A surge in energy stocks is challenging climate-conscious money managers who beat the market for years when the sector struggled but are now missing out on Wall Street's hottest trade.
The S&P 500 energy sector has rebounded 54% this year, outpacing the broad index's 21% climb and leading the second-best performing group by about 16 percentage points. That would mark the third-largest such gap between the top two sectors since 2000, according to Dow Jones Market Data.
Economy Week Ahead: Central Banks, GDP, Consumer Spending
Gross domestic product data from the U.S. and eurozone this week will show how sharply economic growth slowed in the third quarter.
German Business Sentiment Declined Again in October
German business sentiment worsened again in October, as supply bottlenecks clouded the short-term outlook.
The Ifo business-climate index decreased to 97.7 points in October from 98.9 points in September, data from the Ifo Institute showed Monday. This is the fourth consecutive decrease of the indicator after it peaked at 101.8 in June.
Powell Says Supply-Side Constraints Have Worsened, Creating More Inflation Risk
Federal Reserve Chairman Jerome Powell indicated he is now somewhat more concerned about higher inflation and said that the central bank would watch carefully for signs that households and businesses were expecting sustained price pressures to continue.
"Supply-side constraints have gotten worse," Mr. Powell said Friday at a virtual conference. "The risks are clearly now to longer and more-persistent bottlenecks, and thus to higher inflation."
Xi's 'Common Prosperity' in Theory and Practice
Investors had, over the past 30 years, grown so accustomed to ignoring rhetoric about communism from nominally-communist China that a leader firmly putting equality at the heart of his economic agenda has caused more than a little heartburn. The Oct. 15 release of a fuller transcript of President Xi Jinping's mid-August remarks on "common prosperity" therefore piqued considerable interest.
The publication in the party's theoretical journal, "Seeking Truth," appears partly aimed at reassuring investors and entrepreneurs spooked by novel language about "rationally adjusting" excessive incomes in the original mid-August readout of Mr. Xi's speech, which came at the height of Beijing's campaign to rein in its internet giants.
Tax on Billionaires' Unrealized Gains Will Likely Be in Budget Package, Democrats Say
WASHINGTON-A new annual tax on billionaires' unrealized capital gains is likely to be included to help pay for the vast social policy and climate package lawmakers hope to finalize this week, senior Democrats said Sunday.
"We probably will have a wealth tax," House Speaker Nancy Pelosi (D., Calif.) said Sunday on CNN, noting that Senate Democrats were still working on their proposal, which isn't technically a wealth tax but bears a strong resemblance to that idea.
Bitcoin ETF's Success Could Come at Fundholders' Expense
There are signs that the bitcoin futures market isn't big enough for a planned wave of crypto exchange-traded funds.
Since launching Tuesday, the ProShares Bitcoin Strategy ETF has amassed $1.2 billion in investor assets, the quickest billion-dollar fundraising on record.
U.S. Covid-19 Battle Turns a Corner as Borders Open to Foreign Travelers
When U.S. borders open to foreign travelers on Nov. 8, the country will have lifted one of the longest-standing restrictions imposed 19 months ago at the start of the pandemic, signaling a new phase of guarded optimism in the nation's battle with Covid-19.
With the Delta variant surge easing and vaccinations opening to more age groups, many places are dropping mask mandates or other restrictions on vaccinated people. The pullback represents a bet that the most recent surge could be the last.
SolarWinds Hackers Continue to Hit Technology Companies, Says Microsoft
The Russia-linked hackers behind last year's compromise of a wide swath of the U.S. government and scores of private companies, including SolarWinds Corp., have stepped up their attacks in recent months, breaking into technology companies in an effort to steal sensitive information, cybersecurity experts said.
Turkey's Erdogan Threatens to Expel 10 Western Ambassadors, Including U.S. Envoy
Turkey's President Recep Tayyip Erdogan threatened to expel the U.S. ambassador and the top envoys of nine other Western countries who called for the release of a jailed philanthropist, in a move that could further strain ties between the two NATO allies.
"These 10 ambassadors must be declared personae non gratae at once," Mr. Erdogan said at a rally on Saturday in the western Turkish city of Eskisehir. "I gave the necessary order to our foreign minister and said what must be done."
Sudanese Prime Minister Detained in Apparent Military Coup
Sudan's prime minister was detained following an apparent military coup of the transitional government that has been ruling the country since the ouster of longtime dictator Omar al-Bashir, the country's information ministry and several government officials said Monday.
Tensions between civilian officials and the generals who have been ruling Sudan under an uneasy power-sharing deal have been escalating for several weeks amid a spiraling economic crisis in the strategic nation on the Horn of Africa.
