Big techs lagging the broad markets this year would indeed be a surprise. But I'm making the opposite bet that tech will be the year's top-performing sector.
Mizuho says oil stocks are ripe for a rebound. Jeff J Mitchell/Getty Images
Investors have been stressed about the possibility that oil demand has already peaked and it could be all downhill from here. The pandemic has reduced demand for oil as fewer people commute to work, and a shift to renewables will soon reduce demand for oil on a longer-term basis.
But one analyst says the doom-and-gloom may be overstated. In fact, Mizuho analyst Daniel Boyd is betting that oil companies which have cut their drilling substantially in response to the pandemic are actually producing too little oil now and a shortage is coming. That could lead to higher prices than the market is currently anticipating, and it could boost some stocks.
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Payrolls
Economists are expecting a sharp slowdown in December job growth in the U.S., with more than a quarter of those surveyed by Bloomberg predicting a negative print when the data is published at 8:30 a.m. Eastern Time. There is little expectation of a sustained improvement in the employment situation until vaccines become widely available. On Wednesday ADP data showed a decline in private payrolls in December and yesterday s initial jobless claims number remained elevated.
Moving on
President Donald Trump said he would turn his focus toward the transition to the incoming Biden administration in a video message published last night. His remarks, which were a notable departure in tone from his statements since the election, came amid a wave of resignations from White House officials. With less than two weeks left in his presidency, Democrat leaders are pushing for his removal from office either through the 25th Amendment or by another impeachment trial. Senator Mitt Romn