From the Wall Street Journal’s “Stock Futures Wobble Ahead of Economic Data, Earnings” posted early Monday:
Stocks have been jittery in recent days after a flare-up of Covid-19 cases in India and Japan triggered concerns about the pace of the global economic recovery. Money managers’ risk appetite was also jolted by worry that the Biden administration may boost taxes. This week, the corporate earnings season is poised to pick up steam, with the focus on blue-chip companies to report profits and offer guidance that can justify stocks’ high valuations.
Bond investors are also on alert for any change in tone and outlook from the Federal Reserve following a spate of strong U.S. economic data. The 10-year U.S. Treasury yield edged up to 1.577%, from 1.566% on Friday. It had climbed as high as 1.749% at the end of March, but has fallen for four of the past five weeks. Yields drop as prices gain.
“Markets have had a roaring start to the year,” said Hugh Gimber, a strategist at J.P. Morgan Asset Management. “And now there has been this period of consolidation in the bond market, and that’s led to a period of consolidation in the stock market.”
My take: For the past couple weeks, premarket has been where AAPL takes a breather. Only three more trading days before Q2 earnings.