Here's a Sign of Health

 | Jan 07, 2014 | 1:35 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

pep

,

pcln

,

cmg

,

pcyc

,

jnj

,

lnkd

,

z

Classic growth anyone?

That's what it feels like when I see PepsiCo (PEP) up $1.66, Priceline.com (PCLN) up $17, Pharmacyclics (PCYC) up $21 and Johnson & Johnson's (JNJ) stock going up $2 (partner of Pharmacyclics).

Nice to see Chipotle (CMG) up $5, LinkedIn (LNKD) up $2 despite a downgrade and Zillow (Z) rallying another $2.

These stocks had become the anchor to this market, the millstone, glaringly obvious as "wrong" given the selloff in bonds. This move, so pronounced, is saying two things to me:

  1. These stocks, which usually can't be kept back for that long, are advancing as we approach earnings because they will have good ones.
  2. Interest rates might be done with their run up, even if the employment number is strong.

To me, a strong number is baked into the 3% on the 10-year and you won't see a race to 3.25% That could also be why the bank stocks have stalled. They need rates at 3.25% pretty soon because they are anticipating an even bigger net interest margin than we have right now.

Watch these stocks. It's a sign of health that money's going back into them. There are too many of them out there for the market to rally much further without them.

Columnist Conversations

If you are still long GS, it's time to really ratchet up those stops and it is at extensions of prior swings a...
Is the sell-off in the NASDAQ ( the was RUT was down, too, back below its 50 and 200 day moving averages) all...
SCTY is trading $67.81, down 8.4% with IV30™ up 9.6%. Conclusion This is a stock and volatility note sur...
The stronger dollar and the removal of most of the ethanol premium, has landed sugar prices at their lowest le...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.