STOCKS HAVE A HUGE FRIDAY -- NEWMONT MINING LEADS GOLD STOCKS -- FINANCIAL LEADERS ARE CME GROUP, CHARLES SCHWAB, AND PNC FINANCIALS
STOCK INDEXES GAIN 2%... Stocks are having a huge day on Friday. Stock indexes are showing gains of 2%. Chart 1 shows the S&P 500 gaining 40 points nearing the close. Its ability to bounce back above its 200-day line is also impressive. That gives its recent pattern the look of a "pennant" or "symmetrical triangle" which usually leads to higher prices. All market sectors are gaining, except for energy which is being hurt by falling oil prices. Falling oil is giving a boost to airlines. The two top gainers are financial and technology. Gold stocks are also bouncing sharply along with the price of gold. That may be delayed reaction to yesterday's plunge in the dollar. Newmont Mining (NEM) is the biggest percentage gainer in the S&P 500. Chart 2 shows Newmont surging 7% in rising trading. Banks and investment services are also having a strong day.
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Chart 1
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Chart 2
FINANCIAL LEADERS ... Investment service stocks are leading a strong financial sector. Two of the leaders in that group are CME Group (Chart 3) and Charles Schwab (Chart 4). Chart 5 shows PNC Financial leading bank stocks higher. Insurance stocks are also doing well. That may also be a delayed reaction to yesterday's jump in bond yields. A very good end to the week. We'll let the dust settle and take a more in depth look at things over the weekend. Hint: It's going to sound more positive.
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Chart 3
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Chart 4
