Wednesday, March 3, 2021
Strong start for the energy sector
After being unloved for the past 5 years, energy stocks have been gaining attention with their strong performance so far in 2021. As the global economy continues to emerge from the pandemic, demand for energy will increase, providing a tailwind for the sector. We take a closer look at the performance of the energy sector and the possible drivers going forward in today’s LPL Research blog.
Stocks give up earlier gains and open little changed
- Rising Treasury yields are weighing on the averages at the open.
- The Euro Stoxx 600 Index looking for its third straight advance with the United Kingdom outperforming yet again.
- Asian stocks were higher overnight with Hong Kong surging nearly 3%.
- Stocks closed at session lows Tuesday, but remain higher thus far this week.
- The S&P 500 Index has thus far held above support at its 50-day moving average (3815), while the Russell 2000 has continued to hold above its late January highs near 2170.
The United States reported 54,000 new COVID-19 cases Tuesday, down 24% week over week (source: Johns Hopkins).
- Texas and Mississippi abolished mask mandates Tuesday, and announced a full reopening of all businesses with no capacity constraints.
- President Joe Biden announced he expects every US adult to be able to be vaccinated by the end of May.
- Johnson & Johnson teams up with Merck to boost production of its vaccine.
Yield spike spooks stock investors
Here Comes The Earnings Boom
LPL Research reviews an incredible earnings season and speculates on a potentially strong earnings rebound for 2021 and beyond. Learn more in this week’s Weekly Market Commentary.
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