Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.

Well, hello and welcome to the Thursday edition of DC today. I just returned a moments ago from being on Fox with Larry Cutlow after

the market closed and we'll have the clip of that in DC today, but rather than go back to

the office to record, I'm recording at my apartment before heading out for a dinner tonight.

And so that's the change of scenery. I always like you to know where I

am. My life's an open book. What can I say? The market rally today, Dow was up over 330 points,

about 1%. S&P was up almost 1%. Same for the NASDAQ. They were down up a little bit less, 81 basis

points for the NASDAQ, 84 basis points for the

S&P. But nevertheless, a big rally led by one and three quarter percent move higher in real estate

and a one and a half percent, nearly one and a half percent increase in utilities, both of those

sectors having been, I think, quite oversold.

And the worst performing sector, there's a very rare day, but the worst performing sector was up,

and that health care was up a quarter of a percentage point.

So those are real rally days and just like real sell-off days when every sector is down,

real rallies when every sector is up, a lot of breadth.

Economically, European Central Bank raised their funding rate to 4%, which some were wondering if they would do less than that, and then bond yields all fell.

And I just can't emphasize enough the reality of markets discounting ahead what they believe

about the future.

Why would bond yields fall when the funding rate when higher and expected?

It would be the bond market for right or for wrong, believing that this may be the end

of it and the next step would be lower.

And so it gets priced ahead of time.

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