1/18/2024 0 Comments Dow now"If we use early April 2023 as the starting point for the current yield surge, we are still in the category of milder moves. When the surges in yields are more than that, the stock market tends to decline (though long-term investors will take comfort in the fact that the 12-month forward gains in the S&P 500 that follow tend to be well above trend)," she said. "The S&P 500 tends to keep rising when the move in 10-year yields has been limited to less than 275 basis points. To be sure, Calvasina warned that the move higher in rates "does need to come to an end soon." stocks can "weather the current surge in interest rates." Last week, the benchmark 10-year Treasury yield reached levels not seen in 16 years, sending stocks for a wild ride. strategy Lori Calvasina advised that U.S. Companies reporting this week include PepsiCo, Walgreens Boots Alliance, JPMorgan and BlackRock. Investors are also looking ahead to this week's earnings reports as further signals about the health of the broader economy. The bond market was closed Monday for Columbus Day, meaning Wall Street will have to wait until Tuesday for an update on interest rates. "The market doesn't look back, it looks ahead. "As long as the market sees this as contained, and that diplomatic efforts continue to focus on keeping the conflict contained, the market looks at it and says, we've seen this before," said Quincy Krosby, chief global strategist at LPL Financial. The Russell 2000 index of small-cap companies added 0.6%. Small caps rose on Monday, boosting confidence about the broader economy. Some investors expressed confidence that the market had already assessed the impact of Hamas' attack over the weekend. Rathbun said she is closely watching Iran, a major OPEC producer, to determine crude movements as the conflict progresses. I think it will take a few days to really understand where the impact actually is." "So there's dust going up, and now the dust is coming back down. "I think there's a knee-jerk reaction," said Anna Rathbun, chief investment officer for CBIZ Investment Advisory Services, in oil prices and in shares of defense and airlines companies. Lockheed Martin and Northrop Grumman added 8.9% and 11.4%, respectively. Īlong with oil and gas giants, major defense companies also jumped amid the Middle East conflict. Halliburton was the biggest energy winner, with the stock popping 6.8%, followed by Marathon Oil Corp and ConocoPhillips. WTI and Brent posted their best days since April 3.Īll sectors ended Monday in the green, led by gains in energy and industrials, which closed higher by 3.5%, and 1.6%, respectively. International Brent futures rose 4.2% to $88.15. WTI crude oil futures were up 4.3% on Monday, settling at $86.38. The rising tension could also serve to stoke further volatility in market that has kept traders worried with persistent inflation and higher interest rates. The rising geopolitical tensions caused by the conflict could have ramifications for the energy market, with some experts forecasting a brief surge in crude prices but overall limited impact. Hamas is a designated terrorist group backed by Iran that has governed the Gaza Strip since 2007. The attack led Israeli Prime Minister Benjamin Netanyahu to declare his country is at war. More than 700 Israelis have been killed in what Hamas is calling Operation Al Aqsa Flood, with at least 687 Palestinians killed in retaliatory Israeli strikes on the Gaza Strip, according to latest figures. Stocks were under pressure earlier on Monday after the Israeli-Palestinian conflict escalated Saturday, with militant group Hamas staging an invasion, to which Israel was seemingly caught off guard. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower All Rights Reserved.Best Debt Consolidation Loans for Bad Credit All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
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