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.
“If I knew I’d live this long, I would have taken better care of myself.” – Mickey Mantle
On this day in 1974, Yankees icons and close friends Mickey Mantle and Whitey Ford became the first teammates inducted into the Baseball Hall of Fame on the same day. Twenty years later on August 12th, 1994, MLB players would go on strike, resulting in the World Series not being played for the first time in 90 years.
Investors are awaiting weekly initial jobless claims due out at 8:30 AM ET. Ahead of the print, the 10-Year Treasury yield is up 2 bps to 1.35%. Financials have lit fire this month as the 10-Year yield has risen more than 20 bps from a low of 1.12% on August 4th. The Financials ETF (XLF) and big banks like Morgan Stanley (MS), Goldman (GS), and JP Morgan (JPM) should continue to trade in line with bond yields.
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.
Also, make sure to check out our Daily Sector Snapshot.
As mentioned earlier, long-dated Treasury yields have risen sharply over the last week or two, which means bond prices have traded lower. Below is a snapshot of the fixed income ETFs in our Trend Analyzer tool that have fallen the most over the last week (see the entire screen here). As shown, even after the big pullback, most of these ETFs remain above their 50-day moving averages. They could bounce right off of support at their 50-DMAs and yields could go right back to falling again. However, there’s also still plenty of room for these to fall before they reach oversold or extreme oversold levels. If bond ETFs keep falling, Financials stocks should keep rallying.
The Financials sector had been in stuck in a rut for the past few months, but the huge rally this week actually left the sector at a new all-time closing high yesterday. This closing high “confirms” the sector’s uptrend, and the bull market can continue on. We’ll be watching to see if the sector can leg significantly higher and establish a new trading range. Of course, that will likely depend on the direction of Treasury yields.
Want to see more charts like this? Start a two-week trial to Bespoke Premium and read today’s full Morning Lineup.
