Stock Market Update

[BRIEFING.COM] Sticking to a familiar script, the stock market continues to churn in a way that is bound to frustrate sidelined investors waiting for (hoping for) a pullback. Yes, there is a little weakness in the mega-cap space that is holding back the major indices, but small-cap stocks and mid-cap stocks are moving higher and exhibiting relative strength that is keeping the broader market in relatively good form.

They aren't being helped by the action in the Treasury market today either -- not directly anyway. Treasury yields are higher. The 2-yr note yield is up two basis points to 4.12% and the 10-yr note yield is up four basis points to 4.19%.

The indirect boost, though, is that the higher rates are an offshoot of optimism about domestic growth prospects. The bump in rates, which might also have a little to do with inflation angst, follows President-elect Trump's weekend interview with "Meet the Press" in which he reiterated that his aim is to extend the tax cuts, levy tariffs, and deport illegal immigrants. He also said that he won't try to replace Jerome Powell as Fed Chairman.

The Russell 2000 is up 0.8% and the S&P Midcap 400 is up 0.5%.