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Bonds & Black Gold Battered But Stocks Give Up GDP Gains
While equity markets were in focus for the mainstream, the big moves today occurred in Treasuries and oil prices. From the GDP release this morning, Treasury yields surged higher, rallied briefly after FOMC, before closing near the high-yields of the day (up around 10bps or the most in 9 months). Oil prices started to tumble at around 1030ET, flushed again on EU close, tumbled early afternoon on sanctions headlines, then pumped-and-dumped after FOMC to close at near 3-month lows (below $100). Equity markets surged on GDP, dumped on sanctions, pumped-and-dumped on FOMC, then lifted to the close. Only the Nasdaq ends the day above pre-GDP data levels. On the day, only the Dow closed the day red. Gold and silver chopped around in a narrow range as the USD index roundtripped from early GDP gains after FOMC. VIX closed modestly higher on the day. The Russell 2000 is -4.2% for July, its worst month in 2 years.
Post-GDP, only the Nasdaq held its gains...
Post FOMC, stocks roundtripped then limped higher into the close...
But on the day, only the Dow closed red...and S&P unch...
Since the MH17 Headlines only the bubblicious Nasdaq is holding on to gains...
Treasuries dumped...
Oil slumped below $100 - 3-mo lows...
Gold and silver tread water but oil dumps...
Charts: Bloomberg
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Le PM dump. It is scheduled for tomorrow. Ask your masters: DB, UBS, GS, JPM, etc.
EBullish?
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Great. I'm going to Yerp in September. I hope they don't get contaminated until I get enough wine and cheese.
The odds of Ebola becoming a genuine threat to industrialized nations are low.
That's what I thought until you consider the potential for an infected person to deliberately travel and infect as many people as possible, sort of like a suicide bomber. How long before martyr's travel to an Ebola prevalent area then hop on the next flight to NY. Such is the fucked up world we live in.
yea the NQ only closed up half a percent, its basically a down day.
An email from the President of my current employer on the GDP beat:
Second quarter gross domestic product is up a whopping 4%. This is up from and adjusted first quarter negative 2.1 %. Housing up 7.5 % in the second quarter. This is good news for the economy and helps take the negative out of people minds about things aren't as good. Hopefully builders will start building more homes and people will start buying more homes. In the same light businesses will start making more capital investments and buildings inventories. And hopefully municipalities will start funding new projects which create more public finance advisory business, more underwriting, more trading and improved capital markets.
This is goods news. Let's drink the koolaide and get out there and get more than our share of the opportunity.
Damn near fell off the toilet while taking my morning shit when I read this.
Wow are they just plain stupid. Should say take your vacation and enjoy what time is left before it hits the fan. With those lies cant be far
thread title is oddly evocative of Ben Roethlisberger
Holy crap -- the last two days were among the most difficult trading days of the year, with econ data positioning algos confronting geopolitical news-parsers. No matter the methodology -- slow stochastics or mental gymnastics, MACD or Claritin-D, Fibonacci or grandma’s Yahtzee, VWAP or afternoon nap, mean reversion or mild perversion – regardless of how you traded, you probably lost big on a few trades. The upcoming big Jobs# and continuing international crap guarantees more dragonfly trading action for the rest of the week . . .
Another one who will wish, soon, he sold everything and bought farmland.
Whatever happened to the metals rehypothication warehousing scam in China?
4percent gdp will make the world forget everything rite?
Fingers in ears LA LA LA LA LA LA LA LA LA LA LA LA LA LA LA LA LA LA LA LA
GDP gains? Perhaps it occurred to them that the last quater was expected to be 3% and turned into a minus 2.9%. My bet is this 4% ends up being cut in half to 2% at best. Look at that jobs number today. 202,000 service sector jobs. Service sector is code for Part time.
Churn and burn.
Oil dumping has to hurt though.
Starting to get some real inflation prints on the labor side (swift transportation getting hammered.)
That industry loves oil prices going through the roof.
Needless to say price collapses means the exact opposite. I understand this is "counter intuitive" to the headline people out there so you'll just have to trust me on this.
Hard to tell if this mid cycle correction is also a full blown credit contraction or not yet. Talk about counter intuitive!
However...Government isn't just big here...it is GIGUNDO. Wage push inflation combined with a collapse in energy prices says to me....says to me...says to me...
HOW 'BOUT THOSE YANKEES!!!
yellen and the fed are becoming a topic of jokes and scorn, expect it to get worse befor joe six pack, panicks. then capital controls..we all know .gov will take savings, I am short the market, and will remain short as the jig is up, the music stops, got a chair?