Rates have been on the move recently, and Citigroup is getting concerned. The benchmark 10-year Treasury note yield hit a high of 4.31% last week — a level last seen almost five months ago, in early September — as renewed trade fears sparked a second wave of the "Sell America" trade. Tensions eased after President Trump backed down last week from imposing new tariffs on eight NATO members because ...
Rates have been on the move recently, and Citigroup is getting concerned. The benchmark 10-year Treasury note yield hit a high of 4.31% last week — a level last seen almost five months ago, in early September — as renewed trade fears sparked a second wave of the "Sell America" trade. Tensions eased after President Trump backed down last week from imposing new tariffs on eight NATO members because of Greenland, and yields retreated. On Monday, the 10-year traded about 1 basis point lower at 4.22%, while the 30-year Treasury bond yield dipped to 4.81%. At current levels, Citi head of U.S. equity strategy Scott Chronert thinks equities should be fine. Anything much higher, though, could spell trouble. US10Y 1Y bar US 10-year past 12 months "While equity markets have largely absorbed the 10 year yield increase from 3.94% to 4.25% since late October, a further long-end rate backup from here, while not currently expected by Citi, could trigger an equity valuation response. The cause would likely be renewed deficit concerns," Chronert wrote to clients, calling this a "volatility event risk." Chronert noted a pending Supreme Court decision could send yields higher, if the court strikes down the Trump administration's high-tariff policy. "The removal of said tariff revenue offsets could resurface deficit concerns, putting more pressure on long-end rates," the strategist said, warning that fiscal stimulus ahead of the midterm elections also poses a risk. "While we do not have a strong opinion on what could come to law, there is a clear ask for more fiscal stimulus. Proposals such as the $2,000 tariff dividend stimulus checks and a $600 billion increase in the defense budget for FY '27 to $1.5 trillion exemplify this issue," Chronert wrote. For their part, stocks were little changed to start Monday's session. Investors have to make it through a busy week of earnings from some of the country's largest companies, plus the first Federal Reserve meeting of 2026.
Nvidia is pouring an additional $2 billion into CoreWeave in a vote of confidence in the artificial-intelligence data-center company that uses Nvidia’s chips. The companies said Monday that they would build new AI factories on Nvidia’s computing-platform technology, operated by CoreWeave, with a goal of 5 gigawatts of capacity by 2030. Nvidia also said it would leverage its financial strength to h...
Nvidia is pouring an additional $2 billion into CoreWeave in a vote of confidence in the artificial-intelligence data-center company that uses Nvidia’s chips. The companies said Monday that they would build new AI factories on Nvidia’s computing-platform technology, operated by CoreWeave, with a goal of 5 gigawatts of capacity by 2030. Nvidia also said it would leverage its financial strength to help procure land and power for the projects.
Israel says the remains of the final hostage in Gaza have been recovered, clearing the way for the next phase of the ceasefire that paused the Israel-Gaza war. Monday’s announcement came a day after Israel’s government said the military was conducting a “large-scale operation” in a cemetery in northern Gaza to locate the remains of Ran Gvili. The return of all remaining hostages, living or dead, h...
Israel says the remains of the final hostage in Gaza have been recovered, clearing the way for the next phase of the ceasefire that paused the Israel-Gaza war. Monday’s announcement came a day after Israel’s government said the military was conducting a “large-scale operation” in a cemetery in northern Gaza to locate the remains of Ran Gvili. The return of all remaining hostages, living or dead, has been a key part of the Gaza ceasefire’s first phase, and Gvili’s family had urged Israel’s government not to enter the second phase until his remains were recovered and returned. Advertisement Israel and Hamas have been under pressure from ceasefire mediators including Washington to move into the second phase of the US-brokered truce, which took effect on October 10. Israel had repeatedly accused Hamas of dragging its feet in the recovery of the final hostage. Hamas had said it had provided all the information it had about Gvili’s remains, and accused Israel of obstructing efforts to search for them in areas of Gaza under Israeli military control. Advertisement Israel’s military had said the large-scale operation to locate Gvili’s remains was “in the area of the Yellow Line” that divides the territory.
Investors selling the dollar to buy emerging-market currencies are off to a lucrative start to 2026, with strategists at top banks expecting such strategies to build further on last year’s 18% rally. Carry trades — where fund purchases in higher-yielding currencies with currencies that are cheaper to borrow — are already up 1.3% this year, according to a Bloomberg index tracking returns across eig...
