See what’s driving market performance around the world in today’s Morning Lineup.  Bespoke’s Morning Lineup is the best way to start your trading day.  Read it now by starting a two-week trial to Bespoke Premium.  CLICK HERE to learn more and start your trial.

“Be willing to make decisions. That’s the most important quality in a good leader. Don’t fall victim to what I call the Ready- Aim-Aim-Aim Syndrome. You must be willing to fire” – T. Boone Pickens

After a sell-off in Asia overnight that took the Nikkei down over 2%, European equities have been bouncing back this morning with gains of between 0.50% and 1.0% across the region.  US equity futures are also trading higher and have been building on their gains throughout the morning. Besides the fact that it’s Tuesday and we had a big sell-off yesterday, there’s really not much driving the action this morning. We’ve had a number of these situations in the last few weeks where futures were positive only to give up those gains throughout the day, so we’ll see if the bulls can keep the market in the green today.

Pepsi (PEP) reported earnings earlier and topped both top and bottom-line forecasts.  In economic news, the only report on the calendar is ISM Services at 10 AM.  Economists are forecasting the headline reading to show a modest decline relative to August’s reading.

Read today’s Morning Lineup for a recap of all the major market news and events from around the world, including the latest US and international COVID trends.

While the rest of the market has been under pressure, energy stocks have been on fire.  Just in the last ten trading days, the S&P 500 is down over 1%, but the Energy sector is up over 15%!  Going back to 1990, there has never been another 10-trading day period where the S&P 500 was lower and the Energy sector was up over 15%.  The only period that was even close was earlier this year in March when the S&P 500 was down 1.7% and the Energy sector was up 14.9%.

One reason we’ve never seen such a wide divergence between the S&P 500 and the Energy sector is that historically, the sector was always a larger share of the S&P 500, so when it rallied as much as it has now, it had a larger impact on the index.  Now that it is such a small share of the overall index, though, it can have a move of the magnitude it has had over the last two weeks and still have a negligible impact on the broader market.

Start a two-week trial to Bespoke Premium and read today’s full Morning Lineup.

Print Friendly, PDF & Email