Business as Usual – After encountering some resistance at the end of the day Friday following their standard ramp-up into the bell, equities are back to doing what they do ie going higher, albeit in tempered fashion to start what promises to be a busy week. It being a Monday with plenty set to come in the days to come have kept moves and volumes largely in check but banks and semis are the strongest of the lot. Reopening sentiment was bolstered over the weekend after a report that Europe would allow vaccinated Americans to visit (be careful what you wish for!) Cap goods company OTIS (+6.2%) had the stage largely to itself this morning and delivered but that aside, today has been more of the same. Even with concern increasing over an increase in COVID cases in developing markets, optimism over economic growth is winning the day. After bouncing off its 50dma, 10-year yields were in the process of making a move through 1.60 but have since relented after some soft economic data – isn’t that how its usually supposed to work? Even so, banks remain in favor while semis try to recapture their mojos ahead of some high-profile earnings this week, broker upgrades providing a tailwind today. That said, chip shortages remain a concern, with Volkswagen highlighting that point over the weekend. Speaking of earnings, we get Tesla after the close today. Elon revealed he’d soon be hosting Saturday Night Live and given his past public appearances, it’s got to make some investors a bit jittery.
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