Here we go again: Higher interest rates on U.S. Treasuries equal higher bank stocks. Higher bank stocks means a better tone to the market. Higher rates means cyclicals doing better.
Of course, presuming all of these kinds of relationships off of a 6-basis-point move in the 10-year bond is just ridiculous. You can't judge anything, really, by a few ticks in the bond market.
Yet that's exactly what is happening.
This remains the most stupid of markets. You get stocks such as United Technologies (UTX) and Travelers (TRV) going down on misses. They will settle in and then go high, just as Johnson & Johnson (JNJ) shares did when that company reported.
You have the banks ramping, and yet if interest rates go back down, those stocks will give up their moves.
It's all just random to that day and nothing else.
I say, take a breather. Examine what's down -- not what's up. Then make a decision as to whether you can take advantage of the big-cap bargains, knowing that they might be down again tomorrow, but that they will most likely stage a comeback a week from now. That's been the pattern. I don't think it will change. Forgiveness rules.