3...2...1...Liftoff

Kelly Evans's afternoon commentary & top market stories

VIEW IN BROWSER | SUBSCRIBE WED, APR 07, 2021 YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC AS OF WED, APR 07, 2021 • 01:41 ET DJIA 33409.26 -0.06% -20.98 S&P 500 4075.69 +0.04% +1.75 NASDAQ 13689.36 -0.07% -9.02   EDITOR'S NOTE This isn't about Cathie Woods' new space ETF. It's about the U.S. economy achieving liftoff right here on the ground.    I'm not exactly following the news minute-by-minute (yet), but even I couldn't miss the strength in the ISM surveys out this past week. First the manufacturing survey--the bellwether, and one of the market's favorite gauges--jumped to a 37-year high for March. Okay, but it's just manufacturing. It's the supply chain issues, it's a teeny part of the overall economy, etc.    Then, even more impressively, the service-sector reading on Monday soared to a new record high. Yes, it only goes back to 1997, while the manufacturing survey goes back decades more than that. However, does it leave any doubt that this economy--of which 85 to 90% is in the service sector--is roaring back right now?    Of course the 10-year bond yield has tripled from its lows last summer, when talk of the "New Great Depression" was in vogue. The astute folks who were instead talking correctly about "V-shaped" rebounds at the time--like MKM's Michael Darda--say we're headed towards 3% on the 10-year now.    That doesn't exactly mean you need to be hoarding gold and dogecoin to fend off the new dollar debasement, either. That's a pretty reasonable yield for long-term bonds, unless you're a tech SPAC with an infinite multiple. The dollar, by the way, is so far behaving just as David Zervos predicted it would--which is to say, it hasn't collapsed at all, but mostly just gone sideways. (The dollar index was at 92 when we did that video last November, and is at 92 still today.)    Point being, the economic strength the ISM surveys are picking up is real and likely here to stay. It's not just restocking. It's not just supply-chain constraints. It's a surprisingly tight labor market out there, and if we spend anything like the $2 trillion more that's being floated in Washington right now, we might just end up skyrocketing past "normal."    See you the Monday after next!    Kelly Kelly Evans Twitter: @KellyCNBC Instagram: @realkellyevans KEY STORIES  Stocks making the biggest moves in the premarket: Beyond Meat, Nokia, Li Auto & more The stocks making the biggest moves in premarket trading include Beyond Meat, Nokia, Li Auto, and more. EU medicines regulator finds possible link between AstraZeneca Covid vaccine and blood clots It comes after a review into extremely rare cases of unusual blood clots in some people vaccinated with the Oxford-AstraZeneca shot. Nike suspends endorsement of NFL star Deshaun Watson over sexual misconduct allegations Apple's Beats by Dre brand also terminated its endorsement deal with Watson. 1 in 3 Covid survivors suffers neurological or mental disorders, study finds The study, published in The Lancet Psychiatry, is based on observational data from more than 230,000 patients. Tiger Woods was speeding as fast as 87 mph before car crash, cops say Tiger Woods was speeding as fast as 87 mph, or more than 45 mph faster than the legal speed limit, before his SUV crashed in late February in southern California. Mortgage refinance demand drops 20% as rates rise to 10-month high Mortgage rates moved higher again last week, causing homeowners and potential homebuyers to pull back on borrowing. Stocks making the biggest moves midday: Carnival, Dell, AMC Entertainment and more These are the stocks posting the largest moves in midday trading. U.S. begins study assessing allergic reactions to Pfizer and Moderna Covid vaccines The NIH said it has begun looking at why some people have suffered from allergic reactions after receiving the Pfizer-BioNTech and Moderna Covid-19 vaccines. Broad-based rally, strong economic data leave traders questioning how much further stocks can run Vaccine rollouts and glowing economic data are lifting stocks in this latest rally, but traders wonder if this is as good as it gets. How Mercedes-Benz became so prestigious, and why it is challenged by a new era Mercedes-Benz was there at the dawn of the automotive industry and has long been a leader. But some say it has been slow to adapt to a new electric era.     IN CASE YOU MISSED IT There's massive, growing allocation to bitcoin and crypto, CoinShares CSO says Why Morgan Stanley's Nowak says Alphabet is a 'dark horse' How these investors are positioning amid rising rates, inflation risk   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS