"Watching things trade on Friday afternoon baldly made the point that traders have lost confidence in their ability to interpret what’s plainly market-moving news. Far from hoping to be the first to trade, they need someone else to commit and help create the narrative."
Bill Gross and his former employer PIMCO announced that they have reached an amicable settlement of the breach-of-contract lawsuit filed by Mr. Gross in October 2015, under which Gross would reportedly be awarded $81 million.
While Democrats debate whether or not to filibuster the Neil Gorsuch nomination for Supreme Court, moments ago they delayed for one week an initial committee vote on Gorsuch. Senator Chuck Grassley, the chairman of the committee, said Democrats had requested that the committee's vote on Gorsuch be punted to next week.
"Recalibrating political expectations is the main reason for the softness as investors debate the timing and scope of a tax bill, although the market isn’t abandoning hope of action on the tax front by any means and until that happens the SPX will struggle to sustain sig. weakness."
"Now, obviously we have to find a point at which to reestablish modest net short positions and we shall; but not likely today. Today we shall watch how things develop; we are but mice in the fields with elephants at the moment and ‘tis best to stay away from stampeding elephants when at all possible."
10Y yields are back below 2.40% and 30Y below 3.00% as the post-rate-hike curve collapse continues, aided by the biggest short-squeeze since Brexit sending speculative Treasury shorts to their lowest since November.
Robots are going to take all our jobs, and it doesn’t matter. We should actually be thrilled about the prospects of automation, because it means freeing up economic resources, including arguably the most valuable resource, time.
A week after giving his daughter Ivanka an office in The White House, President Trump is reportedly creating a new position for his son-in-law and senior adviser even as Jared Kushner faces a Senate panel investigation into his Russia connections.
"Oil prices above $60/bbl would prove self defeating in our view given the flattening of the oil cost curve and the unprecedented velocity of the shale supply response." A decision to extend cuts, "would only exacerbate the backwardation that we project... and created downside risk to our 2018 $58/bbl forecast."
Following disappointing Manufacturing and Services PMIs last week, this week has not started well for the hope embedded in 'soft' survey data. After six straight months higher, The Dallas Fed Manufacturing Outlook slumped in March (down 7.6pts to 16.9). This is the biggest drop since Jan 2016 and was lower than all estimates.