Client Portal

The drop in long-term rates in recent months still doesn't appear to be affecting bank Net interest income all that meaningfully, and this morning's earnings out of BAC0.28%  GS1.21%  and C2.06%  are lifting these three stocks around 2% in pre-market trading. Technically, there was ample evidence that Financial earnings period might be received favorably by markets given the triangle breakout in the Financial sector that happened back on 10/4, a full week BEFORE Financial earnings got underway. This has helped the Financial sector claw back and is now the best performing sector over the last week based on Equal-weighted ETF performance out of the 11 major sectors. Invesco's RSPF0.49%  is up +3.80% over the last week, far better than the +2.28% in RSP and better than the +2.88% in ^SPX0.98%  itself. Financials outperformance has begun to accelerate following last month's ability of RSPF to have exceeded former all-time highs from early 2022, and technically this sector remains an Overweight.

This remains a light #macro week, but because positioning is so ‘light’ we expect stocks to levitate in the absence of macro.QQQ0.96% SPY0.98% IWM1.90%  This chart fromGS1.21%  Goldman Sachs speaks to the light positioning