Updates – Macro Trend

By Emily Barrett Breakeven rates show subdued expectations even after stimulus Outlook makes 10-year inflation-linked offering a hard sell (Bloomberg) — Bond investors are skeptical that inflation will rebound as the U.S. economy eventually starts to recover. While some lawmakers fretted this week that a combination of central bank and government rescue packages could inflame long-dormant […]

There’s a good chance that stocks build on their face-ripping rally off the lows given all the cash sitting on the sidelines, according to Bank of America. Savita Subramanian, the bank’s head of U.S. equity and quantitative strategy, said equity allocation among BofA clients has dropped by 3 percentage points to 57.1% while cash allocations […]

U.S. airlines are starting to see an uptick in demand as the summer vacation season approaches, but a full recovery appears far off. Southwest Airlines said Tuesday that new bookings are now outpacing cancellations, a turning point in the coronavirus pandemic that has devastated air travel demand.

By Todd White Measure of market health has bounced back to early March level Strong second wave of virus ‘could change all this’: Gkionakis (Bloomberg) — American financial conditions have loosened at the fastest pace since at least 1990, belying mounting investor skepticism that a V-shaped economic recovery will follow the pandemic-induced crash. A Bloomberg measure of market […]

By Katia Dmitrieva (Bloomberg) — The Congressional Budget Office says the U.S. economy will expand more in 2021 than previously projected, though the economic fallout from the coronavirus will have a long-lasting impact on the labor market. The non-partisan agency’s update to its economic projections showed gross domestic product will increase 4.2% in 2021 on a fourth quarter-to-fourth […]

By Lananh Nguyen and David Westin Consumer spending picking up in reopening areas, Moynihan says ‘Not seeing the type of credit damage that you’d expect’ (Bloomberg) — Bank of America Corp. Chief Executive Officer Brian Moynihan said consumer spending is picking up in some areas of the U.S. as government relief programs cushion the credit impact of the coronavirus pandemic. “These measures taken […]

By Craig Torres Says rates will stay near zero until U.S. is back on track Fed chief remarks in testimony prepared for Senate hearing (Bloomberg) — Federal Reserve Chairman Jerome Powell said the central bank is prepared to use its full range of tools and leave the benchmark lending rate near zero until the economy is back on […]

By Dan Murtaugh (Bloomberg) — One of the indisputable winners of the pandemic has been e-commerce, as home-bound consumers order everything from nearly-spoiled cabbage to bidets off the Internet. That will have long-term implications for everything. For oil market and commercial real estate, in particular, the change brings bad news. As for oil, it’s just a shift […]

By Cristin Flanagan Goldman assigns Wall Street-high price target of $105 Another analyst predicts $10 billion in annual vaccine sales (Bloomberg) — Moderna Inc. got a new Wall Street-high price target from Goldman Sachs as its shares traded at a record after the biotech company revealed positive early results from its experimental vaccine for Covid-19. An initial […]

By Lu Wang Analyst revision breadth has improved after plunging in April The turn reinforces view profit growth troughs this quarter (Bloomberg) — A hard-to-see shift in how Wall Street views the future of S&P 500 profits may have set the stage for days like today, when stocks are rising the most in nearly three weeks. […]