Stocks jumped out to some decent gains this morning as bulls tried to circle the wagons after last week’s selloff, but more QE2 trade unwinding — evidenced in dollar strength/euro weakness — seemed to be too much of a hurdle to sustain the advance.
Major averages end mixed, with Dow Industrials eking out a single-digit increase after earlier rising almost 90 points. Materials, energy and tech sectors finish as biggest laggards; financials post the best gains, but well below day’s highs.
Treasurys get absolutely hammered (more evidence that some QE2 love has faded), with 10-yr note’s yield rising almost 16 bps to highest level since Aug 5.
DJIA rises 9.39 to 11201.97, and Nasdaq Comp slips 4.39 to 2513.82. S&P 500 ends 1.46 lower at 1197.75.
Earnings reports due tomorrow from Wal-Mart and Home Depot. Oct PPI, industrial production & capacity utilization and homebuilders Nov sentiment report all due in the morning.
