Banks and Tanks (S&P 500 Financial and Industrial sectors) are getting an early lift with the better than expected Jobs data. While the major market indices such as the S&P 500 (SPX) has not had a meaningful pullback since the 04/09 Fed announcement, the Financial and Industrial sectors have, especially on a relative performance basis. As we indicated yesterday in the Stage is set for rise in 10-year , we expect that interest rates could go up given the coming supply on the long-end and the perception the worst of the economic decline is behind us. That suggests a more pronounced rise in the economically sensitive sectors as higher interest rates drive the perception of improving economic activity.
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