The U.S. dollar was rising against the Japanese yen this morning as foreign investors take notice of the jump in United States Treasury yields. The Japanese yen is now trading at a three-year low against the dollar, while the U.S. dollar Index is working on a two-day rally against a basket of other currencies. The falling yen prompted a rally in the Japanese market, and the Bank of Japan is still pushing economic stimulus. S&P 500 futures rose a quarter of a percent in premarket action. If investors follow through, the S&P 500 could be set to create another all-time high. The Dow Jones Industrial Averages futures were also up more than a quarter percent in premarket trading, looking to create a new all-time high too. The Financial Select Sector outperformed the S&P 500 in 2021 but has weakened in strength since June. Some of the largest banks and financial firms will kick off earnings season this month. On January 14, JP Morgan ($JPM@US), Wells Fargo ($WFC@US), and Citigroup ($C@US) will report earnings. Bank of America ($BAC@US) and Goldman Sachs ($GS@US) list the following Tuesday. Investors have been favoring value stocks, and this could bode well for many financial stocks. Continued rallies in the 10-year yield could keep these stocks moving, and if these companies top analyst expectations, they could see additional attention.
