They Can’t All Be Like Yesterday… The way the week started off, you half expected to come in today and hear that a Brexit trade deal had been negotiated and that Congress passed a stimulus package… But alas, US equities are once again subject to gravity after flying higher on Monday. Still that hasn’t stopped rotation game from being played (VLUE +1.3%, MTUM -1.2%), just not nearly to the same extent as yesterday’s frenzy. Tech/Semis are the laggards again, with an extra drag from Amazon (AMZN -3.0%) staring down EU antitrust investigations. Joining them in the red today is Banks (+13% yday), bringing into question how far any “Great Rotation” will carry the battered sector. Monday’s other big sector winner, Energy (+14% yday) is also cooled off a bit but remains in positive territory. Industrials are leading, namely Autos and Cap Goods (Boeing +5% as it reportedly nears 737 MAX approval). Transports are also outperforming, but that’s thanks to freight names (CSX +3.7%, KSU +2.3%) carrying the load as airlines come down from their vaccine high (AAL -4.1% after being first to pull the trigger on a stock offering). With the S&P pretty much unchanged and the 10-year Treasury yield still hovering around yesterday’s highs, the market can’t be accused over letting too much of yesterday’s jubilance slip away yet, but the big question is whether the party will last or start to fade into year-end…
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