New week, same outlook – Stocks are starting the week in a cheery mood as Janet Yellen makes her case for more stimulus to the Senate Finance Committee (see below). The earnings calendar has started with the big banks, and while their FICC businesses missed estimates, their equities units have beat. Not surprising given where markets are, and that the new retail wave that is here (Blackberry +20%, the new target). Q4 was about the IPO/ SPAC and any other equity issuance, and not debt capital markets (that was Q2 and Q3). Investors are using the earnings excuse to take some profits in financials, and that sector is lagging the broader tape (BKX +63bps). Tech, on the other hand, is leading the way getting help from the FANG gang (+2.4%), and Semis (SMH +2.9%). While it is Netflix (+1.7%) that reports after the close tonight, Facebook (FB +3.3%) and Google (+4.1%) are the outperformers. Major indexes are just below their all-time highs, and both the economic and earnings calendar this week should be supportive (not as much as potentially more stimulus though).
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