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Here comes the big jobs report! Looking at where futures are trading, though, investors don’t seem all that concerned as the S&P 500 is indicated higher by about 0.8%. The re-opening stocks are once again flying today, led by the airlines. Based on where it is trading this morning, the Airlines ETF (JETS) is up 40% on the week. On the WEEK!
Be sure to check out today’s Morning Lineup for a rundown of the latest stock-specific news of note, European markets, economic data out of Germany, global and national trends related to the COVID-19 outbreak, and much more.
The chart below is from the second page of our Morning Lineup and shows the relative strength of the S&P 500 versus long-term US treasuries. When the line is rising, it indicates that equities are outperforming bonds and vice versa when it’s declining. From the S&P 500 peak in February to the lows in March, equities were crushed and long-term treasuries surged as yields dropped to record lows. Since then, we’ve seen a steady uptick in the relative strength of equities relative to bonds, but that pace has really accelerated this week to the point where equities are almost back to outperforming bonds on a trailing one-year basis.
As of this morning, SPY is up over 3% on the week while the long-term treasury ETF (TLT) is down over 5%. While we saw wider 5-day performance gaps as recently as March, for a period where volatility has been relatively restrained, this is a wide gap.