Whistling Past The Graveyard? Cracks Emerge As Rally Continues
- U.S. equity markets finished decisively higher for the second-straight week as better-than-expected economic data and encouraging news of coronavirus treatments again overwhelmed concerns about the intensification of the pandemic.
- Adding to last week's gains of 4.1%, the S&P 500 gained another 1.7% while a relentless rally in large-cap technology stocks powered the NASDAQ to fresh record-highs.
- Are bond investors sensing trouble on the horizon or just deflationary pressure? Several high-frequency data points - which had correctly foretold the economic rebound - have shown hints of rolling over.
- Commercial equity REITs were among the laggards this week as sentiment remains profoundly negative across most property sectors. REITs dipped 2.4% with 16 of 18 sectors in negative territory.
- Homebuilders delivered another strong week, however, as the housing industry continues to lead the early stage of the recovery. Mortgage applications to purchase a home are now higher by 33% from last year.
