest rates (especially on the short end) would decline was taken as an all clear signal to utility investors. That said, rates have not come back to pre-debate levels, even in spite of the now defunct and rumored lawmaker agreement. More so, the bleeding looks to have migrated to longer dated parts of the curve. Utilities remain one sector to watch.
With the fleeting end to debate in Washington, demand once again returned to the market with just nascent signs of any supply-side reactions. Nearly all sectors showed signs of positive demand.
Week Ending Oct. 11
For the most recently ended week, the S&P 500 pulled in an 80 basis point gain in value with all sector groups except for discretionary, materials, and healthcare posting gains.
The best performing sector group on the week was utilities, with much of the gain coming on the heels rumored deal in Washington. Interest rate expectations has hampered the investment money flows into this dividend-rich group, and the possibility that interest rates (especially on the short end) would decline was taken as an all clear signal to utility investors. That said, rates have not come back to pre-debate levels, even in spite of the now defunct and rumored lawmaker agreement. More so, the bleeding looks to have migrated to longer dated parts of the curve. Utilities remain one sector to watch.
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