Drillers get Drilled, Stocks and Bonds Both Finish Higher

The stock market as a whole managed to close the day broadly higher, pulling off a late day rally into the Thanksgiving holiday break. There was more pain in energy names today, with drilling rig operators Transocean (RIG) and Diamond Offshore (DO) suffering severe drops today. Energy stocks have suffered as the price of both Brent and WTI crude firmly in the $70’sSPY

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The yen remained stable against the dollar. It would seem to be taking a breather into the US holidays. As we reported earlier, some BOJ governors expressed concerns at the current plan to expand asset purchases.
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US Treasury futures have continued to rally despite substantial headwinds. Normally stocks and bonds are inversely correlated: when one goes up the other goes down. Moreover, many expected rates to rise after the government stopped purchasing treasuries last month, ending QE3. However, both the BOJ and ECB have been jaw-boning the markets with talk of further stimulus, putting a floor under long term US yields. It may also be a form of insurance against any adverse stock market scenarios into the close of the year.

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Finally, the Euro was able to hold on to its gains against the dollar, stabilizing above 1.25

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