Stocks Shrug Off Shutdown Shenanigans; Ignore Obama's "Sell" Order
The dump into last night's close marked the lows of the last 24 hours as US equities decided that worrying about government shutdowns, near-record negative earnings pre-announcements, disappointing job growth, debt-ceiling dynamics that are increasingly feared in money markets, and a reversal in the key "soft" survey data was not enough to stop them BTFATH (thanks to confused banter from several Fed heads).
Summing up here - equities disconnected from everything else... (SPY Arb left is a model that compares SPY to HYG/VXX/TLT - in other words an ETF-based capital structure model... and CONTEXT right is a 'proxy' for risk-assets across asset-classes compared to S&P futures)...
The Dow ended the week worst (-1.25%) followed by the S&P (getting back near unch this afternoon) as the NASDAQ and Russell were modestly green.
Treasury yields close the week 1-3bps higher (after ramping 8bps low to high today).
The USD ended -0.15% (after rallying 0.5% today on JPY and EUR weakness).
Commodities have been relatively quiet (aside from ubiquitous spikes) the last 2 days with gold worst -2% on the week.
The disconnects were everywhere... but caught up in general by the close...
Charts: Bloomberg and Capital Context
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