10-year yield hits highest level since July. Three ways to play rising rates

As Treasury yields rise, some related investments stand to benefit, two traders say.

The U.S. 10-year Treasury yield on Friday reached its highest level since July following the Federal Reserve's suggestion earlier in the week that it would begin winding down its asset purchasing program. (On Monday, the yield pushed above 1.5%.

“We're definitely seeing a break above key resistance,” Simpler Trading director of options Danielle Shay told CNBC's “Trading Nation” on Friday.

“I'm looking at the 10-year to go at least 1.5%, and if it can go above that area of resistance, then I'm looking at even 1.7,” she said. “With that, I'm looking primarily at the banks and any type of trading companies.”

Her favorite was JPMorgan for its leadership position in its industry, the growth of its trading offerings and its strong technical setup.

“I'm looking for a breakout up to new highs, which would be right around the $180 price point,” Shay said.

JPMorgan hovered just above $164 a share in premarket trading on Monday.

Two other names looked well-positioned to capture rate-related upside, Piper Sandler senior technical research analyst Craig Johnson said in the same interview.

“We're looking for 1.50 to 1.75 on the 10-year by year-end. That's been our call all year, and we're certainly sticking with that call,” Johnson said. “Bank of America is among the most highly correlated coming back to interest rates.”

Johnson also likes SVB Financial, another name he found to be highly correlated with bond yields.

“Both of those charts … look technically constructive. They're making what we would consider to be consolidation patterns,” Johnson said. “Typically, those sort of consolidation patterns we're seeing in both of those shares typically resolve themselves to the upside.”

Internet Explorer Channel Network
News Related

OTHER NEWS

Skyworks Solutions (SWKS) Outpaces Stock Market Gains: What You Should Know

Skyworks Solutions (SWKS) closed the most recent trading day at $161.28, moving +0.47% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.34%. – Zacks ... Read more »

Nokia (NOK) Gains But Lags Market: What You Should Know

Nokia (NOK) closed at $5.91 in the latest trading session, marking a +0.17% move from the prior day. The stock lagged the S&P 500’s daily gain of 0.34%. – Zacks ... Read more »

ScanSource (SCSC) Stock Sinks As Market Gains: What You Should Know

ScanSource (SCSC) closed at $36.71 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500’s 0.34% gain on the day. – ... Read more »

Brand Mentions and How They Can Help Your Business Grow

Digital PR isn’t only about generating links. It can provide search rankings. It can also support revenue growth, attract loyal customers, and build brand recognition. 200degrees / Pixabay – Valuewalk ... Read more »

Steel Dynamics (STLD) Surpasses Q3 Earnings and Revenue Estimates

Steel Dynamics (STLD) came out with quarterly earnings of $4.96 per share, beating the Zacks Consensus Estimate of $4.95 per share. This compares to earnings of $0.51 per share a ... Read more »

TJX (TJX) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, TJX (TJX) closed at $64.64, marking a +0.45% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.34%. – Zacks ... Read more »

Altria (MO) Stock Sinks As Market Gains: What You Should Know

Altria (MO) closed the most recent trading day at $48.13, moving -1.17% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.34%. – Zacks Heading ... Read more »

Buy Now, Pay Later Isn't Bad — But Be Careful

Those cheesy TV infomercials promising “three easy payments of $19.99” were quite ahead of their time. Though calling a toll-free number to buy as-seen-on-TV items is no longer in style, ... Read more »

Annaly Capital Management (NLY) Flat As Market Gains: What You Should Know

Annaly Capital Management (NLY) closed the most recent trading day at $8.58, making no change from the previous trading session. This change lagged the S&P 500’s daily gain of 0.34%. ... Read more »

Markets Bounce Back on S&P 500, Nasdaq

Markets closed the first trading day of the week mixed, after starting the day in the red across the board. Bouncing off lows nearly -260 points, the Dow this morning ... Read more »

Cassava Sciences, Inc. (SAVA) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Cassava Sciences, Inc. (SAVA) closed at $50.16, marking a +0.95% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.34%. ... Read more »

United Parcel Service (UPS) Stock Sinks As Market Gains: What You Should Know

United Parcel Service (UPS) closed at $193.39 in the latest trading session, marking a -0.19% move from the prior day. This move lagged the S&P 500’s daily gain of 0.34%. ... Read more »

5 Retail Stocks to Beat Q4 Volatility

Volatility can be scary. Because stocks can move higher or lower for no apparent reason. Yet volatility creates the opportunities that watchful investors can grab to make outsized gains. So ... Read more »

ABS issuance plunges 31.5% in Q3

(Yonhap)The issuance of asset-backed securities (ABS) in South Korea plunged over 30 percent on-year in the third quarter of this year due to a decline in sales of mortgage-backed securities, ... Read more »

Disney vs. Netflix: Traders place their bets on these streaming stocks

It's a showdown in the streaming space. CNBC's “Trading Nation” asked its traders Monday whether they're betting on Disney or Netflix shares here. “My kids might give you a different ... Read more »

Johnson seeks upper hand over Macron with flurry of green deals

Boris Johnson has sought to gain the upper hand over Emmanuel Macron as he combats French attempts to lure foreign investment with a slew of UK deals backed by overseas ... Read more »

Stock futures are flat ahead of major earnings reports on Tuesday

Traders work on the floor of the New York Stock Exchange (NYSE), October 12, 2021.Brendan McDermid | Reuters U.S. stock futures were steady in overnight trading Monday as investors geared ... Read more »

Bank of England 'will have to act' - raised rates to hit your mortgage, savings & pensions

