Earnings, Economics Will Drive Stock Returns From Here
Investors' focus has shifted this week to earnings reports and economic metrics in order to decipher how quickly a recovery can evolve.
David Sekera
Dave Sekera, CFA, is chief U.S. market strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. Before assuming his current role in August 2020, he was a managing director for DBRS Morningstar. Additionally, he regularly published commentary to provide investors with relevant insights into the corporate-bond markets.
Prior to joining Morningstar in 2010, Sekera worked in the alternative asset-management field and has held positions as both a buy-side and sell-side analyst. He has over 25 years of analytical experience covering the securities markets.
Sekera holds a bachelor's degree in finance and decision sciences from Miami University. He also holds the Chartered Financial Analyst® designation. Follow David on Twitter: @MstarMarkets. Please note, Dave does not use either WhatsApp or Telegram. Anyone claiming to be Dave on these apps is an impersonator. He will not contact anyone on these apps and will not provide any content or advice on either app.
Latest
Gold the Current Star, but All Will Be Well With Oil
Oil prices languish while gold shines, but for long-term investors, we see value in energy companies over gold miners.
Fed’s Actions Overshadow Jobless Claims
U.S. markets soar higher following Federal Reserve’s initiatives to further expand its lending programs.
Fed Initiatives Show Signs They're Working as Intended
They've led to a $1.6 trillion increase in Federal Reserve assets over the past month to $5.8 trillion.
Time to Take a Breath and Re-Evaluate
We see ample opportunities for long-term investors.
New Fed Initiatives Expand to Extending Credit
The Fed is using lessons learned in 2008 to help alleviate the near-term financial and economic impact of COVID-19.
Risky Assets Reduce Fixed-Income Returns
Only U.S. Treasuries have been able to generate gains as the severe widening across credit spreads on risky assets has led to losses across the rest of the fixed-income universe.
Corporate Bonds at Second-Widest Level in 20 Years
Except for when the market was broken in 2008, corporate bonds are trading at their widest credit spreads and lowest dollar prices over the past 20 years.
What Electronic-Only Trading Means for ETFs and Stocks
The closure of the floor of the New York Stock Exchange will mostly mean business as usual -- with a few caveats.
Even Safe-Haven Assets Are Feeling the Pressure
Why aren’t U.S. Treasury bonds and precious metals providing the refuge they usually do?
Corporate Bond Markets Drift Higher
Year-to-date inflows of $20.1 billion are heavily weighted toward the high-yield ETFs.
Prospect for Trade Truce With China Drives Credit Spreads Tighter
Year-to-date inflows into the high-yield asset class remain a solid $18.4 billion.
Third-Quarter 2019 Fixed-Income Market Roundup
The Federal Reserve announced it would extend its program of offering daily overnight repurchase agreements up to $75 billion through November 4.
Strong Third-Quarter Returns in Fixed-Income Market
Dave Sekera explains the quarter in bonds.
Corporate Bond Market Inured to Political Drama in Washington
The corporate bond market traded in an orderly fashion and was relatively quiet last week.
Corporate Bond Market Normalizes After Record-Breaking Issuance at Beginning of Month
The differing outlook is based on the high degree of uncertainty over potential contagion of slowing economic growth in Asia and Europe spreading to the U.S. economy.
Corporate Credit Spreads Tighten After New Issuance Slows
The U.S. announced it would delay the imposition of new tariffs on $250 billion worth of Chinese imports for two weeks.
Volume of New Corporate Bond Issuance Breaks Weekly Record
According to Bloomberg, $74 billion worth of new investment-grade bonds were sold last week.
Just as Volatility Starts to Subside, It Ratchets Right Back Up
There are reportedly over $15 trillion worth of bonds currently trading at a negative yield.
Corporate Bond Markets Soften in Sympathy With Surging Volatility
After widening most of the week, credit spreads were unable to recoup much of their losses.
Volatility Returns With a Vengeance
High-yield investors head for the exit.
Demand Dwindles for Corporate Bonds After Tariff Declaration
Strong Investor Demand for Corporate Bonds Drives Credit Spreads Tighter
International Investors Searching for Yield in U.S. Corporate Bond Market
They're looking for positive returns wherever they can find them.
While Equities Hit New Highs, Corporate Credit Spreads Tighten Only Slightly
Investors have been unwilling to pay up for corporate bonds.
2Q Fixed-Income Index Overview
Falling interest rates drive further gains.
Pavlov's Markets Salivate at Sound of Impending Rate Cuts
ECB and Fed are signaling a shift toward an easy monetary policy.
Strong New Corporate Bond Issuance Satiates Most Investor Demand
Bond Markets Rally as Investors Price In Monetary Easing
Corporate Bonds Weaken on Concerns That Trade War May Expand to New Fronts
Investors sold risk assets and headed to the safe havens.
Escalating Trade War Rhetoric Weighs on Corporate Bond Market
Trade negotiations will be an overhang on the corporate bond market for the near term.
Corporate Bond Markets Pull Back as Trade Negotiations and Public Posturing Raise Tensions
Investors decided to sell first and ask questions later.
New Issue Supply Weighs on Investment-Grade Market While High Yield Ekes Out Slight Gain
They failed to follow the lead of the equity market, which hit new highs.
Corporate Bond Market Rally Takes a Breather
While the equity markets are hitting record highs, bond are taking a break.
Corporate Credit Spreads Continue to Tighten
Prices for safe-haven assets such as U.S. Treasury bonds weakened.
Risk Asset Prices Rise on Investor Assumption That U.S. Dodged an Economic Slowdown
Prices for risk assets surged higher and prices on safe-haven assets were pummeled.
First-Quarter 2019 Fixed-Income Index Overview: Falling Interest Rates and Tighter Credit Spreads Drive Outsize Gains
Federal Reserve’s Dovish Shift Surprises Bond Market
In Time for St. Patrick's Day, Alexandria Real Estate Equities Issues Green Bonds
Weaker Economic Expectations in Europe Pressure Corporate Bond Market
Corporate Bond Rally Resumes
Investment-Grade Corporate Bonds Hold Steady as Idiosyncratic Issues Offset Broad Market Strength
For one, Kraft Heinz announced a trifecta of negative issues.
Investor Demand for Corporate Bonds Leads to Further Credit Spread Tightening
Weekly high-yield fund flows normalize after prior week's surge.
Not Yet St. Patrick's Day, but Verizon Goes Green
Corporate bond market runs out of steam midweek.
Corporate Bonds Start 2019 With Strong Performance
So far this year, investment-grade and high-yield bond indexes have outpaced government bonds.
Snapback Starts to Run Out of Steam
The Morningstar Corporate Bond Index tightened 5 basis points last week.
Corporate Bond Markets Retrace Half of Late 2018 Downturn in Early 2019
Investors have become increasingly comfortable taking on corporate credit risk.
Corporate Bond Markets Rebound in New Year
After the holidays, investors put cash to work.
2018 Fixed-Income Returns Pressured by Rising Rates, Widening Credit Spreads
Yield curve continues to flatten as rates rise.
Corporate Bond Market Trying to Regain Its Footing
China's weaker-than-expected sales and production results exacerbated already dour market sentiment.