It’s another busy week of earnings and stocks seem to be starting to get off to a good start.
Earnings aside, the expectation that a new stimulus will warm the US economy has sparked optimism. Treasury Secretary Janet Yellen said President Joe Biden’s $ 1.9 trillion relief plan could generate enough growth to restore full employment next year.
In signs of optimism about the recovery, the gross futures of BRENT BRN00,
reached $ 60 a barrel on Monday for the first time in more than a year. US 10-year Treasury yield TMUBMUSD10Y,
rose to 1.20%.
The GMD GameStop powered by Reddit,
the frenzy seems to have cooled, after shares of the very short video game retailer fell 78% last week, after soaring 1,737% over the previous three weeks.
In ours call of the day, Deutsche Bank DB,
Strategists said the shortest stocks have actually surpassed since March last year, long before users of Reddit’s WallStreetBets forum took the target.
They said that while short stocks tend to perform better during broad market rallies, the size of the current rally was “off the chart”.
Since the March downturn, shorter shares (defined as 10% short interest as a percentage of market capitalization) have risen 245%, surpassing the Russell 3000 index RUA.
by 147 percentage points.
Composting, Haver, Assignment of Deutsche Bank Assets
Led by chief strategist Binky Chadha, they noted that half of this overrun occurred before the November US election and the positive evolution of vaccines.
They said the performance overrun could not be explained by the broad market or “everything increases” or fully attributed to the retail buying trend, which has accelerated the overrun since November.
“We see this reflecting the fact that short exposure has remained highly concentrated in low-yielding and growth-driven stocks, especially in pandemic-affected industries, although the developing economic recovery has improved the outlook for these companies. “, said.
Although the recovery began to unfold, shorts still focus primarily on the industries affected by the pandemic, they noted, adding that there was skepticism about the strong recovery. “Nine months after the shortest recession ended, in our view, the consensus has delayed the real improvement in macro data.”
They also said that despite a third consecutive quarter of “huge” record-breaking gains for S&P 500 companies, the 2021 consensus has only slipped slightly higher and falls well below its own forecasts.
The markets
US stock futures YM00,
ES00,
NQ00,
pointed higher before opening at the start of another busy week of earnings. European stocks also made gains in early operations, despite concerns about the spread of new variants of the coronavirus caused by COVID-19. Asian markets were largely overnight due to growing optimism about the global economic recovery.
The buzz
The price of Bitcoin BTCUSD,
rose to $ 44,088, reaching a new all-time high after Tesla TSLA,
he said he acquired $ 1.5 billion worth of the cryptocurrency in January that he could accept the digital asset to pay in the future.
Hyundai Motor Co. 005380,
said Sunday that he was not in discussions with technology giant Apple AAPL,
to develop an autonomous electric car, contrary to various reports.
Twitter social networking platform TWTR,
it is expected to record its second quarter of $ 1 billion when it reports gains on Tuesday, according to analysts surveyed by FactSet.
The Biden administration will announce this week that it will re-engage with the UN Human Rights Council that former President Donald Trump retired nearly three years ago, U.S. officials said Sunday.
Apple Dialog Semiconductor DLG Chip Supplier,
0OLN,
has been recovered by the Japanese Renesas Electronics in a deal worth 4.9 billion euros ($ 5.9 billion).
The Tampa Bay Buccaneers dominated the Kansas City Chiefs while Tom Brady won his seventh Super Bowl title.
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