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Growth Sectors Begin to Accelerate Driving

David Becker
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Growth Sectors Begin to Accelerate Driving

Stocks were broadly higher Monday with several major indexes’ hitting new highs. The Dow, S&P 500 and Nasdaq hit new highs for 2014. The Russell 2000 and S&P MidCap Index were up as well, but these two remain short of their summer highs. Among the sector, the Consumer Discretionary, Technology, Finance and HealthCare hit fresh 52-week highs Monday. The increasing yield at the long end of the interest rate curve could help drive greater profits in the financial sector.

When the economy starts to accelerate, finance, technology, consumer discretionary and industrials sectors will outperform. The Finance SPDR (XLF) surged over 1% as money moves into this key sector in a big way. The Technology SPDR (XLK) climbed above 40 and hitting a new high. The February trend line and July-August lows mark first supports. The Consumer Discretionary SPDR (XLY) is breaking out the second week of August and hitting a new high Monday. Things can’t be too bad when these three sectors are trading at new highs.

Stocks were broadly higher Monday with several major indexes’ hitting new highs. The Dow, S&P 500 and Nasdaq hit new highs for 2014. The Russell 2000 and S&P MidCap Index were up as well, but these two remain short of their summer highs. Among the sector, the Consumer Discretionary, Technology, Finance and HealthCare hit fresh 52-week highs Monday. The increasing yield at the long end of the interest rate curve could help drive greater profits in the financial sector.

When the economy starts to accelerate, finance, technology, consumer discretionary and industrials sectors will outperform. The Finance SPDR (XLF) surged over 1% as money moves into this key sector in a big way. The Technology SPDR (XLK) climbed above 40 and hitting a new high. The February trend line and July-August lows mark first supports. The Consumer Discretionary SPDR (XLY) is breaking out the second week of August and hitting a new high Monday. Things can’t be too bad when these three sectors are trading at new highs.

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