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Afternoon Note

Reopening Rebounding

By Charles Payne, CEO & Principal Analyst
7/21/2021 2:10 PM

The major averages performance has evened out, with the Dow coming off its highs. The Nasdaq is making up ground and S&P 500 is in the middle. Reopening stocks rebounded sharply from Monday’s sell-off led by airlines and cruise lines.

Cyclicals lead, Energy is up more than 4% as WTI broke above $70 per barrel. Utilities and Health Care are the worst performing sectors.

S&P 500 Index

+0.62%

 

Communication Services XLC

+0.58%

 

Consumer Discretionary XLY

+0.51%

 

Consumer Staples XLP

 

-0.25%

Energy XLE

+3.94%

 

Financials XLF

+1.82%

 

Health Care XLV

 

-0.24%

Industrials XLI

+0.78%

 

Materials XLB

+0.95%

 

Real Estate XLRE

+0.06%

 

Technology XLK

+0.62%

 

Utilities XLU

 

-0.61%

The 10-year yield is driving the volatility in the equity markets, jumping again. It is up 8 basis points to 1.29% and 17 points above the low hit yesterday. The drop-in rates unnerved traders by signaling a possible slowing economy due to Delta variants.

You could argue that it is as if Monday’s disruptions never happened. This looks like a repeat of what we have seen before and consistent with the markets’ confidence. Plus, a batch of encouraging second-quarter earnings has given investors reason to focus on the fundamentals.


 

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