Yesterday, the major indices opened nominally higher and just chopped in an irregular pattern to end at their best levels of the session. There were new all-time highs: the DOW gained 66 points to 21,640; the S&P 500 was better with a 13 rise to 2473, the NASDAQ added 40 to 6385, and the Russell 2000 climbed 14 points to 1442. The only major index that declined was the DOW Jones Transports which were weak due to poor reports from components CSX and UAL.

Today’s market is quiet in the movements of the major indices. The DOW is being restrained by earnings-related declines in AXP and TRV in addition to a major beating in the shares of HD. Putting some pressure on Home Depot was a report that retailer SHLD will be selling appliances on AMZN. HD’s loss by itself is subtracting 45 points from the DOW. This shift to AMZN is hurting some other retailers as well such as BBY.

The S&P is up by 2 to a new record of 2476 while the NASDAQ is also ahead at a new high with a 9 point advance to 6394. It is being led by new highs in ISRG and PCLN which has now crossed the 2000 mark.

Breadth numbers are slightly positive while the VIX reluctantly goes lower to 9.72. This level is apparently still not enough to stop the upward momentum of equities.

Bond yields have declined once again with the 10-year Treasury Note down to 2.24%. This has caused the dollar to weaken as the Euro is now at 1.163 for its highest level in almost two years. This rise in the Euro is due to E.C.B. President Draghi saying that inflation is still subdued in his part of the world but the economy is still expanding. This may well indicate a bias toward continuing the stimulus.

Gold is a little higher once again at $1,246 an ounce on the dollar weakness. Crude oil ran out of gas over $47 a barrel and is now slightly below that level.

Donald M. Selkin

Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning.  The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report.  This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities.  This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm.   This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author.  These news sources include the following:  Bloomberg Financial, Reuters and the Associated Press.