Some cautious optimism is afoot after Friday’s regional-bank led rally for markets. That’s ahead of a big Federal Reserve loan survey due later that could show strains of ongoing banking stress.
With that in mind, our call of the day may seems boldish. It comes from the founder of Fundstrat Global Advisors, Thomas Lee, who sees a short-lived opportunity among regional lenders. Those banks meet three criteria: in the lower-bottom quartile year to date, in the top quartile of regional banks most recommended as sells by Wall Street banks, and the top quartile of Investor’s Business Daily stock ratings.
The markets Stock futures ES00 YM00 NQ00 are slightly higher, following Friday’s strong close, while Treasury yields TMUBMUSD10Y are mostly steady. Crude CL.1 is up and headed to $73 a barrel, the dollar DXY is down and gold GC00 is up. London markets are closed for an extended bank holiday to mark King Charles III’s coronation.Read: Recession fears fuel investors’ search for safe havens.
Earnings highlights this week include Disney DIS on Wednesday. Dish Network Corp.’s stock DISH is down after posting a bigger-than-expected revenue fall and Tyson Foods Inc.’s stock TSN dropped after reporting a surprise loss. Results from KKR & Co. Inc. KKR are still to come, followed by PayPal Holdings Inc. PYPL , Palantir Technologies Inc. PLTR and Western Digital Corp. WDC later.Shares of Berkshire Hathaway Inc. BRK.A BRK.
Treasury Secretary Janet Yellen said Sunday there are “no good options” to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit in the coming weeks.