Why Are Utilities the Best-Performing Sector YTD?
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What’s in Today’s Report:
- Why Are Utilities the Best Performing Sector YTD?
- Chart: 10-Yr Yields Test 3-Month Highs – A Renewed Headwind for Stocks
U.S. stock futures are extending yesterday’s losses in premarket trade this morning, led lower by small-caps as Treasury yields continue to test multi-month highs amid a higher-for-longer Fed policy outlook.
Economically, the only notable release overnight was Hong Kong’s CPI which picked up modestly in September, rising to 0.1% from 0.0% in August (2.2% y/y), but that is not moving markets today.
There are no notable economic reports today and just one Fed speaker on the calendar: Harker (10:00 a.m. ET).
The light economic calendar will leave trader focus on earnings with: VZ ($1.18), MMM ($1.93), GM ($2.50), GE ($1.13), LMT ($6.47), and FCX ($0.40) all reporting quarterly results before the bell while STX ($1.50) and TXN ($1.36), both of which are tech-proxies, will report after the closing bell.
Beyond earnings, Treasury yields will also be in focus today as the sharp, double-digit rise in the 10-Yr yield presented a significant headwind on broader equity markets yesterday. If yields continue higher, expect stocks to have a hard time stabilizing today.
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