Stocks could be bucking for new highs, even as the market deals with negative cross currents in what historically has been a weak month.
The S&P 500 closed out a positive week Friday with a gain of 1.2 percent to 2,904 and is now 12 points away from its all-time high. But traders are perplexed by the lagging performance of financial stocks, even as interest rates and the 10-year Treasury yield touched 3 percent Friday. Nasdaq was also higher for the week, with a gain of 1.4 percent, as tech shook off some of the worries that had been weighing on the group and rose 1.8 percent for the week.
"It's kind of concerning that rates are back to 3 percent, and the banks are not acting well," said Scott Redler, partner with T3Live.com. "It may be they don't believe rates are going to stay up here. The banks muted expectations at a conference this week. A bunch of them spoke, and Wall Street didn't like what it heard about the next quarter."