The Closing Look

Stocks rallied on Monday after Italy voted “no” on their referendum to reform the constitution. Italy’s Prime Minister, Matteo Renzi, resigned after his party lost and the “no” vote won. Overnight, futures were down slightly but they turned higher as the euro reversed from a big loss on the news. Once again, markets are adopting to the new reality on the ground. It took markets 3 days to recover from the Brexit vote, less than one day to recover from the U.S. election initial sell off, and only a few hours to recover from Sunday’s vote. Steel stocks and financials remain strong as investors look forward to Trump’s pro-growth policies.

Gary’s Thoughts: The NASDAQ (for a change) took over leadership for a day as semis bounce after a mini-meltdown Thursday. Also, some underperforming big cap tech/internet bounced but not sure they will have the juice going forward. Financials just ridiculous. No pullbacks of import so far.