Investors selling the dollar to buy emerging-market currencies are off to a lucrative start to 2026, with strategists at top banks expecting such strategies to build further on last year’s 18% rally. Carry trades — where fund purchases in higher-yielding currencies with currencies that are cheaper to borrow — are already up 1.3% this year, according to a Bloomberg index tracking returns across eight emerging markets. With President Donald Trump’s policies weighing heavy on the dollar, strategists at Morgan Stanley , Bank of America Corp. and Citigroup Inc. reckon last year’s returns, the biggest since 2009, are about to extend. The index stands above 291 on Monday, about 5% shy of the record hit in 2011, with currencies from the South African rand to Colombian peso hovering at multi-year highs. But aside from currency strength, carry strategies are also benefiting from high real interest rates in the developing world. Policymakers in many developing countries are only gradually easing policy, despite signs of slowing inflation. “For carry trades, we are looking at countries where monetary policy is tight and central banks are considered credible,” said James Lord , Morgan Stanley ’ s head of emerging-market strategy . The Brazilian real, Turkish lira, and Czech koruna are his preferred trades for this year. Trades focused on Latin American currencies are among the top performers. The Brazilian real, for instance, has already returned 4.3% so far in 2026, building on last year’s 23.5%. The country’s interest rates are at 15% even though inflation has slowed toward the central bank’s target range. Citi strategists too are among those recommending buying the real against the dollar, though they also favor the Turkish lira. Read more: Citi Says Biggest Carry Trade Rally in Years Has Longer to Run The Indian rupee, last year’s worst performer, is extending those losses this year and is down about 2% in carry terms. The Indonesian rupiah has also put investors in the red....
JHVEPhoto/iStock Editorial via Getty Images Executive Summary Nucor ( NUE ) is a perfect choice for investors seeking a position in the US steel sector due to its operational excellence. We are positive on the stock both for the sector's growth outlook (+2.2% cagr in the period 2024-2030) and for company-specific reasons, such as the positive impact of the last few years investments on earnings fr...
JHVEPhoto/iStock Editorial via Getty Images Executive Summary Nucor ( NUE ) is a perfect choice for investors seeking a position in the US steel sector due to its operational excellence. We are positive on the stock both for the sector's growth outlook (+2.2% cagr in the period 2024-2030) and for company-specific reasons, such as the positive impact of the last few years investments on earnings from 2026. Therefore, we have a buy rating with a $207 target price, based on our dcf model. It Implies a 15% upside potential from January 21, 2026, closing price of $ 180.23. Company Description Nucor is the largest and most diversified American steel and steel products manufacturer. The company's operations are heavily concentrated in the US, where it generates 98% of its revenues. With regards to segment breakdown, the Steel Mills segment (production of sheet bars, structural steel, and plates) generates 62% of revenues, the Steel Products segment (joists, decking, fasteners, and tubing) accounted for 33% and the Raw materials segment the remaining 5%. Revenue breakdown (Company's data) The company's strength is its use of electric arc furnace (EAF) technology, which offers much more flexible production management. Indeed, unlike traditional blast furnaces, which must operate continuously for years (because shutting them down would cause significant structural damage), EAFs can be shut down and restarted quickly based on market demand or energy costs. Furthermore, electric technology allows for much more precise and faster temperature control (up to 3000°C), facilitating the production of special steels and high-quality alloys. Nucor rel. strength (Radaecowatch) Nucor has outperformed both the S&P 500 (total return of 47% versus 16%) and the S&P Materials sector index (8.4%) over the last 12 months. In our view, the outperformance is attributable to two elements: 1) The Trump administration's increase in US steel imports tariffs from 25% to 50% for most countries, except ...
Key Points Novo Nordisk had a rough stretch in 2025 that eventually led to it "firing" its CEO. The new Wegovy pill looks like a game-changer for the pharmaceutical giant. That bodes well for a stock with a compelling valuation. 10 stocks we like better than Novo Nordisk › Novo Nordisk (NYSE: NVO) essentially made the obesity drug market the surging growth opportunity it is today with the viral su...
