U.S. stocks finished little changed on Friday, with the S&P 500 and Dow industrials not far from record highs, as Wall Street pondered the impact of increased borrowing costs on the economy.
Higher rates "are not, on their own, something to fear," emailed Dan Greenhaus, chief strategist at BTIG LLC.
"Don't let your profits ride, take some of your winnings off the table and see what happens with interest rates. If this economy can handle the rise in interest rates, then 2014 will be off to the races," said Nick Raich, CEO of the Earnings Scout.
"Stock prices are at record highs because earnings are at record highs. A lot of people talk about the market being disconnected from earnings. The question is would these earnings be at record highs if policies weren't accommodative. The reality is the Fed is in there. The earnings are real, how much of it is propped up by the central banks, we're going to find out very soon," said Raich of the Federal Reserve's Dec. 18 announcement that it would cut the rate of its bond purchases.