'Bricks & Slaughter' - Amazon Deal Slams Stocks As Yield Curve Crashes

Tyler Durden's picture

Seemed appropriate...

 

As a reminder, US economic data has not disappointed this much since August 2011... This is the 13th straight week of disappointment for US economic data, and this week is the 2nd worst weekly economic disappoitment since June 2011.

 

The week saw Tech stocks hurt the most (this is the biggest two-week drop for S&P Tech Sector since Brexit) leaving the S&P scrmabled barely into the green, Trannies best, but Nasdaq and Small Caps the biggest losers...

 

(NOTE the panic bid into the close as quad witch closed out...)

 

VIX was crushed into the close as quad-witch caught up with the market. in a desperate attempt to close S&P green... even USDJPY was dragged in to play too

 

Retailers were the worst hit on the week as Amazon's acquisition rippled through almost everything...

 

While value and growth remain divergent, we note that on the week, growth outperformed value...

 

Despite AMZN's big bounce (paying for its WFM acquisition in market cap gains), it remains well below last Thursday's pre-plunge close...

 

This is the worst drop for FANG Stocks since the post-election hangover...

 

Of course, today's headlines were all about Amazon (and Whole Foods)...

 

Notably the correlation between the market and retailer stocks has collapsed...

 

Despite the 36-hour meltup in the dollar after The Fed hiked rates, the Dollar Index is closing lower for 3rd week in a row, at its lowest weekly close since September...

 

CAD and AUD were strongest on the week and JPY weakest...

 

Treasury yields fell on the week, retracing yesterday's loses today back to pre-Fed lows...

 

The yield curve collapsed...

 

Notably, HY Energy credit risk is beginning to get very serious again...

As RBC notes, US HY Energy spreads hit 7 month highs yesterday, not surprisingly as crude broke to new lows.  Here is further color from my man on the desk Dave Schulte, who highlights that some of these sellers are actually now harvesting LOSSES as opposed to taking-profits, which is amazing considering the enormous scale of the rally seen since early last year:

“High yield E&P bonds tracked oil prices downward, hitting a succession of lower lows as the week progressed. Crude-focused beta credits (i.e. lower quality assets and/or high financial leverage) are weaker by as much as 6.5pts. Higher quality names (good assets in core plays with manageable capital structures) held up better, in part due to greater interest rate sensitivity, closing the week 2-3pts lower.

 

Trading activity was very balanced until today; buyers now seem to be on hold, leaving sellers to push paper lower despite a modest uptick in crude.”

The historically tight correlation between breakevens and risk appetite for stocks has collapsed with the former tumbling below pre-Trump levels as stocks hit record highs...

 

Commodities were all broadly lower on the week, despite a weaker dollar week-over-week..

 

This is the 4th weekly drop in a row - the longest losing streak for crude since Aug 2015, closing at the lowest weekly close since the election...

 

Notably, the copper-to-crude ratio has reached back above the 5.5x historical resistance level...

 

Gold was sold once again after tagging pre-Trump levels...

 

Bonus Chart: WTF!!!

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jamesmmu's picture
This Is What The Blowoff Stage Of A Stock Market Bubble Looks Like

http://investmentwatchblog.com/this-is-what-the-blowoff-stage-of-a-stock...

eclectic syncretist's picture

Wait till the fed tries to sell a few trillion in treasuries and mortgage backed securities LOL. 

shizzledizzle's picture

Wait until you die because they aren't unwinding a damn thing.

hxc's picture

You seriously think these assholes aren't trying to wreck the economy? Wtf do u think the previous tech and housing bubbles were? These people surely realize what happens when you pump money into an economy then rip it all out as fast as possible

AllOfGood's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

xtremers9's picture

Yes, U.S. economic data has weakened a little recently. It's enough to cause a small correction. But it isn't nearly enough to cause a bear market. For that to happen, the data needs to deteriorate "bigly". We're not there yet.

 

http://markethistory.org/u-s-stock-market-on-june-16-2017-thoughts-and-o...

Juggernaut x2's picture

The stock market is in no way correlated to the general economy- it is a policy tool

3rdWorldTrillionaire's picture

I'm throwing in the bear towel, this is the new normal... central bank purchases globally to collaboratively weaken all currencies together and send asset prices soaring.

Tiwin's picture

So much chart porn......its like missionary sex tho.

Can we get more commodities for us kinkier types?

I liked those metal charts mmmMMmmmmmm

Hohum's picture

In the red light/green light model, we should expect rebounding macro indicators.  That, or complete collapse.  Where's my consultancy fee?

equity_momo's picture

SP500 unch otd . job done boys.  

Take 2 days off to do hookers and blow and see you back here bright and breezy for another day of bubble management Monday morning.

Hooah.

