The market looks like it’s attempting another turnaround Tuesday with many investors anticipating a strong earnings season. Data and earnings are a bit light today, so Washington could remain in focus.
Last week featured a “turnaround Tuesday” after a rough start. Can the same thing happen today?
So far, there’s signs of it despite the fact that news-wise, not much has changed since yesterday when stocks sold off. People are anticipating a good earnings season and the market is overall kind of ignoring the Washington drama. At the same time, bond yields continue marching upward and volatility edged lower overnight.
The 10-year yield hit 1.17% this morning, the highest in 10 months, and crude climbed above $53 a barrel for the first time in 11 months as investors anticipated another drop in U.S. inventories. These kinds of moves can be signs of renewed economic hopes, even though the latest wave of the pandemic shows no signs of easing off. After months of piling into bonds and holding on tight, investors seem to be abandoning them rapidly. Which raises the question, where is this money going to go?