With 10 year yield futures holding firm above 4.19%, corporate bond spreads are widening. Equity strategists expect credit-sensitive sectors like banking to show resilient earnings but warn of rising default risks in lower-tier issuers. The dividend is an integral part of Lockheed's investment thesis. Lockheed's stock price has been lagging many of its defense contractor peers. But its yield is one of the highest in the industry at 2.7%. What's more, Lockheed is a great value, sporting a forward price-to-earnings ratio of 22.2. "My own view is people feel pretty good because you haven't seen effective tariffs" yet, Dimon said at the bank's annual investor day in New York. "The market came down 10%, [it's] back up 10%; that's an extraordinary amount of complacency." Higher 10 year yield futures tend to drive capital flows into short-duration fixed income, reducing liquidity in high-P/E equity markets. Traders are watching for breakout patterns in treasury futures as a proxy for equity sector rotation timing.
