The S&P and Dow finished narrowly negative while the Nasdaq posted a small gain as stocks generally digested yesterday’s igniting move after the Fed ‘no taper’ announcement. After the surprise decision yesterday rate-sensitive sectors performed best, notably the precious metals and defensive sector. However today it was tech’s turn to re-capture its recent magic.
A few notables today: Facebook (FB) made another new high, Apple (AAPL) bounced for the third straight day, Pandora (P) shrugged of a secondary offering to surge almost 7%, Yelp! (YELP) rebounded from early weakness to make another new highs, and Tesla (TSLA) surge 7% to make new highs after getting upgraded with a $200 price target this morning.
The theme of 2013 has been sector rotation, and the last two days provides a clear example of that.
Disclosure: Scott Redler is long TSLA, BAC, FB, GOOG, GS, BBRY calls. Short SPY.