Really curious move in stocks today. The S&P 500 soared over 2% on no real positive news. GDP was essentially in-line and jobless claims missed expectations. Futures were red to start the day, but stocks shot higher in the morning on no catalyst. I don’t always try to attribute every little move in the indices to some particular news event, but a 2% move on no real positive news is certainly odd. We did have earnings out of Bed Bath & Beyond and a small merger between Dress Barn and Tween Brands, but neither should have sent stocks rocking. Lennar reported some good news in the housing sector, but again, that shouldn’t have sent the entire market higher. The Russell rebalancing and a little bit of window dressing are the likely culprits as we see the continued rotation into relative strength names. Any thoughts on today’s rally are welcome. I’m not generally one for conspiracy theories, but today’s move was highly suspect….
Stocks closed 2.15% higher on the day. Oil closed 2.3% higher while the dollar was flat. Gold close up 0.5%, copper closed up 2.2% and the Vix got dinged for 9%.