The Dow Jones Industrial Average closed above 32,000 points for the first time on Wednesday, with gains lasting through Thursday and bond yields falling globally. According to analyst Jani Ziedins of the popular CrackedMarket blog, there is a good chance that this period of calm will continue in bonds.
When stocks rise again, investors will have to look to the favorites of technology stocks as leaders, which the bull market will continue to take into account, Ziedins said in our report Call of the day.
According to Ziedins, the recent surge in bond yields was likely triggered by a "contagious wave of herd sales" that was carried away.
"Now that sales in the bond market are on a hiatus, there's a good chance that this period of calm will continue," said Ziedins. "Bonds holding these levels for several days suggest that the worst may already be behind us."
If stocks rise, investors should keep an eye on FAANG Group – Facebook
and Google, owned by Alphabet
– which rose on Tuesday but stalled on Wednesday. Big Tech's underperformance is "far and wide" Ziedin's biggest concern about the broad rally we've just seen.
“We can't go higher without best-of-the-best stocks taking the lead. If FAANG shares can't work together, they threaten to take it all away, ”said Ziedins.
But Ziedins said if FAANG stocks manage to "show some life" and keep it going, indices could be taken to record levels.
This is another important stock, according to Ziedins, and the stocks pulling back from their opening highs on Wednesday were "just as worrying" as the FAANG group stall. While Ziedins said he doesn't think Tesla's behavior will affect the broader market, "it doesn't help" to see owners of Tesla stock this week sell the rebound rather than buy it.
Ziedins advises investors to keep betting on higher prices. As long as the S&P 500 index stays above 3,800 points, "the bull market is alive and well," he said.
The stock rose 54% on its market debut on Wednesday, with an ARK fund building a position valued at more than $ 36 million. The video game developer, whose platform is popular with young teenagers, rose again on Thursday, up 7%.
For the US economy, all eyes are on initial jobless claims. 712,000 Americans filed for unemployment last week, down from 725,000, a decrease from 745,000 initial claims the week before. There were 4.14 million persistent jobless claims for the week of February 27th. January job vacancy data will be published at 10 a.m. east.
The European Central Bank said it would accelerate the bond-buying program launched in the early days of the pandemic as the central bank faced rising bond yields that threaten to undermine its monetary policy.
The stock rose around 20% after the company announced its experimental COVID-19 treatment, which was developed using the drug GlaxoSmithKline
Great Britain: GSK,
significantly reduced hospital stays and deaths in high-risk adults.
Denmark, Norway and Iceland have temporarily suspended injections of the COVID-19 vaccine developed by AstraZeneca
United Kingdom: AZN
and Oxford University to investigate several cases of blood clots in people who received the shot.
has pledged $ 10 billion over the next 10 years to promote racial justice and economic opportunity by investing in black women. The investment banking giant will partner with black women-led organizations, financial institutions, and other partners to address gender and racial prejudice against black women.
raised $ 10 billion in debt funding underpinned by the carrier's AAdvantage loyalty program – valued at an estimated $ 20 billion.
The stock markets opened in the green
ready to continue the momentum of the rally on Wednesday with the tech-heavy Nasdaq
Charging after the opening bell almost 2% higher. Tech stocks and a positive response to the ECB meeting have boosted European indices
United Kingdom: UKX
while Asian stocks
ended the day higher across the board.
Our daily chart from Goldman Sachs shows that US debt-gross domestic product will soon reach its highest level in US history. This ratio has long been the benchmark for the sustainability of public finances.
However, the investment bank cited a recent study by Jason Furman and Lawrence Summers that argued that there is a better way to measure the debt burden. Instead, focus on the cost of servicing debt as a percentage of GDP, which is shown in the two charts below. While debt is historically high, interest rates are historically low, so the cost of servicing the debt is at more normal levels.
Just Eat Delivery Driver steals a cat from the customer's building "to fight the mouse infestation in the restaurant".
A trader bought $ 36 million copper and got painted stones instead. Oops.
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