Turnaround Tuesday? For Second Week In A Row, Rough Start Followed By Quick Rebound

Turnaround Tuesday? For Second Week In A Row, Rough Start Followed By Quick Rebound

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Key Takeaways:



Stocks show signs of rebounding after Monday's weakness despite lack of news

Treasury yield climbs above 1.15%, crude hits $53, for first time in nearly a year

Focus again could be on Washington amid thin data and earnings flow



Last week featured a “turnaround Tuesday” after a rough start. Can the same thing happen today?

So far, there's signs of it despite the fact that news-wise, not much has changed since yesterday when stocks sold off. People are anticipating a good earnings season and the market is overall kind of ignoring the Washington drama. At the same time, bond yields continue marching upward and volatility edged lower overnight.

The 10-year yield hit 1.17% this morning, the highest in 10 months, and crude climbed above $53 a barrel for the first time in 11 months as investors anticipated another drop in U.S. inventories. These kinds of moves can be signs of renewed economic hopes, even though the latest wave of the pandemic shows no signs of easing off. After months of piling into bonds and holding on tight, investors seem to be abandoning them rapidly.