Rising Oil Prices and Yields Makes Market Navigation More Complex

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Bitcoin (/BTC) topped $50,000 this morning for the first since May, but traders may be more focused on oil prices and yields. Crude oil (/CL) is continuing its rise as futures traded more than 1% higher before the market open. When looking for inflation, gas prices are one of the first places people feel it, so rising oil prices are an important indicator in today’s environment.

Rising oil prices appear to be pulling yields higher as the 10-year Treasury Index (TNX) is testing 1.5% again this morning. Higher yields can often help Financial stocks.

Currently, rising oil prices and interest rates aren’t deterring stocks because the major indices futures are pointing to a higher open as well. But we’ve seen this movie before, the bulls get an early start on the day but are often overwhelmed by the bears later. 

PepsiCo (NASDAQ: PEP) is giving the bulls a reason to be positive after announcing better-than-expected profit and revenue and then raised its guidance for the next year. The company has been able to navigate supply chain issues and believes it’ll continue to do so going forward.

If consumers can focus on services instead of products, the supply chains could find some relief. After the open investors will have a chance to see if the service sector is coming back. The ISM Non-Manufacturing report will be released this morning.

The TD Ameritrade Investor Movement Index® (IMXSM) tracks TD Ameritrade client investing behavior. In September, the IMX reflected that clients were net buyers of equities and fixed-income assets. Apple (NASDAQ: AAPL), Alibaba (NYSE: BABA), Ford (NYSE: F), Nvidia (NASDAQ: NVDA), and SoFi (NASDAQ: SOFI) were among the buying targets. At the same time, clients took advantage of rising prices to sell Tesla (NASDAQ: TSLA), Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN), American Airlines (NASDAQ: AAL), Delta (NYSE: DAL), and Bank of America (NYSE: BAC).

Technically Speaking

On Monday, investors were tech sellers once again. The tech-heavy Nasdaq ($COMP) was down more than 2% on Monday and has fallen more than 7% from its September 7 high. The Technology sector continued to fall as bond yields rose. Facebook (NASDAQ: FB) helped pull the sector lower after falling 4.89%. Facebook and its subsidiary Instagram …

Full story available on Benzinga.com

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