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“If you want to know what God thinks of money, just look at the people he gave it to.” – Dorothy Parker
The earnings parade continued after the close and into this morning, and the results have generally been positive again. Once again, though, the positive news hasn’t provided a lift to markets. US equity futures are flat heading into the open after giving up modest gains overnight as uncertainty over any additional stimulus remains high.
Be sure to check out today’s Morning Lineup for a rundown of the latest stock-specific news of note, market performance in the US and Europe, key earnings data from the US and Europe, trends related to the COVID-19 outbreak, and much more.
Are there any two asset classes that have tracked each other as closely as the US Dollar and the S&P 500 over the last six months? The chart below compares the performance of the S&P 500 to the Bloomberg US Dollar Index over the last six months (shown in the chart on an inverted basis). In a pattern so reliable that it’s become nearly automatic, when the dollar rallies stocks decline and when the dollar declines stocks rally. Given the relationship between the two, equity bulls should be happy to see that the dollar is lower and not far from 52-week lows.