FIT - A Strange Week Of Record Market Highs But Good Stocks Falling
Growth stocks have led the market for a long time, but last week we saw many interest rate-sensitive value stocks (like insurance companies and utilities) firm up. This temporary rotation into value stocks is a bit odd, since the 10-year Treasury bond yield rose decisively above the 3% level, despite low inflation.
For example, on Thursday, a flagship semi-conductor stock, Micron Technology (MU), announced that its latest quarterly sales rose 37.5% to $8.44 billion, versus expectations of $8.25 billion and $6.14 billion in the same quarter a year ago. During the same period, the company's