Daily Chart Report ? Friday, January 7th, 2022

Today’s Summary
Friday, January 7th, 2022

Indices: Dow -0.01% | S&P 500 -0.41% | Nasdaq -0.96% | Russell 2000 -1.20%

Sectors: 5 of the 11 sectors closed higher. Energy led, gaining 1.37%. Consumer Discretionary lagged, falling 1.67%.

Commodities: Crude Oil futures fell 0.70% to $78.90 per barrel. Gold futures rose 0.46% to $1,797 per ounce.

Currencies: The US Dollar Index dropped 0.52%.

Interest Rates: The US 10-year Treasury yield continued higher for the sixth consecutive day to 1.764% - the highest in nearly two years.

Here are the best charts, articles, and ideas being shared on the web today!

Chart of the Day

Today’s Chart of the Day was shared by Pratyush Tulsian (@PrattyCharts). We're only one week into the new year, but the 10-year US Treasury yield has risen every single day so far in 2022. As Pratty points out, the 10-year yield broke out to its highest level in nearly two years today, after basing for the past 10-months. This was easily the most important development this week, as it has been a key driver of sector rotation in the stock market. Speculative growth areas of the market like Tech, Software, IPOs, and $ARKK have taken a beating. Meanwhile, boring old 'boomer stocks' are loving it! Value-oriented sectors like Energy and Financials are up big to start the year. Energy is already up more than 10% in these first five trading days of the year, while Tech is down more than 4%. This breakout in yields could be a good thing or a bad thing depending on how your portfolio is positioned. As pronounced as this rotation has already been, it could continue as the 10-year hits new highs.

Quote of the Day

"If at first you don’t succeed,
take the tax loss." 

- Kirk Kirkpatrick