Dow Jones Closes At Record High As Economy Grinds To A Halt

Tyler Durden's picture

The Russell 2000 tumbled to its worst month since May 2012. 30 Year bond yield had the 2nd best month in a year (with the entire bond complex lower and curve flatter for 5th month in a row). Gold rallied for the month as high-yield credit spreads widened for the 2nd month in a row. US economic growth collapsed. But what really matters... what is key for the headline-makers, story-tellers, and asset-gatherers... is that the Dow Jones Industrial touched new record highs. On the day, early equity weakness gave way to exuberant buying as the Fed admitted its forecast for Q1 was shit but everything it says about the future is spot on - stocks urged, the Dow hit new all-time-highs (and green for the year) but once that level was hit, stocks began to fade but were rescued by the always-happy-to-help 330 Ramp which closed us at record highs and green year-to-date. By the close, the day saw Stocks Up, Bonds Up, Gold Unch, USD Down

 

Quite a divergence today...

And on the day, Trannies spiked at the open as everything else dropped... the post Chicago PMI rip stalled as Europe closed, then the Fed provided absolutely fucking nothing to juystify stocks rallying...

 

As VIX was banged lower...

 

But Year-to-Date, Gold remains the winner...

 

Year-to-date, the Dow managed to close green YTD

 

April left the Russell the big loser - worst month since May 2012

 

Here's April for the S&P Sectors...

 

April was a very different month for credit markets with HY notably wider and not at all excitd about the most recent pop in stocks... this is absolutely not sustainable - you can't keep levering firms to do buybacks if the credit market for highly levered firms begins to get saturated and costs of capital surge... where have seen this before?

 

Treasuries were mixed with notable flattening across the complex in April...

 

The Treasury curve flattened for the 5th month in a row

 

Commodities were mixed on the month with gold closing in the green

 

 

Charts: Bloomberg

Bonus Chart: What was the market discounting a year ago?

 

Bonus Bonus Chart: Seems like Treasuries are on to something with the macro fundamentals... and stocks ramp on hope and dump on reality...

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Aknownymouse's picture

DOW all time high for CNBC 25 years anniversary.  UNRIGGED!

I am more equal than others's picture

 

 

 

Remember this is an unrigged market. 

Orwellian - Pavlov training.  You will be made to believe this is not rigged.

Battleaxe's picture

Oh, as long as the DOW is good then that's all anyone cares. I love seeing those GREEN numbers filling up my TV screen when watching my favorite show Closing Bell! It's all just fucking wonderful!

pods's picture

Just think about how high the DOW will be when we start having negative GDP growth!

pods

Sticky Wicket's picture

You mean next month after this is revised down?

lotsoffun's picture

for the hopiums, might imply double down printing, almost makes sense to me.

TBT or not TBT's picture

Yep, the Fed will dutifully introduce NIRP to prevent stockholders seeing the canyon yawning below the feet of the real economy. For a little longer.

john39's picture

all hail central planning...   well, at least on paper everything looks fantastic.  so what if you must suspend common sense, outlaw basic human behavior, cause starvation war and suffering...    on paper this is working.  until people have to burn the paper to keep warm anyway.

Aknownymouse's picture

You've gotta wonder.  With this CNBC25 celebration and the whole staff waving goodbye on the closing bell, could that be an ironic omen for what's to come starting May 1st in the market?  Is that the absolute top for the next few years?  Could we all be waving goodbye to CNBC soon?

GooseShtepping Moron's picture

I was thinking the same thing. God does have a sense of humor. It smacks of that "permanently high plateau" talk we heard on another such occasion...

Mentaliusanything's picture

Me thinks God does have a great sence of Humor... and it is end of month "must be green" day

I'm bored and thats never a good sign

furgheddubouddit's picture

This market has reached it's peak.

The divergence from fundamentals is caused by one final Wall Street pump, designed to lure the last hapless buyers in, so the trading houses can offload their hideously overvalued stocks.

If you're stupid enough to buy in at these levels, you simply deserve to lose your money.

And if your fund manager was stupid enough to plow your retirement savings into the stockmarket at these levels - my condolences.....

 

Eyeroller's picture

"Could we all be waving goodbye to CNBC soon?"

From your lips to God's ears...

Max Damage's picture

Spains GDP today 0.4% and they are totally fucked. The USA today was 0.1% and as we know completly false due to Obamacare and inflation lies. SO if Spain can do 0.4% then the USA must be really down the toilet. Perfect excuse for another braindead all time high in full retard stocks

disabledvet's picture

There is no contradiction between a very cold yet short winter and a production boom in North America...especially when it comes to food and energy.

From my trip cross country simply put "the grass is green, the nutrients were locked in the ground and there is no problem with industrial scale irrigation.