Inflation may force the Bank of England to raise rates in the coming months but unfortunately, savers may not feel the benefit. In a poll of 3,108 interactive investor website ... Read more »

ABS issuance plunges 31.5 pct in Q3

SEOUL, Oct. 19 (Yonhap) — The issuance of asset-backed securities (ABS) in South Korea plunged over 30 percent on-year in the third quarter of this year due to a decline ... Read more »

SEC says brokers enticed by payment for order flow are making trading into a game to lure investors

Rafael Henrique | LightRocket | Getty Images The Securities and Exchange Commission said online brokerages, enticed to increase revenue through the controversial industry practice of payment for order flow, are ... Read more »

Britons race to obtain ‘lower mortgage rates' in ‘deadline' similar to stamp duty holiday

Interest rates for mortgages are currently at a historic low across the UK, however, this could soon change. With inflation rising across the country, the Bank of England has warned ... Read more »

State pensions face fresh blow: Bank of England's interest rate plan risks lower payouts

Bank of England governor Andrew Bailey has warned it will “have to act” due to the increased rate. Inflation is expected to be above four percent by the end of ... Read more »

If you're joining a Medicare Advantage Plan for the first time, here's what you need to know

fizkes | iStock | Getty Images For Medicare beneficiaries who want to join an Advantage Plan, now is the time to do it. Just be sure you know what the ... Read more »

First bitcoin futures exchange-traded fund starts trading Tuesday. What to know before adding it to your portfolio

Bitcoin on display. Chesnot | Getty Images The first U.S. bitcoin futures exchange-traded fund will launch on Tuesday, a milestone for the cryptocurrency industry, and others may soon follow. The ... Read more »

Støre promises major clean-up of working conditions in Norway

Prime Minister Jonas Gahr Støre (AP) put working life policy at the very top of his priorities in his declaration of accession. “The government will fight social dumping and carry ... Read more »

Self-employed face a 'complicated challenge' - five key reasons to do your tax return now

Self-employed workers have been urged to be careful with their Self Assessments as their latest returns could include income from various coronavirus support schemes. The deadline for paper tax returns ... Read more »

Goto Energy is 13th supplier to cease trading since start of September

© Provided by Daily Mail MailOnline logo Goto Energy has become the latest in an ever-growing list of energy suppliers to go out of business since the start of September ... Read more »

Stocks making the biggest moves midday: Disney, State Street, Occidental and more

The New York Stock Exchange welcomes The Walt Disney Company (NYSE: DIS), today, Tuesday, May 4, 2021, in honor of Star Wars Day.Source: NYSE Check out the companies making headlines ... Read more »

Carl Icahn says the market over the long run will certainly 'hit the wall' because of money printing

Carl Icahn speaking at Delivering Alpha in New York on Sept. 13, 2016.David A. Grogan | CNBC Longtime activist investor Carl Icahn said Monday that the U.S. markets could see major ... Read more »

Goto Energy becomes 13th supplier to collapse as gas prices surge

Goto Energy has become the latest supplier to cease trading amid surging wholesale gas prices, regulator Ofgem said. © Sky Around 2 million customers have been affected by the company ... Read more »

Large lottery cash drawings were not enough to increase Covid-19 vaccination rates, study finds

California Gov. Gavin Newsom drew 10 winners in Universal City, California, on June 15, 2021, as part of the final cash prize drawing in California's $116.5 million Vax for the ... Read more »

Bitcoin could be about to hit all-time record high

© Getty Images/iStockphoto The price of bitcoin is up nearly 50 per cent in October – Getty Images/iStockphoto Bitcoin is closing in on its all-time high after surging in price ... Read more »

Covid-related scams have bilked Americans out of $586 million

boonchai wedmakawand | Moment | Getty Images Consumers have lost $586 million to fraud linked to the Covid-19 pandemic, according to data from the Federal Trade Commission. Americans filed more ... Read more »

Move quick to get best mortgage deals before interest rates rise

Home owners looking to re-mortgage should get their skates on. That’s the message from mortgage brokers surveying the latest signs of market movement, and the latest remarks from Bank of ... Read more »

Here are some smart financial moves for new parents

AJ_Watt | E+ | Getty Images There are a lot of “firsts” for new parents — and measures to shore up household finances are among them. Expenses for a new ... Read more »

There's a growing demand for psychology in financial planning. How top firms use it in their practices

Getty Images There's a growing emphasis on psychology in financial planning — merging traditional advice with elements of behavioral finance — as advisors explore ways to strengthen client relationships. But ... Read more »

Stocks making the biggest moves in the premarket: Zillow, Revance Therapeutics, Albertsons and more

Take a look at some of the biggest movers in the premarket: Zillow (Z) – Zillow slid 6.4% in premarket trading, following a Bloomberg report that the company has temporarily ... Read more »

CNBC's Sustainable Future Forum Europe: Responsibility & Regulation

The Sustainable Future Forum Europe session on Monday focused on responsibility and regulation. The way in which we achieve a sustainable future is everyone's responsibility. From big business regulation and ... Read more »

Bank warning: Contactless card limit rises to £100 - how to avoid being scammed

This most recent change came into effect on October 15, 2021 and is the fifth time the card payment threshold has been raised since 2017. The last limit was £45 ... Read more »

Budget 2021 predictions: What to expect in Rishi Sunak's autumn budget from minimum wage rise to tax changes

Rishi Sunak will deliver his Budget and Spending Review to the Commons next week, setting out the government’s spending and financial strategy. He is expected to unveil a number of ... Read more »