Biden Pares Back Policy Goals in Search of a Deal
WASHINGTON-With a series of deadlines approaching, President Biden's increased involvement in talks over his sweeping social-policy agenda shows the line he is walking between being a pragmatic deal maker, with hopes of delivering tangible political wins, and his desire to enact transformative, long-term progressive policies.
House Speaker Nancy Pelosi (D., Calif.) said Sunday she was optimistic lawmakers would be able to agree this week to a framework on the legislation and vote on a separate, roughly $1 trillion infrastructure package before current highway funding expires next Sunday. The administration hopes to have a deal in hand before the president heads overseas this week on a trip that includes climate talks in Scotland.
Australia Backs $1.6 Billion Buy of Pacific Mobile Networks
SYDNEY-Australia is backing the purchase of mobile networks in six Pacific countries, a move that foreign-policy experts say is designed to block a military rival from buying the strategically important assets.
The government said its export-finance arm agreed to provide $1.33 billion in funding to support the $1.6 billion purchase by Telstra Corp., Australia's biggest communications provider, of the networks in Papua New Guinea, Fiji, Nauru, Samoa, Tonga and Vanuatu. The networks, being bought from Jamaica-based Digicel Group, are adjacent to subsea cables that carry communications between Australia and its neighbors.
Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
Celestica Inc. CLS.T) 3Q
Restaurant Brands Intl Inc (QSR.T) 3Q
Economic Indicators (ET):
N/A Nunavut municipal elections in Canada
Stocks to Watch:
No items published
Other News:
No items published
Market Talk:
No items published
Expected Major Events for Monday
05:00/JPN: Aug Indexes of Business Conditions - Revision
05:30/JPN: Sep Tokyo area department store sales
05:30/JPN: Sep Nationwide department store sales
08:00/GER: Oct Ifo Business Climate Index
12:30/US: Sep CFNAI Chicago Fed National Activity Index
14:30/US: Oct Texas Manufacturing Outlook Survey
23:01/UK: Sep Zoopla House Price Index
23:50/JPN: Sep Services Producer Price Index
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Monday
Adamis Pharmaceuticals Corp (ADMP) is expected to report $-0.04 for 2Q.
Alliance Resource Partners LP (ARLP) is expected to report $0.73 for 3Q.
Atlantic Union Bankshares Corp (AUB) is expected to report for 3Q.
BancorpSouth Bank (BXS) is expected to report $0.65 for 3Q.
Bank Of Marin Bancorp (BMRC) is expected to report $0.08 for 3Q.
Bank of Hawaii Corp (BOH) is expected to report $1.33 for 3Q.
CF Bankshares Inc (CFBK) is expected to report for 3Q.
CSB Bancorp Inc (CSBB) is expected to report for 3Q.
Cadence Design Systems (CDNS) is expected to report $0.51 for 3Q.
Calix (CALX) is expected to report $0.20 for 3Q.
Chemung Financial (CHMG) is expected to report $1.23 for 3Q.
Citizens Holding Co (CIZN) is expected to report for 3Q.
Community Bank System (CBU) is expected to report $0.81 for 3Q.
Community West Bancshares (CWBC) is expected to report for 3Q.
Consumer Portfolio Services Inc (CPSS) is expected to report $0.15 for 3Q.
Crown Holdings (CCK) is expected to report $1.87 for 3Q.
Dorman Products (DORM) is expected to report $1.31 for 3Q.
Enterprise Financial Services Corp (EFSC) is expected to report $1.01 for 3Q.
F&M Bank (FMBM) is expected to report for 3Q.
FS Bancorp (FSBW) is expected to report $0.89 for 3Q.
HBT Financial Inc (HBT) is expected to report for 3Q.
HMN Financial Inc (HMNF) is expected to report for 3Q.
HNI Corporation (HNI) is expected to report $0.44 for 3Q.
Hope Bancorp Inc (HOPE) is expected to report $0.42 for 3Q.
Kimberly-Clark Corp (KMB) is expected to report $1.54 for 3Q.
Lake Shore Bancorp (LSBK) is expected to report for 3Q.
Lakeland Financial (LKFN) is expected to report $0.93 for 3Q.
Ledyard Financial Group (LFGP) is expected to report for 3Q.
Lennox International Inc (LII) is expected to report $3.67 for 3Q.
Northwest Bancshares Inc (NWBI) is expected to report $0.22 for 3Q.
Otis Worldwide Corp (OTIS) is expected to report for 3Q.
Penns Woods Bancorp (PWOD) is expected to report for 3Q.
Peoples Bancorp of NC (PEBK) is expected to report for 3Q.
Restaurant Brands International (QSR,QSR.T) is expected to report $0.90 for 3Q.
SITE Centers Corp (SITC) is expected to report $0.04 for 3Q.
(MORE TO FOLLOW) Dow Jones Newswires
10-25-21 0618ET