Obviously energy production continues to soar and sheer scale of the ability to ship goods through and out of North America at de minimus cost is simply beyond imagination.

So far we enough inflation to keep equities bid...but once equities correct then I think we'll see the simple contradiction of a "growth recession" laid bare.

I would not be surprised if this Adminstration pushes very aggressively "outwardly" on the "three fronts" of "Ukraine", "North Africa" and East Asia.

Interestingly the only one of the three that would be outwardly aggressive would be North Africa.

Israel of course makes that aggression inevitable.

machineh's picture

Dow Utilities hit a record high of 553.58 today, beating the old high of 550.06 set on 9 Jan 2008.

Perhaps bullish for bonds ... and indirectly for commodities, if real interest rates drift down.

CBNC (Creeps, Brokers, Nitwits and Clowns) is why I ditched my television. You watch, you lose!

davidalan1's picture

Jeffrey immelt was on this morning...how funny...Jobs Czar lmao...GE, cnbc, nbc, msnbc...dayaaaaam, The boy has some clout

Buck Johnson's picture

We are going to really feel this when the whole system collapse.

 

goldhedge's picture

YOU CANNOT MAKE THIS SHIT UP!!

Gringo Viejo's picture

@goldhedge

No you can't. Dollar down 30 basis points....gold/silver DOWN.
TY...you moronic, gaming turds. I buy ALL THE WAY DOWN.

cosmyccowboy's picture

i logged in just to upvote the 'buy all the way down'

thethirdcoast's picture

GDP ALREADY PRICED IN!

Bunga Bunga's picture

BETTER THAN EXPECTED™ & THIS TIME IS DIFFERENT™

lotsoffun's picture

the thirdcoast - yes. well lack of actually.

Grande Tetons's picture

Fun day! Excuse me...I need to go stick my face in a fan. 

Cursive's picture

Josef Stalin would be jealous.

jubber's picture

obviously the DAX futures  just leapt up to the HOD in sympathy, although the underlying market is obviously closed

gjp's picture

Market ain't discounting shit, except more handouts from Ben and Janet.  And taper or no taper, through Belgium, VIX slamming, or whatever, you can be sure the handouts are continuing.

Was that the lowest volume on an FOMC day ever?  The 2014 normal seems to be either collapse or a comatose drift upwards.

lotsoffun's picture

especially as bank of america found only 4 billion of merrill lynch loses in the closest.

no taper wanted there.  4 billion was at one time, a lot of money.  but - memories are short and it's different this time.

 

Xibalba's picture

We should have winter every year!  Who knew it'd be so great for 'markets'

Hindenburg...Oh Man's picture

Right, some kind of Game-of-Thrones-like endless winter would be endlessly bullish for the economy.

Crazy that we could print .1 percent annualized GDP number and close at record highs.

 It was almost as if all the traders were tuned to CNBC, jerking off and pressing the buy button as they watched the orgasmic 25-yr-anniversary closing bell.

maskone909's picture

Silver getting absolutely clobbered

Conax's picture

Gold the biggest winner (they gots some gold)

Silver always the biggest loser.

The maniacal hammering of silver leads me to believe it truly will be their Achille's heel someday, and maybe soon.

Man they hate the shiny.

Silver, Bitchezz.

maskone909's picture

Silver has amazing anti-bacterial properties that are not yet fuly understood. It can be incorporated into bandages, catheters, and surgical equipment. Imho al medical equipment should contain silver, and one day it very well could.

Conax's picture

I know.

You can even eat it.

Good for ya.

Conax's picture

Well you can eat it but pigging out is never a good idea.

You can eat some, though.

pods's picture

I take it often. No blueman here.  

Seems moderation was missing in that guys vocabulary.

Don't generate your own, and if you do, drop a bit of salt in it. If you see precipitation, you made silver ions, which will drop out when it hits a Cl- in your body.

This guy was drinking copious amounts of silver ions that he generated.  No control on ion content or concentration.

Silver particles pass through your body rather quickly.

pods

AvoidingTaxation's picture

How many people involved? Why he did this?

How about eating some KG of FRN's?

lakecity55's picture

The widder should be able to reclaim a couple o'pounds of Ag there.

"We formed him into an ingot, ma'am."

Lastline's picture

CNBC celebrating like it's 1999.  They'll be eating dumpster shitburgers when the dust settles.

what's that smell's picture

i'd gladly pay you tomorrow for a dumpster shitburger today.

machineh's picture

... with Dec 2015 call options.

You can't lose!

lakecity55's picture

"Stay on your own side, there, buddy!"
"OK."
"Say- you used to work for CNBC!"
"Yep."
"Well, just stay on your side of the dumpster."