From the Wall Street Journal’s “Stock Futures Point to Dow Extending Rebound” posted early Wednesday:
Stock futures edged higher Wednesday, suggesting major indexes will extend their rebound following a volatile stretch of trading sparked by worries about the spread of coronavirus…
Investors are putting concerns about the economic effects of the Delta variant to one side, though markets are expected to remain jittery heading into the peak summer vacation period. A banner start to the corporate earnings season among the biggest U.S. companies is helping buoy sentiment. Many money managers also see few other places to deploy cash with yields on government and corporate bonds trading at depressed levels.
“The market is facing a genuine test: whether the link between case rises and hospitalizations is broken,” said Peter van der Welle, a multiasset strategist at Robeco. Nonetheless, Mr. van der Welle expects a second leg of the reopening trade—in which bond yields, economically sensitive stocks and commodities all rose—to get under way once there is more clarity about the Delta variant.
My take: Green without much conviction.