Monday, March 8, 2021

Vaccinations + Stimulus

Monday, March 8, 2021 - Last week’s equity markets were bumpy and spent most of the week continuing the weakness of the previous week before a solid rebound on Friday brought two of the three major U.S. equity indexes into positive territory for the week. Investors continue to feel the impact of the recent increase in bond yields and appear anxious around the timing of a higher rate environment on the horizon.

The weekend brought big news with the first reflected in reports that the U.S. is now averaging over 2M Coronavirus vaccinations per day with the expectation that this rate will continue to increase as the recently approved for emergency use, singe-dose, J&J vaccination adds to the run rate. President Biden stated last week that the U.S. will have enough vaccines for every adult by the end of May.

The second big piece of news came Saturday with the Senate passing the $1.9 trillion stimulus package which includes funding for stimulus checks, vaccine distribution, and school re-openings. It will be interesting to see how the equity markets react this week to both pieces of news offset by the pressure being felt in the last few weeks from higher rates as the 10-year U.S. Treasury yield sits just above 1.5% and is up slightly over 65 basis points since the start of the year.

For the week, the DJIA gained 563.93 to close at 31,496.30, the S&P 500, which on Monday had its largest gain (2.4%) since June 2020, gained 30.79 to close at 3,841.94 and the Nasdaq lost 272.20 to close at 12,920.15.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Weekly Quant Winners: The three biggest gainers in their ETFG Total Quant Scores were found in the Barclays Return on Disability ETN (RODI) up 17.82 points to 62.99, the  First Trust Dorsey Wright Focus 5 ETF (FV) up 16.07 points to 55.01 and the Reality Shares DIVCON Leaders Dividend ETF (LEAD) which added 15.38 points during the week to an ETFG Total Quant Score of 52.78.

ETFG Weekly Quant Losers: The three biggest drops in their respective ETF Quant Total Scores were found in the Volshares Large Cap ETF (VSL) dropping 17.29 points to 36.44, the Barclays Women in Leadership ETN (WIL) dropping 9.89 points to 55.02 and the Innovator IBD ETF Leaders ETF (LDRS) which lost 9.71 points to close at an ETFG Total Quant Score of 51.68 for the week.

Thanks for reading ETF Global Perspectives and have a great week!

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