Wednesday, March 3, 2021

Top Story

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.

Daily Insights

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%.

Technical update

• 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.

COVID-19 news

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

In this week’s Market Signals podcast and video, LPL Research discusses soaring yields last week and examines the recent record breaking earnings season, plus updates from the Federal Reserve.

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.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data are from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

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