On Monday, the unexpected rally in crude oil prices continued. It closed at over $77, up by more than 7%.
Investors who embraced the war economy will have a strong portfolio with holdings in RTX (RTX), Lockheed Martin (LMT), and AeroVironment (AVAV). Additionally, oil stocks will break out from their several quarters of underperformance.
Occidental Petroleum (OXY) bottomed at below $50 to close at $55.91. Antero Resources (AR), and Devon Energy (DVN) are also on the rebound. However, both stocks face technical resistance at current levels.
Since last Friday, U.S. Treasury yields rose. The 2-year Treasury Yield gained 1.35% to 3.98%. This is above the 3.51% low. In addition, the 30-year Treasury Yield gained enough to send the 20+ Year ETF (TLT) below $95. The ETF traded as high as $101.64 this year after the Fed unexpectedly cut interest rates by 50 bps.
Last Friday, the BLS posted job growth that exceeded expectations. The U.S. government accounted for most of the job growth. This Thursday, the Bureau will post inflation data for September. Expect insurance inflation to continue to rise. Despite the price hikes benefiting insurance firms, Chubb (CB), Prudential (PRU), Hartford Financial (HIG), and Travelers Companies (TRV) fell on Monday. Markets worry that the hurricane approaching Florida will raise costs for insurance companies.
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