Key Points Novo Nordisk had a rough stretch in 2025 that eventually led to it "firing" its CEO. The new Wegovy pill looks like a game-changer for the pharmaceutical giant. That bodes well for a stock with a compelling valuation. 10 stocks we like better than Novo Nordisk › Novo Nordisk (NYSE: NVO) essentially made the obesity drug market the surging growth opportunity it is today with the viral success of its GLP-1 agonists, Ozempic for Type 2 diabetes and Wegovy for chronic weight management. But the company hit a tough stretch, marred by competition from Eli Lilly and telehealth companies selling generic products. Things got so bad that Novo Nordisk effectively ousted its CEO in May of last year. In that time, the stock has plunged, losing more than half of its value since peaking in mid-2024. Novo Nordisk's stock has come alive recently, and it's no fluke. Here is why I predict that Novo Nordisk stock could soar by 40% this year. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The Wegovy pill is likely to be a big winner Novo Nordisk recently made headlines by launching its newly FDA-approved Wegovy pill in early January. Wegovy and other obesity drugs have historically been subcutaneous (administered beneath the skin), requiring patients to inject them. The new pill is the same drug as Wegovy, but in an oral tablet. It's far more convenient for most patients, especially those who don't like needles. The company's new CEO has also been aggressive in pushing the Wegovy pill to the market. Novo Nordisk came ready with an ample supply and has partnered with Amazon, Costco Wholesale, and other consumer channels to make the pill as accessible as it can. The company recently reported approximately 3,100 prescriptions filled in the first week since launch and 8,000 by the second week. Gauging the stock's upside in 2026 Given that Wegovy is currently the only pill-form drug of its kind...
wildpixel/iStock via Getty Images Fast Facts About the Direxion Daily S&P Biotech Bear 3x Shares ETF The Direxion Daily S&P Biotech Bear 3X Shares ETF ( LABD ) is a leveraged ETF with a factor of -3x in the biotechnology industry. LABD was launched on 5/28/2015 and has a net expense ratio of 0.96%. It is a small, but liquid fund, with $58.6 million of AUM (assets under management) and a 3-month av...
wildpixel/iStock via Getty Images Fast Facts About the Direxion Daily S&P Biotech Bear 3x Shares ETF The Direxion Daily S&P Biotech Bear 3X Shares ETF ( LABD ) is a leveraged ETF with a factor of -3x in the biotechnology industry. LABD was launched on 5/28/2015 and has a net expense ratio of 0.96%. It is a small, but liquid fund, with $58.6 million of AUM (assets under management) and a 3-month average daily dollar volume of $43.7 million. It means about 75% of AUM changes hands on average every trading day, pointing to primary usage by short-term traders. The issuer Direxion specializes in leveraged ETFs, with dozens of these products based on equity indexes and single stocks. Strategy of LABD LABD is designed to deliver -300% of the daily performance of the S&P Biotechnology Select Industry Index, which is the underlying index of State Street SPDR S&P Biotech ETF ( XBI ). The issuer provides a clear warning on LABD and its bull counterpart LABU : The funds should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day. Their daily leverage factor is a source of drift, a topic that I will discuss more in this article. The prospectus is more specific: The Fund will lose money if the Index performance is flat over time, and as a result of daily rebalancing, the Index’s volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Index’s performance decreases over a period longer than a single day. The fund invests in financial instruments that, in combination, provide -3X daily leveraged exposure to the underlying index, mostly swaps and futures contracts. Additionally, the fund holds cash equivalents and short-term Treasury instruments as collateral. Keeping a daily objective requires a rebalancing of the portfolio on a daily basis. Direxion doesn’t disclose the fund’s turnover rate including transactions on cash instruments and d...
West Point Gold ( WPG:CA ) has announced an offer for sale of up to 18,181,900 common shares at an issue price of C$1.10 per share, for aggregate gross proceeds of up to C$20M. The net proceeds will be used for exploration at the Gold Chain Project in Arizona, USA, and for general corporate and working capital purposes. The closing date of the offering is scheduled to be on or about February 17, 2...
West Point Gold ( WPG:CA ) has announced an offer for sale of up to 18,181,900 common shares at an issue price of C$1.10 per share, for aggregate gross proceeds of up to C$20M. The net proceeds will be used for exploration at the Gold Chain Project in Arizona, USA, and for general corporate and working capital purposes. The closing date of the offering is scheduled to be on or about February 17, 2026 Source: Press Release More on West Point Gold Corp. Seeking Alpha’s Quant Rating on West Point Gold Corp. Financial information for West Point Gold Corp.