Interest rates, auto manufacturers and homebuilders

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Here is a comment from a Standard and Poor's economist

"We still think the Fed is more likely to wait until after the general election to raise rates," said Sam Stovall, senior investment strategist at Standard & Poor's. "But if we get several successive labor reports, retail sales reports and the like that indicate either an increase in economic activity or an increase in inflation concerns, then we might have to change our stance."

Stovall was observing what he said is a "classic rotation" of cash during a period of interest rate risk out of discretionary consumer and industrial categories, such as homebuilding and auto manufacturing, and into sectors like energy, health care and technology. "That is fairly consistent with history," he said.