Crypto-World-Order's picture

Hope you all jumped on the wholefoods rocket today. what a an easy quick picking. LTC is showing signs of  life. Gold and silver are still in need of viagra.

chicken_goose's picture

Anyone else think that the Fed's rate "hike" (I hate to call +25bps a "hike") this Wednesday was probably the last one of this cycle? I really do think that that could very well be it for this so-called "tightening cycle". No way we make it to December without another major stage of the ongoing crisis occurring in my opinion.

Hohum's picture

Maybe more hikes, but interest on excess reserves will keep up.

VWAndy's picture

 Tanking AMZ ?

order66's picture

ES about to explode higher.

equity_momo's picture

Plenty of upside , Yellen is right when she says no sign of asset bubble. When a company thats barely profitable with a PE of 180 buys another company that sells semen flavored vegan mints for $10b, it tells me to lever up and get on board.  Rude not to.

desertboy's picture

Sorry - but the Fed will protect its vested security-state interests - Amazon, Facebook, Microsoft, etc.

xrxs's picture

 Deer looks like a Kroger shareholder.

MrSteve's picture

2017 best trader is Mariano who just sold his chain of stores to Kroger, catching a top.

Overleveraged_and_Impatient's picture

Bow down to your gods, the President's Working Group on Financial Markets. There will be no more down days. We are on the straight path to S&P 500 3000, and 4500 by Q1 2019.

BoxHead1's picture

Amazon is a juggernaut they can't be stopped. 

Simply the best. 

A#1 the duke of retail, distribution, cloud and soon EVERYTHING. 

Juggernaut x2's picture

Without cheap money AMZN ain't shit

adr's picture

Forgot the sarc there buddy. 

Sending a 250 lb box from California to New Hampshire for free isn't any type of excellent distribution. 

Amazon loses money on almost everything they sell and anything other than counterfeit goods isn't worth selling on the Amazon marketplace because you'll lose your ass drop shipping product for Amazon and not getting paid. 

 

Blankenstein's picture

Not really.  Amazon makes a lot of money selling counterfeits and Chinese junk.  

 

"Always a problem, the counterfeiting issue has exploded this year, sellers say, following Amazon's effort to openly court Chinese manufacturers, weaving them intimately into the company's expansive logistics operation"

 

"Furthermore, Amazon's commingled inventory option bundles together products from different sellers, meaning that a counterfeit jacket could be sent to an Amazon facility by one merchant and actually sold by another."

"Amazon is making money hand over fist from counterfeiters, and they've done about as little as possible for as long as possible to address the issue,

 

http://www.cnbc.com/2016/07/08/amazons-chinese-counterfeit-problem-is-ge...

 

 

Arnold's picture

Woolworth's, Macy's, Kreske, Sears......

803Mastiff's picture

Bezos aka Dr Evil....holding the world hostage...ransom $1 Million ooops...$1 Trillion Dollars stock valuation....

adr's picture

I think we should have fuck the doctors day, where we all go for $1000 five minute checkups and stiff them on the bill. 

FUCK YOU OVERPAID WORTHLESS PRICKS!!! 

It doesn't cost $1000 to swab a throat and wait five minutes for a line to turn a color. 

FUCK YOUR $300 A PILL ACETAMINOPHEN TOO!!! 

Physician networks need to be banned. This double and triple billing needs to be banned. 

The executives running this shitshow need their throats slit. It is supposed to be health care, not fuck you up the ass because you have no choice care. 

Why do you need a PHD in general fuckology to understand a medical bill? 

The amount of people needing the guillotine gets larger everyday. 

Vladislav Surkov's picture

g-unit works too fast, tar and feather for enjoyment

Peak Finance's picture

LOLZ dude will not work!

You need to pay the co-pay up froint at a LOT of doctors now, most likely 100% of the doctors will take the co-pay up-front as the newer software updates are rolled out over the next year or so. 

Like the main feature of the new packages are up-front insurance validation before they even schedule in your appt, and up-front collection of expected co-pay. 

 

jomama's picture

Someone needs to pay for those $500,000 med school degrees.

Might as well be the average American moron.

Vladislav Surkov's picture

glad to see the doelar back on zeeee aich/abc media ellllteeedeee

vegas's picture

Another bullshit ramped close, crush the VIX, blah blah yada yada. Nothing says buy stocks more than possible darling Amazon downgrade, horrible data, crashing crude, and lower bond yiields. Ohh wait ... I forgot ... everything is "transitory" ... shit, what was I thinkin'?

 

www.traderzoogold.blogspot.com

WorkingClassMan's picture

You had a transitory thought...and like that it disappeared.

 

Just like our money and jobs...transitory...here one year, gone to the Third World the next.

Sorry_about_Dresden's picture

Stupid post doesn't even mention terms of AMZN WFM deal? WTH?

gnjus's picture

Where is crypto currency chart ?
No mention ETH bounced back and restored back to previous (highest) levels.

Peak Finance's picture

AND it looks like LTC is ready to run, lots of upside there.

 

Swamp Yankee's picture

Buy!  Sell!  Buy!  Sell!  MOAR beer!