Global equity markets managed a nice rebound today, led my the recently maligned tech sector, though all US sectors save for energy were up more than 1% on the day.
Not surprisingly factor returns have mirrored index returns over the past five trading days with momentum and growth lagging other factors.
Tesla, yesterday’s most noticeable loser was up 10% on the day, allowing it to regain a fair amount of what it shed yesterday. Perhaps this was driven by the broader tech rebound, or maybe because the GM / Nikola mashup will likely be less exciting and impactful to Tesla than knee-jerk reactions would suppose (though I much prefer the Nikola early designs to the Cybertruck). Fashion preferences aside, there will definitively be room for more than one electric truck in the future, allowing both companies to capture lots of sales. The truck market is pretty segmented, with Ford leading the way but Dodge and Chevy right behind them, followed by Toyota in 3rd. Point being, there is plenty of hay to be made selling e-trucks.
Flipping the recent narrative in fixed income, lower quality and emerging markets debt performed best today, while longer dated treasuries lagged. Better than expected job openings data, a sign of economic health, may have helped tilt the markets this direction.
Tomorrow big economic releases should push markets around, depending on what kind of jobs numbers we see.
What to read
Unemployment is probably higher than you think
Looking at the lost decade for foreign stocks
The West continues to be on fire