While the bond market priced in higher short terms rates since the Fed meeting, the stock market has seen a shakeout of its own, particularly in the once high-flying biotechs.
The iShares Nadaq biotech ETF, IBB, was flattish but 0.1 percent higher Tuesday, after several days of selling in high flying biotechs. While those stocks were sold, along with momentum names, investors moved into financials, which benefit from higher interest rates.
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The Dow closed 91 points higher at 16,367, and the S&P 500 was up 8 at 1865.
According to Bespoke, banks are up 2.5 percent since the Fed statement was released while biotechs and drug company shares were down 3.4 percent.
Paul Hickey, co-founder of Bespoke, said the market is in a rotation. He pointed out that the 150 best performing stocks of 2013 in the S&P 500 were down 1.4 percent for the year as of Tuesday morning, while all the other stocks averaged a gain of 0.1 percent.
Hickey also noted the gusher of IPOs, including the $500 million Candy Crush game maker King Digital IPO. So far this year, there have been 53 IPOs, raising $8.5 billion, well above last year's level.
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But Hickey points out that for 2014, the number of IPOs raising more than $250 million is only about 8 percent, while in 2013, it was about 25 percent.
While not necessarily signaling a bubble, Hickey did say additional stock on the market from IPOs could affect market gains. "I wouldn't say the market has peaked right now, but the fact is we've had a more volatile 2014," he said. "There were only three years since 1928 that were as devoid of volatility" as 2013.
Besides the bond auctions, durable goods data are expected at 8:30 a.m. and the flash services PMI is out at 8:58 a.m.