In the United States and the hunt for yields continues. Staples, which hit a fresh high today, but are those socalled safety stocks now the ultimate danger trade . Take a look at that. The pes for the 2016 growth, which is practically anemic. Well, first of all, part of the problem here is were talking about staples. If youre talking about the head wins, if youre staples retarial, you want inflation. Thats going to add to your top line revenue sales. Their core group and the kour households, growth is not there and theres no inflation, so start with that foundation, which is not terribly good. Were in an environment where companies have very solid business models. And they have extraordinary yields. Why shouldnt they trade at a premium. When i look at where we are in the market cycle and if we are late economic cycle, joe yesterday for example, you should own these names and you should own them and you shouldnt be blindly just diving into them. There is relative value in this space. Ew
Composite up even more 1. 35 . Materials and financials leading the charge as you see right there. And this rally could keep going, thats the question, will it . As we close out this quarter. Were very close. Bob pisani on the nyse floor here to explain. Hi, bob. And the important thing is weve stopped having an influence from brexit and seem to be looking at people picking up bargains right now. Lets take a look at the markets midday. Weve got an end of the quarter rally going on 8to1 advancing declining stocks, thats better than yesterday. It was 6to1. Volume again on the heavy side. Buying interest with heavy volume, stocks up good indicator overall. And volatility, the vix is back to prebrexit levels, back to levels it was last week prior to that vote here. Number of beaten up sectors are rallying. Weve had quite a rally in commodities and commodity stocks. Look at this south africa, this is an etf, brazil is up, steel stocks are up 3 , oil and Gas Exploration and production stocks
Hiring on wall street. Mylan announcing a generic version of the epipen for 300. What it means for the millions of patients that use epinephrine. But lets start with the markets. Theyve run up today. They declined about 0. 8 last week but bounced back to tune of half a percent today. Joining us, we have brad mcmillen, ben willis and our own Rick Santelli at the cme. Good afternoon to you all. Brad, lets start with you and focus on the driver for the market bounce today. It is banks, it comes off the back of a decent move on friday. All really based on expectations of rate hikes coming forward. Is it justified the see the banks start to perform given how much they underperformed year to date . Yes, it is. The reason ill say that is first of all you have yellen actually coming out and saying she sees the economy strengthening. Despite the uncertainty. It is not just the rates but seeing the businesses improve. There could be a double whammy Going Forward to help them. You know, ben, here
Leader but very slightly. It is very much back and neck with the s p 500 as investors try to assess the downing of the russian jet in turkey and what the implications will be for the Global Political situation. If you look at the dow as one example and movement throughout came in the news premarket session when we saw when we saw stocks fall sharply. So thats quite a turnaround and now its up i35. If you look deeper into the s p 500, its still looking mixed on a group like group basis. Utilities and consumer discretionarys have been the worstperforming group and energy has been the best performing group and that has to do with oil prices, also because of the events in turkey. Is some speculation that it could lead to crimping of supply and because there is such oversupply, any talk of that is driving up prices. Those are some of the big cap oil movers we are seeing. Is kind of the regular story we see with oil. What are some of the standouts in the other sectors . Julie some of the sta
Been looking at to see where the deals are. She is really looking at them and she will be with us today. That and more on a very busy hour of power lunch. First lets check in with sue at the nyse. We start with a scary sign at least for some. Trim tabs reporting inflows into Exchange Traded funds hit levels not seen since november of 2007. Stocks dropped like a rock from that date losing almost half of the value before bottoming out in march of 2009. Lets bring in bob pisani on that note. Those are interesting statistics. You could argue that is a bullish case and people are putting more money to work in etfs or look at the volatility in the market and say perhaps it is topping out in bearish side. November was a really big month. The s p was up 2. 5 . When you get months like that it happens. Secondly, we are seeing huge inflows of the u. S. Equities. The whole world wants to get into the united states. Europe is weaker, china is weaker. Money is flowing here naturally. The etf busine