Financials FUBAR As S&P/NASDAAPL Close Unch For The Month

Tyler Durden's picture

Oh the exuberance. CRAAPL led the NASDAQ down heavily today as its high-beta ebullience reverted back to 'normal' and the S&P 500 and NASDAQ are closing practically unchanged for the month of July. The Dow Industrials are down 0.4% but the Dow Transports are down 2.65% - near their lows of the month. Financials have been monkey-hammered as today's offer-a-thon dragged them dramatically lower (MS/BAC -13% for the month). A late-day OPEX-inspired activity burst dragged volume up from near year lows and likely inspired the surge lower in VIX into the close (even as stocks went sideways to lower) - but still ended up 0.75vols back above 16%. Treasuries end the week down 2-3bps at the long-end and 4-5bps at the short-end with a decent rally today. The USD is up a modest 0.25% on the week - thanks to notable weakness today in EURUSD (which broke its pattern of reverting today) though dispersion was broad with AUD stronger by 1.5% and EUR weaker by 0.75% on the week. Gold and Silver are practically unchanged on the week, Copper down around 1.5% and WTI up over 5% - but only WTI is up for the month. Cross asset class correlation picked up towards the end of the day as ES caught-down to broad risk asset's less sanguine view of the world. ES ended the week up around 7pts, VIX down around 0.5 vols with financials -2.25% and Energy +3%.

The major US equity indices are unch for the month...with the Trannies lagging badly...

but Treasuries are very significantly lower in yield...

as the major financials have been pummeled this month...

With some very considerable dispersion among the sectors this week...

and for the month...

and on the week, equities remain modest winners relative to the Friday close as the rest of the QE-sensitive assets converge lower...

Correlation rose notably (more systemic risk off flows) as ES converged lower to where broad risk assets were (please ignore the gap in the data - there was a data center error)...

But Oil was the big mover on the week (and month so far) especially compared to the rest of the economically sensitive commodities...

Charts: Bloomberg and Capital Context

Bonus Chart: While all eyes were focused on Kayak's IPO - which ended well off its highs, we note that Palo Alto Networks - while well above its IPO price - ended at the lows of the day, 15% off its highs of the day, oops!

Bonus Bonus Chart: The scary echo chart....another perfectly correlated failed retest of the latest swing high to continue the correlation with last year...